IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE TACO FIELD, WASHINGTON COUNTY, COLORADO Cause No. 301 Order No. 301-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 16, 1975 at 9 A.M., in Room 532, State 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 560-acre drilling unit for the production of gas 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 embraced in said Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

S. That the "D" Sand constitutes a common source of supply of gas under-lying the following described lands in Washington County, Colorado, to-wit:

Township l North, Range 53 West, 6th P.M. Section 17: E/2SW/4; SE/4 Section 20: NE/4NW/4; N/2NE/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 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 a 360-acre drillng and pacing unit for the production of gas from the "D" Sand, a common source of supply underlying the lands defined herein; that said unit should be 360-acres and consist of the lands as herein described, and the permitted well for said unit should be the No. i-D Ward Well, located in the SW/4SE/4 of Section 17, Township 1 North, Range 53 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 S60-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 "D" Sand formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regla-tions shall apply hereafter to a well drilled, completed, or recompleted in the "D" Sand underlying the Taco 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:

(over)

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 from the "D" Sand underlying the following described lands in the Taco Field, Washington County, Colorado, to-wit=

Township 1 North, Range 53 West, 6th P.M. Section 17: E/2SW/4; SE/4 Section 20: NE/4NW/4; N/2NE/4

Rule 2. The permitted well for the above-described unit shall be the No. I-D Ward Well, located in the SW/4SE/4 of said Section 17.

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.

ORDERED this 16th day of September, 1975.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary (#301-1)