IN THE MATTER Of THE PROMULGATION AND ESTABLISHMENT Of FIELD RULES TO GOVERN OPERATIONS IN THE BUZZARD CREEK FIELD, MESA COUNTY, COLORADO Cause No. 369 Order No. 369-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 20, 1981 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 Bow Valley Petroleum, Inc. for an order establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Mesaverde formation underlying certain lands in the Buzzard Creek Field, Mesa County, Colorado.

FINDINGS

The Commission finds as follows:

1. Bow Valley Petroleum, Inc., 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. Evidence presented at the hearing indicates that the Mesaverde forma-tion constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Mesa County, Colorado, to-wit:

Township 9 South, Range 93 West, 6th P.M. Section 23: All Section 25: All Section 24: All Section 26: All

5. In order to prevent the waste of 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 gas resources of the state, an order should be made establishing 320-acre drilling and spac-ing units for the production of gas and associated hydrocarbons from said Mesaverde formation, common source of supply underlying the lands defined herein; that said units should be 320-acres, more or less, and consist of the E/2 and W/2 of each section, accord-I ing to the governmental survey and due to extreme topographical conditions and complex drilling problems, the permitted well should be at a location no closer than 600 feet to the| boundaries of the unit unless otherwise approved by the Director, without further notice and hearing. Well No. 23-4 Carleton Currer, located in the SE/4SE/4 of said Section 23 should be considered the permitted well for the unit consisting of the E/2 of said section.

6. All available geological and engineering data concerning said Mesaverde formation, indicate that one well will efficiently and economically drain an area of appro-ximately 320-acres, and that drilling units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one well pro-ducing from said Mesaverde formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regula-tions shall apply hereafter to wells drilled, completed, or recompleted in the Mesaverde formation underlying the Buzzard Creek Field herein described, in addition to other

(over) applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

Rule 1. Three hundred-twenty (320) acre drilling and spacing units shall be and the same are hereby established for the production of gas and associated hydro-carbons from the Mesaverde formation underlying the following described lands in the Buzzard Creek Field, Mesa County, Colorado, to-wit:

Township 9 South, Range 93 West, 6th P.M. Section 23: All Section 25: All Section 24: All Section 26: All

Rule 2. Said drilling units shall consist of 320-acres, more or less, and shall be the E/2 and W/2 of each section according to the governmental survey; and the permitted well shall be at a location no closer than 600 feet to the boundaries of the unit unless otherwise approved by the Director, due to topographical conditions and complex drilling problems, without notice and hearing. Well No. 23-4 Carleton Currer, located in the SE/4SE/4 of said Section 23 shall be considered the permitted well for the unit con-sisting of the E/2 of said section.

IT IS FURTHER ORDERED, that the rules and regulations contained herein 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, rules and regulations.

ENTERED this 8th day of March 1981, as of April 20, 1981.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary (#369-1)