REPORT OF THE COMMISSION

On February 16, 1971, the Commission issued its Order No. 237-1 which, among other things, established 801-acre drilling and spacing units for the production of oil from the "J" Sand underlying' the Poncho Field, Adams and Arapahoe Counties, Colorado.

FINDINGS

The Commission finds as follows:

1. That the Commission has jurisdiction to promulgate the hereinafter prescribed order.

2. That an emergency exists requiring immediate action by the Commis-sion, and that an emergency order should be issued in accordance with the provisions of 100-6-7 (3) CRS 1963, as amended.

3. That the present production practices of wells producing from the "J" Sand underlying the area described in Finding 5 hereof will result in an irrecoverable loss of natural gas that could otherwise be put to a beneficial use; and that such production practices constitute waste as that term is defined in 100-6-3 (10) CRS 1963, as amended.

4. That in order to prevent waste and to prevent the escaping, blowing, and releasing of gas in an excessive or unreasonable amount from wells capable of producing both oil and gas, the maximum daily production of oil from any one well producing from the "J" Sand underlying the area described in Finding 5 should not exceed a volume of 100 barrels.

5. That all wells capable of producing from the "J" Sand underlying the fol-lowing area should comply with the provisions of this order: 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

(over)

ORDER

NOW, THEREFORE, IT IS ORDERED, that in order to prevent waste and to prevent the escaping, blowing, and releasing of gas in an excessive or unreasonable amount from wells capable of producing both oil and gas, the maximum daily production of oil from any one (1) well producing from the "J" Sand underlying the area described in Finding 5, which by reference is made a part hereof, shall not exceed a volume of One Hundred (100) barrels.

IT IS FURTHER ORDERED that the operators in the Poncho Field are hereby requested to present all available production and reservoir data at the hearing scheduled for December 21, 1971, in order for the Commission to determine what field rules should be adopted for the production of oil and gas in said field and plans for the disposi-tion of the casinghead gas.

IT IS FURTHER ORDERED, that this order shall be effective commencing at 7 A.M., December 15, 1971.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO By Frank J. Piro, Secretary

Dated at Denver, Colorado December 14, 1971 (237 -4)