|IN THE MATTER Of THE PROMULGATION AND ESTABLISHMENT Of FIELD RULES TO GOVERN OPERATIONS IN THE STEER FIELD, MONTROSE COUNTY, COLORADO||Cause No. 364 Order No. 364-1|
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 Jack J. Grynberg for an order approving a certain Unit Agreement and Unit Operating Agreement for the development and operation of the proposed Steer Unit Area in any, and all formations underlying cer-tain lands in Montrose County, Colorado.
The Commission finds as follows:
1. Jack J. Grynberg, 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 indicates that there is possibly a common source of supply of gas in a pool underlying a portion of the proposed unit area; however, evidence was insufficient to demonstrate the size and extend of the pool as reasonably defined and determined by drilling operations to be productive of gas underlying the proposed unit area. In addition, Applicant failed to demonstrate the need for a unit area of this size.
5. Insufficient evidence was presented to show that the value or the esti-mated additional recovery by reason of the proposed unit would exceed the estimated additional cost incidental to the proposed unit operations nor is said proposed unit operations reasonably necessary to increase the ultimate recovery of oil or gas.
6. In view or the above findings, the application requesting approval or a Unit Agreement and Unit Operating Agreement for the Steer Unit Area should therefore be denied.
NOW, THEREFORE, IT IS ORDERED, that the application of Jack J. Grynberg requesting approval of a certain Unit Agreement and Unit Operating Agreement for the development and operation of the proposed Steer Unit Area, consisting or certain lands in Montrose County, Colorado, is hereby denied.
ENTERED this 8th day or May 1980 as of April 21, 1980.
THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By Frank J. Piro, Secretary