IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE PONCHO SOUTH FIELD, ARAPAHOE COUNTY, COLORADO Cause No. 273 Order No. 273-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on August 21, 197: 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 E. Doyle Huckabay, Trustee, for an order establishing 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the "J" Sand, underlying certain lands in Arapahoe County, Colorado, and that certain lands be deleted from the spaced area covered by orders in Cause No. 237, Poncko Field and made subject to the order requested by the applicant.

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 em-braced in said Notice, and of the parties interested therein, and jurisdiction to promul-gate 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 and associated hydrocarbons underlying the following described lands in Arapahoe County, Colorado, to-wit: Township 4 South, Range 59 West, 6th P.M. Section 2: All Section 11: All Section 3: SE/4 Section 14: All Section 9: SE/4 Section 15: All Section 10: All Section 16: E/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 un-necessary 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 and associated hydrocarbons 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 and the W/2 or the N/2 and the 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 NW/4 and the SE/4 of each quarter section, with a tolerance of 200 feet in any direction.

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. (over)

6. That the SE/4 Section 3, SE/4 Section 9, All of Sections 10 and 15, and the E/2 Section 16, Township 4 South, Range 59 West, 6th P.M., should no longer be made subject to the provisions of the orders in Cause No. 237, Poncho Field, and henceforth should be made subject to the provisions of this order'

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 Poncho South 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 and associated hydrocarbons from the "J" Sand underlying the following described lands in the Poncho South Field, Arapahoe County, Colorado, to-wit:

Township 4 South, Range 59 West, 6th P.M. Section 2: All Section 11: All Section 3: SE/4 Section 14: All Section 9: SE/4 Section 15: All Section 10: All Section 16: E/2

Rule 2. Said drilling units shall consist of eighty (80) acres, and each such drilling unit shall be the E/2 and the W/2 or the N/2 and the 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 NW/4 and the SE/4 of each quarter section; with a tolerance of 200 feet in any direction.

IT IS FURTHER ORDERED, that the SE/4 Section 3, SE/4 Section 9, all of Sections 10 and 15, and the E/2 Section 16, Township 4 South, Range 59 West, 6th P.M. shall no longer be subject to the provisions of the orders in Cause No. 237, Poncho Field, and shall henceforth be made subject to the provisions of this order.

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 21st day of August 1973.

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

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