232-4

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 WATTENBERG GAS SPACED AREA, WELD AND ADAMS COUNTIES, COLORADO

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CAUSE NO. 232

ORDER NO. 232-4

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 19, 1973 at 9 a.m. in the Auditorium, Social Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Terra Resources, Inc. for an order requiring the pooling of all tracts of land within the designated unit consisting of the W½ Section 30, Township 1 North, Range 64 West, 6th P.M., Wattenberg Gas Spaced Area, 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 by its Order Nos. 232-1, 232-2 and 232-3, the Commission established a drilling unit of approximately 320-acres for the production of gas and the development of the "J" Sand underlying said unit which is comprised of the W½ Section 30, Township 1 North, Range 64 West, 6th P.M., Wattenberg Gas Spaced Area, Weld County, Colorado.

4. That reasonable effort has been made to obtain the voluntary pooling of all interests in said drilling unit for the development and operation thereof, but that it has not been possible to secure the agreement of all owners of interests in said unit for the voluntary pooling thereof.

5. That Applicant is an "interested person" within the meaning of 100-6-4(6) of the Oil and Gas Conservation Act of the State of Colorado.

6. That Applicant's Arnold Well No. 31, located in the center SW¼ of said Section 30, has been completed as a well capable of producing gas from the "J" Sand, and that said well constitutes the permitted well for said drilling unit.

7. That in order to insure proper and efficient development of said drilling unit and to promote conservation of the oil resources of the State, an order should be made pooling all interests in the 320-acre drilling unit described herein.

8. That an order of the Commission pooling all interests in said drilling unit is necessary, just and reasonable in order to afford each owner of interest in said drilling unit the opportunity to recover and receive his just and equitable share of the gas from the common source of supply underlying said drilling unit.

9. That production obtained from said drilling unit should be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit.

ORDER

NOW, THEREFORE, IT IS ORDERED, that pursuant to the provisions of 100-6-4 of the Oil and Gas Conservation Act of the State of Colorado, all interests in the drilling unit described as the W½ of Section 30, Township 1 North, Range 64 West, 6th P.M., Wattenberg Gas Spaced Area, Weld County, Colorado, are hereby pooled for the development and operation of said drilling unit.

IT IS FURTHER ORDERED, that the production obtained from said drilling unit shall be allocated to each tract therein on the basis of the proportion that the number of acres in such tract bears to the total number of acres within said drilling unit, and each owner of interest in said tracts in said drilling unit shall be entitled to receive his share of the production of the well located, or to be located on said drilling unit, applicable to his interest in said drilling unit.

IT IS FURTHER ORDERED, that this order shale become effective forthwith.

ORDERED this 19th day of June 1973.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Frank J. Piro, Secretary