Order No. 245-1

IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE DRAGON TRAIL FIELD AREA, RIO BLANCO COUNTY, COLORADO

Cause No. 245 Order No. 245-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 21, 1971, at 9 A.M., in the Auditorium, Social Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Fuel Resources Development Company for an order establishing a 320-acre drilling and spacing unit for the production of gas from the Mancos "B" zone underlying the S/2 of Section 15, Township 2 South, Range 102 West, Rio Blanco 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 one well will not efficiently drain 640 acres, and said evidence was not sufficient to enable the Com-mission to make a final determination as to what should be the proper spacing for the area; however, in order to protect correlative rights and to more efficiently drain the reservoir, a well should be permitted to be drilled for the production of gas and associated hydrocarbons from the Mancos "B" (Emery) zone in the S/2 of Section 15, Township 2 South, Range 102 West, 6th P.M., Rio Blanco County, Colorado.

ORDER

NOW, THEREFORE, IT IS ORDERED that no action shall be taken at this time to establish a 320-acre drilling and spacing unit; however, a well shall be per-mitted to be drilled for the production of gas and associated hydrocarbons from the Mancos "B" (Emery) zone in the S/2 of Section 15, Township 2 South, Range 102 West, 6th P.M., Rio Blanco County, Colorado, and such well to be located in accordance with Rule 3 16 of the Rules and Regulations of the Oil and Gas Conservation Commis-sion.

ORDERED this 21st day of September 1971.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary