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. 276-7

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on August 20, 1984 at 9:00 A.M., in Suite 380 Logan Tower Building, 1580 Logan Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Rock Oil Corporation for an order deleting certain lands from the spaced area of Comanche Creek Field as established by Order No. 276-1 and establish for said lands 80-acre drilling and spacing units for production of oil, gas and associated hydrocarbons from the "D" and "J" Sands.

FINDINGS

The Commission finds as follows:

1. Rock Oil Corporation, as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

2. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

3. 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.

4. On September 18, 1973, the Commission issued Order Ne. 276-1 which established 160-acre drilling and spacing units for the production of oil and associated hydrocarbons from the "D" Sand underlying certain lands in the Comanche Creek Field, Elbert County, Colorado. The units consist of a governmental quarter section with the permitted well located in the center of the NW/4 of each quarter section with a 200 foot tolerance for topography and surface hazards.

5. Evidence presented at the hearing indicates that the following described lands should be deleted from the provisions of Order No. 276-1.

Township 6 South, Range 62 West, 6th P.M. Section 16: SW/4 Section 20: E/2 Section 21: NW/4

6. Geological and engineering testimony presented at the hearing indicates that the "D" and "J" Sands each constitute a common source of supply of oil, gas and associated hydrocarbons underlying the following described lands in Elbert County, Colorado, to-wit: Township 6 South, Range 62 west, 6th P.M. Section 16: S/2 Section 20: E/2 Section 21: All Section 22: W/2 Section 27: NW/4 Section 28: NE/4

7. In order to prevent 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, an order should be made establishing 80-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "D" and "J" Sands, each a common source of supply underlying the lands defined herein; that said units should be 80-acres, more or less, and consist of the E/2 and W/2 or the N/2 and S/2 of a quarter section, according to the governmental survey, the unit to be designated by the operator upon drilling the first well in the section. The permitted well location should be in the center of the NW/4 and the SE/4 of each quarter section with a tolerance of 200 feet in any direction for topographical and surface hazards.

8. All available geological and engineering data concerning said "D" and "J" Sands indicate that one well will efficiently and economically drain an area of approximately 80-acres, and that the drilling unit of the size and shape hereinabove described is not smaller than the maximum area that can be efficiently and economically drained by one well producing from said "D" and "J" Sands.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following described lands are deleted from the provisions of Order No. 276-1.

Township 6 South, Range 62 West,6th P.M. Section 16: SW/4 Section 20: E/2 Section 21: NW/4 and the lands remaining in that portion of the Comanche Creek Field and subject to the provisions of Order No. 276-1 are described as follows: Township 6 South, Range 62 West, 6th P.M. Section 7: S/2 Section 16: NW/4 Section 17: All Section 18: All Section 19: All Section 20: W/2 Section 29: NW/4 Section 30: N/2 Township 6 South, Range 63 West, 6th P.M. Section 12: SE/4 Section 13: E/2 Section 24: E/4

IT IS FURTHER ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the "D" and "J" Sands underlying that portion of 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. Eighty (80) acre drilling and spacing units shall be and the same is hereby established for the production of oil, gas and associated hydrocarbons from the "D" and"J" Sands underlying the following described lands in a portion of the Comanche Creek Field, Elbert County, Colorado, to-wit:

Township 6 South, Range 62 West, 6th P.M. Section 16: S/2 Section 20: E/2 Section 21: All Section 22: W/2 Section 27: NW/4 Section 28: NE/4

Rule 2. Said drilling units shall consist of 80-acre, more or less, and consist of the E/2 and W/2 or the N/2 and S/2 of a quarter section, according to the governmental survey, the unit to be designated by the operator upon drilling the first well in the section. The permitted well location shall be in the center of the NW/4 and the SE/4 of each quarter section with a tolerance of 200 feet in any direction for topographical and surface hazards 2 (276-7)

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.

ENTERED this 13th day of September 1984, as of August 20, 1984.

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

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