IN THE MATTER OF GENERAL RULES AND REGULATIONS WITH RESPECT TO THE CONSERVATION OF OIL AND GAS IN THE STATE OF COLORADO, AND RULES OF PRACTICE AND PROCEDURE PERTAINING THERETO AND IN PARTICULAR WITH REFERENCE TO RULE 323

BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE HAMBERT FIELD, WELD COUNTY, COLORADO

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CAUSE NO. 304

ORDER NO. 304-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 17, 1976 at 9 a.m., in Room 532, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Amoco Production Company, for an order establishing 320-acre drilling and spacing units for the production of gas from the Sussex formation 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 Sussex formation constitutes a common source of supply of gas underlying the following described lands in WeId County, Colorado, to-wit:

Township 4 North, Range 65 West, 6th P.M.
Section	7:	All	Section	19:	All
Section	18:	All	Section	30:	All

Township 4 North, Range 66 West, 6th P.M.
Section	1:	All	Section	13:	All
Section	2:	All	Section	14:	All
Section	3:	All	Section	15:	All
Section	10:	All	Section	23:	All
Section	11:	All	Section	24:	All
Section	12:	All	Section	25:	All

4. That in order to prevent the 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 320-acre drilling and spacing units for the production of gas from the Sussex formation, common source of supply underlying the lands defined herein; that said units should be 320-acre drilling units, and consisting of the E½ and W½ or the N½ and S½ 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 NW¼ and the SE¼ of each section and no closer than 990 feet from the boundaries of the quarter section upon which it is located; however, Well No. 1 Schmidt, located 2160 feet from the east line and 660 feet from the south line Section 19, Township 4 North, Range 65 West, should be considered an exception and be the permitted well for the designated unit consisting of the E½ of said Section 19, Well No. 1 Kinsman, located 790 feet from the south line and 1650 feet from the west line Section 18, Township 4 North, Range 65 West, should be considered an exception and be the permitted well for the designated unit consisting of the S½ of said Section 18, and Well No. 1 Stromberger, located 660 feet from the south line and 660 feet from the east line Section 12, Township 4 North, Range 66 West should be considered an exception and be the permitted well for the designated unit consisting of the E½ of said Section 12.

5. That the Director may, without additional notice and hearing, grant exceptions to the permitted well locations to avoid hazardous conditions in drilling near coal mines, mine shafts, water supply sources or surface obstructions, provided the owners of the contiguous and cornering drilling units toward which the proposed location would be moved, file a waiver or consent in writing agreeing to said exceptions.

6. That all available geological and engineering data concerning said Sussex formation indicate that one well will efficiently and economically drain an area of approximately 320-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 Sussex formation.

7. That a hearing should be held in six (6) months at which time the Commission should review data obtained from additional development of the spaced area in order to determine whether the spacing as established by this order should be continued.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to wells drilled, completed, or recompleted in the Sussex formation underlying the Hambert 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 from the Sussex formation underlying the following described lands in the Hambert Field, Weld County, Colorado, to-wit:

Township 4 North, Range 65 West, 6th P.M.
Section	7:	All	Section	19:	All
Section	18:	All	Section	30:	All

Township 4 North, Range 66 West, 6th P.M.
Section	1:	All	Section	13:	All
Section	2:	All	Section	14:	All
Section	3:	All	Section	15:	All
Section	10:	All	Section	23:	All
Section	11:	All	Section	24:	All
Section	12:	All	Section	25:	All

Rule 2. Said drilling units shall consist of three hundred twenty (320) acres, and each such drilling unit shall be the E½ and W½ or the N½ and S½ 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 that the permitted well for each such drilling unit shall be located in the NW¼ and the SE¼ of each section and no closer than 990 feet from the boundaries of the quarter section upon which it is located; however, Well No. 1 Schmidt, located 2160 feet from the east line and 660 feet from the south line Section 19, Township 4 North, Range 65 West shall be considered an exception and be the permitted well for the designated unit consisting of the E½ of said Section 19, Well No. 1 Kinsman, located 790 feet from the south line and 1650 feet from the west line Section 18, Township 4 North, Range 65 West, shall be considered an exception and be the permitted well for the designated unit consisting of the S½ of said Section 18, and Well No. 1 Stromberger, located 660 feet from the south line and 660 feet from the east line Section 12, Township 4 North, Range 66 West shall be considered an exception and be the permitted well for the designated unit consisting of the E½ of said Section 12.

IT IS FURTHER ORDERED, that the Director may, without additional notice and hearing, grant exceptions to the permitted well locations to avoid hazardous conditions in drilling near coal mines, mine shafts, water supply sources or surface obstructions, provided the owners of the contiguous and cornering drilling units toward which the proposed location would be moved, file a waiver or consent in writing agreeing to said exceptions.

IT IS FURTHER ORDERED, that a hearing shall be held in six (6) months, at which time the Commission shall review data obtained from additional development in the spaced area in order to determine whether the spacing as established by this order should be continued.

IT IS FURTHER ORDERED, that the provisions contained in this 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 February 1976.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Frank J. Piro, Secretary