REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on August 17, 1981 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 Samson Oil Company for an order establishing a 640-acre drilling unit for the production of gas and associa-ted hydrocarbons from the Upper Morrow Sand underlying certain lands in Kiowa County, Colorado.

FINDINGS

The Commission finds as follows:

1. Samson 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 therein, and jurisdiction to promulgate the hereinafter prescribed order.

4. That the Upper Morrow Sand constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Kiowa County, Colorado, to-wit:

Township 19 South, Range 50 West, 6th P.M. Section 6: All

5. In order to prevent waste of oil and 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 oil and gas resources, an order should be made establishing a 640-acre drilling and spacing unit for the production of gas and associated hydrocarbons from the Upper Morrow Sand, a common source of supply underlying the lands defined herein; that said unit should be 640-acres and consist of the lands as herein described, and the permitted well for said unit should be the No. 1-6 Frazee, located .1980 feet from the north line and 1580 feet from the west line of said Section 6.

6. All geological and engineering data concerning the Upper Morrow Sand indicate that one well will efficiently and economically drain an area of approximately 640-acres, and that the drilling unit of the size and shape hereinabove described is not smaller than the maximum area that can be efficiently drained by one well producing from said Upper Morrow Sand.

ORDER

NOW THEREFORE, IT IS ORDERED, that the following rules and regula-tions shall apply hereafter to a well drilled completed or recompleted in the Upper Morrow Sand underlying the Haswell Field, herein described 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 l. A Six Hundred Forty (640) acre drilling and spacing unit shall be and the same is hereby established for the production of gas and associated hydro-carbons from the Upper Morrow Sand underlying the following described lands in the Haswell Field, Kiowa County, Colorado to-wit:

Township 19 South, Range 50 West, 6th P.M. Section 6: All

Rule 2. The permitted well for the above described unit shall be the No. 1-6 Frazee, located 1980 feet from the north line and 1580 feet from the west line of said Section 6.

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.

10th ENTERED this day 01' September 1961 as of August 17, 1981.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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