REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 9, 1982, at 9:00 A.M. in Room 110, State Centennial Building, Denver, Colo-rado, after giving Notice of Hearing, as required by law, on the application of TXO Production Corporation, for an order deleting certain lands from the spaced area of the McClave Field, Kiowa County, Colorado, as established by Order No. 105-1 and subsequent orders in Cause No. 105.

FINDINGS

The Commission finds as follows:

1. TXO Production Corporation, 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 juris-diction to promulgate the hereinafter prescribed order.

4. On May 15, 1957, the Commission issued Order No. 105-1 which established 640-acre drilling and spacing units for the production of gas from the McClave Sand underlying certain lands in the McClave Field, Bent and Kiowa Counties, Colorado. The order was amended by Order No. 105-2 which provided for the permitted well to be located within a radius of 990 feet from the center of the unit, with exceptions for topography. Subsequent orders extended the limits of the spaced area.

5. Testimony presented at the hearing was insufficient to determine that the lands in that portion of the McClave Field that were re-quested to be deleted, are underlain by the common source of supply of gas in the McClave Field; however, in order to promote additional drilling and obtain additional data concerning the common source of supply, said lands, Kiowa County and as described below, should be deleted from the spaced area of the McClave Field as established by the orders in Cause No. 105, and made subject to the general rules and regulations of the Commission.

Township 19 South, Range 48 West, 6th P.M.

Section 35: All Section 36: All

Township 20 South, Range 48 West, 6th P.M.

Section 1: All Section 2: All

ORDER

NOW, THEREFORE, IT IS ORDERED, that the lands as described in Finding 5 herein are hereby deleted from the spaced area of the McClave Field as established by Order No. 105-1 and subsequent orders for the production of gas from the McClave Sand shall henceforth include the following described lands in Bent, Kiowa and Prowers Counties, Colorado, to-wit:

(over)

Kiowa County Township 19 South, Range 48 West, 6th P.M.

Sections 28, 31 thru 34: All

Township 19 South, Range 49 West, 6th P.M.

Sections 35 and 36: All Township 20 South, Range 48 West, 6th P.M.

Sections 3 thru 36: All

Township 20 South, Range 49 West, 6th P.M.

Sections 1 thru 3: All Sections 10 thru 14: All Sections 23 thru 26: All Sections 35 thru 36: All

Prowers County Township 21 South, Range 47 West, 6th P.M.

Sections 5 thru 8- All Sections 17 thru 20: All Sections 29 thru 32: All

Bent County Township 21 South, Range 48 West, 6th P.M.

Sections 1 thru 6: All Sections 8 thru 16: All Sections 21 thru 28: All Sections 34 thru 36: All

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

ENTERED this 14th day of May 1982, as of April 19, 1982.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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