REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 19, 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 Buttes Resources Company for an order establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "D" Sand underlying certain lands in Morgan 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 gas and associated hydrocarbons underlying the following described lands in Morgan County, Colorado, to-wit: Township 6 North, Range 58 West, 6th P.M. Section 7: W/2 Section 18: W/2 Township 6 North, Range 59 West, 6th P.M. Section 12: E/2 Section 13: E/2

4. That in order to prevent the waste of gas and oil, 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 gas and oil resources of the State, an order should be made establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "D" Sand, common source of supply underlying the lands defined herein; that said units should be 320-acres, more or less; that the permitted well for each unit be located no closer than 990 feet from the boundaries of the unit upon which it is located; and further providing that the Well No. 1-12 A. Wirth, located 660 feet from the north line and 510 feet from the east line of Section 12, Township 6 North, Range 59 West, 6th P.M., should be considered an exception and be the permitted well for the unit upon which it is located.

5. That all available geological and engineering data concerning said "D" Sand indicates that one well will efficiently and economically drain an area of approxima-tely 320-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 Loam Gas 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. Three Hundred Twenty (320)acre drilling and spacing units shall be and the same are hereby established for the production of gas and associated hydro-carbons from the "D" Sand underlying the lands as described in Finding 3 heroin, and said units shall be numbered and described as follows: Morgan County, Colorado UNIT 1: Township 6 North, Range 58 West, 6th P.M. Section 7: NW/4 Township 6 North, Range 59 West, 6th P.M. Section 12: NE/4 UNIT 2: Township 6 North, Range 58 West, 6th P.M. Section 7: SW/4 Township 6 North, Range 59 West, 6th P.M. Section 12: SET UNIT 3: Township 6 North Range 58 West, 6th P.M. Section 18: NW/4 Township 6 North, Range 59 West, 6th P.M. Section 13: NE/4 UNIT 4: Township 6 North, Range 58 West, 6th P.M. Section 18: SW/4 from the east line of Section 12 Township 6 North, Range 59 West, 6th P.M., shall be considered an exception and be the permitted well for Unit 1.

IT IS FURTHER ORDERED, that the provisions contained in the above 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, rules and regulations.

ORDERED this 2nd day of July, 1973.

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