APPEARANCES: Harry H. Ruston, Attorney at Law, Denver, Colorado Frank Simms, Continental Oil Company, Denver, Colorado Charles C. Frey, Continental Oil Company, Denver, Colorado J.E. Shetrod, Denver, Colorado A.P. Smith, 1044 Continental Oil Building, Denver, Colorado R.C. Hawley, Legal Dept., Continental Oil Company, Denver, Colo. Wilbur Rocchio, Assistant Attorney General and J.J. Zorichak, for the Commission.

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 29, 1952 at ten o'clock A.M., 330 State Office Building, Denver, Colorado, after publi-cation of notice of hearing as required by law, on the petition of J.E. Shetrod and J.B. Apperson, a co-partnership doing business as Sherrod and Apperson, Ralph Peterson, Melvin Condron, Wycolo Development Company, a Wyoming corpora-tion, and the Continental Oil Company, a Delaware corporation, for an order from the Commission establishing forty acre drilling and spacing units, ac-cording to the Governmental survey thereof, for the production of oil and gas from the "J" sand, common source of supply underlying Sections 3, 4, 5, 8, 9 and 10, in Township 9 North, Range 61 West of the 6th P.M., in Weld County, Colorado, which area is referred to in said petition as the Keota Field.

Applicant, Shetrod and Apperson, is the owner of oil and gas leases within the above described area and has heretofore completed its Gillette #1 well, which is located as follows:

Center of the SW/4 SE/4, Section 4, in Township 9 North, Range 61 West, in the "J" Sand, the top of which is found at the approximate depth of 7313 feet, and the bottom at the approximate depth of 7360 feet below the surface.

Evidence and testimony presented at the hearing disclose that one well will adequately drain the recoverable oil underlying forty acres in the "J" Sand, and that forty acres is not smaller than the maximum area which can be efficiently drained by one well producing from the "J" Sand.

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 em-braced in said notice and of the parties interested therein, and Jurisdiction to promulgate the hereafter prescribed order. -1-

3. That the "J" Sand Pool in the Keota Field, as used herein, consti-tutes a common source of supply of oil and gas underlying the following des-cribed lands in Weld County Colorado:

Sections 3, 4, 5, 8, 9 and 10, in Township 9 North, Range 61 West of the 6th P.M.

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 drilling and spacing units consisting of tracts of at least forty (40) surface contiguous acres, or a governmental quarter quarter section containing not less than thirty-six (36) acres, the shape of the units to be approximately in the form of a square, in the said Keota Field as defined herein.

5. That all available geological and engineering data concerning the "J" Sand Pool in said Keota Field indicate that one well should efficiently and economically drain an area of approximately forty (40) acres, and that units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one well.

6. That an exception should be allowed for the Wycolo Development Company Gillette No. 1 well, located in the center of the SE/4 of Section 4, Township 9 North, Range 61 West of the 6th P.M., an off-pattern location.

ORDER

IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the "J" Sand Pool, of the Keota Field, Weld County, Colorado, as hereinabove defined in the Findings, which, by reference, are made a part hereof, in addition to other ap-plicable 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 "J" Sand Pool, common source of supply underlying Sections 3, 4, 5, 8, 9 and 10, in Township 9 North, Range 61 West of the 6th P.M., Weld County, Colorado, and such area shall henceforth be known as the Keota Field,

Rule 2. Each such drilling unit shall consist of at least forty (40) surface contiguous acres or a governmental quarter quarter section containing not less than thirty-six (36) acres, such drilling unit to be approximately in the shape of a square, and the permitted wells for each unit shall be located as near the center of said drilling unit as possible, and that a tolerance of fifty (50) feet in any direction from the prescribed location shall be per-mitted 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, the said "J" Sand pool in the Keota Field, Weld County, Colorado, may be redesignated from time to time, to embrace other lands in the vicinity which are believed on the basis of additional development to be capable of pro-ducing oil and gas from-"he said "J" Sand Pool, common source of supply.

IT IS FURTHER ORDERED, that an exception is hereby allowed for the well originally drilled by the Wycolo Development Company, No. 1 Gillette, which is located in the center of The SE/4 of Section 4, Township 9 North, Range 61 West of the 6th P.M.

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 "J" Sand Pool, as defined herein, for the purpose of producing oil and gas therefrom at a location other than that authorized by this order except as herein provided, is hereby prohibited.

ORDERED this 29th day of October, 1952, by the Oil and Gas Conserva-tion Commission of the State of Colorado.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO By Annabel Hogsett, Secretary

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