IN THE MATTER Of THE PROMULGATION AND ESTABLISHMENT Of FIELD RULES TO GOVERN OPERATIONS IN THE TWIN BUTTES FIELD, GARFIELD COUNTY, COLORADO Cause No. 332 Order No. 332-1

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 required by law, on the application of Tipperary Oil and Gas Corpo-ration, for an order establishing two (2) 640-acre drilling units for the production of gas: from the Dakota formation underlying certain lands in Garfield County, Colorado. The location was amended at the hearing to delete one (1) 640-acre unit consisting of Section 26, Township 5 South, Range 102 West, 6th P.M. i

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 the Dakota formation constitutes a common source of supply of gas underlying the following described lands in Garfield County, Colorado, to-wit:

Township 5 South, Range 102 West, 6th P.M. Section 35: All

4. That in order to prevent 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 the oil and gas resources, an order should be made establishing a 640-acre drilling and spacing unit for the production of gas from the Dakota formation, a common source of supply underlying the lands defined herein; that said unit should be 640-acres and consist of the lands as herein described, and the permitted well for said unit should be the No. 1-35, located 1323 feet from the north line and 1903 feet from the west line of said Sec-tion 35.

5. That all geological and engineering data concerning the Dakota formation indicate that one well will efficiently and economically drain an area of approximately 640-acres, and that the drilling unit of the size and shape hereinabove described is not smaller than the maximum area that can be efficiently drained by one well producing from said Dakota formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regula-tions shall apply hereafter to a well drilled, completed, or recompleted in the Dakota formation underlying the Twin Buttes Field, herein described, in addition to other appli-cable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

Rule 1. A six hundred forty (640) acre drilling and spacing unit shall be and the same is hereby established for the production of gas from the Dakota formation underlying the following described lands in the Twin Buttes Field, Garfield County, Colorado, to-wit: (over)

Township 5 South, Range 102 West, 6th P.M. Section 35: All

Rule 2. The permitted well for the above described unit shall be the No. 1-35, located 1323 feet from the north line and 1903 feet from the west line of said Section 35. 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 and/or all of the above order and rules and regulations.

ORDERED this 17th day of February, 1978.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

(#332-1) By Frank J. Piro, Secretary