BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
IN THE MATTER OF THE Promulgation AND ESTABLISHMENT OF FIELD RULES TO GOVERN Operations IN THE AMBER-SOUTH D-2 SAND, LOGAN COUNTY, COLORADO	) ) ) )	CAUSE NO. 135 ORDER NO. 135-2

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 15, 1959 at 10:00 a m., on the Mezzanine of the Albany Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Gulf Oil Corporation for an order establishing one gas drilling and spacing unit comprising all of the E½ of Section 31, Township 11 North, Range 53 West, 6th P.M., Logan County, Colorado, covering the D-2 sand, common source of supply underlying said area; and providing that no more than one gas well should be drilled to or produced from said D-2 send on said drilling unit, and providing that said well should be located within 320 feet of the center of the E½ of said Section 31.

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 the D-2 sand constitutes a common source of supply of gas underlying the following described lands in Logan County, Colorado, to-wit:

Township 11 North, Range 53 West, 6th P.M.

Section 31:  E½

and that such area, in addition to the area set forth in Order No. 135-1, is referred to as the Amber-South Field.

4.      That in order to prevent waste, as defined in the Colorado Oil and Gas Conservation Act and to prevent the drilling of unnecessary wells, an order should be made establishing a 320-acre drilling and spacing unit for the production of gas from said D-2 sand, common source of supply underlying said land, as defined herein; and that said unit should be a 320-acre drilling and spacing unit according to the governmental survey thereof, and should be a half section, as herein described; and that the permitted gas well for such drilling unit should be located within 320 feet of the center of the E½ of Section 31, Township 11 North, Range 53 West, 6th P.M., Logan County, Colorado.

5.      That all available geological and engineering data presently known to the Commission concerning said D-2 sand in said Amber-South Field seems to indicate that one well will efficiently and economically drain an area of approximately 320 acres as to gas; and that a drilling and operating unit of the size and shape herein described appears not to be smaller than the maximum area that can be efficiently drained by one gas well producing from said D-2 sand, common source of supply.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to the lands set forth in this order:

Rule 1.    A Three Hundred Twenty (320) acre drilling and spacing unit, according to the governmental survey thereof, shall be and the same is hereby established for the production of gas from the D- 2 sand, common source of supply underlying:

East Half (E½) of Section Thirty-one (31), Township Eleven (11) North, Range Fifty-three (53) West, 6th P.M., Logan County, Colorado.

a.  The permitted gas well for said unit shall be located within Three Hundred Twenty (320) feet of the center of the East Half (E½) of Section Thirty-one (31), Township Eleven (11) North, Range Fifty-three (53) West of the 6th P.M., Logan County, Colorado.

Rule 2.    The Amber-South Field is hereby extended to include the above described lands, in addition to the area set forth in Order No. 135-1, and shall henceforth include the following lands in Logan County, Colorado, to-wit:

All of Section Thirty-one (31), Township Eleven (11) North, Range Fifty-three (53) West of the 6th P.M., Logan County, Colorado.

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 order.

ORDERED this 15th day of September, 1959.

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