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 Sandlin Oil Corporation and Gary Sandlin, for an order establishing 160-acre drilling units for the production of gas from the "J" Sand underlying certain lands in Adams County, Colorado.

FINDINGS

The Commission finds as follows:

1. Sandlin Oil Corporation and Gary Sandlin, as applicants herein, are interested parties 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. Evidence presented at the hearing indicates that the "J" Sand constitutes a common source of supply of supply of gas underlying the following described lands in Adams County, Colorado, to-wit:

Township 2 South, Range 62 West, 6th P.M. Section 31: S/2 Township 3 South, Range 62 West, 6th P.M. Section 5: W/2 Section 6: All

5. 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 unnecessary wells, and to insure proper and efficient development and promote conservation of the oil and gas resources, an order should be made establishing 160-acre drilling and spacing units for the production of gas from the "J" Sand, a common source of supply underlying the lands defined herein; that said units should be 160-acres and consist of a quarter sec-tion, according to the governmental survey, and the permitted well For each unit should be located in the SW/4 of each quarter section and Well No. 1 Helming, SW/4NE/4 Section 6, Township 3 South, Range 62 West, 6th P.M. should be the permitted well for the unit upon which it is located.

6. All geological and engineering data concerning the "J" Sand indicate that one well will efficiently and economically drain an area or approximately 160-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 "J" Sand.

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 "J" Sand

(over) underlying the Pheasant 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. One hundred-sixty (160) acre drilling and spacing units shall be and the same is hereby established for the production of gas from the "J" Sand underlying the following described lands in the Pheasant Field, Adams County, Colorado, to-wit:

Township 2 South, Range 62 West, 6th P.M. Section 31: S/2 Township 3 South, Range 62 West, 6th P.M. Section 5: W/2 Section 6: All Rule 2. Said drilling units shall consist of 160-acres and consist of a quarter section, according to the governmental survey. The permitted well shall be located in the SW/4 of each quarter section and Well No. 1 Helming, SW/4NE/4 Section 6, Township 3 South, Range 62 West, 6th P.M., shall be the permitted well for the unit upon which it is located.

IT IS FURTHER ORDERED, that the provisions contained in the above order and rules and regulations 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.

ORDERED this 15th day of February, 1980.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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