REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 21, 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 Morgan Oil Company for an order establishing 320-acre drilling and spacing units For the production of gas and asso-ciated hydrocarbons from the "J" Sand underlying certain lands in the Pronghorn Field, Arapahoe County, Colorado. The application was amended at the hearing to delete the S/2 Section 16, Township 5 South, Range 62 West, 6th P.M., and the permitted well for each unit be located in the NW/4 and SE/4 of each section and no closer than 990 feet from the boundaries of the quarter section upon which it is located.

FINDINGS

The Commission finds as follows:

1. Morgan 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. Testimony presented at the hearing was insufficient to indicate that one well will efficiently and economically drain 320-acres, nor would such a spacing prevent waste, avoid the drilling of unnecessary wells or protect correlative rights; therefore, the application should be denied.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the application, as amended, of Morgan Oil Company, to establish 320-acre drilling and spacing units for the production or gas and associated hydrocarbons From the "J" Sand underlying certain lands in the Prong-horn Field, Arapahoe County, Colorado, is hereby denied.

ENTERED this 8th day of May, 1980 as of April 21, 1980.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary