REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 18, 1973 at 9 A.M., in the Auditorium, Social Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the request of Amoco Production Company for a re-hearing on an application submitted June 27, 1973, and which was denied by the Commission after hearing on August 21, 1973 by Order No, 272-1. Said application which has since been amended, requests an order establishing 80-acre drilling and spacing units for the production of oil from the "J" Sand underlying certain lands in Adams 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 "J" Sand con-stitutes a common source of supply of oil underlying the following described lands in Adams County, Colorado, to-wit: Township 3 South, Range 59 West, 6th P.M. Section 22: S/2 Section 25: All Section 23: All Section 26: All Section 24: All Section 27: All Township 3 South, Range 58 West, 6th P.M. Section 19: W/2 Section 30: W/2

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 drilling and spacing units for the production of oil from the "J" 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 or W/2 or the N/2 or 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; however,

( ore r) the Director may, without additional notice and hearing, grant exceptions to the permitted well locations to avoid hazardous conditions in drilling near mines, mine shafts, water supply sources, or surface conditions, provided the owners of the contiguous and cornering drilling units toward which the proposed location would be moved, file a waiver or consent in writing agreeing to said exceptions.

5. That all available geological and engineering data concerning said "J" 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 drained by one well producing from said "J" Sand.

6. That the well No. 24-1 Downing, located 1980 feet from the south line and 600 feet from the west line Section 24, Township 3 South, Range 59 West, should be considered an exception and be the permitted well for the unit upon which it is located.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regula-tions shall apply hereafter to wells drilled, completed, or recompleted in the "J" Sand, underlying the Noonen. Ranch Field herein 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 "J" Sand underlying the following described lands in the Noonen Ranch Field, Adams County Colorado, to-wit:

Township 3 South, Range 59 West, 6th P.M. Section 22: S/2 Section 25: All Section 23: All Section 26: All Section 24: All Section 27: All

Township 3 South, Range 58 West, 6th P.M. Section 19: W/2 Section 30: W/2

Rule 2. Said drilling units shall consist of eighty (80) acres, and each such drilling unit shall be the E/2 or W/2 or the N/2 or 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 drilling 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; however, the Director may, without additional notice and hearing, grant exceptions to the permitted well locations to avoid hazardous conditions in drilling near mines, mine shafts, water supply sources, or surface conditions, provided the owners of the contiguous and corner-ing drilling units toward which the proposed location would be moved, file a waiver or consent in writing agreeing to said exceptions.

IT IS FURTHER ORDERED, that the well No. 24-1 Downing located 1980 feet from the south line and 600 feet from the west line Section 24, Township 3 South, Range 59 West, 6th P.M., shall be considered an exception and be the permitted well for the unit upon which it is located.

2 --(#272-2)

IT IS FURTHER ORDERED, that the rules and regulations contained herein 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 18th day of September 1973.

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

(#272-2)