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 VIRGILIAN SERIES OF THE WALSH FIELD, BACA COUNTY, COLORADO	) ) ) )	CAUSE NO. 171 ORDER NO. 171-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 19, 1963, 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 Texaco, Inc. for an order establishing 640-acre drilling units for the production of gas from the Virgilian Series (Pennsylvanian) underlying certain lands in Baca County, Colorado; and providing for the permitted well location to be in the NE¼SW¼ of said 640-acre drilling unit, with all wells previously drilled and completed in said Virgilian Series to be the permitted wells for the gas drilling units on which they are located.

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 geological and engineering evidence presented at the hearing indicates that the Virgilian Series (Pennsylvanian) constitutes common sources of supply of gas underlying the following described lands in Baca County Colorado, to-wit:

Township 31 South, Range. 43 West, 6th P.M.
Section 33:	All
Township 32 South, Range 43 West, 6th P.M.
Sections:	2, 3, 4, 9, 10, 11, 12, 13, 14, 15, 16, 17, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 32, 33, 34, and 35

4.      That in order to prevent waste of gas, as defined by law; to protect the correlative rights of all parties concerned; to prevent the drilling of unnecessary wells, and to insure proper and efficient development and promote conservation of the gas resources of the State, an order should be made establishing 640-acre drilling units for the production of gas from said Virgilian Series, common sources of supply underlying the lands as defined herein; and that said units should be 640-acre drilling units consisting of complete sections according to the governmental survey thereof.

5.      That at the hearing, all interested operators agreed that the permitted well for each such drilling unit should be located not closer than 1320 feet from the outer boundaries of said drilling unit.

6.      That all available geological and engineering data concerning said Virgilian Series indicate that one well will adequately and efficiently drain an area of approximately 640 acres of land in the producible horizons of said Virgilian Series.

ORDER

NOW, THEREFORE, IT IS ORDERED that the following rules and regulations shall apply to wells heretofore and hereafter drilled and completed or recompleted in the Virgilian Series (Pennsylvanian) of the Walsh 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 Virgilian Series (Pennsylvanian), common sources of supply underlying the following described lands in Baca County, Colorado:

Township 31 South, Range. 43 West, 6th P.M.
Section 33:	All
Township 32 South, Range 43 West, 6th P.M.
Sections:	2, 3, 4, 9, 10, 11, 12, 13, 14, 15, 16, 17, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 32, 33, 34, and 35

Rule 2.    Said drilling units shall consist of approximately 640 acres, comprising a complete section, according to the governmental survey thereof; and the permitted gas well for such drilling unit shall be located not closer than 1320 feet from the outer boundaries of said drilling unit.

IT IS FURTHER ORDERED, that all wells drilled, and all locations approved by the Commission prior to March 19, 1963, shall be the permitted wells or locations for the respective drilling units.

IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective forthwith, and henceforth the commencement of the drilling of any well or wells in the Virgilian Series (Pennsylvanian), 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 or regulations.

ORDERED this 19th day of March 1963.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	William R. Smith, Secretary