REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 18, 1976 at 9 Kkktt, in Room 532, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Walter S. Fees, Jr., for an order establishing 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Dakota and Morrison formations underlying certain lands in Garfield 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.

3. That evidence presented at the hearing indicates that the Dakota and Morrison formations each constitute a common source of supply of gas and associated hydrocarbons underlying the following described lands in Garfield County, Colorado, to-wit:

Township 8 South, Range 104 West, 6th rrrtt Section 9: E/2 Section 10: 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 unnecessary 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 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Dakota and Morrison formations, each a common source of supply underlying the lands defined herein; that said units should be 160-acres, more or less, consisting of a quarter section according to the governmental survey thereof, and the permitted wells should be located in the center of the NW/4NE/4 Section 9, NW/4NW/4 Section 10, NE/4SW/4 Section 10, NW/4NE/4 of Section 10 and the NE/4SE/4 Section 10, Township 8 South, Range 104 West, 6th rrrtt, with a tolerance of 200 feet in any direction.

5. That all available geological and engineering data concerning said Dakota and Morrison formations 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 drained by one well producing from said Dakota and Morrison formations.

(over)

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regula tions shall apply hereafter to wells drilled, completed, or recompleted in the Dakota and Morrison formations underlying the Bridle 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:

Rule 1. One Hundred Sixty (160) acre drilling and spacing units shall be and the same are hereby established for the production of gas and associated hydrocarbons from the Dakota and Morrison Formations underlying the following described lands in the Bridle Field, Garfield County, Colorado, to-wit:

Township 8 South, Range 104 West, 6th rrrtt Section 9: E/2 Section 10: All

Rule 2. Said drilling units shall consist of one hundred sixty (160) acres, more or less, and each such drilling unit shall consist of a quarter section, according to the governmental survey thereof, and the permitted wells for each unit shall be located in the center of the NW/4NE/4 Section 9, NW/4NW/4 Section 10, NE/4SW/4 Section 10, NW/4NE/4 Section 10 and the NE/4SE/4 Section 10, Township 8 South, Range 104 West, 6th rrrtt, with a tolerance of 200 feet in any direction.

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 part of and/or all of the above order.

ORDERED this 18th day of May 1976.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary -- 2 (#309-1)