REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on December 21, 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 Texaco Incorporated, for an order establishing 160-acre drilling and spacing units for the production of oil and asso-ciated hydrocarbons from the "D" Sand underlying certain lands in Adams County, Colo. rado.

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 em-braced in said Notice, and of the parties interested therein, and jurisdiction to promul-gate the hereinafter prescribed order.

3. That evidence presented at the hearing indicates that the "D" Sand con-stitutes a common source of supply of oil and associated hydrocarbons underlying the following described lands in Adams County, Colorado, to-wit: Township 1 South, Range 64 West, 6th P.M. Section 19: All Section 31: All Section 30: All TownshiP 2 South, Range 64 West, 6th P.M. Section 6: N/2 Township 1 .South, Range 65 West, 6th P.M. Section 23: All Section 26: All Section 24: All Section 35: All Section 25: All Section 36: All Township 2 South, Range 65 West, 6th P.M. Section 1: All Section 11: All Section 2: All Section 12: All

4. That in order to prevent the waste of oil and gas, 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 oil and gas resources of the State, an order should be made establishing 160-acre drilling and spacing units for the production of oil and associated hydrocarbons from the

(over)

"D" Sand, common source of supply underlying the lands defined herein; that said units should be 160-acres, more or less, and consisting of a quarter section, or lots corre-sponding thereto according to the governmental survey thereof; and that the permitted well for each such drilling unit should be located not less than 660 feet from the boundary of each quarter section upon which it is located.

5. That all available geological and engineering data concerning said "D" Sand indicate that one well will efficiently and economically drain an area of approxi-mately 160 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 producing from said "D" Sand.

ORDER

NOW, THEREFORE, IT IS ORDERED that the following rules and regula-tions shall apply hereafter to wells drilled, completed, or recompleted in the "D" Sand underlying the Trapper Field herein described, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in con-flict herewith:

Rule 1: One Hundred Sixty (160) acre drilling and spacing units shall be and the same are hereby established for the production of oil and associated hydrocarbons from the "D" Sand underlying the following described lands in the Trapper Field, Adams County, Colorado, to-wit:

Township 1 South, Range 64 West, 6th P.M. Section 19: All Section 31: All Section 30: All

Township 2 South, Range 64 West, 6th P.M. Section 6: N/2

Township 1 South, Range 65 West, 6th P.M.

Section 23: All Section 26: All Section 24: All Section 35: All Section 25: All Section 36: All Township 2 South, Range 65 West, 6th P.M. Section 1: All Section 11: All Section 2: All Section 12: All

Rule 2: Said drilling units shall consist of one hundred sixty (160) acres, and each such drilling unit shall be a quarter section, or lots corresponding thereto, according to the governmental survey thereof; and the permitted well for each such drill-ing unit shall be located not less than 660 feet from the boundary of each quarter section upon which it is located.

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

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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 30th day of December 197 1.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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