IN THE MATTER Of THE PROMULGATION AND ESTABLISHMENT Of FIELD RULES TO GOVERN OPERATIONS IN THE EATON FIELD, WELD COUNTY, COLORADO Cause No. 409 Order No. 409-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 16, 1984 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 Frizzell Oil Company, for an order establishing 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the Codell formation underlying certain lands in Weld County, Colorado.

FINDINGS

The Commission finds as follows:

1. Frizzell Oil Company, 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 Codell formation constitutes a common source of supply of oil and associated hydrocarbons underlying the following described lands in County, Colorado, to-wit:

Township 7 North, Range 66 West, 6th P.M. Section 33: NE/4 5. In order to prevent waste of oil and gas, as defined b 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 oil and gas resources, an order should be made establishing 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the Codell formation, a common source of supply underlying the lands defined herein; that said units should be 80-acres, more or less, and consist of the E/2 and W/2 of the NE/4, according to the governmental survey and the permitted well should be located in the SW/4NE/4 and the NE/4NE/4 of said Section 33, in accordance with Rule 318 of the rules and regulations of the Commission.

6. In order to efficiently and economically drain an area of approximately 80-acres, the operator should have the option to drill an additional well on the undrilled 40-acre tract of the 80-acre unit.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the Codell formation underlying that portion of the Eaton Field herein described, in addition to other applicable rules and regulations-and orders of the Commission, if any, heretofore adopted and not in conflict herewith.

Rule 1. 80-acre drilling and spacing units shall be and the same is hereby established for the production of oil and associated hydrocarbons from the Codell formation underlying the following described lands in the Eaton Field, Weld County, Colorado, to-wit:

Township 7 North, Range 66 West, 6th P.M. Section 33: NE/4

Rule 2 Said drilling units shall consist of 80-acres, more or less, and consist of the E/2 and W/2 of the NE/4 of said Sect 33, with the permitted well located in the NE/4NE/4 and the SW/4NE/4 of said Section 33, in accordance with Rule 318 of the Rules and Regulations of the Commission.

Rule 3. An additional well shall be allowed, at the option of the operator, to be drilled on the undrilled 40-acre tract of the unit.

IT IS FURTHER ORDERED, that the provisions contained in the above order 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 2nd day of February 1984, as of January 16, 1984.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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