REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 18, 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, for an order estab-lishing 80-acre drilling and spacing units for the production of oil from the "D" Sand, underlying certain lands in Arapahoe 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 con-stitutes a common source of supply of oil underlying the following described lands in Arapahoe County, Colorado, to-wit: Township 5 South, Range 62 West, 6th P.M. Section 4: All Section 8: All Section 5: All Section 9: 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 and efficient development and promote conservation of the oil and gas resources of the State, an order should be made establishing 80-acre drill-ing and spacing units for the production of oil from the "D" Sand, 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 section, 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 "D" Sand 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 described are not smaller than the maximum area that can be efficiently and economically drained by one well producing from said "D" Sand.

(over)

ORDER

NOW, THEREFORE, IT IS ORDERED that the following rules and regula-tions shall apply hereafter to wells drilled, completed, or recompleted in the "D" Sand, underlying the Dragoon Field heroin 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 "D" Sand underlying the following described lands in the Dragoon Field, Arapahoe County, Colorado, to-wit:

Township 5 South, Range 62 West, 6th P.M.

Section 4: All Section 8: All Section 5: All Section 9: 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 heroin 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 order rules and regulations.

ORDERED this 18th day of April 1972.

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

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