IN THE MATTER Of THE PROMULGATION AND ESTABLISHMENT Of FIELD RULES TO GOVERN OPERATIONS IN THE CODELL-NIOBRARA SPACED AREA, WELD COUNTY, COLORADO Cause No. 407 Order No. 407-35

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 17, 1988 at 9:00 A.M., in Hearing Room "A", Legislative Services Building, 200 East 14th Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of The Robert W. Gerrity Company for an order to amend Order No. 4707-1 and 407-8 and establish two 40-acre drilling and spacing units for production from the Codell and Niobrara formations underlying an 80-acre unit and to allow downhole commingling of production from said formations and to allow an exception location to the permitted well location.

FINDINGS

The Commission finds as follows:

1. The name of the applicant The Robert W. Gerrity Company has been officially amended to The Robert Gerrity Company since the filing of the application and The Robert Gerrity Company, as applicant herein, is an interested party in the subject matter of the above-entitled 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. On December 19, 1983 the commission authorized Order No. 407-1 to be issued which established 80-acre drilling and spacing units for the production of oil, gas and associated hydrocarbons from the Codell formation. The units consist of the E/2 and W/2 or the N/3 and /2 of each governmental quarter-quarter section with a tolerance of 200 feet and the option to drill an additional well in the undrilled 40-acre tract. Subsequent Order No. 407-8 included the Niobrara formation and allowed downhole commingling of production from the Codell and Niobrara formations. The N/2 SW/4 Section 21, Township S North, Range 6S West, 6th P.M. is a drilling and spacing unit.

5. Based on the facts stated in the verified application and having been heard by the Hearing Officer who recommended approval of the application and having received no protests, the Commission should approve the request and amend Order Nos. 407-1 and 407-8 and establish two 40-acre drilling and spacing units consisting of (1) NW/4 SW/4 and (2) the NE/4 SW/4, Section 21, Township S North, Range 65 West, 6th P.M., Weld County for the Commingled production of oil, gas and associated hydrocarbons from the Niobrara and Codell formations and that an exception be granted to drill a well in the NE/4 SW/4 Section 21, Township 5 North, Range 6S West, 6th P.M., Weld County, Colorado at a location no less than 1600 feet east of the west section line and no more than 700 feet south of the half section line

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order Nos. 407-1 an 407-8 are hereby amended and 40-acre drilling and spacing units are hereby established for the commingled production of oil, gas ar associated hydrocarbons from the Codell and Niobrara formation consisting of (1) the NW/4 SW/4 and (2) the NE/4 SW/4 Section 21 Township S North, Range 65 West, 6ht P.M., Weld County, Colorado and that an exception be granted to drill a well in the NE/4 SW14 of Section 21 at a location no less than 1600 feet east of the west section line and no more than 700 feet south of the half section line.

IT IS FURTHER ORDERED, that the above order shall become effective forthwith.

ENTERED this 30th day of June 1988 as of June 17, 1988.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dennis R. Bicknell, Secretary

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(407-35)