170-4

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 "J" SAND OF THE HUNTER FIELD, MORGAN COUNTY, COLORADO

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CAUSE NO. 170

ORDER NO. 170-4

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 16, 1965, in Room 132, State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, and receipt of Waivers of Service in accordance with the rules and regulations of the Commission, on the application of Charles Bolinger, Hugh Bolinger, Ruth Carr, Rhoda J. Binner, Sue B. Skinner, John Bolinger, Stella Pratt, and James Bolinger, Jr., who felt that they had not been properly represented at the hearing held January 12, 1965; did not realize, from the subsequent notice on the Commission's own motion that any oil was involved; and so desired the opportunity to present technical and other evidence on their own behalf, and to submit their arguments in the matter.

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 testimony presented at the hearing indicates the "J" sand reservoir of the Hunter Field contains recoverable gas and associated hydrocarbons underlying, in addition to lands contained in the drilling and spacing unit described in Order No. 170-3, the following described lands in Morgan County, Colorado, to-wit:

Township 1 North, Range 55 West, 6th P.M.

Section 31:	S½N½NW¼, N½N½SW¼, W½SW¼NE¼

4. That the ownership of said reservoir is divided into two tracts, one covering the S½NW¼NW¼ [sic] [Note: Overwritten with S½NW¼NW¼], SW¼NW¼, N½N½SW¼ of said Section 31, hereafter referred to as the Bolinger tract; and the other covering the remainder of the reservoir, as defined in Finding 3 hereof, and hereinafter referred to as the Laffoon tract.

5. That geological interpretation of isopach maps presented at the hearing indicates that gas, as defined in the Oil and Gas Conservation Act, is contained in the "J" sand reservoir of the Hunter Field in approximate equal portions on the Bolinger and Laffoon tracts.

6. That geological interpretation of isopach maps presented at the hearing indicates that oil, as defined in the Oil and Gas Conservation Act, contained in the "J" sand reservoir of the Hunter Field and recoverable from production of the Allison Drilling Company, Inc. No. 1 Bolinger well located in the SW¼NW¼ of said Section 31, underlies only the Bolinger tract.

7. That liquid hydrocarbons produced at the wellhead of said Allison Drilling Company No. 1 Bolinger well, and associated with the produced gas, consist of oil and liquids resulting from condensation of gas before or after it leaves the reservoir.

8. That the Laffoon tract is entitled to that portion of liquid production resulting from condensation of gas, both in said reservoir and at the wellhead, which gas was originally contained on said tract.

9. That allocation of gas in equal portions between the two tracts will allow each owner an opportunity to recover his just and equitable share of the gas production.

10. That as the result of produced liquids containing both oil, as defined in the Oil and Gas Conservation Act, and condensate resulting from condensation of gas both in the reservoir and at the wellhead, allocation of said liquid production with 80% (eighty per cent) allocated to the Bolinger tract and 20% (twenty per cent) allocated to the Laffoon tract, will allow each owner an opportunity to recover his just and equitable share of the liquid production.

ORDER

NOW, THEREFORE, IT IS ORDERED that the following rules and regulations shall apply hereafter to the "J" sand reservoir of the Hunter Field, Morgan County, Colorado, in addition to the applicable rules and regulations, if any, heretofore adopted and not in conflict herewith:

Rule 1. The size of the drilling unit established by Rule 1 of Order No. 170-3 is hereby amended to include, in addition to lands contained in said drilling unit, the following described lands in Morgan County, Colorado, to-wit:

Township 1 North, Range 55 West, 6th P.M.

Section 31:	S½N½NW¼, N½N½SW¼, W½SW¼NE¼

and the permitted well for such redefined drilling unit shall be the Allison Drilling Company, Inc. No. 1 Bolinger, located in the SW¼NW¼ of said Section 31, 1987 feet from the north section line and 637 feet from the west section line of said Section 31.

Rule 2. All interests in the drilling unit previously established and pooled by said Order No. 170-3 are extended by Rule 1 hereof, and the pooling provisions set forth in Rule 2 of said Order No. 170-3 for development and operation of said Allison Drilling Company, Inc. No. 1 Bolinger well are hereby amended, and hereafter all "J" sand gas produced from said well shall be allocated in equal portions among the Bolinger and Laffoon tracts, as defined in Finding 4 hereof; and 80% (eighty per cent) of the liquid associated hydrocarbons shall be allocated to the Bolinger tract, with the remaining 20% (twenty per cent) of the liquid associated hydrocarbons allocated to the Laffoon tract.

IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective Thursday, April 1, 1965.

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 rules, regulations and orders.

ORDERED this 1st day of April 1965.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

William R. Smith, Secretary