REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 21, 1977 at 9 ato., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Petroleum, Inc., for an order estab-lishing 80-acre drilling and spacing units for the production of oil and associated hydro-carbons underlying certain lands in Arapahoe 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 "D" Sand con-stitutes a common source of supply of oil and associated hydrocarbons underlying the following described lands in Arapahoe County, Colorado, to-wit

Township 5 South, Range 62 West, 6th P.M. Section 29. All Section 31: All Section 30. All Section 32: NW/4

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 unneces-sary wells, and to insure proper and efficient development and promote conservation of *he oil and gas resources of the State, an order should be made establishing 80-acre rilling and spacing units for the production of oil and associated hydrocarbons from the "D" Sand, common source of supply underlying the lands defined herein; that said units should be 80-acre drilling units consisting of the N/2 and S/2 of each quarter section, according to the governmental survey thereof, and that the permitted well for each such drilling unit should be located in the center of the SE/4 and NW/4 of each quarter section, with a tolerance of 200 feet in any direction to avoid surface hazards or topography.

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 "D" Sand.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regula-tions shall apply hereafter to wells drilled, completed, or recompleted in the "D" Sand underlying the Chinook 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 and associated hydrocarbons from the "D" Sand underlying the following described lands in the Chinook Field, Arapahoe County, Colorado to -wit: (over)

Township 5 South, Range 62 West, 6th P.M. Section 29: All Section 31: All Section 30: All Section 32: NW/4

Rule 2. Said drilling units shall consist of eighty (80) acres, and each such drilling unit shall be the N/2 and S/2 of each quarter section, according to the govern-mental survey thereof, and the permitted well for each such drilling unit shall be located in the center of the SE/4 and NW/4 of each quarter section, with a tolerance of 200 feet in any direction to avoid surface hazards or topography.

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 21st day of March, 1977.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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