REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 18, 1972, at 2 P.M., in Room 132, State Services Building, Denver, Colorado as the result of Order No. 239-4 (Emergency) which granted temporary relief from production limitations as established by Order No. 239-1, in order to allow the operator of the Peoria Gas Proces-sing Plant, which has been expanded, to load the plant with gas from the Latigo Field, as well as Peoria, Peoria North, Hombre and Poncho Fields, and further ordered the operators in the fields to present all available production and test data in order for the Commission to determine field rules for production of oil and gas, and to consider long range plans for allocation of gas to the expanded plant.

FINDINGS

The Commission finds as follows:

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

2. That the Commission has jurisdiction over the subject matter embraced in said Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order,

3. That the Commission by its Order No. 239-1, in order to prevent waste, limited the gas production from each well in the Latigo Field that was capable of producing both oil and gas to 200, 000 cubic feet per day.

4. That the Peoria Gas Processing Plant has been expanded to handle approximately 16,000 Mcf of gas per day and the Commission by its Order No. 239-4 (Emergency) granted temporary relief from limitations placed on production from the Latigo Field in order to allow the operator to load and test the design capabilities of the expanded plant.

5. That with the completion of the expansion of the Peoria Gas Processing Plant, the plant nomination should be allocated among the Latigo, Hombre, Peoria, Peoria North and Poncho Fields, in Adams and Arapahoe Counties, Colorado, and that 1000 to 3000 Mcf of gas per day is a reasonable allocation of the plant capacity for the Latigo Field.

6. That the restrictions placed on the gas production from the wells in the Latigo Field are no longer necessary and therefore, the rules in Order No. 239-1 per-taining to said restriction should be rescinded; provided that the gas so produced is either (1) marketed and sold to supply domestic, industrial, or municipal needs; or (2) used for lease development or operations and fuel,

7. That each person now or hereafter purchasing or taking gas from any owner or producer of gas in the Latigo Field, should offer to purchase or take ratably from each gas spacing unit without discrimination in favor of any owner or producer over

(over) any other owner or producer in the same common source of supply offering to sell his gas produced therefrom to such person.

8. That a hearing should be held in six months to review the plans concerning the allocation of gas to said expanded plant.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Rules 3, 4 and 5 of Order No. 239-1 for the Latigo Field, Arapahoe County, Colorado, which pertain to the restriction of gas production, are hereby rescinded; provided, however, that the gas so produced is either (1) marketed and sold to supply domestic, industrial or municipal needs; or (2) used for lease development or operations and fuel.

IT IS FURTHER ORDERED, that the nomination of 1000 to 3000 Mcf of gas per day by the operator of the Peoria Gas Processing Plant shall be the allocation of the plant capacity for the Latigo Field, and each person now or hereafter purchasing or taking gas from any owner or producer of gas in said field shall offer to purchase or take ratably from gas spacing unit without discrimination in favor of any owner or producer over any. other owner or producer in the same common source of supply offering to sell his gas produced therefrom to such person.

IT IS FURTHER ORDERED, that a hearing shall be held in February, 1973 to review the plans concerning the allocation of gas to said expanded plant.

IT IS FURTHER ORDERED, that this order shall become effective August 1, 1972.

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

ORDERED this 19th day of Judy, 1972.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

(239-6)