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. 301-2

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 18, 1977 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 Patrick A. Doheny, for an order requiring the pooling of all tracts of land within the designated unit consisting of the E/2SW/4, SE/4 Section 17, NE/4NW/4, N/2NE/4 Section 20, Township 1 North, Range 53 West, 6th P.M. for the development of gas from the "D" Sand underlying said unit.

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 on September 16, 1975, the Commission issued its Order No. 301-1 for the Taco Field which established a 360-acre drilling and spacing unit for the production of gas from the "D" Sand, said unit consisting of the E/2SW/4, SE/4 Section 17, NE/4NW/4, N/2NE/4 Section 20, Township 1 North, Range 53 West, 6th P.M.

4. That effort has been made to obtain the voluntary pooling of all interests in said drilling unit for the development and operation thereof, but that it has not been possible to secure the agreement of all owners of interests in said unit for the voluntary pooling thereof.

5. That Applicant is an "interested person" within the meaning of 34-60-116 (6), CRS 1973, as amended, of the Oil and Gas Conservation Act of the State of Colorado.

6. That Well No. i-D Ward located in the SW/4SE/4 of said Section 17 has been drilled and completed as a commercial producer of gas from the "D" Sand.

7. That in order to insure proper and efficient development of said drilling u nit and to promote conservation of the gas resources of the State, an order should be made pooling all interests in the 360-acre drilling unit described herein.

8. That an order of the Commission pooling all interests in said drill-ing unit is necessary in order to afford each owner of interest in said drilling unit the opportunity to recover and receive his just and equitable share of the gas from the common source of supply underlying said drilling unit.

9. That production obtained from said drilling unit should be allocated to each tract therein on the basis of the proportion that the number of acres in each tract bears to the total number of acres within said drilling unit.

ORDER

NOW, THEREFORE, IT IS ORDERED, that pursuant to the provisions of 34-60-116, CRS 1973, as amended, of the Oil and Gas Conservation Act of the State of Colorado, all interests in the drilling unit consisting of the E/2SW/4, SE/4 Section 17,

(over ) NE/4NW/4, N/2NE/4 Section 20 Township 1 North, Range 53 West, 6th P.M., Taco Field, Washington County, Colorado, hereby pooled for the development and operation or said drilling unit.

IT IS FURTHER ORDERED, that the production obtained from said drilling unit shall be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit, and each owner of interest in said tracts in said drilling unit shall be entitled to receive his share of the production of the well located on said drilling unit, applicable to his interest in said drilling unit.

IT IS FURTHER ORDERED, that this order shall become effective forthwith.

ORDERED this 18th day of April, 1977.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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