REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 18, 1972, at 9 am., in Room 132, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Edward Mike Davis for an order establishing 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand underlying certain lands in Adams 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 Adams County, Colorado, to-wit: Township 2 South, Range 62 West, 6th P.M. Section 14: W/2 Section 26: W/2 Section 15: All Section 27: All Section 16: All Section 26: All Section 21: All Section 33: All Section 22: All SectiOn 34: All Section 23: W/2 Section 35: W/2

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 unneces-sary 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, common source of supply underlying the lands defined herein; that said units should be 320-acres, more or less, and consisting of the E/2 and W/2 or the N/2 and S/2 of each section, according to the governmental survey thereof, which drilling units should be designated at the time of filing the permit to drill; and that the permitted well for each such drilling unit should be located in the NW/4 and SE/4 of each section and no closer than 990 feet to the boundaries of the quarter section upon which it is located.

5. That the Well No. 1-22 Vetter, located in the SW/4 SE/4, Section 22, Township 2 South, Range 62 West, 6th P.M., should be considered an exception and be he permitted well for the drilling unit upon which it is located.

(over)

6. 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 320 acres, and that drilling units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently and economically drained by one well producing from said "J" Sand.

7. That in order to promote orderly transition of a spacing pattern of one field to that of an adjacent field and to promote further exploration in the area described as the W/2 Section 14, W/2 Section 23, and the W/2 Section 26, Township 2 South, Range 62 West, 6th P.M. the Director should be allowed to approve as an exception to the permitted well location without notice and hearing, a well that was located in accordance with the spacing pattern as established by Order No. 251-1 for the adjacent Irondale field, but could only be successfully completed as a "J" Sand gas producer.

ORDER

NOW, THEREFORE, IF IS ORDERED, that the following rules and regula-tions shall apply hereafter to wells drilled, completed, or recompleted in the "J" Sand underlying the Longbranch Field herein described, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and 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 hydro-carbons from the "J" Sand underlying the following described lands in the Longbranch Field, Adams County, Colorado, to-wit: Township 2 South, Range 62 West 6th P.M. Section 14: W/2 Section 26: W/2 Section 15: All Section 27: All Section 16: All Section 28: All Section 21: All Section 33: All Section 22: All Section 34: All Section 23: W/2 Section 35: W/2 Rule 2. Said drilling units shall consist of three hundred twenty (320) acres, more or less, and each such drilling unit shall be the E/2 and W/2 or the N/2 and S/2 of each section, according to the governmental survey thereof, which drilling units shall be "-designated at the time of filing the permit to drill; and the permitted well for each drill-ing unit shall be located in the NW/4 and SE/4 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 Well No. 1-22 Vetter, located in the NW/4 SE/4, Section 22, Township 2 South, Range 62 West, 6th P.M., shall be considered an exception and be the permitted well for the drilling unit upon which it is located.

IT IS FURTHER ORDERED that a well which has been drilled in the area described as the W/2 Section 14, W/2 Section 23, and the W/2 Section 26, Township 2 South, Range 62 West, 6th P.M., and in a location in accordance with the spacing pattern as established by Order No. 25 1-1 for the Irondale Field to test the "D" Sand may be deepened to test the "J" Sand, and may be completed for production of gas and associated hydrocarbons from the "J" Sand as an exception to this order, without notice or hearing, upon the filing with the Director of evidence establishing that:

1. The well cannot be completed in the "D" Sand as a producer of either oil or gas in commercial quantities - 2 - (#254-1)

2. The owner or owners in the "J" Sand drilling unit who have the right to drill a well in accordance with this order file a waiver or consent in writing agreeing to the completion of the well in the "J" Sand as an exception to this order.

3. No other well has been permitted for drilling or drilled and completed for the production of gas and associated hydrocarbons from the "J" Sand on the drilling unit.

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 18th day of April 1972,

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

(#254-1)