IN THE MATTER OF GENERAL RULES AND REGULATIONS WITH RESPECT TO THE CONSERVATION OF OIL AND GAS IN THE STATE OF COLORADO, AND RULES OF PRACTICE AND PROCEDURE PERTAINING THERETO AND IN PARTICULAR WITH REFERENCE TO RULE 323

BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF THE INVESTIGATION TO TAKE MEASURES TO PREVENT WASTE OF OIL AND GAS IN THE AKRON-EAST FIELD, WASHING-TON COUNTY, COLORADO

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CAUSE NO. 62

ORDER NO. 62-1

APPEARANCES:

Dale Ozman - for Wytex Service Corporation

Frank Morrison, Attorney - for Lion Oil Company.

Martin Heglund - for Stanolind Oil and Gas Company

Wilbur Rocchio, Assistant Attorney General,

A.J. Jersin, Deputy Director, and

D.V. Rogers, Petroleum Engineer - for the Commission

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 13, 1955, at 10:00 A.M., in Room 330, State Office Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Wytex Service Corporation for an order establishing forty (40) acre drilling and spacing units, according to the governmental survey thereof, for the production of oil and gas from the "D" sand, common source of supply underlying the Akron-East Field, Washington County, Colorado.

FINDINGS

The Commission finds as follows:

1. That due notice of the time, place, and purpose of the hearing has been given in all respects, as required by law.

2. That the Commission has jurisdiction over the subject matter embraced in said Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribe order.

3. That the "D" sand constitutes a common source of supply of oil and gas underlying the following described lands in Washington County, Colorado, to-wit:

Township 3 North, Range 51 West, 6th P.M.

Section 30: W/2	Section 31: W/2

Township 3 North, Range 52 West 6th P.M.

Section 25: All	Section 35: E/2
Section 26: E/2	Section 36: All

and is referred to as the Akron-East Field.

4. That, in order to prevent waste of oil and gas as defined in the Colorado Oil and Gas Conservation Act of 1951, as amended; and to prevent the drilling of unnecessary wells, an order should be made establishing Forty (40) acre drilling and spacing units for the production of oil and gas from the "D" sand, common source of supply underlying the Akron-East Field described above; that said units should be Forty (40) acre drilling and spacing units according to the governmental survey thereof; that the permitted well for each drilling unit should be located in the center of each quarter-quarter section in the governmental survey; and that a tolerance of One Hundred (100) feet in any direction from the prescribed location should be permitted to avoid surface hazards and obstructions.

5. That all available geological and engineering data concerning the "D" sand, common source of supply in said Akron-East Field, indicate that one well will efficiently and economically drain an area of approximately Forty (40) acres, and that drilling units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one well producing from the said "D" sand, common Source of supply in said Akron-East Field.

ORDER

IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the "D" sand formation underlying the Akron-East Field, herein described in the Findings, which, by reference, are made a part hereof, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

Rule 1. Forty (40) acre drilling and spacing units shall be and the same are hereby established for the production of oil and gas from the "D" sand formation, common source of supply underlying:

West Half (W/2) of Sections Thirty (30) and Thirty-one (31), Township Three (3) North, Range Fifty-one (51) West of the 6th P.M.; and all of Sections Twenty-five (25) and Thirty-six (36), and the East Half (E/2) of Sections Twenty-six (26) and Thirty-five (35); Township Three (3) North, Range Fifty-two (52) West of the 6th P.M., all in Washington County, Colorado,

and such area shall henceforth be known as the Akron-East Field.

Rule 2. That each governmental quarter-quarter section in the governmental survey shall constitute a drilling and spacing unit, and the permitted well for each unit shall be located in the center of each quarter-quarter section in the governmental survey; that a tolerance of One Hundred (100) feet in any direction from the prescribed location shall be permitted only where surface obstructions or hazards make it unduly hazardous or expensive to drill at the prescribed location.

IT IS FURTHER ORDERED, that by order of the Commission, after due notice and hearing, said Akron-East Field, "D" sand, common source of supply, may be re-designated from time to time to embrace other lands in the vicinity which are believed on the basis of additional development to be capable of producing oil and gas from the "D" sand, common source of supply.

IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective forthwith, and henceforth the commencement of the drilling of any well or wells in the Akron-East Field to the "D" sand, common source of supply, as defined herein, for the purpose of producing oil and gas therefrom at a location other than authorized by this Order, is hereby prohibited.

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 rules and regulations.

ORDERED this 13th day of April, 1955, by the Oil and Gas Conservation Commission of the State of Colorado.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Secretary