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. 227-8 AMENDED

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission at 8:30 a.m. on April 21, 1997, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, on the verified application of HS Resources, Inc. for an order authorizing the drilling of an additional well for certain lands in the Bennett Field for production of oil and associated hydrocarbons from the "D" Sand and "J" Sand Formations.

FINDINGS

                        The Commission finds as follows:

                        1.  HS Resources, Inc. as applicant herein, is an interested party in the subject matter of the above-referenced matter.

                        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 jurisdiction to promulgate the hereinafter prescribed order.

                        4.  On July 20, 1970, the Commission issued Order No. 227-1 establishing 80-acre drilling and spacing units for certain lands in the Bennett Field for production of oil and associated hydrocarbons from the "D" Sand and "J" Sand Formations, consisting of the N½ and S½ of each quarter section, according to the governmental survey thereof, with the permitted well for each such drilling unit to be located in the center of NE¼ and SW¼ of each quarter section with a tolerance of 150 feet in any direction.  By Order No. 227-2, the Commission established the 80‑acre drilling and spacing units to be either the E½ and W½ or the N½ and S½ of each quarter section.

                        5.  On March 10, 1997, HS Resources, Inc. requested an order allowing the drilling of an additional well on the below-listed lands, where no drilling and spacing units have been designated, the drilling and spacing unit shall be designated by the operator upon drilling the first well in the quarter section.  The permitted well shall be located in the center of either 40-acre tract with a tolerance of 200 feet in any direction.  The operator shall have the option to drill an additional well in the center of the undrilled 40-acre tract in each 80-acre drilling and spacing unit with a tolerance of 200 feet in any direction.  Further, the Applicant requests the Director be authorized to grant exceptions to well locations provided owners of the contiguous or cornering tract toward which the exception well location is proposed to be moved, file a waiver or consent in writing agreeing to said exception.  Alternatively, the Applicant shall show that any party who has not filed a waiver or consent has been adequately notified (via U.S. Mail or otherwise) that anyone who objects to the proposed exception location should file a protest with the Commission within 30 days of the date of the notice.

Township 3 South, Range 63 West, 6th P.M.

Section 17:  S½

Section 18:  All

Section 20:  NW¼, S½NE¼

Section 21:  All

                        6.  Geological and engineering evidence presented at the administrative hearing indicated that "D" Sand wells producing in this area drain less than 40-acres and the pressure build-up data from the Hooker Trust 10-18 Well located in NW¼ SE¼ of Section 18, Township 3 South, Range 63 West, 6th P.M., indicates the bottom hole pressure is at original bottom hole pressure.

                        7.  On March 21, 1997, Union Pacific Resources Company indicated in writing, consent to the application.

                        8.  At the time of the administrative hearing, HS Resources, Inc. agreed to be bound by oral order of the Commission.

                        9.  Based on the facts stated in the verified Application, having received no protests, and having been heard by the Hearing Officer who recommends approval, the Commission should enter an order allowing the drilling of an additional well for production of oil and associated hydrocarbons from the "D" Sand and "J" Sand Formations for the above-listed lands.  The permitted well shall be located in the center of either 40-acre tract with a tolerance of 200 feet in any direction.  The operator shall have the option to drill an additional well in the center of the undrilled 40-acre tract in each 80-acre drilling and spacing unit with a tolerance of 200 feet in any direction.  Further, the Commission should authorize the Director to grant exceptions to well locations provided owners of the contiguous or cornering tract toward which the exception well location is proposed to be moved, file a waiver or consent in writing agreeing to said exception.  Alternatively, the Applicant shall show that any party who has not filed a waiver or consent has been adequately notified (via U.S. Mail or otherwise) that anyone who objects to the proposed exception location should file a protest with the Commission within 30 days of the date of the notice.

O R D E R

                        NOW, THEREFORE, IT IS ORDERED that Order No. 227-1 is hereby amended to allow the drilling of an additional well for production of oil and associated hydrocarbons from the "D" Sand and "J" Sand Formations for the below-listed lands.  The permitted well shall be located in the center of either 40-acre tract with a tolerance of 200 feet in any direction.  The operator shall have the option to drill an additional well in the center of the undrilled 40-acre tract in each 80-acre drilling and spacing unit with a tolerance of 200 feet in any direction.

Township 3 South, Range 63 West, 6th P.M.

Section 17:  S½

Section 18:  All

Section 20:  NW¼, S½NE¼

Section 21:  All

                        IT IS FURTHER ORDERED, that the Director shall be authorized to grant exceptions to well locations provided owners of the contiguous or cornering tract toward which the exception well location is proposed to be moved, file a waiver or consent in writing agreeing to said exception.  Alternatively, the Applicant shall show that any party who has not filed a waiver or consent has been adequately notified (via U.S. Mail or otherwise) that anyone who objects to the proposed exception location should file a protest with the Commission within 30 days of the date of the notice.

                        IT IS FURTHER ORDERED, that should a commercial well be completed at the location set forth above, the Commission shall, upon application of any interested person, take such action as will offset any advantage which the person securing the exception may have over other procedures by reason of the drilling of the well as an exception location.

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

                        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.

                        ENTERED this 7th day of  May 1997, as of April 21, 1997.

                        AMENDED this ________ day of May, 1997, as of April 21, 1997.

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                           OF THE STATE OF COLORADO

                                                                        By

                                                                                    Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

July 27, 2018