IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE LEFT HAND FIELD, KIOWA COUNTY, COLORADO Cause No. 252 Order No. 252-3

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 17, 1977 at 9 A.M. in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing, as required by law, on the application of Texas Oil and Gas Corpora-tion for an order deleting certain lands from the spaced area of the Left Hand Field, Kiowa 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 on April 18, 1972, the Commission issued its Order No. 252-1 for the Left Hand Field which established 640-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Keyes (Lower Morrow) Sand-stone, with the permitted well to be located within a radius of 1320 feet from the center of each unit. By Order No. 252-2, certain lands were deleted and added to the spaced area leaving the Left Hand Field consisting of fourteen (14) drilling and spacing units.

4. That by subsequent drilling and development in the spaced area, the limits of the common source of supply of gas and associated hydrocarbons from the Keyes (Lower Morrow) Sandstone has been more accurately defined, and that Units No. 3 thru 9 and Units No. 11 thru 14, as described in Order No. 252-2 should be deleted from the spaced area which consists of the following described lands in Kiowa County, to-wit:

Township 18 South, Range 47 West, 6th P.M. Section 21: SE/4 Section 32: E/2 Section 22: SW/4 Section 33: W/2, SE/4 Section 26: SW/4 Section 34: S/2, NE/4 Section 27: NW/4, SE/4 Section 35: W/2, SE/4 Section 28: NE/4 Township 19 South, Range 47 West, 6th P.M. Section 2: All Section 10: All Section 3: All Section 11: All Section 4: All Section 14: N/2 Section 9: N/2 Section 15: N/2 and that said lands be made subject to the general rules and regulations of the Commis-sion; however, application for permit to drill a well in Unit Nos. 9, 11, 12 and 14, such units consisting of lands as described in Order No. 252-2, should not be approved unless the location of the well is in accordance with the spacing pattern as established for the Left Hand Field, otherwise the matter should be considered by the Commission at a hearing.

(over)

ORDER

NOW, THEREFORE, IT IS ORDERED, that the lands as described in Finding 4 herein, are hereby deleted from the spaced area of the Left Hand Field and are no longer subject to the provisions of Order Nos. 252-1 and 252-2 and that the lands remaining in the Left Hand Field, Kiowa County, Colorado and subject to the provisions of Order Nos. 252-1 and 252-2 are described as follows:

Unit No. 1

Township 18 South, Range 47 West, 6th P.M. Section 27: SW/4, Section 33: NE/4 Section 28: SE/4 Section 34: NW/4 Unit No. 2 Township 18 South, Range 47 West, 6th P.M. Section 28: W/2 Section 29: E/2 Unit No. 10 Township 18 South, Range 47 West, 6th P.M. Section 20: E/2 Section 21: W/2 IT IS FURTHER ORDERED, that applications for permit to drill a well in Unit Nos. 9, , 11, 12 and 14, such units consisting of lands as described in Order No. 252-2, shall not be approved unless the location of the well is in accordance with the spacing pattern as established for the Left Hand Field by Order No. 252-2, otherwise the matter shall be considered by the Commission at a hearing.

IT IS FURTHER ORDERED, that the Commission expressly reserves its right after notice of hearing to alter, amend or repeal any part of and/or all of the above orders.

ORDERED this 17th day of January, 1977.

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

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(#252-3)