REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 18, 1977, at 9 Kkktt, in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Mull Drilling Company, for an order establishing 80-acre drilling and spacing units for the pro-duction of oil from the Mississippian, underlying certain lands in Cheyenne 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 Missi-ssippian constitutes a common source of supply of oil underlying the following described lands in Cheyenne County, Colorado, to-wit:

Township 13 South, Range 44 West, 6th rrrtt, Sections 4, 5, 6, 7, 8 and 9

Township 12 South, Range 44 West, 6th rrrtt, Sections 31, 32 and 33

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 con-servation of the oil and gas resources of the State, an order should be made establishing 80 acre drilling and spacing units for the production of oil from the Mississippian, common source of supply underlying the lands defined herein; that said units should be 80 acre drilling units, and consisting of the E/2 and W/2 or the N/2 and S/2 of each quarter section, according to the governmental survey thereof, which drilling units should be designated at the time of filing the permit to drill; and that the permitted will for each such drilling unit should be located in the center of the NE/4 and SW/4 of each quarter section, with a tolerance of 150 feet in any direction.

5. That all available geological and engineering data concerning said Mississippian indicate that one well will efficiently and economically drain an area of approximately 80 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 Mississippian. (over)

ORDER

NOW, THEREFORE, IT IS ORDERED that the following rules and regulations shall apply hereafter to wells drilled, completed, or recompleted in the Mississippian, underlying the Broken Bow 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, Eighty (80) acre drilling and spacing units shall be and the same are hereby established for the production of oil from the Mississippian underlying the following described lands in the Broken Bow Field, Cheyenne County, Colorado, to-wit:

Township 13 South, Range 44 West, 6th PM, Sections 4, 5, 6, 7, 8 and 9

Township 12 South, Range 44 West, 6th PM, Sections 31, 32 and 33

Rule 2, Said drilling units shall consist of eighty (80) acres, and each such drilling unit shall be the E/2 and W/2 or the N/2 and S/2 of each quarter section, according to the governmental survey thereof, which drilling units shall be designated at the time of filing the permit to drill; and the permitted well for each such drilling unit shall be located in the center of the NE/4 and SW/4 of each quarter section, with a tolerance of 150 feet in any direction.

IT IS FURTHER ORDERED, that the rules and regulations contained herein 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 order, rules and regulations.

ORDERED this 18th day of February 1977.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

(#320-4)