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. 243-4

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on at 9:00 A.M., in Suite 380, Logan Tower Building, 1580 Logan Street, Denver, Colorado, and was continued for further hearing on January 21, 1985 in Room 110, 1313 Sherman Street, Denver, Colorado after giving Notice of Hearing as required by law, on the applications of National Petroleum, Inc. for an order to establish a drilling and spacing unit consisting of the NW/4 SE/4 Section 12, Township 2 South, Range 59 West, 6th P.M. for the production of oil and associated hydrocarbons from the "J" Sand.

FINDINGS

The Commission finds as follows:

1. National Petroleum, Inc., as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

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

3. 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.

4. Evidence presented at the hearing indicates that the "J" Sand constitutes a common source of supply of oil and associated hydrocarbons underlying the following described lands in Moffat County, Colorado, to-wit: Township 2 South, Range 59 West, 6th P.M. Section 12: NW/4 SE/4

5. In order to prevent 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 conservation of the oil and gas resources, an order should be made establishing a drilling and spacing unit consisting of the NW/4 SE/4 Section 12, Township 2 South, Range 59 West, 6th P.M. consisting of 29.6875 acres, for the production of oil and associated hydrocarbons from the "J" Sand, a common source of supply underlying the lands defined herein; The permitted well for the unit should be Well No. 1 National, located in the NW/4 SE/4 of said Section 12.

6. All available geological and engineering data concerning said "J" Sand indicate that one well will efficiently and economically drain an area consisting of the NW/4 SE/4 of said Section 12, and that the drilling unit hereinabove described is not smaller than the maximum area that can be efficiently and economically drained by one well producing from said "J" Sand.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the "J" Sand underlying that portion of 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. A drilling and spacing unit shall be and the same is hereby established for the production of oil and associated hydrocarbons from the Niobrara formation underlying the following described lands in the Campana Field, Adams County, Colorado, to-wit:

Township 2 South, Range 59 West, 6th P.M. Section 12: NW/4 SE/4 .

Rule 2 Said drilling unit shall consist of the lands described herein. The permitted well for the unit Well No. 1 National, located in the NW/4 SE/4 of said Section 12.

IT IS FURTHER ORDERED, that the provisions contained in the above order 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.

ENTERED this 15th day of February. / 1985, as of January 21, 1985.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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