IN THE MATTER OF GENERAL RULES AND REGULATIONS WITH RESPECT TO THE CONSERVATION OF OIL AND GAS IN THE STATE OF COLORADO, AND RULES OF PRACTICE AND PROCEDURE PERTAINING THERETO AND IN PARTICULAR WITH REFERENCE TO RULE 323

BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER Of THE PROMULGATION AND ESTABLISHMENT Of FIELD RULES TO GOVERN OPERATIONS IN THE CODELL NIOBRARA SPACED AREA, WELD COUNTY, COLORADO

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CAUSE NO. 407

ORDER NO. 407-24

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 15, 1986 at 9:00 a.m., in Room 110 State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified appliation of Rock Oil Corporation for an order to amend the permit for the well drilled in the SE1/4 NE1/4 Section 23, Township 5 North, Range 65 West 6th P.M. and redesignate to drilling and spacing unit from the E1/2 NE1/4 to the S1/2 NE1/4 of said Section.

FINDINGS

The Commission finds as follows:

1. Rock Oil Corporation as applicant 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. On December 20, 1983, the Commission authorized Order No. 407-1 to be issued by which 80-acre drilling and spacing units were established for production of oil and gas from the Codell formation. Underlying certain lands in Adams, Boulder, Jefferson, Larimer and Weld Counties in Colorado. [sic] The units consist of the N1/2 and S1/2 or the E1/2 and W1/2 of a governmental quarter section with the option to drill an additional well on each 80-acre unit. By subsequent order, production from the Niobrara formation was included. A well, the No. 1-23 Susan, was drilled in the SE1/4 NE1/4 Section 23, Township 5 North, Range 65 West, 6th P.M. with the E1/2 NE1/4 of said Section designated as the unit on the permit to drill.

5. Based on the facts stated in the verified application with attached exhibits and having received no objections and having been reviewed by the Director as Hearing Officer, the Commission should approve the request of Rock Oil Corporation to redesignate the drilling and spacing unit from the E1/2 NE1/4 to the S1/2 NE1/4 Section 23, Township 5 North, Range 65 West 6th P.M. Codell/Niobrara Spaced Area.

ORDER

NOW, THEREFORE, IT IS ORDERED that the drilling and spacing unit for well No. 1-23 Susan, located in the SE1/4 NE1/4 Section 23, Township 5 North, Range 65 West 6th P.M., Codell/Niobrara Spaced Area shall be the S1/2 NE1/4 of said Section 23.

IT IS FURTHER ORDERED that the above order shall become effective forthwith.

Entered this 10th day of October, 1986, as of September 15, 1986.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Frank J. Piro, Secretary