REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 15, 1972, at 9 A.M., in Room 132, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Hammerstone Enterprises, Ltd., for an order establishing 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand 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 con-stitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Weld County, Colorado, to-wit:

Township 1 North, Range 63 West, 6th P.M.

Section 1: All Section 3: All Section 2: All

Township 2 North, Range 63 West, 6th P.M.

Section 10: All Section 24: All Section 11: All Section 25: All Section 12: All Section 26: All . Section 13: All Section 27: All Section 14: All Section 34: All Section 15: All Section 35: All Section 22: All Section 36: All Section 23: 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 spac-ing units for the production of gas and associated hydrocarbons from the "J" Sand, com-mon source of supply underlying the lands defined herein; and that said units should con-sist of a quarter section, according to the governmental survey thereof, and the permitted well for each drilling unit be located not less than 660 feet from the boundary of each governmental quarter section. (over)

5. That all available geological and engineering data concerning said "J" Sand indicate that one well will efficiently and economically drain an area of approxi-' mately 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 pro-ducing from said "J" Sand.

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 under-lying the Roggen Field herein described, in addition to other applicable rules and regu-lations and orders of the Commission, if 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 and associated hydrocarbons from the "J" Sand underlying the following described lands in the Roggen Field, Weld County, Colorado, to wit: Township 1 North, Range 63 West, 6th P.M. Section 1: All Section 3: All Section 2: All Township 2 North, Range 63 West, 6th P.M. Section 10: All Section 24: All Section 11: All Section 25: All Section 12: All Section 26: All Section 13: All Section 27: All Section 14: All Section 34: All Section 15: All Section 35: All Section 22: All Section 36: All Section 23: All Rule 2. Said drilling units shall consist of One Hundred Sixty (160) acres, and each such drilling unit shall be a quarter section, according to the governmental survey thereof; and the permitted well for each drilling unit shall be located not less than 660 feet from the boundary of the quarter section upon which it is located.

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 order, rules and regulations.

ORDERED this 18th day of February 1972.

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

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