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 CUTLASS FIELD, WELD COUNTY, COLORADO	) ) ) )	CAUSE NO. 221 ORDER NO. 221-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on December 16, 1969, at 10 a.m., in Conference Room 260, Columbine Building, 1845 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Okmar Oil Company, for an order establishing 160-acre drilling and spacing units for the production of gas from the "J" Sand formation underlying certain lands in Weld County, Colorado.

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 evidence presented at the hearing indicates that the "J" Sand formation constitutes a common source of supply of gas underlying the following described lands in Weld County, Colorado, to-wit:

Township 10 North, Range 57 West, 6th P.M.
Section 15:  S/2	Section 22:  All

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 160-acre drilling and spacing units according to the governmental survey thereof, for the production of gas from the "J" Sand formation, common source of supply underlying the lands defined herein; and that no more than one well should be completed from the "J" Sand formation on any such drilling unit, with a minimum distance of 2600’ between producing gas wells; and that according to the application, such a well be deemed to be a gas well if the gas-oil ratio is Fifteen Thousand (15, 000) [sic] cubic feet per barrel, or more.

5.      That all available geological and engineering data concerning said "J" Sand formation indicate that one well will efficiently and economically drain an area of approximately 160 acres, and that drilling 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 said "J" Sand formation.

ORDER

NOW, THEREFORE, IT IS ORDERED that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the "J" Sand formation underlying the Cutlass Field herein described, in addition to other applicable rules and regulations and orders of the Commission, of any, heretofore adopted and not in conflict herewith:

Rule 1.    One Hundred Sixty (160) acre drilling and spacing units shall be and the same are hereby established for the production of gas from the "J" Sand formation underlying the following described lands in the Cutlass Field, Weld County, Colorado, to-wit:

Township 10 North, Range 57 West, 6th P.M.
Section 15:  S/2	Section 22:  All

Rule 2.    Said drilling units shall consist of One Hundred Sixty (160) acres, according to the governmental survey thereof; and that no more than one well shall be completed from the "J" sand formation on any such drilling unit, with a minimum distance of 2600 feet between producing gas wells; and that such a well shall be deemed to be a gas well if the gas-oil ratio is Fifteen Thousand (15, 000) [sic] cubic feet per barrel, or more.

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 16th day of December 1969.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	Frank J. Piro, Secretary