REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 18, 1973, 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 Amoco Production Com-pany, for an order extending the field limits of the Spindle Field, and establishing for the additional area 80-acre drilling and spacing units for the production of oil from the Sussex formation as provided for in Order Nos. 250-1 and 250-3.

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 on March 21, 1972, the Commission issued its Order No. 250-1 which, among other things, established 80-acre drilling and spacing units for the produc-tion of oil from the Sussex formation underlying the Spindle Field, and the permitted well for each unit to be located in the center of the NE/4 and SW/4 of each quarter section. A provision to grant exceptions administratively under certain conditions, was established by Order No. 250-3. The area was extended by Order Nos. 250-2 and 250-6.

4. That testimony presented at the hearing indicates a common source of supply of oil underlies, in addition to the area set forth in Order Nos. 250-1, 250-2 and 250-6, the following described lands in Weld County, Colorado, to-wit: Township 2 North, Range 66 West, 6th P.M. Section 6: All Section 19: All Section 7: All Section 30: All Section 18: All Section 31: NE/4; W/2 Township 2 North, Range 67 West, 6th P.M. Section 1: All Section 13: All Section 2: All Section 14: All Section 3: All Section 15: All Section 10: All Section 23: All Section 11: All Section 24: All Section 12: All Township 1 North, Range 67 West, 6th P.M. Section 18. All Section 21: All Section 19: All Section 27: N/2 Section 20: All (over) and that such area should be made subject to the provisions of Order Nos. 250-1 and 250-

5. That in order to promote orderly transition of a spacing pattern of one field to that of an adjacent field, the operators in the Spindle Field should have some options as to where the permitted wells should be located in the drilling units adjacent to the boundaries of the Singletree and Surrey Fields.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the area set forth in Finding 4 herein shall be subject to the provisions of Order Nos. 250-1 and 250-3, and the Spindle Field shall henceforth include the following described lands in Weld County, Colorado, to-wit: Township 1 North, Range 66 West, 6th P.M. Section 6: W/2 Section 18: W/2 Section 7: W/2 Section 19: W/2 Township 1 North, Range 67 West, 6th P.M. Section 1: All Section 14: All Section 2: All Section 15: All Section 3: All Section 16: All Section 4: All Section 17: All Section 5: All Section 18: All Section 6: All Section 19: All Section 7: All Section 20: All Section 8: All Section 21: All Section 9: All Section 22: All Section 10: All Section 23: All Section 11: All Section 24: All Section 12: All Section 27: N/2 Section 13: All Township 2 North, Range 66 West, 6th P.M. Section 6: All Section 6th P.M. Section 7: All Section 30: All Section 18: All Section 31: NE/4; W/2 Township 2 North, Range 67 West, 6th P.M. Section 1: All Section 23: All Section 2: All Section 24: All Section 3: All Section 25: All Section 10: All SectiOn 26: All Section 11: All Section 27: All Section 12: All Section 28: All Section 13: All Section 29: All Section 14: All Section 32; All Section 15: All Section 33: All Section 20: All Section 34: All Section 21: All Section 35: All Section 22: All Section 36: All

IT IS FURTHER ORDERED that the permitted well on a drilling unit in the Spindle Field:

1. Which is adjacent to an area for which drilling units of equivalent size and a different spacing pattern for the Sussex formation are now, or may hereafter be - 2 - (#250-8) established by special order of the Commission for the Sussex formation, may be located in accordance with the spacing pattern prescribed for either area;

2. Which is offset either directly or diagonally by another drilling unit in the Spindle Field upon which a producing well has been located in accordance with the spacing pattern prescribed for another area, may also be located in accordance with the spacing pattern prescribed for either area;

3. Which is offset either directly or diagonally by a drilling unit upon which there is a producing well located in accordance with the pattern prescribed for the Spindle Field, and also by a drilling unit upon which there is a producing well located in accordance with the spacing pattern prescribed for some other area may be located at any location on the intervening drilling unit no closer to the perimeter Of the intervening drilling than would be permitted under either of the two permitted spacing patterns

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 part of, or all of the above orders.

ORDERED this 18th day of September, 1973.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO By Frank J. Piro, Secretary

3 (#250-8)