REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 21, 1982, at 9:00 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Sandlin Oil Corporation for an order deleting the S/2 Section 30, Township 2 South, Range 63 West, 6th P.M. from the spaced area of the Chieftain Field as established by the orders in Cause No. 291.

FINDINGS

The Commission finds as follows:

1. Sandlin Oil Corporation, as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

2. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

3. The Commission has jurisdiction over the subject matter embraced in said Notice, and of the parties interested therein, and juris-diction to promulgate the hereinafter prescribed order.

4. On May 21, 1974, the Commission issued Order No. 291-1 which established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand underlying certain lands in the Chieftain Field. The units consist of the E/2 and W/2 or the N/2 and S/2 of each section with the permitted well located in the NW/4 and the SE/4 of each sec-tion, and no closer than 990 feet from the boundaries of the quarter section. Subsequent orders added additional lands and by Order No. 291-4, Section 30, Township 2 South, Range 63 West, 6th P.M. was included in the spaced area, with the S/2 of said section as the drilling and spacing unit.

5. Evidence presented at the hearing indicates that the common source of supply of gas and associated hydrocarbons from the "J" Sand under-lying the Chieftain Field, includes the S/2 of said Section 30, therefore, said lands should not be deleted from the spaced area of the field and the application denied.

ORDER

NOW, THEREFORE IT IS ORDERED, that the application of Sandlin Oil Corporation requesting the S/2 Section 30, Township 2 South, Range 63 West, 6th P.M. be deleted from the spaced area of the Chieftain Field as established by orders in Cause No. 291, is hereby denied.

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.

ENTERED this 21st day of July 1982, as of June 21, 1982.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary