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 PLATEAU FIELD, MESA COUNTY, COLORADO	) ) ) )	CAUSE NO. 166 ORDER NO. 166-2

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 27, 1962, at 10 a.m., in Room 320E, State Capitol, Denver, Colorado, after publication of Notice of Hearing and service of said Notice or appropriate waiver thereof, on the application of the Apache Corporation for an order requiring the pooling of tracts of land lying within the drilling unit defined as Section 13, Township 10 South, Range 96 West, 6th P.M., in the Plateau Field, Mesa County, Colorado, for the development of the Mesaverde formation underlying said lands; and allocation of production from the Nichols "B" No. 1 well to all tracts within said drilling unit on a proportionate acreage basis.

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 April 17, 1962, the Commission issued Order No. 166-1 which, among other things, established 640-acre drilling units, one of which is comprised of Section 13, Township 10 South, Range 96 West, 6th P.M., in the Plateau Field, Mesa County, Colorado, for the production of gas from the Mesaverde formation, common source of supply underlying said drilling units.

4.      That Applicant drilled its Nichols "B" No. 1 well in the SW¼SW¼ of said Section 13; and that this well is the permitted well for such drilling unit, and is capable of producing gas in the Mesaverde formation.

5.      That Applicant and all other owners of working interests in oil and gas leases covering the entire mineral interest under the tracts of land forming the drilling unit herein described have agreed to the pooling of their interests for the development and operation of said Nichols "B" No. 1 well; and have agreed to the sharing among themselves of the costs and expenses incurred in connection with the drilling and operation thereof.

6.      That Applicant has sought the execution of a pooling agreement by all owners of royalty and overriding royalty interests within said drilling unit; and that most of such royalty interest owners have voluntarily agreed to the pooling of their interests in said drilling unit; but that certain of said owners have refused to execute and enter into said pooling agreement.

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 within said drilling unit the opportunity to recover and receive his just and equitable share of the gas from the common source of supply 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.

ORDER

NOW, THEREFORE, IT IS ORDERED, that pursuant to the provisions of 100-6-4 of the Oil and Gas Conservation Act of the State of Colorado, all interests in the drilling unit described as Section 13, Township 10 South, Range 96 West of the 6th P.M., Mesa County, Colorado, are hereby pooled for the development and operation of said drilling unit.

IT IS FURTHER ORDERED, that the production obtained from the Nichols "B" No. 1 well, located in the SW¼SW¼ of 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; and each owner of interest in said tracts in said drilling unit shall be entitled to receive his share of the production of said Nichols "B" No. 1 well, applicable to his interest in said drilling unit.

ORDERED this 27th day of November 1962.

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