REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 16, 1979 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 Hardscrabble Associates for an order establishing two (2) drilling and spacing units of approximately 160-acres each, for the production of gas and associated hydrocarbons from the "J" Sand underlying cer-tain lands in Logan County, Colorado.

FINDINGS

The Commission finds as follows:

1. Hardscrabble Associates, 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 "J" Sand constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Logan County, Colorado, to-wit:

Township 8 North, Range 55 West, 6th P.M. Unit #1 Section 3: Lots 3, 4 and 5 (187.40 acres)

Unit #2 Section 3: Lot 8, N/2SW/4 (160 acres)

5. In order to prevent the waste of oil and gas, as defined by law; to protect the correlative rights of all parties concerned; to prevent the drilling of unneces-sary wells, and to insure proper and efficient development and promote conservation of the oil and gas resources of the State, an order should be made establishing two (2) drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand, common source of supply underlying the lands defined herein, and that Well No. 1 Birney, located 660 feet from the west line and 23 10 feet from the north line of said Section 3, be the permitted well for Unit #1, and Well No. 1 Budin, located 1980 feet from the west line and 3300 feet from the south line of said Section 3, be the permitted well for Unit #2.

6. Available geological and engineering data concerning said "J" Sand indicate that one well will efficiently and economically drain an area of approximately 160-acres, and that the 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 "J" Sand.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regula-tions shall apply hereafter to wells drilled, completed, or re-completed in the "J" Sand underlying the Caballo 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. Two (2) drilling and spacing units of approximately 160-acres shall be and the same are hereby established for the production of gas and associated hydrocarbons from the "J" Sand underlying the following described lands in the Caballo Field, Logan County, Colorado, to-wit:

Township 8 North, Range 55 West, 6th P.M. Unit #1 Section 3: Lots 3, 4 and 5 (187.40 acres) Unit #2 Section 3: Lot 8, N/2SW/4 (160 acres) Rule 2. Well No. 1 Birney, located 660 feet from the west line and 2310 feet from the north line of said Section 3, shall be the permitted well for Unit #1 and Well No. 1 Budin, located 1980 feet from the west line and 3300 feet from the south line of said Section 3, shall be the permitted well for Unit #2.

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 orders and rules.

ORDERED this 16th day of July, 1979.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary