REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 19, 2982 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 Walter S. Fees, Jr., Robert B. Ferguson, Mark B. Gatman and Jerry E. Shawvet, for an order to extend the limits of the spaced area of the Bridle Field, Mesa and Garfield Counties, Colorado.

FINDINGS

The Commission finds as follows:

1. Walter S. Fees, Jr., Robert B. Ferguson, Mark B. Garman and Jerry E. Shawvet, as applicants herein, are interested parties 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 jurisdiction to promulgate the hereinafter prescribed order.

4. On May 18, 1976, the Commission issued-Order' No. 309-1 which, among other things, established 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Dakota and Morrison formations underlying certain lands in the Bridle Field, Mesa and Garfield Counties, Colorado. The area was extended by Order No. 309-4.

5. Evidence presented at the hearing indicates that a common source of supply of gas and associated hydrocarbons from the Dakota and Morrison formations underlies, in addition to the area set forth in Order No. 309-1 and 309-4, the following described lands in Mesa and Garfield Counties, Colorado, to-wit:

Township 8 South, Range 104 West, 6th P.M. Section 13: All Section 23: All Section 14: All Section 24: All Township 8 South, Range 103 West, 6th P.M. Section 19: All Section 20: All and that such area be made subject to the provisions of Order No. 309-1, and that the existing wells be designated the permitted wells upon which they are located, and per-mitted well locations for additional wells should be at a location in the center of the NW/4 of each quarter section in Sections 13, 14 and 23, Township 8 South, Range 104 West, and in the center of the SE/4 of each quarter section in Sections 19 and 20, Township 8 South, Range 103 West, 6th P.M., with a tolerance of 200 feet in any direction. 6. Since there is limited access to Section 24, Township 8 South, Range 104 West due to erosion studies of the area by the Bureau of Land Management, special consideration should be given to said Section 24. This can be accomplished by allowing (over ) the development and operation thereon as a 640-acre unit consisting of all of said Section 24 and allow the drilling of no more than four (4) wells on said section at locations approved by the Director.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the area set forth in Finding 5 herein shall be subject to the provisions of Order No. 309-2 and the spaced area of the Bridle Field shall henceforth include the following described lands in Garfield and Mesa Counties, Colorado, to-wit:

Township 8 South, Range 104 West, 6th P.M. Section 9: E/2, SW/4 Section 14: All Section 10: All Section 23: All Section 13: All Section 24: All Township 8 South, Range 103 West, 6th P.M. Section 19: All Section 20: All IT IS FURTHER ORDERED, that for the additional area the existing wells shall be designated the permitted wells upon which they are located, and permitted well locations for additional wells should be at a location in the center of the NW/4 of each quarter section in Sections 13, 14 and 23, Township 8 South, Range 104 West, and in the center of the SE/4 of each quarter section in Sections 19 and 20, Township 8 South, Range 103 West, 6th P.M., with a tolerance of 200 feet in any direction.

IT IS FURTHER ORDERED, that Section 24, Township 8 South, Range 104 West, 6th P.M., shall be developed as a single unit. A maximum of four (4) wells will be allowed on said unit at locations to be approved by the Director.

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.

ENTERED this 4th day of February as of January 19, 1981.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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