REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 15, 1972, 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 J. H. Bander, which application was amended at the. hearing to delete from the area the N1/2, Section. 14, Township 2 North, Range 52 West, 6th. P. M. , for an order establishing 320-acre drilling and spacing unit for the production of gas and associated hydrocarbons from the "D" Sand underlying certain lands in Washington 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 "D" Sand formation constitutes a common source of supply of gas and associated hydrocarbons underlying in the following described lands in Washington, County, Colorado, to-wit:

Township 2 North, Range 52 West, 6th P. M.

Section 13: All Section 23: All Section 14: S1/2 Section 24: All

4. That in order to prevent the waste of 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 gas 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 "D" Sand, common source of supply underlying the lands defined herein; that said units should be 320-acres, more or less, and consisting of the N1/2 or S1/2 of each section, according to the governmental survey thereof; and that the permitted well for each such drilling unit be located no closer than 600 feet from the outer boundary of -the drilling unit and no closer than 1 980 feet to any other producing gas well within the spaced area.

5. That all available geological and engineering data concerning said "D" Sand indicate that one well will efficiently and economically drain an area of approximately 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 producing from said "D" 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 "D" Sand underlying the Chileno 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 area hereby established for the production of gas and associated hydrocarbons from the "D" Sand underlying the following described lands in the Chileno Field Washington County, Colorado, to-wit:

Township 2 North, Range 52 West, 6th P. M.

Section 13: All Section 23: All Section 14: S1/2 Section 24: All

Rule 2. Said drilling units shall consist of Three Hundred Twenty (320) acres, and each such drilling unit shall be the N1/2 and the S1/2 of each section, according to the governmental survey thereof; and the permitted well for each drilling unit shall be located no closer than 600 feet from the outer boundary of the drilling unit upon which it is located and no closer than 1,980 feet to any other producing gas well within the spaced area.

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 order, rules and regulations.

ORDERED this 18th day of February 1972.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary