REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 17, 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 Smitherman Oil & Gas Com-pany for an order requiring the pooling of all tracts of land within the designated units consisting of the E/2 NW/4 and the W/2 NW/4 Section 8, Township 1 South, Range 67 West, 6th P.M., Surrey Field, Adams County, Colorado, for the development of the Sussex formation underlying said units.

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 by its Order No. 266-1, the Commission established 80-acre drilling and spacing units for the production of oil and the development of the Sussex formation. Two such units have been designated as the E/2 NW/4 and the W/2 NW/4 Section 8, Township 1 South, Range 67 West, 6th P.M., Adams County, Colorado.

4. That there were owners of interest in the designated unit consisting of the E/2 NW/4 of said Section 8 who were not given proper Notice of Hearing as required by law and, therefore, the pooling of interest in this unit cannot be considered at this time,

5. That reasonable effort has been made to obtain the voluntary pooling of all interests in the drilling unit consisting of the W/2 NW/4 of said Section 8 for the develop-ment and operation thereof, but that it has not been possible to secure the agreement of all owners of interests in said unit for the voluntary pooling thereof.

6. That Applicant is an "interested person" within the meaning of 100-6-4(6) of the Oil and Gas Conservation Act of the State of Colorado.

7. That in order to insure proper and efficient development and to pro-mote conservation of the oil resources of the State, an order should be made pooling all interests in the 80-acre drilling unit consisting of the W/2 NW/4 of said Section 8.

8. Than an order of the Commission pooling all interests in said drilling unit is necessary, just, and reasonable in order to afford each owner of interest in said drilling unit the opportunity to recover and receive his just and equitable share of the gas from the common source of supply underlying said drilling unit.

( over )

9. That production obtained from said drilling unit should be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit.

ORDER

NOW, THEREFORE, IT IS ORDERED, that pursuant to the provisions of 100-6-4 of the Oil and Gas Conservation Act of the State of Colorado, all interests in the drilling unit described as the W/2 NW/4 of Section S, Township 1 South, Range 67 West, 6th P.M., Surrey Field, Adams County, Colorado, are hereby pooled for the development and operation of said drilling unit.

IT IS FURTHER ORDERED, that the production obtained from said drilling unit shall be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit, and each owner of interest in said tracts in said drilling unit shall be entitled to receive his share of the production of the well located, or to be located on said drilling unit, applicable to his interest in said drilling unit.

IT IS FURTHER ORDERED, that this order shall become effective forthwith, ORDERED this 20th day of July, 1973.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

-2-(#266-2)

---------------------------------------------------------------------------------------