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 KEOTA FIELD, WELD COUNTY, COLORADO	) ) ) )	CAUSE NO. 10 ORDER NO. 10-9

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 17, 1988, at 9:00 a.m. in Hearing Room "A", Legislative Services Building, 200 East 14th Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Charles A. Underwood for an order allowing a well to be drilled at a location as an exception to Rule 318, Location of Wells, of the Rules and Regulations of the Commission. Three Protests to the granting of the application were received.

FINDINGS

The Commission finds as follows:

1.      Charles A. Underwood, as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

2.      This application originally came before the Commission for hearing on May 16, 1988 at which time protests were made concerning due notice being given. All protestants were given opportunity to furnish additional lists of interested parties to the Commission. The Commission continued the hearing to its next regularly scheduled meeting after ordering the matter to be re-noticed. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law. No protests to the re-notice were made.

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.      Rule 318, Location of Wells, of the Rules and Regulations of the Commission states in part that a well drilled in excess of 2,500 feet in depth shall be located not less that [sic] 600 feet from any lease line and shall not be less than 1,200 feet from any other producible or drilling oil or gas well when drilling to the same common source of supply.

5.      The applicant has a lease consisting of the SW1/4 NE1/4 Section 9, Township 9 North, Range 61 West, 6th P.M., Weld County, Colorado.

6.      Evidence presented at the time of hearing showed a plugged and abandoned well, Sheetz No. 1 located approximately at the C/SW1/4 NE1/4 Section 9, Township 9 North, Range 61 West, 6th P.M., Weld County, Colorado.

7.      Engineering and geological evidence presented at the time of hearing indicates the Sheetz No. 1 did not penetrate the full "J" sand formation, the original completion included both perforations thru casing and an open hole interval, production records indicate there may be unproduced hydrocarbons under the location described in Findings therein above, and exception should be granted for a well to be drilled at a location 660 feet from the west line and 330 feet from the south line of the NE1/4, Section 9, Township 9 North, Range 61 West, 6th P.M., Weld County, Colorado.

8.      If a commercial well is completed at the location set forth above, the Commission should, upon application of any interested person, take such action as will offset any advantages which the person securing the exception, may have over other producers by reason of drilling the well as an exception, including suitable provisions to prevent the production from the well drilled as an exception of more than its just and equitable share of the oil and gas in the pool.

ORDER

NOW, THEREFORE, IT IS ORDERED that an exception to Rule 518 of the Commission is hereby granted for a well to be drilled at a location 660 feet from the west line and 330 feet from the south line of the NE1/4 Section 9, Township 9 North, Range 61 West, 6th P.M., Weld County, Colorado.

IT IS FURTHER ORDERED, that if a commercial well is completed at the location set forth above, the Commission shall, upon application of any interested person, take such action as will offset any advantages which the person securing the exception, may have over other producers by reason of drilling the well as an exception, including suitable provisions to prevent the production from the well drilled as an exception of more than its just and equitable share of the oil and gas in the pool.

ENTERED this 30th day of June 1988, as of June 17, 1988.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  Dennis R. Bicknell, Secretary