REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 19, 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 Sandlin Oil Corporation for an order establishing 320-acre drilling and spacing units for the production of gas from the "J" Sand underlying certain lands in Weld County, Colorado. The application was amended at the time of the hearing to delete the E/2 Section 3, all of Section 16 and the N/2 Section 22, Township 1 North, Range 63 West, 6th P.M. from the area requested to be spaced.

FINDINGS

The Commission finds as follows:

1. Sandlin Oil Corporation, as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

2. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

3. The Commission has jurisdiction over the subject matter embraced in said Notice and of the parties interested therein, and jurisdiction to promulgate the here-inafter prescribed order.

4. Evidence presented at the hearing indicates that the "J" Sand consti-tutes a common source of supply of gas underlying the following described lands in Weld County, Colorado, to-wit: Township 1 North, Range 63 West, 6th P.M. Section 3: W/2 Section 9: All Section 4: All Section 10: All Section 5: All Section 11: W/2 Section 8: All Section 15: All

5. 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 of the State, an order should be made establishing 320-acre drilling and spac-ing units for the production of gas from the "J" Sand herein defined; that said units should be 320-acres, more or less, consisting of the E/2 and the W/2 or the N/2 and the S/2 of each section according to the governmental survey thereof (the drilling unit should be designated at the time of filing the permit to drill). The permitted well should be located in the NW/4 and the SE/4 of each section and no closer than 600 feet from the boundaries of the quarter section upon which it is located, and that the existing producing or producible wellS in the spaced area be considered the permitted well for the unit upon which it is located.

6. Available geological and engineering data concerning said "J" Sand indicate that one well will efficiently and economically drain an area of approximately 320-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 "J" Sand.

(over)

7. The W/2 Section 3, Township 1 North, Range 63 West, 6th P.M. should be deleted from the spaced area as established by Order No. 248-1, issued February 18, 1972 for the Roggen Field and included in the spaced area of the Scabbard Field as described in Finding 4 herein.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regula tions shall apply hereafter to wells drilled, completed, or recompleted in the "J" Sand underlying the Scabbard 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. Three Hundred Twenty (320) acre drilling and spacing units shall be and the same are hereby established for the production of gas from the "J" Sand herein defined, underlying the following described lands in the Scabbard Field, Weld County, Colorado, to-wit:

Township 1 North, Range 63 West, 6th P.M. Section 3: W/2 Section 9: All Section 4: All Section 10: All Section 5: All Section 11: W/2 Section 8: All Section 15: All

Rule 2. Said drilling units shall consist of three hundred twenty (320) acres, more or less, and each such unit shall consist of the E/2 and the W/2 or the N/2 and the S/2 of each section according to the governmental survey thereof (the drilling unit shall be designated at the time of filing for the permit to drill), with the permitted well located in the NW/4 and the SE/4 of each section, no closer than 600 feet from the boundaries of the quarter section upon which it is located and that the existing producing or producible well in the spaced area be considered the permitted well for the unit upon which it is located.

IT IS FURTHER ORDERED, that the W/2 Section 3, Township 1 North, Range 63 West, 6th P.M. is hereby deleted from the spaced area as established by Order No. 248-1 for the Roggen FieLd and is included in the spaced area described herein.

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 orders and rules.

ORDERED this 19th day of June, 1978.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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(#336-1 & 248-3)

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