REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 15, 1981 at 9:00 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the Commission's own motion, to consider the rescinding of Order No. 336-1 for the Scabbard Field, Weld County, Colorado.

FINDINGS

The Commission finds as follows:

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

2. 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. On June 19, 1978, the Commission issued Order' No. 336-1 which established 320-acre drilling and spacing units for the production of gas from the "J" Sand underlying the following described lands in the Scabbard Field, Weld County, Colo-rado, 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 Sec, tion 11: W/2 Section 8: All Section 15: All The units consist of the E/2 and W/2 of the N/2 and S/2 of each section with the permitted well located in the NW/4 and SE/4 of each section, no closer than 600 feet From the boundaries or the quarter section.

4. Since the only well in the spaced area producing gas from the "J: Sand is becoming marginal and no development has occurred for some time, and in order to promote future development, the provisions of said Order' No. 336-1 are no longer necessary and should be vacated and the area described in Finding 3 herein should be governed by the general rules and regulations of the Commission.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order No. 336-1 for the Scabbard Field, Weld County, Colorado, is hereby rescinded and operations in the area, as described in Finding 3 herein, shall be governed by the general rules and regulations of the Commission.

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

(over)

ENTERED this 14th day of July, 1981, as of June 15, 1981.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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