IN THE MATTER OF GENERAL RULES AND REGULATIONS WITH RESPECT TO THE CONSERVATION OF OIL AND GAS IN THE STATE OF COLORADO, AND RULES OF PRACTICE AND PROCEDURE PERTAINING THERETO AND IN PARTICULAR WITH REFERENCE TO RULE 323

BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE HAMBERT FIELD, WELD COUNTY, COLORADO

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CAUSE NO. 304

ORDER NO. 304-4

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on August 15, 1977, at 9 a.m., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as the result of Order No. 304-3, issued December 20, 1976, which, among other things, ordered that the Commission shall review at the August, 1977 hearing date, additional data in order to determine whether the 320-acre drilling and spacing units as established by Order No. 304-1 and subsequent Order No. 304-3 should be continued.

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 February 16, 1976 the Commission issued its Order No. 304-1 which established 320-acre drilling and spacing units for the production of gas from the Sussex formation underlying lands in the Hambert Field, with the permitted wells located in the NW¼ and SE¼ of each section and no closer than 990 feet from the boundaries of the quarter section upon which each is located. The spaced area was extended by Order No. 304-3.

4. That evidence presented at the hearing indicates that one well will not adequately drain the gas from the 320-acre drilling and spacing units established for production from the Sussex reservoir underlying Section 24, Township 4 North, Range 66 West, 6th P.M., therefore, the units for said Section 24 should be reduced to 160-acres which, according to the testimony presented at the hearing, are not smaller than the maximum area that can be efficiently and economically drained by one well.

5. That in order to prevent the waste of gas as defined by law; to protect the correlative rights of all parties concerned; to prevent the drilling of unnecessary wells, and to insure proper and efficient development and promote conservation of the gas resources in the State, an order should be made establishing 160-acre drilling and spacing units for the production of gas from the Sussex formation, common source of supply underlying the lands in that portion of the Hambert Field consisting of Section 24, Township 4 North, Range 66 West, 6th P.M.; that said units should be 160-acres, consisting of a quarter section, according to the governmental survey thereof, and that the permitted well should be located no closer than 600 feet from the boundaries of the quarter section upon which it is located.

6. That a hearing should be held in six months at which time the Commission will review data obtained from additional development in the Hambert Field in order to determine whether the 320-acre spacing units as established by Order Nos. 304-1 and 304-3 should be continued for the remaining lands in the field.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order No. 304-1 is hereby amended and the following rules and regulations shall apply hereafter to wells drilled, completed, or recompleted in the Sussex formation underlying the Hambert Field, in addition to other applicable rules and regulations and orders of the Commission, 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 from the Sussex formation underlying the following described lands in the Hambert Field, Weld County, Colorado:

Township 4 North, Range 65 West, 6th P.M.

Section 24: All

Rule 2. Said drilling units shall consist of 160-acres and each such unit shall be a quarter section, according to the governmental survey, and the permitted well shall be located no closer than 600 feet from the boundaries of the quarter section upon which it is located.

IT IS FURTHER ORDERED, that the following described lands shall remain subject to the provisions of Order Nos. 304-2 and 304-3 for the Hambert Field, Weld County, Colorado:

Township 4 North, Range 65 West, 6th P.M.
Sections	6 thru 8: All
Sections	17 thru 20: All
Section	30: All

Township 4 North, Range 66 West, 6th P.M.
Sections	1 thru 3: All
Sections	10 thru 15: All
Section	23: All
Section	25: All

IT IS FURTHER ORDERED, that a hearing shall be held in six (6) months at which time the Commission shall review data obtained from additional development in the Hambert Field to determine whether the 820-acre drilling and spacing units as established by Order Nos. 804-1 and 804-8 should be continued for the remaining lands in the field.

IT IS FURTHER ORDERED, that the provisions contained in this 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, rules and regulations.

ORDERED this 15th day of August, 1977.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Frank J. Piro, Secretary