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 BENNETT FIELD, ADAMS COUNTY, COLORADO	) ) ) )	CAUSE NO. 227 ORDER NO. 227-4

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 17, 1972, at 9 a.m., in Room 132 State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Tom Vessels for an order granting an exception to said Order No. 227-1, for a well to be drilled in the SE¼NE¼ Section 18, Township 3 South, Range 63 West, 6th P.M., with a tolerance of 150 feet in any direction.

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 July 21, 1970, the Commission issued its Order No. 227-1 which, among other things, established 80 acre drilling and spacing units for the production of oil and associated hydrocarbons from the "D" and "J" Sands, with the permitted well to be located in the center of the NE¼ and the SW¼ of each quarter section with a tolerance of 150 feet in any direction and that the E½NE¼ of Section 18, Township 3 South, Range 63 West, 6th P.M., Adams County, Colorado constitutes one of said units.

4.      That the applicant drilled a well at a permitted location in the NE¼NE¼ of said Section 18, which resulted in a dry hole and therefore, in order to protect correlative rights an exception to Order No. 227-1 should be granted for a well to be drilled in the center of the SE¼NE¼ of said section.

5.      That evidence presented at the hearing indicates that said drilling unit is not completely underlain by oil and gas, and that in order to prevent the production from the unit of more than its just and equitable share of the oil and associated hydrocarbons underlying the unit, a limitation should be placed on the amount of daily production from the well drilled as an exception to the established pattern.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception is hereby granted for a well to be drilled in the center of the SE¼NE¼ of Section 18, Township 3 South, Range 63 West, 6th P.M., Bennett Field, Adams County, Colorado, and such well shall be the permitted well for the drilling unit designated as the E½NE¼ of said Section 18; however, if a well capable of producing oil and associated hydrocarbons from the "D" or "J" Sands is completed at such location, the maximum daily allowed production for said well shall be determined by averaging the production from the two producing off-set [sic] wells - Amoco's No. 1 Essenpreis located in the SW¼NE¼ and the No. 1 Meggenberg located in the NE¼SE¼, both in Section 18, Township 3 South, Range 63 West - and multiplying that amount of production by fifty percent (50%), provided that said offset wells are produced in a normal and prudent manner.

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal the above order.

ORDERED this 17th day of October, 1972.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	Frank J. Piro, Secretary