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 CAMEO FIELD, MESA COUNTY, COLORADO	) ) ) )	CAUSE NO. 159 ORDER NO. 159-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on December 19, 1961, at 10 a.m., in Room 132, State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Ambassador Oil Corporation for an order establishing 640-acre drilling and spacing units for the production of gas from the Dakota formation, common source of supply underlying certain lands in Mesa County, Colorado, with the permitted well to be located not closer than 1320 feet from the boundary lines of such drilling and spacing unit.

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 Dakota formation constitutes a common source of supply of gas underlying the following described lands in Mesa County, Colorado, to-wit:

Township 9 South, Range 99 West, 6th P.M.
	Sections 25, 26, 27, 35 and 36
Township 9 South, Range 98 West, 6th P.M.
	Section 31
Township 10 South, Range 98 West, 6th P.M.
	Section 6
Township 10 South, Range 99 West, 6th P.M.
	Sections 1 and 2

and is referred to as the Cameo Field.

4.      That in order to prevent waste of oil and gas, as defined in the Oil and Gas Conservation Act; and to prevent the drilling of unnecessary wells, an order should be made establishing Six Hundred Forty (640) acre drilling and spacing units for the production of gas from the Dakota formation, common source of supply underlying said land, as defined herein; that said units should be 640-acre drilling and spacing units according to the governmental survey thereof; and that said unit should consist of a normal section according to the governmental survey thereof, and that the permitted wells for such drilling units should be located not closer than 1320 feet from the boundary lines of such drilling and spacing unit.

5.      That testimony presented at the above hearing indicates that one well will adequately and efficiently drain an area of approximately 640 acres as to gas; and that, drilling and spacing units of the size and shape herein described are not smaller than the maximum area that can be efficiently drained by one gas well producing from said Dakota formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply to wells heretofore and hereafter drilled and completed or re-completed in the Dakota formation of the Cameo Field, as herein defined, in addition to other applicable rules, regulations and orders of the Commission heretofore adopted and not in conflict herewith:

Rule 1.    Six Hundred Forty (640)acre drilling and spacing units shall be, and the same are hereby established for the production of gas from the Dakota formation, common source of supply underlying the following described lands in Mesa County, Colorado:

Township 9 South, Range 99 West, 6th P.M.
	Sections 25, 26, 27, 35 and 36
Township 9 South, Range 98 West, 6th P.M.
	Section 31
Township 10 South, Range 98 West, 6th P.M.
	Section 6
Township 10 South, Range 99 West, 6th P.M.
	Sections 1 and 2

and such area shall henceforth be known as the Cameo Field.

Rule 2.    Said drilling and spacing units shall consist of Six Hundred Forty (640) acres, and each such drilling and spacing unit shall be a normal section according to the governmental survey thereof; and the permitted gas well for each such unit shall be located not closer than 1320 feet from the boundary lines of each such drilling and spacing unit.

IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective forthwith, and henceforth the commencement of the drilling #159-1 of any well or wells in the Dakota formation, as defined herein, for the purpose of producing 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 orders, rules and regulations.

ORDERED this 19th day of December 1961.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	D.V. Rogers, Secretary