REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 17, 1982 at 9:00 A.M. in Room 110, State Centennial Buiding, Denver, Colo-rado, after giving Notice of Hearing as required by law, on the application of Samuel Gary Oil Producer, for an order establishing 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand underlying certain lands in Adams and Arapahoe Counties, Colo-rado.

FINDINGS

The Commission finds as follows:

1. Samuel Gary Oil Producer, 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 juris-diction to promulgate the hereinafter prescribed order.

4. Evidence presented at the hearing indicates that the "J" Sand constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Adams and Arapahoe Counties, Colo-rado, to-wit:

Township 3 South, Range 63 West, 6th P.M. Section 28: S/2 Section 32: All Section 29: SE/4 Section 33: All

Township 4 South, Range. 63 West, 6th P.M. Section 4: N/2; SW/4 Section 5: 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 deve-lopment and promote conservation of the oil and gas resources, an order should be made establishing 160-acre drilling and spacing units for the pro-duction of gas and associated hydrocarbons 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 section, according to the governmental survey, and the permitted well for each unit should be located in the center of the SW/4 of each quarter section, with a tolerance of 200 feet in any direc-tion for topography or surface hazards, and Well No. 1-32 Hand Muegge, SW/4SE/4 Section 32, Township 3 South, Range 63 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 (1) well will efficiently and economically drain an area of 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 regulations shall apply hereafter to a well drilled, completed, or recom-pieted in the "J" Sand underlying the Gambrel Field, herein described, in

(over) addition to other applicable rules and regulations and orders of the Com-mission, 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 and associated hydrocarbons from the "J" Sand underlying the following described lands in the Gambrel Field, Adams and Arapahoe Counties, Colorado to-wit:

Township 3 South, Range 63 West, 6th P.M. Section 28: S/2 Section 32: All Section 29: SE/4 Section 33: All

Township 4 South, Range 63 West, 6th P.M. Section 4: N/2; SW/4 Section 5: All

Rule 2. Said drilling units shall consist of 160-acres and consist of a quarter section according to the governmental survey. The per-mitted well shall be located in the center of the SW/4 of each quarter section with a tolerance of 200 feet in any direction for topography or surface hazards, and Well No. 1-32 Hand Muegge, located in the center of the SW/4SE/4 Section 32, Township 3 South, Range 63 West, 6th P.M., shall be considered 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.

ENTERED this 17th day 1982, as of May 17, 1982.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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