BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

THE MATTER OF THE APPLICATION OF SINCLAIR OIL AND GAS COMPANY FOR AN ORDER FROM THE COLORADO OIL AND GAS CONSERVATION COMMISSION WHICH WILL ESTABLISH TWENTY ACRE DRILLING AND SPACING UNITS FOR THE UPPER MUDDY SAND, COMMONLY KNOWN AS THE "D" SAND, COMMON SOURCE OF SUPPLY, AND FOR THE TRUE MUDDY, COMMON KNOWN AS THE "J" SAND, COMMON SOURCE OF SUPPLY UNDERLYING THE 5-3/2 OF SECTION 10, S/2 AND NE/4 OF SECTION 11, ALL OF SECTIONS 13, 14 AND 15, THE E/2 OF SECTION 16, THE E/2 OF SECTION 21, ALL OF SECTIONS 22 AND 23, THE N/2 AND SW/4 OF SECTION 24, THE NW/4 OF SECTION 25, THE N/2 AND N/2 SW/4 OF SECTION 26, ALL OF SECTION 587, AND THE NE/4 OF SECTION 28, ALL IN TOWNSHIP 2 SOUTH, RANGE 57 WEST, ADAMS COUNTY, COLORADO, WHICH AREA IS PRESENTLY REFERRED TO AS THE BADGER CREEK POOL

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Cause No. 21 Order No. 21-1

APPEARANCES:

Dudley C. Phillips, Tulsa, Oklahoma; and John Akolt, Denver,

Colorado, attorneys for applicant; Wilbur Rocchio, Assistant Attorney General

and D.V. Rogers, Petroleum Engineer, for the Commission.

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 8, 1953, at ten o'clock A.M., Room 704 State Capitol Annex, Sherman Street and 14th Avenue, Denver, Colorado, after publication of notice of hearing as required by law, on the petition of Sinclair Oil & Gas Company for an order from the Commission establishing twenty (20) acre drilling and spacing units according to the governmental survey thereof, for the production of oil and gas from the Upper Muddy Sand, often referred to as the "D" Sand, common source of supply, and from the True Muddy Sand, commonly known as the "J" Sand, common source of supply underlying the South Half (S/2) of Section Ten (10), South Half and Northeast Quarter (S/2 & NE/4) of Section Eleven (11), all of Sections Thirteen (13), Fourteen (14) and Fifteen (15), the East Half (E/2) of Section Sixteen (16), the East Half (E/2) of Section Twenty-one (21), all of Sections Twenty-two (22) and Twenty-three (23) the North Half and Southwest Quarter (N/2 & SW/4) of Section Twenty-four (24), the Northwest Quarter (N/2) of Section Twenty-five (25), the

North Half (N/2) and North Half of the South-west Quarter N/2SW/4) of Section Twenty-six (26), all of Section Twenty-seven and the Northeast Quarter (NE/4) of Section Twenty-eight (28), all in Township Two South (2S), Range Fifty-seven West (57W) of the (6th) Principal Meridian, Adams County, Colorado, which area is referred to in said petition as the Badger Creek Pool.

The applicant, Sinclair Oil and Gas Company, is the owner of oil and gas leases within the above described area, and has heretofore completed sixteen (16) wells, all being located in either the "D" Sand, the top of which is found at the approximate depth of 5225 feet below the surface, or the "J" Sand, the top of which is found at the approximate depth of 5300 feet below the surface, all in the Badger Creek Pool as described above. Evidence and testimony presented at the hearing disclose that one well will adequately drain the recoverable oil underlying twenty (20) acres, in either the "D" Sand or the "J" Sand, and that twenty (20) acres is not smaller than the maximum area which can be efficiently drained by one well producing from either the "D" or the "J" Sand.

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 said notice and of the parties interested therein, and jurisdiction to promulgate hereinafter prescribed order.

3. That the Upper Muddy Sand, commonly known as the "D" Sand, and the True

Muddy, commonly known as the "J" Sand, in the Badger Creek Pool, as used herein, constitutes a common source of supply of oil and gas, both underlying the following described lands in Adams County, Colorado:

South Half (S/2) of Section Ten (10), South Half and Northeast Quarter (S/2 & NE/4) of Section Eleven (11), all of Sections Thirteen (13) Fourteen (l4) and Fifteen (15), the East Half (E/2) of Section Sixteen (16), the East Half-(E/2) of Section Twenty-one all of SeCtions Twenty-two (22) and Twenty-three (23) the North Half and Southwest Quarter (N/2 & SW/4) of Section Twenty-four (24), the Northwest Quarter of Section Twenty-five (25), the North Half (N/2) and North Half of the Southwest Quarter (N/2SW/4) of Section Twenty-six (26), all of Section Twenty-seven (27), and the Northeast Quarter (NE/4) of Section Twenty-eight (28), all in Township Two South (2S), Range Fifty-seven West (57W), of the (6th) Principal Meridian, Adams County, Colorado.

