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 COUNTY, COLORADO	) ) ) )	CAUSE NO. 232 ORDER NO. 232-49

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 16, 1991 at 8:30 a.m., in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Gerrity Oil and Gas Corporation for an order segregating the 320-acre drilling and spacing units consisting of the E1/2 and the W1/2 of said Section 16 described herein below into four separate 160-acre drilling and spacing units consisting of (1) the NE1/4, (2) the NW1/4, (3) the SW1/4 and (4) the SE1/4 of Section 16, Township 3 North, Range 65 West, 6th P.M., for the production of gas and associated hydrocarbons from the "J" Sand Formation.

FINDINGS

The Commission finds as follows:

1.      Gerrity Oil and Gas Corporation, as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

2.      Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

3.      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.

4.      On November 17, 1970, the Commission issued Order No. 232-1 by which 320-acre drilling and spacing units were established for the production of gas and associated hydrocarbons from the "J" Sand Formation underlying certain lands in Adams and Weld Counties, Colorado.  By Order No. 232-20 the Commission allowed an additional well to be drilled on the 320-acre unit.  The E1/2 and W1/2 of Section 16, Township 3 North, Range 65 West, 6th P.M. have been designated as drilling and spacing units.

5.      Based on the facts stated in the verified application and the exhibits submitted and having been heard by the Director as Hearing Officer on September 12, 1991, the Commission should approve the request and amend Order No. 232-1 and establish four 160-acre drilling and spacing units consisting of (1) the NE1/4, (2) the NW1/4, (3) the SW1/4 and (4) the SE1/4 of Section 16, Township 3 North, Range 65 West, 6th P.M. for the production of gas and associated hydrocarbons from the "J" Sand Formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order No. 232-1 is hereby amended and four separate drilling and spacing units are hereby established consisting of (1) the NE1/4, (2) the NW1/4, (3) the SW1/4 and (4) the SE1/4 of Section 16, Township 3 North, Range 65 West, 6th P.M. for the production of gas and associated hydrocarbons from the "J" Sand Formation underlying said unit.

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.

ENTERED this 7th day of October, 1991, as of September 16, 1991.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	Dennis R. Bicknell for Patricia C. Beaver, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado  80203

October 2, 1991