IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE BELL ROCK FIELD, MOFFAT COUNTY, COLORADO

Cause No. 274 Order No. 274-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on August 21, 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 Fuel Resources Development Company, for an order establishing 320-acre drilling and spacing units for the production of oil and gas from the Niobrara and Mesaverde formations underlying certain lands in Moffat 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 Niobrara formation constitutes a common source of supply of oil and the Mesaverde formation constitutes a common source of supply of gas underlying the following described lands in Moffat County, Colorado, to-wit:

Township 6 North, Range 92 West, 6th P.M. Section 3: All Section 10: All Section 4: All Section 11: W/2 Section 9: E/2 Township 7 North, Range 92 West, 6th P.M. Section 33: S/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 unnecessary 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 320-acre drilling and spacing units for the production of oil and gas from the Niobrara and Mesaverde formations, common sources of supply underlying the lands defined herein; that said units should be 320-acres, more or less, and consisting of the E/2 and W/2 of a govern-mental section and that the S/2 of Section 33, Township 7 North, Range 92 West, 6th P.M. be a designated unit; and that the permitted well for each such drilling unit should be located no closer than 900 feet to the boundaries of the unit upon which it is located, and no closer than 2640 feet from any existing oil or gas well.

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5. That all available geological and engineering data concerning said Niobrara and Mesaverde formations indicate that one well for each formation will efficiently and economically, drain an area of approximately 320-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 each formation.

ORDER

NOW, THEREFORE IT IS ORDERED, that the following rules and regulations shall apply hereafter to wells drilled, completed, or recompleted in the Niobrara and Mesaverde formations underlying the Bell Rock 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. Three Hundred Twenty (320) acre drilling and spacing units shall be and the same are hereby established for the production of oil and gas from the Niobrara and Mesaverde formations underlying the following described lands in the Bell Rock Field, Moffat County, Colorado, to-wit:

Township 6 North, Range 92 West, 6th P.M. Section 3: All Section 10: All Section 4: All Section 11: W/2 Section 9: E/2

Township 7 North, Range 92 West, 6th P.M. Section 33: S/2

Rule 2. Said drilling units for each formation shall consist of three hundred twenty (320) acres, more or less, and each such drilling unit shall consist of the E/2 or W/2 of a governmental section and the S/2 of Section 33, Township 7 North, Range 92 West, 6th P.M., shall be a designated unit, and each permitted well for each drilling unit shall be located no closer than 900 feet to the boundaries of the unit upon which it is located, and no closer than 2640 feet from any existing oil or gas well.

IT IS FURTHER ORDERED, that the provisions contained in the above orders 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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