REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 18, 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 Frank H. Walsh 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 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 insufficient evidence was presented at the hearing to indicate that the total area as presented in the application was underlain by a common source of supply of gas and associated hydrocarbons and therefore the E/2 of Section 33 and the W/2 of Section 35, Township 1 North, Range 61 West, 6th P.M. should be deleted from the area to be spaced.

4. 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 61 West, 6th P.M. l Section 23: S/2 Section 27: All Section 26: All Section 34: All

5. That in order to prevent the waste of oil and 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 oil and gas resources of the State, an order should be made establishing 320-acre drilling and spacing units for the production of gas and associa-ted hydrocarbons from the "J" Sand, a common source of supply underlying the lands defined herein; that said units should be 320-acres, more or less, and consist of the following: S/2 Section 23, N/2 and S/2 Section 26, E/2 and W/2 Section 27, N/2 and S/2 Section 34, Township 1 North, Range 61 West, 6th P.M., and the permitted well for each such unit be located no closer than 600 feet from the outer boundaries of the drilling unit, and no closer than 2,500 feet to any other gas well within the spaced area.

(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.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regu-lations shall apply hereafter to wells drilled, completed, or recompleted in the "J" Sand underlying the Calico 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 Calico Field, Weld County, Colorado, to-wit:

Township 1 North, Range 61 West, 6th P.M. Section 23: S/2 Section 27' All Section 26: All Section 34' All

Rule 2. Said drilling units shall consist of Three Hundred Twenty (320) acres, more or less, and each such drilling unit shall consist of the following: S/2 Section 23 N/2 and S/2 Section 26 E/2 and W/2 Section 27 N/2 and S/2 Section 34: Township 1 North, Range 61 West, 6th P.M., and the permitted well for each such unit shall be located no closer than 600 feet from the outer boundaries of the drilling unit and no closer than 2,500 feet to any other gas well within the spaced area.

IT IS FURTHER ORDERED, that the provisions contained in the above order 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 order, rules and regulations.

ORDERED this 18th day of July, 1972.

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

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