IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE LATIGO FIELD, ARAPAHOE COUNTY, COLORADO Cause No. 239 Order No. 239-8

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 21, 2974 at 9 A.M., in the Department of Revenue Hearing Room, State Capitol Annex, Denver, Colorado after giving Notice of Hearing as required by law, on the application of Bobcat Oil Company, to delete certain lands from the spaced area of the Latigo Field as estab-lished by Order No. 239-1. The Oil and Gas Conservation Commission, on its own motion, included certain other additional lands to be deleted from said spaced area.

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. On April 21, 1971, the Commission issued its Order No. 239-2 which, among other things, established 80-acre drilling and spacing units for the production of oil from the "J" Sand. Subsequent orders have been issued concerning the extension of the spaced area and production practices. On July 19, 1972, the Commission issued its Order No. 239-5, which, among other things, established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand underlying certain lands in the Latigo Field.

4. That subsequent drilling and development in the spaced area has established the limits of the common source of supply of oil in the "J" Sand and in order to promote additional drilling the following described lands should be deleted from the spaced area of the Latigo Field, Arapahoe County, Colorado:

Township 5 South, Range 60 West, 6th P.M. Section 18: All Section 30: All Section 19: All Section 31: All Township 5 South, Range 61 West, 6th P.M. Section 22: All Section 35: All Section 27: All Section 36: All Section 34: All and said lands should be made subject to the general rules and regulations of the Commis-sion except for said Sections 18, 19, 30, 31 and 36 which lands should remain subject to the provisions of Order No. 239-5.

(over)

ORDER

NOW, THEREFORE, IT IS ORDERED, that the lands as described in Find-ing 4 herein are hereby deleted from the spaced area of the Latigo Field and are no longer subject to the provisions of the orders in Cause No. 239 except for Sections 18, 19, 30 and 31, Township 5 South, Range 60 West, and Section 36, Township 5 South, Range 61 West, which lands shall remain subject to Order No. 239-5.

IT IS FURTHER ORDERED, that the lands remaining in the spaced area for the production of oil from the "J" Sand in the Latigo Field and subject to Order No. 239-1 and subsequent orders are described as follows:

Township 5 South, Range 60 West, 6th P.M. Section 7: All

Township 5 South, Range 61 West, 6th P.M. Section 12: All Section 24: All Section 13: All Section 25: All Section 14: All Section 26: All Section 23: All

IT IS FURTHER ORDERED, that the Commission expressly reserves the right, after notice and hearing, to alter, amend, or repeal any part of or all of the above order.

ORDERED this 21st day of May 1974.

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

-- 2 --(#239-8)