REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 15, 1980 at 9:00 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of L & B Oil Company for an order extending the limits of the spaced area of the Quail Field as established by Order Nos. 355-1 and 355-3. The application was amended at the hearing to delete the S/2 Sec-tion 31, Township 2 South, Range 62 West, 6th P.M. from the area requested to be spaced.

FINDINGS

The Commission finds as follows:

1. L & B Oil Company, 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 hereinafter prescribed order.

4. On August 21, 1979, the Commission issued Order No. 355-1 which established 80-acre drilling and spacing units in Section 35, Township 2 South, Range 63 West, 6th P.M., and 160-acre drilling and spacing units for the remaining lands in the Quail Field, Adams County, Colorado, for the production of gas from the "J" Sand under-lying the lands in said Field. By Order No. 355-3, the Commission amended said Order No. 355-1 and increased the 80-acre units in said Section 35 to 160-acres to conform to the units in the remaining lands of the Quail Field, and further to classify the well located in the NE/4NE/4 of said Section 35 as an oil well.

5. Testimony presented at the hearing indicates a common source of supply of gas underlies, in addition to the area set forth in Order No. 355-3 the following described lands in Adams County, Colorado, to-wit:

Township 2 South, Range 62 West, 6th P.M. Section 30: All Section 31: N/2

Township 3 South, Range 63 West, 6th P.M. Section 1: All and that such area should be made subject to the provisions of Order No. 355-1 and as amended by Order No. 355-3 and that Well No. 2 Pope, located in the NW/4NW/4 of said Section 31 be the permitted well for the unit upon which it is located.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the area as set forth in Finding 5 herein shall be included in the spaced area of the Quail Field and shall be subject to the provisions of Order Nos. 355-1 and 355-3 and the spaced area of the Quail Field for the production of gas from the "J" Sand shall henceforth include the following described lands in Adams County, Colorado, to-wit:

(over) Township 2 South, Range 62 West, 6th P.M. Section 30: All Section 31: N/2

Township 2 South, Range 63 West, 6th P.M. Section 25: All Section 34: E/2 Section 26: All Section 35: All Section 27: E/2 Section 36: All Township 3 South, Range 63 West, 6th P.M. Section 1: All

IT IS FURTHER ORDERED, that Well No. 2 Pope, located in the NW/4NW/4 of said Section 31 be the permitted well for the unit upon which it is located.

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to after, amend or repeal any and/or all of the above orders.

ORDERED this 15th day of February, 1 980.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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