REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 20, 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 Teton Energy Company, Inc. for an order establishing a 640-acre drilling and spacing unit for the production of gas and associated hydrocarbons from the Dakota-1akota formations underlying Section 24, Township 1 South, Range 70 West, 6th P.M. The application was amended at the hearing to delete the Lakota formation as a common source of supply underlying the area request--ed to be spaced.

FINDINGS

The Commission finds as follows:

1. Teton Energy Company, Inc., 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 was insufficient to indicate that one well will efficiently and economically drain 640-acres; therefore, the application, as amended, submitted by Teton Energy Co., Inc., to establish a 640-acre drilling and spacing unit for the production of gas and associated hydrocarbons from the Dakota for-mation should be denied.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the application, as amended, of Teton Energy Company, Inc., to establish a 640-acre drilling and spacing unit consist-ing of Section 24, Township 1 South, Range 70 West, 6th P.M. for the production of gas and associated hydrocarbons from the Dakota formation is hereby denied.

ORDERED this 20th day of November 1978.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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