REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 18, 1976 at 9 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Provident Resources, Inc., for an order establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Mancos "B" formation underlying certain lands in a portion of the Foundation Creek Field, Rio Blanco County, Colorado. The application was amended at the time of hearing to delete the W/2 Section 36, Township 4 South, Range 102 West, 6th P.M. from the area to be spaced.

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 the Mancos "B" formation constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Rio Blanco County, Colorado, to-wit:

Township 4 South, Range 102 West, 6th P.M. Section 25: All Section 36: E/2 Section 26: E/2

4. That evidence presented at the hearing indicates that one well will not efficiently and economically drain an area of approximately 320-acres as requested by applicant and instead, such drilling and spacing units should consist of 160-acres.

5. 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 unneces-sary wells, and to insure proper and efficient development and promote conservation of the oil and gas resources, an order should be made establishing 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Mancos "B" formation, a 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 governmental survey thereof, and the permitted well for said units should be located no closer than 600 feet to the boundaries of the quarter section upon which it is located and that Well No. 1-25 Govt., located in the NE/4NW/4 Section 25, Well No. 2-25 Govt., loca-ted in the NE/4SW/4 Section25, Well No. 1-26 Steele, located in the SE/4SE/4 Section 26, and the Well No. 1-36 Kirby-Robertson, located in the NE/4SE/4 Section 36, Township 4 South, Range 102 West, 6th P.M. should be the permitted wells for the units upon which they are located.

6. That all geological and engineering data concerning the Mancos "B" formation indicate that one well will efficiently and economically drain an area of approxi-mately 160-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 producing from said Mancos "B" formation.

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 Mancos "B" formation underlying that portion of the Foundation Creek Field, herein described, in addition to other applicable rules and relations 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 gas and associated hydrocarbons from the Mancos "B" formation underlying the following described lands in the Foundation Creek Field, Rio Blanco County, Colorado, to-wit:

Township 4 South, Range 102 West, 6th P.M. Section 25: All Section 36: E/2 Section 26: E/2 Rule 2. Said drilling units shall consist of one hundred sixty (160) acres, more or less, and each such drilling unit shall consist of a quarter section, according to the governmental survey thereof, and the permitted well for each drilling unit shall be located no closer than 600 feet to the boundaries of the quarter section upon which it is located; however, Well No. 2-25 Govt., located in the NE/4NW/4 Section 25, Well No. 2 Govt., located in the NE/4SW/4 Section 25, Well No. 1-26 Steele, located in the SE/4SE/4 Section 26, and Well No. l-36 Kirby-Robertson, located in the NE/4SE/4 Section 36, Town-ship 4 South, Range 102 West, 6th P.M., shall be the permitted wells for the units upon which they are 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 order.

ORDERED this 18th day of October, 1976.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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