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 RULISON FIELD, GARFIELD AND MESA COUNTIES, COLORADO	) ) ) )	CAUSE NO. 139 ORDER NO. 139-6

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 16, 1968, at 10 a.m., in Conference Room 260, Columbine Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of Austral Oil Company Incorporated, for an order approving a certain Unit Agreement and Unit Operating Agreement attached to said application as "Exhibit 1" and "Exhibit 2", respectively, for the development and operation of the Rulison Unit Area in any and all formations, and further approving the use of nuclear completion methods in said unit operations to the extent they are approved by the Atomic Energy Commission.

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 said Unit Agreement was approved by the United States Geological Survey on October 4, 1967, and covers federal lands and leases as well as fee lands and leases.

4.      That the unitized substances in and under the unitized land are defined by said agreement as all oil and gas in any and all formations, and that such unitized lands in Garfield and Mesa Counties, Colorado, are described in the following order.

5.      That the plan of operation submitted by Applicant proposes to employ nuclear explosions to complete unit wells in the Mesaverde formation, and that such nuclear completion methods in such unit operations shall be subject to the necessary approval by the Atomic Energy Commission.

6.      That said Unit Agreement and Unit Operating Agreement, and the use of nuclear completion methods, are necessary to increase the ultimate recovery of oil and gas from the Rulison Unit Area and should therefore be approved as being in the public interest for conservation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to the lands set forth in this order, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

Rule 1.    The Rulison Unit Area, as set forth in the Unit Agreement entered into the 1st day of May 1967, is comprised of the following described lands in Garfield and Mesa Counties, Colorado:

GARFIELD COUNTY
Township 6 South, Range 94 West, 6th P.M.
	Sections 25, 26, 31, 32, 33, 34, 35, 36
Township 6 South, Range 95 West, 6th P.M.
	Section 36
Township 7 South, Range 94 West, 6th P.M.
	Sections 1 through 12; Sections 14 through 22, and Sections 27 through 33
Township 7 South, Range 95 West 6th P.M.
	Sections 1, 2 and 3; Sections 9 through 17, and Sections 19 through 36
Township 7 South, Range 96 West, 6th P.M.
	Sections 25 and 36
Township 8 South, Range 94 West, 6th P.M.
	Sections 4, 5, 6, 7, 8 and 9
Township 8 South, Range 95 West, 6th P.M.
	Sections 1, 2, 3, 4, 5, 8, 9, 10, 11 and 12
GARFIELD AND MESA COUNTIES
Township 8 South, Range 94 West, 6th P.M.
	Sections 16 and 17

and said Unit Agreement and Unit Operating Agreement covering operations in any and all formations underlying said Unit Area are hereby approved.

Rule 2.    Applicant's plan for use of nuclear completion methods in unit operations,to [sic] the extent that, they are approved by the Atomic Energy Commission, is hereby approved.

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, rules and regulations.

ORDERED this 16th day of January 1968.

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