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. 304-5

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 17, 1978 at 9 a.m., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as the result of Order No. 304-4, issued August 15, 1977 which, among other things, ordered that the Commission shall review at the February 1978 hearing date, additional data in order to determine whether the 320-acre drilling and spacing units as established by previous orders in this cause should remain.

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 August 15, 1977, the Commission issued its Order No. 304-4 which established 160-acre drilling and spacing units for the production of gas from the Sussex formation underlying Section 24, Township 4 North, Range 66 West, 6th P.M. The remaining lands remained subject to the provisions of Order Nos. 304-1 and 304-3 which established 320-acre drilling and spacing units.

4. That evidence presented at the hearing indicates that one well will not adequately drain the gas from the Sussex formation underlying the 320-acre drilling and spacing units in the Hambert Field; therefore, Order No. 304-4 should be withdrawn and 160-acre drilling and spacing units should be established for the following described lands in Weld County, Colorado, to-wit:

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
Sections	23 thru 25: All

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 the Hambert Field; 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 990-feet from the boundaries of the quarter section upon which it is located. However, Well No. 41-24 Segal, located 1070 feet from the north line and 1240 feet from the east line; Well No. 21-24 Segal, located 990-feet from the north line and 1650-feet from the west line; Well No. 14-24 Myron Martinson, located 990-feet from the west line and 1250-feet from the south line and Well No. 1 Brown, located 990-feet from the east line and 1650-feet from the south line, all in Section 24, Township 4 North, Range 66 West, 6th P.M., should be considered the permitted wells for the 160-acre units upon which each is located.

6. That all available geological and engineering data concerning said Sussex Formation indicate that one well will efficiently and economically drain an area of approximately 160-acres, and that drilling units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently and economically drained by one well producing from said Sussex formation.

7. That on the 320-acre tracts which have heretofore been pooled or communitized and where (1) a well drilled thereon, an additional well should be authorized on said 320-acre tract, that the additional well should be located on the undrilled quarter section and no closer than 990-feet from the boundaries of said quarter section, and where (2) no wells have been drilled thereon, a well should be authorized on each quarter section and located no closer than 990-feet from the boundaries of the quarter section upon which it is located.

8. That the Director may, without additional notice and hearing, grant exceptions to the permitted well locations to avoid hazardous conditions in drilling near coal mines, mine shafts, water supply sources or surface obstructions, provided the owners of the contiguous and cornering drilling units toward which the proposed location would be moved, file a waiver or consent in writing agreeing to said exceptions.

ORDER

NOW, THEREFORE, IT IS ORDERED, that on the 320-acre units which have heretofore been pooled or communitized, and where (1) a well drilled thereon, an additional well shall be authorized on said 320-acre unit, and the additional well shall be located in the undrilled quarter section of each pooled or communitized 320-acre tract and no closer than 990-feet to the boundaries of the quarter section upon which it is located, and where (2) no wells have been drilled thereon, a well shall be authorized on each quarter section and located no closer than 990-feet from the boundaries of the quarter section upon which it is located.

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, to -wit:

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 33: All
Sections	10 thru 15: All
Section	23: All
Section	24: All
Section	25: All

Rule 2. Said drilling units shall consist of one hundred-sixty (160) acres, and each such drilling unit shall consist of a quarter section, according to the governmental survey thereof, and that the permitted well shall be located no closer than 990-feet from the boundaries of the quarter section upon which it is located.

Rule 3. Well No. 41-24 Segal, located 1070-feet from the north line and 1240-feet from the east line; Well No. 21-24 Segal, located 990-feet from the north line and 1650-feet from the west line; Well No. 14-24 Myron Martinson, located 990-feet from the west line and 1250-feet from the south line and; Well No. 1 Brown, located 990-feet from the east line and 1650-feet from the south line, all in Section 24, Township 4 North " Range 66 West, 6th P.M. shall be the permitted wells for the 160-acre drilling and spacing units upon which each is located.

IT IS FURTHER ORDERED, that the Director may, without additional notice and hearing, grant exceptions to the permitted well locations to avoid hazardous conditions in drilling near coal mines, mine shafts, water supply sources or surface obstructions, provided the owners of the contiguous and cornering drilling units toward which the proposed location would be moved, file a waiver or consent in writing agreeing to said exceptions.

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 17th day of February, 1978.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Frank J. Piro, Secretary