IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE SPINDLE FIELD, WELD COUNTY, COLORADO Cause No. 250 Order No. 250-28

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 20, 1981 at 9:00 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing, as required by law, on the application of Martin Exploration Manage-ment Corporation, for an order allowing the production of oil and associated hydrocarbons from both the Sussex and Shannon formations in each additional well allowed to be drilled on the 80-acre units in the S/2 Section 24, Township 2 North, Range 68 West, 6th P.M., and that downhole commingling be allowed for production from both the Sussex and Shannon formations.

FINDINGS

The Commission finds as follows:

1. Martin Exploration Management Corporation, 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. On May 18, 1976, the Commission issued Order No. 250-12 which allowed the drilling of additional wells on certain 80-acre drilling and spacing units, established by previous orders in Cause No. 250, for the production of oil from the Sussex and/or Shannon formations. On May 16, 1977 and August 21, 1978 the Commission issued Order Nos. 250-14 and 250-19 respectively, which authorized the drilling of additional wells for the production of oil and associated hydrocarbons from the Shannon formation on each 80-acre unit located in the S/2 Section 24, Township 2 North, Range 68 West, 6th P.M. The drilling of an additional well for production of oil and associated hydrocarbons from the Sussex formation was not included.

5. Evidence presented at the hearing indicates that one well will not adequately drain an area of 80-acres from the Sussex formation, therefore, Order No. 250-12 should be amended to allow the production of oil and associated hydrocarbons from the Sussex formation in the additional wells that were allowed to be drilled for pro-duction in the Shannon formation by Order Nos. 250-14 and 250-19, and further that commingling of production from both the Shannon and Sussex formations be allowed.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order No. 250-12 is hereby amended and production of oil and associated hydrocarbons from the Sussex formation is hereby allowed with that from the Shannon formation in each additional well drilled on the 80-acre units in the S/2 Section 24, Township 2 North, Range 68 West, 6th P.M., Spindle Field, Weld County, Colorado, and that downhole commingling shall be allowed for pro-duction from both the Sussex and Shannon formations.

(over)

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

ENTERED this 8th

day of May 1981, as of April 20, 1981.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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