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 WATTENBERG FIELD, ADAMS & [sic] WELD COUNTIES, COLORADO	) ) ) )	CAUSE NO. 232 ORDER NO. 232-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 17, 1970, at 10 a.m., in the P.U.C. Hearing Room, 5th Floor, Columbine Building, 1845 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Tom Vessels, which application was amended at the hearing to include an additional well as an exception, for an order establishing 320-acre drilling and spacing units for production of gas and associated hydrocarbons from the "J" sand formation underlying certain lands in Adams and Weld Counties, 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 and associated hydrocarbons underlying the following described lands in Adams and Weld Counties, Colorado, to-wit:

Adams County

Township 1 South, Range 66 West, 6th P.M.

All

Township 1 South, Range 67 West, 6th P.M.

All

Weld County

Township 1 North, Range 66 West, 6th P.M.

All

Township 1 North, Range 67 West, 6th P.M.

All

4.      That in order to prevent the waste of gas and oil, 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 and oil resources of the state, an order should be made establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" sand formation, common source of supply underlying the lands defined herein; that said units should be 320-acre drilling units, and consisting of the E½ and the W½ or the N½ and the S½ of each section, according to the governmental survey thereof; and that the permitted well for each such drilling unit should be located in the NE¼ and SW¼ of each section and no closer than 990 feet to the boundaries of the quarter section upon which it is located.

5.      That the following listed wells should be considered exceptions and be the permitted wells for the drilling units upon which they are located:

Township 1 South, Range 66 West, 6th P.M.
1.	No. 1-3 Bergman, C NE¼ NE¼, Section 3
Township 1 South, Range 67 West, 6th P.M.
2.	No. 1 Zarlengo, 2479 feet from the South line and 1419 feet from the West line, Section 4
3.	No. 1 Degenhart, C NE¼ NE¼, Section 5
4.	No. 1 McElwain, C NE¼ NW¼, Section 17
Township 1 North, Range 67 West, 6th P.M.
5.	No. 1 Grenemyer, C SW¼ SW¼, Section 26
6.	No. 1 Grenemyer-Wagner (formerly known as No. 1 Thomas-Wagner), C SW¼ SW¼ NE¼, Section 34

6.      That all available geological and engineering data concerning said "J" sand indicate that one well will efficiently and economically drain an area of approximately 320 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.

ORDER

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

Rule 1.    Three Hundred Twenty (320) acre drilling and spacing units shall be and the same are hereby established for the production of gas and associated hydrocarbons from the "J" sand formation underlying the following described lands in the Wattenberg Field, Adams and Weld Counties, Colorado, to-wit:

Adams County

Township 1 South, Range 66 West, 6th P.M.

All

Township 1 South, Range 67 West, 6th P.M.

All

Weld County

Township 1 North, Range 66 West, 6th P.M.

All

Township 1 North, Range 67 West, 6th P.M.

All

Rule 2.    Said drilling units shall consist of three hundred twenty (320) acres, and each such drilling unit shall be the E½ and the W½ or the N½ and S½ of each section, according to the governmental survey thereof, and each operator shall designate the 320-acre unit upon which each well is to be located; and the permitted well for each drilling unit shall be located in the NE¼ and SW¼ of each section and no closer than 990 feet to the boundaries of the quarter section upon which it is located.

IT IS FURTHER ORDERED that the following listed wells shall be considered exceptions and be the permitted wells for the drilling units upon which they are located:

Township 1 South, Range 66 West, 6th P.M.
1.	No. 1-3 Bergman, C NE¼ NE¼, Section 3
Township 1 South, Range 67 West, 6th P.M.
2.	No. 1 Zarlengo, 2479 feet from the South line and 1419 feet from the West line, Section 4
3.	No. 1 Degenhart, C NE¼ NE¼, Section 5
4.	No. 1 McElwain, C NE¼ NW¼, Section 17

Township 1 North, Range 67 West, 6th P.M.
5.	No. 1 Grenemyer, C SW¼ SW¼, Section 26
6.	No. 1 Grenemyer-Wagner (formerly known as No. 1 Thomas-Wagner), C SW¼ SW¼ NE¼, Section 34

IT IS FURTHER ORDERED that the provisions contained in the above orders shall become effective forthwith.

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 17th day of November 1970.

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