113-2

BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER Of THE PROMULGATION OF FIELD RULES TO GOVERN OPERATIONS IN THE CRAIG-NORTH FIELD, MOFFAT COUNTY, COLORADO

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CAUSE NO. 113

ORDER NO. 113-2

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 15, 1968, at 10 A.M., in Conference Room 260, Columbine Building, 1845 Sherman Street, Denver, Colorado, after publication of Notice of Hearing and proper service or waiver of service thereof, as required by law and the rules and regulations of the Commission, on the application of Sun Oil Company for an order requiring the pooling of all interests in the 320-acre unit described as the E½ of Section 32, Township 8 North, Range 90 West, Moffat 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 prescribed order.

3. That on November 26, 1957, the Commission issued its Order No. 113-1 which, among other things, established 320-acre drilling units for the production of gas from a stray member of the Upper Lewis shale formation known locally as the Basal Lance, and designated the E½ of Section 32, Township 8 North, Range 90 West, Moffat County, Colorado, as one of such drilling units.

4. That Applicant is an "interested person" within the meaning of 100-6-4(6) of the Oil and Gas Conservation Act of the State of Colorado.

5. That reasonable effort has been made to obtain the voluntary pooling of all interests for the operation in said drilling unit, but that it has not been possible to secure the agreement of all owners of interests for the voluntary pooling in said drilling unit.

6. That in order to insure proper and efficient operation of said drilling unit, an order should be made pooling all interests in the 320-acre drilling unit as defined.

7. That an order of the Commission pooling all interests in said drilling unit is necessary, just and reasonable in order to afford each owner of interest in said drilling unit the opportunity to recover and receive his just and equitable share of the gas produced from the Basal Lance formation, as defined, underlying said drilling unit.

8. That production obtained from said drilling unit should be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit, with each owner of interest in said tracts to be entitled to receive his share of the production of the well 0 be located on said drilling unit, applicable to his interest in said drilling unit.

ORDER

NOW, THEREFORE, IT IS ORDERED that, pursuant to the provisions of 100-6-4(6) of the Oil and Gas Conservation Act of the State of Colorado, all interests in the drilling unit, defined as the E½ of Section 32, Township 8 North, Range 90 West, 6th P.M., in the Craig-North Field, Moffat County, Colorado, are hereby pooled for the development and operation of said drilling unit.

IT IS FURTHER ORDERED, that the production obtained from said drilling unit shall be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit, with each owner of interest in said tracts to be entitled to receive his share of the production of the well to be located on said drilling unit, applicable to his interest in said drilling unit.

IT IS FURTHER ORDERED, that the above orders shall become effective on the date of first production from said drilling unit.

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.

ORDERED this 15th day of October 1968.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Frank J. Piro, Secretary