REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on December 17, 1974, at 9 a, to., in Room 132. State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Thomas G. Vessels, for an order establishing 80-acre drilling and spacing units for the production of oil and associa-ted hydrocarbons from the "D" Sand underlying certain lands in Adams County, Colorado The application was amended at the hearing to delete Section 28, Township 1 South, Range 66 West 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 evidence presented at the hearing indicates that the "D" Sand constitutes a common source of supply of oil and associated hydrocarbons underlying the following described lands in Adams County, Colorado, to-wit:

Township 1 South, Range 66 West, 6th P.M. Section 29: All Section 32: All Section 30: All Section 33: All Section 31: All Township 2 South. Range 66 West, 6th P.M. Section 4. All Section 6: All Section 5 : All

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 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the "D" Sand, common source of supply underlying f`he lands defined herein; that said units should be 80-acre drilling units, and consisting of the E/2 and W/2 or the N/2 and S/2 of each quarter section, according to the governmental survey thereof, which drilling units should be designated at the time of filing the permit to drill; and that the permitted well for each such drilling unit should be located in the center of the NE/4 and SW/4 of each quarter section with st tolerance of 150 feet in any direction.

5. That Well No. 1 Reasoner, located in the NE/4SW/4SW/4 Section 32; Well No. 1 Cutler, located in the SW/4NE/4NE/4 Section 32., Township 1 South, Range 66 West, 6th P.M., and Well No. 10HD to be located in the SW/4NE/4NE/4 Section 6, Township 2 South, Range 66 West, 6th P.M. should be considered exceptions and be the permitted wells for the units upon which they are located. (over)

6. That all available geological and engineer'lag data concerning said "D" Sand indicate that one well will efficiently and economically drain an area of approximately 80-acres, and that drilling units of the size a. nd shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one well. producing fro @@ 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 Bugle Field herein described, in addition to other applicable rules and regu-

Township 1 South, Range 66 West, 6th P.M. Section 29: All Section 32: All Section 30: All Sect[on 33: All Section 31: A11 Township 2 South, Range 66 West,6th P.M. Section 4: All Section 6: All Section 5: All

Rule 2. Said drilling units shall consistof eignty (80) acres, and each such drilling unit shall be the E/2 and W/2 or the N/2 and S/2 ofeach quarter section, according to the governmental survey thereof, which drilling units shall be designated at the time of filing the permit to drill; and the permitted well for each such drilling unit shall be located in the center of the NE/4 and SW/4 of each quarter section, with a tolerance of 150 feet in any direction; however, Well No. 1 Reasoner, located in the NE/4SW/4SW/4 Section 32; Well No. 1 Cutler, located in the SW/4NE/4NE/4 Section 32, Township 1 South, Range 66 West, 6th P.M., and Well No. 10HD to be located in the SW/4NE/4NE/4 Section 6, Township 2 South, Range 66 West, 6th P.M. shall be considered exceptions and be the permitted wells for the units upon which they are located.

IT IS FURTHER ORDERED, that the rules and regulations contained here in 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 17th day of December, 1974.

OIL AND GAS CONSERVATION COMMISSSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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