REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 19, 1966, at 10 A.M., in Room 132, State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of Vaughn Petroleum, Inc. for an order establishing drilling and spacing units of approximately 640 acres for produc-tion of gas from the Frontier formation underlying certain lands in Moffat County, Colo-rado.

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 evidence presented at the hearing indicates that the Frontier forma-tion constitutes a common source of supply of gas and associated hydrocarbons under-lying substantially all of the following described lands in Moffat County, Colorado, to-wit:

Township 6 North, Range 91 West, 6th P.M. Section 2: SW/4 Section 3: Lots 10, 11, 12, 13, 14 and 15, E/2 SE/4 Section 4: Lots 13, 14, 15, 16, 17, 18, 19 and 20 Section 5: Lots 12, 15 and 16, NW/4 SE/4 Section 8: Lots 1, 2, 7, 8, 9, 10, 15, 16 Section 9: All Section 10: All Section 11: NW/4, W/2 SW/4, Lots 1, 2, 3, 4, 5 and 6 Section 12: Lots 3, 4, 5 and 6 Section 13: Lots 3, 4, 5, 6, 11, 12, 13, 14 Section 14: All Section 15: All Section 16: All Section 17: Lots 1, 2, 7 and 8, SE/4 Section 20: NE/4 Section 21: Lots 1 and 2, E/2 NE/4, NW/4 Section 22: Lots 1, 2, 3, 4, 5, 6, 7 and 8 Section 23: Lots 1, 2, 3, 4, 5, 6, 7 and 8 Section 24: Lots 3, 4, 5 and 6

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4. That in order to prevent waste of 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 gas re-sources of the State, an order should be made establishing drilling units of approximate-ly 640 acres, as described in the following order, for the production of gas and associ-ated hydrocarbons from said Frontier formation underlying the lands as defined herein; and that the permitted gas well for any such drilling unit should be located not less than 1320 feet from the outer boundaries thereof.

5. That all available geological and engineering data concerning said Frontier formation indicate that one well will adequately and efficiently drain an area of approxi-mately 640 acres; and that such drilling units are not smaller than the maximum area that can be efficiently drained by one well producing from said Frontier formation.

ORDER

NOW, THEREFORE, IT IS ORDERED that the following rules and regulations shall apply to wells heretofore and hereafter drilled and completed or recompleted in the Frontier formation, as herein defined, in addition to other rules, regulations and orders of the Commission heretofore adopted and not in conflict herewith:

Rule 1. Drilling units of approximately 640 acres shall be, and the same are hereby established for the production of gas and associated hydrocarbons from the Frontier formation, common source of supply underlying the following described lands in Moffat County, Colorado, to-wit:

Township 6 North, Range 91 West, 6th P.M. Section 2: SW/4 Section 3: Lots 10, 11, 12, 13, 14 and 15 Section 4: Lots 13, 14, 15, 16, 17, 18, 19 and 20 Section 5: Lots 12, 15 and 16, NW/4 SE/4 Section 8: Lots 1, 2, 7, 8, 9, 10, 15, 16 Section 9: All Section 10: All Section 11: NW/4, W/2 SW/4, Lots 1, 2, 3, 4, 5 and 6 Section 12: Lots 3, 4, 5 and 6 Section 13: Lots 3, 4, 5, 6, 11, 12, 13, 14 Section 14: All Section 15: All Section 16: All Section 17: Lots 1, 2, 7 and 8, SE/4 Section 20: NE/4 Section 21: Lots 1 and 2, E/2 NE/4, NW/4 Section 22: Lots 1,2, 3, 4, 5, 6, 7 and 8 Section 23: Lots 1,2, 3, 4, 5, 6, 7 and 8 Section 24: Lots 3,4, 5 and 6 and such area shall henceforth be known as the Craig Field. 2 --#199-1

Rule 2. Drilling units as set forth below are hereby established for the production of gas and associated hydrocarbons from the Frontier formation under-lying the Craig Field, as defined in Rule 1 hereof Unit No. 1: Section 2: SW/4 Section 3: Lots 10 and 15, E/2 SE/4 Section 10: Lot 1, E/2 NE/4 SW/4 NE/4 Section 11: NW/4 Unit No. 2: Section 3: Lots 11, 12, 123 and 14 Section 4: Lots 13, 14, 19 and 20 Section 9: Lots 1, 2, 7 and S Section 10: Lots 2, 3 and 4, SE/4 NW/4 Unit No: 3: Section 4: Lots 15, 16, 17 and 18 Section 5: Lots 12, 15 and 16, NW/4 SE/4 Section 8: Lots 1, 2, 7 and 8 Section 9: Lots 3, 4, 5 and 6 Unit No. 4: Section 8: Lots 9, 10, 15 and 16 Section 9: Lots 11, 12, 13 and 14 Section 16: NW/4 Section 17: Lots 1, 2, 7 and 8 Unit No. 5: Section 9: Lots 9, 10, 15 and 16 Section 10: Lot 5, SW/4 SW/4, E/2 SW/4 Section 15: Lots 3, 4, 5, NW/4 NW/4 Section 16: NE/4 Unit No. 6: Section 10: Lot 6, NW/4 SE/4 E/2 SE/4 Section 11: Lots 3 and 4, W/2 SW/4 Section 14: Lots 3, 4, 5 and 6 Section 15: Lots 1, 2, 6 and 7 Unit No. 7: Section 11: Lots 1, 2, 5 and 6 Section 12: Lots 3, 4, 5 and 6 Section 13: Lots 3, 4, 5 and 6 Section 14: Lots 1, 2, 7 and 8 Unit No. 8: Section 13: Lots 11, 12, 13 and 14 Section 14: Lots 9, 10, 15 and.16 Section 23: Lots 1, 2, 7 and 8 Section 24: Lots 3, 4, 5 and 6 Unit No. 9: Section 14: Lots 11, 12, 13 and 14 Section 15: Lots 8, 9, 14 and 15 Section 22: Lots 1, 2, 7 and 8 Section 23: Lots 3, 4, 5 and 6 Unit No. 10: Section 15: Lots 10, 11, 12 and 13 Section 16: SE/4 Section 21: Lots 1 and 2, W/2 NE/4 Section 22: Lots 3, 4, 5 and 6 Unit No. 11: Section 16: SW/4 Section 17: SE/4 Section 20: NE/4 Section 21: NW/4

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and the permitted gas well for each such unit shall be located not less than 1320 feet from the outer boundaries thereof.

IT IS FURTHER ORDERED, that the rules and regulations contained herein shall become effective forthwith, and henceforth the commencement of the drilling of any well or wells in the Frontier formation, as defined herein, for the purpose of pro-ducing gas and associated hydrocarbons therefrom, at a location other than authorized by this order, is hereby prohibited.

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 or regulations.

ORDERED this 19th day of July 1966.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By William R. Smith, Secretary

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