REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 16, 1985 at 9:00 A.M., in Room 110 State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of David M. Munson, Inc. for an order establishing a 160-acre drilling and spacing unit for the production of gas and associated hydrocarbons from the Mancos formation underlying certain lands in Rio Blanco County, Colorado.

FINDINGS

The Commission finds as follows:

1. David M. Munson, 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. Based upon the facts stated in the verified application and exhibits submitted, and receiving no objections, and having been reviewed and recommended by the Director as Hearing Officer on September 12, 1985, the Commission should enter an order establishing 160-acre drilling and spacing unit for the production of gas and associated hydrocarbons from the Mancos formation underlying the following described lands in Rio Blanco County, Colorado:

Township 1 South, Range 99 West, 6th P.M. Section 19: SE/4

5. In order to prevent the waste of oil and gas, as defined by law, to protect 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 of the State, an order should be made establishing a 160-acre drilling and spacing unit for the production of gas and associated hydrocarbons from the Mancos formation underlying the lands described herein. The permitted well for the unit should be Well No. 19-1-99 Federal located at a surface location in the SE/4 SE/4 and a bottom location in the SW/4 SE/4 Section 19, Township 1 South, Range 99 West, 6th P.M.

6. All available geological and engineering data concerning said Mancos formation indicate that one 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 and economically drained by one well producing from said formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to wells drilled, completed, or recompleted in the Mancos formation underlying certain lands in the Corral Creek 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. A one hundred sixty (160) acre drilling and spacing unit shall be and the same is hereby established for the production of gas and associated hydrocarbons from the Mancos formation underlying the following described lands in Rio Blanco County, Colorado. to-wit:

Township 1 South, Range 99 West, 6th P.M.

Section 19: SE/4

Rule 2. The permitted well for the unit shall be Well No. 19-1-99 Federal located at a surface location in the SE/4 SE/4 and a bottom location in the SW/4 SE/4 Section 19, Township 1 South, Range 99 West, 6th P.M.

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 t, is 30th day of September, 1985, as of September 16, 1985.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO By Frank J. Piro, Secretary

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