REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 21. 1980 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 The Marlin Oil Com-pany for an order approving a certain [nit Agreement and plan For Unit Operations and further, approving a proposed plan for injection of water into the Sussex Sand underlying lands in Weld County, Colorado.

FINDINGS

The Commission finds as follows:

1. The Marlin Oil 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 there[n, and jurisdiction to promulgate the hereinafter prescribed order.

4. The Sussex Sand underlying the New Windsor Unit Area, as set forth in the Unit Agreement by the Applicant, constitutes a common source of supply of oil and gas and that said Unit Area consists of the following described lands in Weld Count} Colorado to-wit:

Township 7 North, Range 67 West, 6th P.M. Section 26: N/2SW/4 Section 34: NE/4 4 Section 27: SE/4 Section 35: NW/4

5. The terms and conditions provided in the Unit Agreement are just and reasonable to all interests contained within said Sussex Sand Unit Area and that said agreement as presented by the Applicant ace necessary to increase the ultimate recovery of oil and gas from said reservoir.

6. The proposed waterflood operation for secondary recovery is necessary to increase the ultimate recovery of oil and gas, and that such operation, pursuant to said Unit Agreement, will result in an estimated additional recovery of oil and gas with a value in excess of the estimated additional cost incident to conducting such operation.

7. Testimony presented at the hearing indicates that, as of that date, said Unit Agreement has not been approved in writing by the owners of at least eighty percent (80%) of the production or proceeds thereof, that will be credited to interests which are free or costs. However, such additional approval in writing is in the process of being obtained, and that the Commission approval of the unit plan of operation should not become effective until said additional signatures are obtained.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regula-tions shall apply hereafter to the lands set Forth in this order, in addition to other appli-cable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

(over)

Rule 1. The Sussex Sand underlying the New Windsor Unit Area as set forth in the Unit Agreement presented by the Applicant constitutes a common source of supply of oil and gas underlying said Unit A tea composed of the following lands in Weld County. Colorado to-wit:

Township 7 North Range 67 West. 6th P.M. Section 26: N/2SW/4 Section 34: NE/4 Section 27: SE/4 Section 35: NW/4

Rule 2. Said Unit Agreement covering the New Windsor Unit Area herein defined and providing for unit operations of the Sussex Sand underlying said Unit Area. is hereby approved.

Rule 3. The waterflood project for the Sussex Sand reservoir of the New Windsor Unit Area as presented by the Applicant is hereby approved as being necessary to increase the ultimate recovery from said reservoir and the operator is authorized to inject water into said reservoir through Well No. 1 Brownell. NE/4NW/4 Section 35 and Well No. 1 Eaton-1aw. SW/4-NW/4 Section 35 Township 7 North, Range 67 West. 6th P.M. and further to utilize any other wells in the Unit Area whenever it is determined by the operator to be necessary and upon approval of the Director.

IT IS FURTHER ORDERED. that approval of the plan of unit operations shall become effective when the persons owning the required percentage of interests have signed said plan and it has been submitted to the Commission.

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 rules and regulations.

ORDERED this 21st day or January. 1980.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

The required percentage of interests have signed said plan and which were submitted to the Commission Office on February 26, 1981, making effective Order No. 360-1.

By F. J.Piro, Secretary

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