IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE CAMPANA FIELD, ADAMS COUNTY, COLORADO Cause No. 243 Order No. 243-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 19, 1971, at 9 A.M., in Room 132, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Edward Mike Davis for an order establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand underlying certain lands in Adams County, Colorado.

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 evidence presented at the hearing indicates that the "J" Sand constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Adams County, Colorado, to-wit: Township 2 South, Range 58 West, 6th P.M. Section 6: All Section 19: All Section 7: All Section 30: All Section 18: All Township 2 South, Range 59 West, 6th P.M. Section 1: All Section 24: All Section 12: All Section 25: All Section 13: All Section 26: All Section 23: All

4. That in order to prevent the waste of gas and oil, as defined by law; to protect 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 gas and oil resources of the state, an order should be made establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand, common source of supply underlying the lands defined herein; that said units should be 320-acres, more or less, and consisting of the E/2 and the W/2 or the N/2 and S/2 of each 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 permitted well for each such drilling unit should be located in the NW/4 and SE/4 of each section and no closer than 990 feet to the boundaries of the quarter section upon which it is located.

5. That the Well No. 1-12 Ford, located 600 feet from the East line and 660 feet from the South line, Section 12, Township 2 South, Range 59 West, 6th P.M., should be considered an exception and be the permitted well for the drilling unit desig-nated as the S/2 of said section., and Well No. 2-12 Ford, located 490 feet from the East line and 1972 feet from the North line, Section 12, Township 2 South, Range 59 West, 6th P.M., should also be considered an exception and be the permitted well for the drilling unit designated as the N/2 of said section.

6. 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 320 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 pro-ducing from said "J" Sand.

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 Campana 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. Three Hundred Twenty (320) acre drilling and spacing units shall be and the same are hereby established for the production of gas and associated hydro-carbons from the "J"' Sand underlying the following described lands in the Campana Field, Adams County, Colorado, to-wit: Township 2 South, Range 58 West, 6th P.M.

Section 6: All Section 19: All Section 7: All Section 30: All Section 18: All Township 2 South, Range 59 West, 6th P.M. Section 1: All Section 24: All Section 12: All Section 25: All Section 13: All Section 26: All Section 23: All Rule 2. Said drilling units shall consist of three hundred twenty (320) acres, more or less, and each such drilling unit shall be the E/2 and the W/2 or the N/2 and S/2 of each section, according to the governmental survey there of, which drilling units shall be designated at the time of filing the permit to drill; and the permitted well for each drilling unit shall be located in the NW/4 and SE/4 of each section and no closer than 990 feet to the boundaries of the quarter section upon which it is located.

IT IS FURTHER ORDERED that the Well No. 1-12 Ford, located 600 feet from the East line and 660 feet from the South line, Section 12, Township 2 South, Range 59 West, 6th P.M., shall be considered an exception and be the permitted well for the drilling unit designated as the S/2 of said section; and the Well No. 2-12 Ford,

- 2 - (#243-1) located 490 feet from the East line and 1972 feet from the North line, Section 12, Town-ship 2 South, Range 59 West, 6th P.M., shall also be considered an exception and be the permitted well for the drilling unit designated as the N/2 of said section.

IT IS FURTHER ORDERED that the provisions contained in the above orders 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 orders, rules and regulations.

ORDERED this 19th day of October 1971.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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