REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 16, 1971, at 9 A.M., in the Envoy Room, Quality Motel, 1840 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Pan American Petroleum Corporation, now known as Amoco Production Company, for an order establishing 80-acre drilling and spacing units for the production of oil from the "J" Sand, underlying certain lands in Adams and Arapahoe Counties, Colorado.

FINDINGS

The Commission finds as follows:

1. That due notice of the time, place and purpose of the bearing has been given in all respects as required by law.

2. That the Commission has jurisdiction over the subject matter em-braced in said Notice, and of the parties interested therein, and jurisdiction to pro-mulgate the hereinafter prescribed order.

3. That evidence presented at the hearing indicates that the "J" Sand constitutes a common source of supply of oil underlying the following described lands in Adams and Arapahoe Counties, Colorado, to-wit: A dams County Township 3 South, Range 59 West, 6th P.M. Section 33: All Section 34: All Arapahoe County

Township 4 South, Range 59 West, 6th P.M. Section 3: All Section 10: All Section 4: All Section 15: All Section 9: All Section 16: All

4. That in order to prevent the waste of oil and gas, as defined by law; to protect the correlative rights of all parties concerned; to prevent the drilling of unnecessary wells, and to insure proper and efficient development and promote con-servation of the oil and gas resources of the State, an order should be made estab-lishing 80-acre drilling and spacing units for the production of oil from the "J" Sand, common source of supply underlying the lands defined herein; that said units should be 80-acre drilling units, and consisting of the E/2 and the W/2 or the N/2 and the S/2 of each quarter section, according to the governmental survey thereof, which drilling units should be designated at the time of filing the permit to drill; and that the per-fitted well for each such drilling unit should be located in the center of the NW/4 and the SE/4 of each quarter section, with a tolerance of 200 feet in any direction.

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5. That all available geological and engineering data concerning said "J" Sand indicate that one well will efficiently and economically drain an area of approxi-mately 80 acres, and that drilling units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one well producing from said "J" Sand.

6. That a review of information obtained from future drilling should be made in order to determine if the 80-acre spacing should be continued to insure proper and efficient development of the field.

ORDER

NOW, THEREFORE, IT IS ORDERED that the following rules and regu-lations shall apply hereafter to wells drilled, completed, or recompleted in the "J" Sand, underlying the Poncho Field herein described, in addition to Other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

Rule 1. Eighty (80> acre drilling and spacing units shall be and the same are hereby established for the production of oil from the "J" Sand underlying the fol-lowing described lands in the Poncho Field, Adams and Arapahoe Counties, Colorado, to-wit:

Adams County

Township 3 South, Range 59 West, 6th P.M. Section 33: All Section 34: All Arapahoe County Township 4 South, Range 59 West, 6th P.M. Section 3: All Section 10: All Section 4: All Section 15: All Section 9: All Section 16: All

Rule 2. Said drilling units shall consist of eighty (80) acres, and each such drilling unit shall be the E/2 and the W/2 or the N/2 and the S/2 of each quarter sec-tion, according to the governmental survey thereof, which drilling units shall be designated at the time of filing the permit to drill; and the permitted well for each such drilling unit shall be located in the center of the NW/4 and the SE/4 of each quarter section, with a tolerance of 200 feet in any direction.

IT IS FURTHER ORDERED that a review of information obtained from future drilling shall be made in six months to determine if the 80-acre spacing shall be continued.

IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective forthwith.

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IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders, rules and regulations.

ORDERED this 16th day of February 1971.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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