REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on December 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 Tom Brown, Inc. for an order establishing 320 acre drilling and spacing units for the production of gas and associated hydrocarbons from the Morrow formation underlying certain lands in Prowers County, Colorado. The application was amended at the hearing to delete the NE/4 Section 34, Township 25 South, Range 45 West, 6th P.M., from the area to be spaced and that subsequent 320-acre drilling and spacing units, besides the designated units, be any combination of two governmental quarter sections, rather than only the E/2 or W/2 or the N/2 or S/2 of a section.

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 Morrow forma-tion constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Prowers County, Colorado, to-wit:

Township 25 South, Range 45 West, 6th P.M. Section 22: All Section 9,9: All Section 23: All Section 32: All Section 26: N/2 Section 33: All Section 27: All Section 34: NW/4 Section 28: All

4. That in order to prevent the waste of gas and oil, as defined by law; to protect the correlative rights of all parties concerned; to prevent the drilling of uneces-sary wells, and to insure proper and efficient development and promote conservation of the gas and oil resources of the State, an order should be made establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Morrow formation, common source of supply underlying the lands defined herein; that said units should be 320-acres, more or less, and consisting of, any combination of two contiguous governmental quarter sections, which units should be designated at the time of filing the permit to drill, and the permitted well for each unit be located no closer

(over) than 990 feet from the boundaries of the unit; and that the E/2 Section 28, W/2 Section 28, S/2 Section 27, N/2 Section 27, W/2 Section 33 and the S/2 Section 22, Township 25 South, Range 45 West, 6th P.M. be designated drilling units and the gas wells already located on each such unit be the permitted well for the drilling and spacing unit upon which it is located.

5. That all available geological and engineering data concerning said Morrow formation indicate that one well 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 and economically drained by one well producing from said Morrow formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regula-tions shall apply hereafter to wells drilled, completed, or recompleted in the Morrow formation underlying the Barrel Springs 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 gas and associated hydro-carbons from the Morrow formation underlying the following described lands in the Barrel Springs Field, Prowers County, Colorado, to-wit:

Township 25 South, Range 45 West, 6th P.M. Section 22: All Section 29: All Section 23: All Section 32: All Section 26: N/2 Section 33: All Section 27: All Section 34: NW/4 Section 28: All

Rule 2. Said drilling units shall consist of three hundred twenty (320) acres, more or less, and each such drilling unit shall consist of any combination of two contiguous governmental quarter sections, which units shall be designated at the time of filing the permit to drill, and the permitted well for each unit shall be located no closer than 990 feet from the boundaries of the unit; and that the E/2 Section 28, W/2 Section 28, S/2 Section 27, N/2 Section 27, W/2 Section 33 and the S/2 Section 22, Township 25 South, Range 45 West, 6th P.M. shall be designated drilling unit sand the gas wells already located-on each such unit shall be the permitted well for the drilling and spacing unit upon which it is located.

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 18th day of December 1973.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary