REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 18, 1978 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 Anadarko Production Company, for an order establishing 320-acre drilling and spacing units for the production of gas from the Lewis Sand formation underlying certain lands in Moffat County, Colo-rado.

FINDINGS

The Commission finds as follows:

1. Anadarko Production 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. Evidence presented at the hearing indicates that the Lewis Sand forma-tion constitutes a common source of supply of gas underlying the following described lands in Moffat County, Colorado, to wit Township 10 North, Range 90 West, 6th P.M. Section 21: All Section 28: All Section 22: All Section 33: All Section 27: All Section 34: All

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 Lewis Sand formation, common source of supply underlying the lands herein defined; that said units should be 320-acres, more or less, consisting of the E/2 and W/2 of each section according to the governmental survey thereof. The permitted well for each unit should be located no closer than 600 feet from the boundaries of the unit and no closer than 1200 feet from another producing well. However, Well No. 1-27 Villard, located 600 feet from the south line and 1080 feet from the west line of Section 27, Township 10 North, Range 90 West and Well No. 1-28 Johnson, located 360 feet from the south line and 540 feet from the west line of the NE/4 Section 28, Township 10 North, Range 90 West, 6th P.M., if completed as a producing gas well, should be considered the permitted wells for the units upon which each is located.

6. Available geological and engineering data concerning said Lewis Sand formation indicate that one well will efficiently and economically drain an area of approxi-mately 320-acres, and that drilling units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently and economically drained by one well producing from said Lewis Sand formation. (over)

ORDER

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

Township 10 North, Range 90 West, 6th P.M. Section 21: All Section 28: All Section 22: All Section 33: All Section 27: All Section 34: All

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 of each section according to the governmental survey thereof. The permitted well for each unit shall be located no closer than 600 feet from the boundaries of the unit and no closer than 1200 feet from another producing well. However, Well No. 1-27 Villard, located 600 feet from the south line and 1080 feet from the west line of Section 27, Township 10 North, Range 90 West and Well No. 1-28 Johnson, located 360 feet from the south line and 540 feet from the west line of the NE/4 Section 28, Township 10 North, Range 90 West, 6th P.M. if completed as a producing gas well, shall be considered the permitted wells for the units upon which each 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 18th day of September, 1978.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary -- 2 --(#338-1)