REPORT TO THE COMMISSION

This cause came on for hearing before the Commission on August 20, 1974 at 9 A.M., in Room 302, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Sun Oil Company, for an order extend-ing the field limits of the Craig-North Field, and establishing for the additional area 320-acre drilling and spacing units for the production of gas from a member of the Upper Lewis formation, known locally as the Basal Lance, as provided for in Order No. 113-1.

FINDINGS

The Commission finds as follows:

1. That due notice of the time, place, and purpose of the hearing has been given in all respects as required by law.

2. That 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.

3. That on November 26, 1957 the Commission issued its Order No. 113-1 which, among other things, established 320-acre drilling and spacing units for the produc-tion of gas from a member of the Upper Lewis formation, known locally as the Basal Lance, underlying the Craig-North Field, and the permitted well for each unit to be located in the NE/4 or the SW/2 of each section and not less than 660 feet from the boundaries of the unit;. 4. That testimony presented at the hearing indicates a common source of supply of gas underlies, in addition to the area set forth in Order No. 113-1, the following described lands in Moffat County, Colorado, to-wit:

Township 8 North, Range 90 West, 6th P.M. Section 30: All and that such area should be made subject to the provisions of Order No. 113-1 and that the E/2 and the W/2 of said section be designated the drilling units and that Well No. 1 Fox, located in the SE/4SW/2 of said Section 30 be the permitted well for the drilling unit consis-ting of the W/2 and that the permitted well for the unit consisting of the E/2 be located in the NE/4 of the section and no closer than 660 feet from the boundaries of the unit.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the area set forth in Finding 4 herein shall be subject to the provisions of Order No. 113-1 and the E/2 and W/2 of said section shall be designated the drilling units and Well No. 1 Fox, located in the SE/4SW/4

(over) of said section shall be the permitted well for the drilling unit consisting of the W/2 and the permitted well for the unit consisting of the E/2 shall be located in the NE/4 of said sectioN/2 and no closer than 660 feet from the boundaries of the unit.

IT IS FURTHER ORDERED, that the area known as the Craig-North Field and subject to the provisions of the orders in Cause 113, shall henceforth include the following described lands in Moffat County, Colorado, to-wit:

Township 8 North, Range 90 West, 6th P.M. Section 28: All Section 32: All Section 29: All Section 33: All Section 30: All

IT IS FURTHER ORDERED, that the Commission expressly reserves the' right, after notice and hearing, to alter, amend, or repeal any part of or all of the above orders.

ORDERED this 20th day of August, 1974.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE COLORADO

By Frank J. Piro, Secretary