IN THE MATTER Of THE PROMULGATION AND ESTABLISHMENT Of FIELD RULES TO GOVERN OPERATIONS IN THE CODELLNIOBRARA COLORADO Cause No. 407 Order No. 407-42

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on December 19, 1988, in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law on the verified application of The Robert Gerrity Company for an order to amend Order No. 407-1 and 407-10 and to 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.

FINDINGS

The Commission finds as follows:

1. 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/2 and S/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. 407-10 included the Niobrara formation and allowed downhole commingling of production from the Codell and Niobrara formations. The E/2 NE/4, Section 18, Township 5 North, Range 64 West, 6th P.M., Weld County, Colorado is a drilling and spacing unit.

5. Order No. 407-11 pooled the unleased mineral interests of Bessie Jones Fox with those of the leased mineral interests of this unit. Bessie Jones Fox could not be located at the time of issuing Order No. 407-11 and subsequent attempts have been unsuccessful. Order No. 407-11 should remain in effect and pool the interests of Bessie Jones Fox in both 40-acre units.

6. 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 407-10 and establish two 40-acre drilling and spacing units consisting of (1) SE/4 NE/4 and (2) NE/4 NE/4, Section 18, Township 5 North, Range 64 West, 6th P.M., Weld County for the commingled production of oil, gas and associated hydrocarbons from the Niobrara and Codell formations.

ORDER

NOW THEREFORE IT IS ORDERED, that Order Nos. 407-1 and 407-10 are hereby amended and 40--acre drilling and spacing units are hereby established for the commIngled production of oil, gas and associated hydrocarbons from the Codell and Niobrara formations consisting of (1) SE/4 NE/4 and (2) NE/4 NE/4, Section 18, Township 5 North, Range 64 West, 6th P.M., Weld County, Colorado.

IT IS FURTHER ORDERED, that Order No. 407-11 shall remain in effect and that the unleased interests of Bessie Jones Fox shall be pooled with the leased interests in each of the units established herein above.

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

ENTERED this 21st day of 1988, as of December 19, 1988.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dennis R. Bicknell, Secretary

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(407-42)