REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 15, 2980 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 Jerry D. Armstrong, for an order pooling all interests in the drilling and spacing unit consisting of the S/2 Section 22, Township 4 South, Range 62 West, 6th P.M., for the development of gas from the "J" Sand underlying said unit. In addition, the matter also concerned the application of Jack L. Fatter and Charles M. Driesbach for an order deleting non-productive acreage from said unit and decrease the size accordingly.

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 August 21, 1979, the Commission issued Order No. 356-1 which established 320-acre drilling and spacing units for the production of gas from the "J" Sand underlying lands in the Quill Field, Arapahoe County, Colorado. The S/2 of Section 22, Township 4 South, Range 62 West, 6th P.M., was designated a drilling unit with Well No. 22-13 Farrer, located in the NW/4SW/4 of said Section 22 as the permitted well.

4. The Applicants requesting the reduction of the drilling unit by deletion of non-productive acreage are royalty owners and not working interest owners and as such have no standing in the matter before the Commission and further, objections to the formation of the drilling unit should have been presented at the August 21, 1979 hearing; therefor, the application concerning the reduction of the acreage in the drilling unit consisting of the S/2 Section 22, Township 4 South, Range 62 West, should be denied.

5. Testimony presented at the bearing was insufficient to indicate that pooling of all interests in said unit, as proposed, can be on a just and reasonable basis, and afford to the owner of each tract or interest in the drilling unit the opportunity to recover and receive his just and equitable share; therefore, the application requesting the pooling of all interests in the unit consisting of the S/2 Section 22, Township 4 South, Range 62 West, for the development of the gas from the "J" Sand should be denied.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the application of Jack L. Factor and Charles M. Driesbach, requesting deletion of acreage from the drilling and spacing unit consisting of the S/2 Section 22, Township 4 South, Range 62 West, 6th P.M., Quill Field, Arapahoe County, Colorado, and the application of Jerry D. Armstrong, requesting the pooling of all interests in said unit for the development of gas from the "J" Sand underlying said unit are both hereby denied.

(over-) ENTERED this 14th day of 1980, as of September 15, 1980.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

(#356-2)