4. That in order to prevent waste of oil and gas as defined in the Colorado Oil and Gas Conservation Act of 1951, as amended, and to prevent the drilling of unnecessary wells, an order should be made establishing twenty (20) acre drilling and spacing units for the production of oil and gas from the said Upper Muddy Sand, or "D" Sand, and the True Muddy, or "J" Sand, common source of supply, both underlying said land, as defined herein; that said units should be formed by a line running north and south through the center of each quarter quarter section, according to the governmental survey thereof, and the permitted wells should be located one in the center of the northeast ten (10) acres and one in the center of the southwest ten (10) acres of each quarter quarter section; and a tolerance of fifty (50) feet in any direction from the prescribed location should be permitted to avoid surface hazards and obstructions.

5. That all available geological and engineering data concerning the said Upper Muddy Sand, or "D" Sand, and the True Muddy Sand, or "J" Sand, in the said Badger Creek Field, indicate that one well should efficiently and economically drain an area of approximately twenty (20) acres, and that units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently drained by one well producing from the said Upper Muddy or "D" Sand, or producing from the said True Muddy, or "J" Sand.

6. That exceptions should be allowed for the Sinclair Oil & Gas Company wells as follows: E.W. Windolph Well No. 1 Government, located in the center of the SE/4SE/4NE/4 of Section 21, Township 2 South, Range 57 West, Adams County, Colorado; E.W. Windolph Well No. 2 Government, Located in the center of the SE/4NE/4NE/4 of Section Township 2 South, Range 57 West, Adams County, Colorado; Sinclair Oil & Gas Company Well No. 1 Sidney Causey, located in the center of the NW/4NW/4SW/4 of Section 22, Township 2 South, Range 57 West, Adams County, Colorado; and that said wells should be the permitted well for each twenty (20) acre drilling and spacing unit on which it is located, and no other well should be drilled to either of said common sources of supply on said unit.

ORDER

IT IS THEREFORE ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in either the Upper Muddy Sand, sometimes referred to as the "D" Sand, of the Badger Creek Pool, or the True Muddy, sometimes referred to as the "J" Sand, of the Badger Creek Pool, in Adams County, Colorado, as hereinabove defined in the findings, which by reference are made a part hereof, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith;

Rule 1. Twenty (20) acre drilling and spacing units shall be and the same are hereby established for the production of oil and gas from the Upper Muddy Sand, sometimes referred to as the "D" Sand, common source of supply, and from the True Muddy Sand, sometimes referred to as the "J" Sand, common source Of supply, both underlying the South Half (S/2) of Section Ten (10), South Half and Northeast Quarter E/2 & NE/4) of Section Eleven (11), all of Sections Thirteen (l.3), Fourteen (l4) and Fifteen (15), the East Half (E/2) of Section Sixteen (16), the East Half (E/2) of Section Twenty-one (21), all of Sections Twenty-two (22) and Twenty-three (23) the North Half and Southwest Quarter (N/2 & SW/4), of Section Twenty-four (24), the North-west Quarter (NW/4) of Section Twenty-five (25), the North Half (N/2) and North Half of the Southwest Quarter (N /2SW/4) of Section Twenty-six (26), all of Section Twenty-seven (27), and the Northeast Quarter (NE/4) of Section Twenty-eight (28), all in Township Two South (2S), Range Fifty-seven West (5714) of the (6th) Principal Merid-ian, Adams County, Colorado, and such area shall henceforth be known as the Badger Creek Field.

Rule 2. The said units shall be formed by a line running north and south through the center of each governmental quarter quarter section, and the permitted wells for each unit shall be located one well in the center of the northeast ten (10) acres and one well in the center of the southwest ten (10) acres of each quarter quarter section, and a tolerance of 50 feet in any direction from the pre-scribed location shall be permitted only where surface obstructions or hazards make it unduly hazardous or expensive to drill at the prescribed location.

IT IS FURTHER ORDERED, that by order of the Commission, after due notice and hearing, the said Upper Muddy Sand, or "D" Sand, and the True Muddy, or "J" Sand, in the Badger Creek Field, Adams County, Colorado, may be redesignated from time to time to embrace other lands in the vicinity which are believed on the basis of additional development to be capable of producing oil and gas from either the said Upper Muddy Sand, or "D" Sand, common source of supply, or the True Muddy Sand, or "J" Sand, common source of supply.

IT IS FURTHER ORDERED, that three (3) exceptions are hereby allowed for the

Sinclair Oil & Gas Company wells described as follows:

E.W. Windolph Well No. 1 Government, located in the center of the SE/4SE/4NE/4 of Section 21, Township 2 South, Range 57 West, Adams County, Colorado;

E.W. Windolph Well No. 2 Government, located in the center of the SE/4NE/4NE/4 of Section 21, Township 2 South, Range 57 West. Adams County, Colorado;

Sinclair Oil & Gas Company well No. 1 Sidney Causey located in the center of the NW/4NW/4SW/4 of Section 22, Township 2 South, Range 57 West Adams County Colorado, and that said wells shall be the permitted well for each twenty (20) acre drilling and spacing unit upon which it is located, and no other well shall be drilled to either of said common sources of supply on said 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 Upper Muddy Sand, or "D" Sand, or in the True Muddy Sand, or "J" Sand, as defined herein, for the purpose of producing oil and 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 rules and regulations.

ORDERED this 8th day of September, 1953, by the Oil and Gas Conservation Commission of the State of Colorado.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Asst. Secretary