REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 18, 1976 at 9 A.M., in Room 532, State Services Building, Denver, Colorado, alter giving Notice of Hearing as required by law, on the application of Amoco Production Company which application was amended at the time of hearing to delete certain lands, for an order authorizing an additional well to be drilled in the 80-acre drilling and spacing units for production of oil from the Sussex and/or Shannon formations underlying certain lands in the Spindle Field, Singletree Field and Surrey Field, Adams and Weld Counties, 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 March 21, 1972, the Commission issued its Order No. 250-1, which among other things, established 80-acre drilling and spacing units for the production of oil from the Sussex formation underlying certain lands in Weld County, Colorado, known as the Spindle Field. Subsequent orders added lands to the spaced area and Order No. 250-5 established 80-acre units for the production of oil from the Shannon formation. Order No. 250-11 deleted and added certain lands to the spaced area for the Sussex and Shannon formations and included the production of gas. Order No. 262-1, issued January 16, 1973 by the Commission, established 80-acre drilling and spacing units for the production of oil from the Sussex formation underlying lands in the Singletree Field, Weld County and Order No. 266-1, issued June 19, 1973, established 80-acre drilling and spacing units for the production of oil from the Sussex formation underlying lands in the Surrey Field, Adams and Weld Counties. The area was extended by Order No. 266-3.

4. That all of Section 19, Township 2 North, Range 67 West, and the S/2 of Section 23 and S/2 Section 24, Township 2 North, Range 68 West, should be deleted from the area requested by the applicant for the drilling of additional wells.

5. That evidence presented at the hearing indicates that one well will not adequately drain an area of 80-acres from the Sussex and/or Shannon formations, and that a drilling unit of 40-acres, overlying said formations, is not smaller than the maximum area that can be efficiently and economically drained by one well, and further, that the drilling of an additional well on a productive 80-acre drilling and spacing unit will approxi-mately double the oil reserve underlying said unit; therefore, an additional well should be authorized to be drilled on each 80-acre drilling and spacing unit for the production of oil from the Sussex and/or Shannon formations underlying the following described lands in Adams and Weld Counties, Colorado, to-wit:

(over)

Sussex Formation: Township 1 North, Range 66 West, 6th P.M. Sections 6-7: W/2 Section 19: W/2 Section 18: W/2

Township 1 North, Range 67 West, 6th P.M. Sections 1-24: All Sections 27-34: All

Township 1 North, Range 68 West, 6th P.M. Sections 1-4: All Section 15: NE/4 Section 9: NE/4 Section 23: NE/4 Sections 10-14: All Section 24: All

Township 2 North, Range 66 West, 6th P.M. Section 7: S/2 Sections 16-21: All Sections 8-9: All Sections 28-30: All Section 10: W/2 Section 31: NE/4, W/2 Section 15: W/2

Township 2 North, Range 67 West, 6th P.M. Sections 13-14: S/2 Section 22: NE/4; S/2 Section 21: S/2 Sections 23-36: All

Township 2 North, Range 68 West, 6th P.M. Sections 25-28: All Sections 33-36: All

Township 1 South, Range 67 West, 6th P.M. Sections 4-8: All

Shannon Formation (Applicable only to Spindle Field): Township 1 North, Range 68 West, 6th P.M. Sections 1-4: All Sections 10-12: All Section 9: NE/4

Township. 2 North, Range 67 West, 6th P.M. Sections 16-17: All Section 28: W/2 Sections 20-21: All Sections 29-32: All

Township 2 North, Range 68 West, 6th P.M. Sections 25-28: All Sections 33-36: All

6. That such additional wells should be located in the center of the undrilled forty (40) acre tract of each established and developed 80-acre drilling unit, or in either forty (40) acre tract in those 80-acre units not yet developed, with a tolerance of 200 feet in any direction to avoid surface hazards or obstructions.

7. That downhole commingling or multiple zone completion should be per-mitted for the production from the Sussex and Shannon formations in each future or previou-sly drilled well in the area described in Finding 5 herein, except within a half mile of the boundaries of said area, by approval of the Director; however, initial production tests should be taken in such a manner as to determine the rate of production from each formation.

8. That other provisions of Order No. 250-11 for the Spindle Field; Order No. 262-1, Singletree Field; and Order No. 266-3, Surrey Field should remain in effect.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the provisions of the orders in Cause Nos. 250, 262 and 266 pertaining to the number of permitted wells and locations on the 8O-acre drilling and spacing units for the production of oil from the Sussex and/or -- 2 --(#250-12, 262-4 & 266 -4) Shannon formations are hereby amended and the following shall apply hereafter to wells drilled, completed, or re-completed in each of the Sussex and Shannon formations under-lying the area described herein, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

1. An additional well is hereby authorized to be drilled on each of the 80-acre drilling and spacing units for the production of oil from the Sussex and/or Shannon forma-tions underlying the following described lands in Adams and Weld Counties, Colorado, to-wit:

Sussex Formation: Township 1 North, Range 66 West, 6th P.M. Section 6-7: W/2 Section 19: W/2 Section 18: W/2

Township 1 North, Range 67 West, 6th P.M. Sections 1-24: All Sections 27-34: All

Township 1 North, Range 68 West, 6th P.M. Sections 1-4: All Section 15: NE/4 Section 9: NE/4 Section 23: NE/4 Sections 10-14: All Section 24: All

Township 2 North, Range 66 West, 6th P.M. Section 7: S/2 Section 16-21: All Sections 8-9: All Section 28-30: All Section 10= W/2 Section 31: NE/4, W/2 Section 15: W/2

Township 2 North, Range 67 West, 6th P.M. Sections 13-14: S/2 Section 22: NE/4;S/2 Section 21: S/2 Sections. 23-36: All

Township 2 North, Range 68 West, 6th P.M. Sections 25-28: All Sections 33-36: All

Township 1 South, Range 67 West, 6th P.M. Sections 4-8: All Shannon Formation (Applicable only to Spindle Field): Township 1 North, Range 68 West, 6th P.M. Sections 1-4: All Sections 10-12: All Section 9: NE/4

Township 2 North, Range 67 West, 6th P.M. Sections 16-17: All Section 28: W/2 Sections 20-21: All Sections 29-32: All

Township 2 North, Range 68 West, 6th P.M. Sections 25-28: All Sections 33-36: All

2. The additional well shall be located in the center of the undrilled forty (40) acre tract of each established and developed 80-acre drilling and spacing unit, or in either forty (40) acre tract in those 80-acre units not yet developed, with a tolerance of 200 feet in any direction to avoid surface hazards or obstructions.

-- 3 --(#250-12, 262-4 & 266-4)

3. Downhole commingling or multiple zone completion shall be permitted for production from the Sussex and Shannon formations in each future or previously drilled well in the area described herein, except for wells located within one-half (/2) mile from the boundaries of said area, by approval of the Director by submitting Sundry Notice OGCC Form 4. Initial production tests shall be taken in such a manner as to determine the initial rate of production from each formation. Approval to commingle production in wells located within the half-mile limit shall be done in accordance with Rule 320 of the Rules and Regula-tions of the Commission.

IT IS FURTHER ORDERED, that the remaining provisions of the orders in Cause Nos. 250, 262 and 266 shall remain in effect and that the spaced areas of the Spindle, Singletree and Surrey Fields shall be combined and henceforth the total area shall be known as the Spindle Field, Cause No. 250.

IT IS FURTHER ORDERED, that the provisions contained in this order 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 orders.

ORDERED this 18th day of May, 1976.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

(#250-12, 262-4 & 266-4)

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