REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 17, 1975 at 9 A.M., in Room 532, State Services Building, Denver, Colorado, after giving Notice or Hearing as required by law, on the application of Bobcat Oil Company, for an order establishing 80-acre drilling and spacing units for the production oil and associated hydro-carbons 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 the Commission issued its Order No. 291-1 on May 21, 1974 which established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand underlying an area consisting of the S/2 Section 8, and all of Sections 9, 10, 15, 16 and 17, Township 2 South, Range 63 West, 6th P.M., with the permitted well located in the NW/4 and SE/4 of each section and no closer than 990 feet from the boundaries of the quarter section.

4. That evidence presented at the hearing indicates that the "J" Sand con-stitutes a common source of supply of oil and associated hydrocarbons underlying the following described lands in Adams County, Colorado, to-wit:

Township 2 South, Range 63 West, 6th P.M. Section 3: All Section 9: All Section 4: All Section 10: 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 or unneces-sary 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 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the "J" Sand, common source of supply underlying the lands defined herein; that said units should be 80-acres, more or less, consisting of the N/2 and S/2 of a governmental quarter section, and the permitted well for each unit should be located in the center of the NW/4' and the SE/4 of each quarter section with a tolerance or 200 feet in any direction; however, Well No. 1 Chris Wailes, located in the SE/4SE/4 Section 4, Township 2 South, Range 63 West, 6th P.M. should be considered an exception and be the permitted well for the designated unit consisting of the S/2SE/4 of said Section 4.

6. That an oil well should be defined as a well with a gas-oil ratio equal to or less than 15,000:1, and that for purposes of the 320-acre spacing, as established by Order No. 291-1, a gas well should be defined as a well with a gas-oil ratio of greater than 15,000:1.

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7. That all available geological and engineering data concerning said "J" Sand indicate that one well will efficiently and economically drain an area of approximately 80-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 producing from said "J" Sand.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regula-tions shall apply hereafter to wells drilled, completed, or recompleted in the "J" Sand underlying that portion of the Chieftain Field herein described, in addition to other appli-cable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

Rule 1. Eighty (80) acre drilling and spacing units shall be and the same are hereby established For the production of oil and associated hydrocarbons from the "J" Sand underlying the following described lands in the Chieftain Field, Adams County, Colo-rado, to-wit:

Township 2 South, Range 63 West, 6th P.M. Section 3: All Section 9: All Section 4: All Section 10: All Rule 2. Said drilling units shall consist of eighty (80) acres, more or less, and each such drilling unit shall consist of the N/2 and S/2 of a governmental quarter section and the permitted well for each unit shall be located in the NW/4 and and the SE/4 of each quarter section with a tolerance of 200 feet in any direction; however, Well No. 1 Chris Wailes, located in the SE/4SE/4 Section 4, Township 2 South, Range 63 West, 6th P.M. shall be considered an exception and be the permitted well for the designated unit consisting of the S/2SE/4 of said Section 4.

IT IS FURTHER ORDERED, that an oil well shall be defined as a well with a gas-oil ratio equal to or less than 15,000:1, and that for purposes of the 320-acre spac-ing as established by Order No. 291-1, a gas well shall be defined as a well with a gas-oil ratio greater than 15,000:1.

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 orders, rules and regulations.

ORDERED this 17th day of June, 1975.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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