IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE SPINDLE FIELD, WELD COUNTY, COLORADO REPORT OF THE COMMISSION This cause came on for hearing before the Commission on March 21, 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 Amoco Production Company, for an order establishing 80-acre drilling and spacing units for the production of oil from the Sussex formation, underlying certain lands in Weld County, Colorado. FINDINGS The Commission finds as follows: Cause No. 250 Order No. 250-1

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 Sussex formation constitutes a common source of supply of oil Underlying the following described Lands in Weld County, Colorado, to-wit: Township 2 North, Range 67 West, 6th P.M. Section 20: All Section 29: All Section 21: All Section 32: All Section 22: All Section 33: All Section 27: All Section 34: All Section 28: 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 arid efficient development and promote conservation of the oil and gas resources of the State, an order should be made establishing 80-acre drilling and spacing units for the production of oil from the Sussex formation, common source of supply underlying the lands defined herein; that said units should be 80-acre drilling units, and consisting of the E/2 and W/2 or the N/2 and S/2 of each quarter sec-tion, 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 center of the NE/4 and SW/4 of each quarter section, with a tolerance of 200 feet in any direction from said location to avoid surface hazards or obstructions.

5. That all available geological and engineering data concerning said Sussex formation indicate that one well will efficiently and economically drain an area of approximately 80 acres, and that drilling units of the size and shape hereinabove prescribed are not smaller than the maximum area that can be efficiently drained by one well producing from said Sussex formation. (over) ORDER

NOW, THEREFORE, IT IS ORDERED that the following rules and regulations shall apply hereafter to wells drilled, completed, or recompleted in the Sussex forma-tion, underlying the Spindle 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. Eighty (80) acre drilling and spacing units shall be and the same are hereby established for the production of oil from the Sussex formation underlying the following described lands in the Spindle Field, Weld County, Colorado, to-wit:

Township 2 North, Range 67 West, 6th P.M. Section 20: All Section 29: All Section 21: All Section 32: All Section 22: All Section 33: All Section 27: All Section 34: All Section 28: All

Rule 2. Said drilling units shall consist of eighty (80) acres, and each such drilling unit shall be the E/2 and W/2 or the N/2 and S/2 of each quarter section, according to the governmental survey thereof, which drilling units shall be designated at the time of filing the permit to drill; and the permitted well for each such drilling unit shall be located in the center of the NE/4 and SW/4 of each quarter section, with a tolerance of 200 feet in any direction from said location to avoid surface hazards or obstructions.

IT IS FURTHER ORDERED, that the rules and regulations contained herein 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 21st day of March 1972.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

(250-1)