IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE COMANCHE CREEK FIELD, ELBERT COUNTY, COLORADO Cause No. 276 Order No. 276-1

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 application of Champlin Petroleum Company for an order establishing 160-acre drilling and spacing units for the produc-tion of oil and associated hydrocarbons from the "D" Sand underlying certain lands in Elbert 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 oil and associated hydrocarbons underlying the following described lands in Elbert County, Colorado, to-wit:

Township 6 South, Range 62 West, 6th P.M. Section 7: S/2 Section 19: All Section 8: S/2 Section 20: All Section 9: SW/4 Section 21: NW/4 Section 16: W/2 Section 29: NW/4 Section 17: All Section 30: N/2 Section 18: All Township 6 South, Range 63 West, 6th P.M. Section 12: SE/4 Section 24: E/2 Section 13: 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 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 160-acre drilling and spacing units for the production of oil and associated hydrocarbons from the "D" Sand, common source of supply underlying the lands defined herein; that said units should be 160-acres, more or less, and consisting of a quarter section according to the

( ore r) governmental survey thereof; and that the permitted well for each such drilling unit she be located in the center of the NW/4 of each quarter section, with a tolerance of 200 feet in any direction for topography, or to avoid surface hazards; 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 cornering drilling units toward which the proposed location would be moved, file a waiver or consent in writing agreeing to said exceptions.

5. That the Well No. 44-13 Morris, located in the SE/4 SE/4 Section 13, Township 6 South, Range 63 West, 6th P.M., should be considered an exception and be the permitted well for the unit upon which it is located.

6. That all available geological and engineering data concerning said "D" Sand indicate that one well will efficiently and economically drain an area of approxima-tely 160-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 "D" Sand.

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 Comanche Creek 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; One Hundred Sixty (160) acre drilling and spacing units shall be and the same are hereby established for the production of oil and associated hydro-carbons from the "D" Sand underlying the following described lands in the Comanche Creek Field, Elbert County, Colorado, to-wit:

Township 6 South, Range 62 West, 6th P.M. Section 7: S/2 Section 19: All Section 8: S/2 Section 20: All Section 9: SW/4 Section 21: NW/4 Section 16: W/2 Section 29: NW/4 Section 17: All Section 30: N/2 Section 18: All ToWnship 6 South, Range 63 West, 6th P.M. Section 12: SE/4 Section 24: E/2 Section 13: E/2

Rule 2. Said drilling units shall consist of one hundred sixty (160) acres, and each such drilling unit shall be a quarter section, according to the governmental survey thereof; and the permitted well for each such drilling unit shall be located in the center of the NW/4 of each quarter section, with a tolerance of 200 feet in any direction for topography, or to avoid surface hazards; however, the Director may, without addi-tional 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.

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IT IS FURTHER ORDERED, that the Well No. 44-13 Morris, located in the SE/4 SE/4 Section 13, Township 6 South, Range 63 West, 6th P.M., shall be considered an exception and be the permitted well for the unit upon which it is located.

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 18th day of September 1973.

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

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