REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 15, 1971, at 9 A.M., in Room 132, State Services Building, 1525 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Rex Monaban, for an order establishing a 320-acre drilling and spacing unit for the production of gas and associated liquid hydrocarbons from the "D" Sand underlying the SE/4 of Section 29 and the NE/4 of Section 32, Township 12 North, Range 52 West, Logan County, Colorado; and further that all interests in said drilling unit be pooled.

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 hereinafter prescribed order.

3. That the "D" Sand constitutes a common source of supply of gas and associated liquid hydrocarbons underlying the following described lands in Logan Colorado, to-wit:

Township 12 North, Range 52 West, 6th P.M. Section 29: SE/4 Section 32: NE/4 and is referred to as part of the Peetz-Northwest Field.

4. That in order to prevent waste of oil and gas, as defined by law; to pro-tect the correlative rights of all parties concerned; to prevent the drilling of unneces-sary wells, and to insure proper and efficient development and promote conservation of the oil and gas resources, an order should be made establishing a 320-acre drilling and spacing unit for the production of gas and associated hydrocarbons from the "D" Sand, a common source of supply underlying the lands defined herein; that said unit should be the SE/4 Section 29, and the NE/4 Section 32, Township 12 North, Range 52 West, 6th P.M., and that the Well No. 1-29 Dallegge, located in the approximate Center of the SW/4 SE/4 Section 29, Township 12 North, Range 52 West, 6th P.M., should be the permitted well for said drilling and spacing unit.

(over)

5. That all geological and engineering data concerning the "D" Sand in that , portion of the Peetz-Northwest Field indicates that one well should efficiently and economically drain an area of approximately 320 acres, and that the drilling unit of the size and shape hereinabove described is not smaller than the maximum area that can be efficiently drained by one well producing from said "D" Sand.

6. That in order to insure proper and efficient development; to eliminate the drilling of unnecessary wells; to promote conservation of gas resources of the State, an order should be made pooling all interests in the 320-acre drilling unit described as the SE/4 Section 29 and the NE/4 Section 32, Township 12 North, Range 52 West, 6th P.M.

7. That the order of the Commission pooling all interests in said drilling unit is necessary, just and reasonable in order to afford each owner of interest within said drilling unit the opportunity to recover and receive his just and equitable share of the gas from the common source of supply underlying said drilling unit.

8. That production obtained from said drilling unit should be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply to a well drilled, completed or recompleted in the "D" Sand underlying that portion of the Peetz-Northwest 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. The "D" Sand is a common source of supply of gas and associated liquid hydrocarbons underlying the following described lands in Logan County, Colorado, to-wit:

Township 12 North, Range 52 West, 6th P.M. Section 29. SE/4 Section 32: NE/4 and such area shall henceforth be known as part of the Peetz-Northwest Field.

Rule 2. The following drilling and spacing unit shall be and the same is hereby established for the production of gas and associated liquid hydrocarbons from the "D" Sand, a common source of supply, underlying that portion of the Peetz-Northwest Field as defined herein:

(a) A 320-acre drilling and spacing unit, according to the governmental survey thereof, for the production of gas and associated liquid hydrocarbons from the "D" Sand, and the SE/4 of said Section 29 and the NE/4 of said Section 32, shall constitute a drilling unit.

(b) The permitted well on said unit shall be the Well No. 1-29 Dallegge, located in the approximate center of the SW/4 SE/4 of said Section 29.

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IT IS FURTHER ORDERED, that pursuant to the provisions of 100-6-4 of the Oil and Gas Conservation Act of the State of Colorado, all interests in the drilling unit described as the SE/4 of said Section 29 and the NE/4 of said Section 32, are hereby pooled for the development and operation of said drilling unit.

IT IS FURTHER ORDERED, that the production obtained from said drilling unit shall be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit, and each owner of interest in said tracts in said drilling unit shall be entitled to receive his share of the production of the well located on said drilling unit applicable to his interest in said drilling unit.

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

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 rules and regulations.

ORDERED this 15th day of June 1971.

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

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