REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 16, 1973 at 9 am., in the Auditorium, Social Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Patrick A. Doheny for an order establishing a 360-acre drilling unit for the production of gas and associa-ted hydrocarbons from the "D" Sand underlying certain lands in Washington 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 em-braced in said Notice, and of the parties interested therein, and jurisdiction to promul-gate the hereinafter prescribed order.

3. That the "D" Sand constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Washington County, Colorado, to-wit:

Township 3 North, Range 51 West, 6th P.M. Section 27: SW/4 NW/4, W/2 SW/4 Section 28: S/2 NE/4, SE/4

4. That 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 un-necessary wells, and to insure proper and efficient development and promote conser-vation of the oil and gas resources, an order should be made establishing a 360-acre drilling and spacing unit for the production of gas and associated hydrocarbons from the "D" Sand, a common source of supply underlying the lands defined herein; that said

l unit should be 360-acres and consist of the lands as herein described, and that the per-mitted well for said unit should be the No. 1 Daniels, located in the NE/4 SE/4 Section 28, Township 3 North, Range 51 West, 6th P.M.

5. That all geological and engineering data concerning the "D" Sand indicate that one well will efficiently and economically drain an area of approximately 360-acres, and that the drilling unit of the size and shape hereinabove described is not smaller than the maximum area that can be efficiently drained by one well produc-ing from said "D" Sand.

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ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regula-tions shall apply hereafter to a well drilled, completed, or recompleted in the "D" Sand underlying the Bullseye 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. A Three Hundred Sixty (360) acre drilling and spacing unit shall be and the same is hereby established for the production of gas and associated hydro-carbons from the "D" Sand underlying the following described lands in the Bullseye Field, Washington County, Colorado, to-wit:

Township 3 North, Range 51 West, 6th P.M. Section 27: SW/4 NW/4 W/2 SW/4

Section 28: S/2 NE/4, SE/4

Rule 2. The permitted well for the above described unit shall be the No. 1 Daniels well, located in the NE/4 SE/4 Section 28, Township 3 North, Range 51 West, 6th P.M.

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 order.

ORDERED this 16th day of October 1973.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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