REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 15. 1978 at 9 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Northwest Exploration Com-pany, for an order establishing 320-acre drilling and spacing units for the production of gas from the Middle Lewis formation underlying certain lands in Moffat County, Colorado.

FINDINGS

The Commission finds as follows:

1. Northwest Exploration Company, 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 jurisdiction to promulgate the hereinafter prescribed order.

4. The Middle Lewis formation is defined as being those geological zones and horizons encountered between the depths of 7080 feet to 7940 feet, in the Well No. 1 Weaver, located in the NE/4SW/4 Section 4, Township 9 North, Range 93 West, 6th P.M., and evidence presented at the hearing indicates that said formation constitutes a common source of supply of gas underlying the following described lands in Moffat County, Colo-rado, to-wit:

Township 9 North, Range 93 West, 6th P.M. Sections 2 thru 11, inclusive Sections 14 thru 23, inclusive

Township 10 North, Range 93 West, 6th P.M. Sections 32 thru 35, inclusive

5. 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 spac-ing units for the production of gas from the Middle Lewis formation, herein defined; that said units should be 320-acres, more or less, consisting of the E/2 and the W/2 or the N/2 and the S/2 of each section according to the governmental survey thereof (the drilling unit should be designated at the time of filing the permit to drill). The permitted well should be located in the NE/4 and the SW/4 of each section, no closer than 600 feet from the boundaries of the quarter section upon which it is located, and no closer than 1320 feet from another producing or producible gas well, and Well No. 1 Weaver, located in the NE/4SW/4 Section 4, Township 9 North, Range 93 West, 6th P.M., should be designated he permitted well for the unit upon which it is located.

6. Available geological and engineering data concerning said Middle Lewis formation indicate that one well will efficiently and economically drain an area of appro-ximately 320-acres, and that drilling units of the size and shape hereinabove described

(over) are not smaller than the maximum area that can be efficiently and economically drained by one well producing from said Middle Lewis formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regula-tions shall apply hereafter to wells drilled, completed, or recompleted in the Middle Lewis formation underlying the Great Divide 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 Middle Lewis formation herein defined, underlying the following described lands in the Great Divide Field, Moffat County, Colorado, to-wit:

Township 9 North, Range 93 West, 6th P.M. Sections 2 thru l 1, inclusive Sections 14 thru 23, inclusive

Township 10 North, Range 93 West, 6th P.M. Sections 32 thru 35, inclusive

Rule 2. Said drilling units shall consist of three hundred twenty (320) acres, more or less, and each such unit shall consist of the E/2 and the W/2 or the N/2 and the S/2 or each section according to the governmental survey thereof (the drilling unit shall be designated at the time of filing for the permit to drill), with the permitted well located in the NE/4 and the SW/4 of each section, no closer than 600 feet from the boundaries of the quarter section upon which it is located and no closer than 1320 feet from another producing or producible gas well from the same formation and Well No. 1 Weaver, located in the NE/4SW/4 Section 4, Township 9 North, Range 93 West, 6th P.M., shall be the permitted well for the unit upon which it is located.

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 and rules.

ORDERED this 15th day of May, 1978.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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