REPORT OF THE COMMISSION

This cause-came on for hearing before the Commission on July 18, 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 Amoco Production Com-pany for an order granting an exception to the spacing pattern as established by Order No. 238-1 and further that an additional provision be made for the spaced area of the Hombre field in which the Director may without additional notice and hearing grant exceptions to the permitted well locations to avoid surface hazards with the consent of the owners of the contiguous and cornering units.

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 April 28, 1971, the Commission issued its Order No. 238-1 which, among other things, established 80-acre drilling units for the production of oil from the "J" Sand, with the permitted well for each drilling unit to be located in the center of the NW/4 and SE/4 of each quarter section, with a tolerance of 200 feet in any direction.

4. That evidence presented at the hearing indicates that a well drilled in the permitted location of the SE/4 SE/4, Section 29, Township 3 South, Range 61 West, 6th P.M., would be in the creekbed of the West Bijou Creek and that drilling at said location, or within the 200 feet tolerance, would be operationally unfeasible because of the hazardous surface conditions and that therefore an exception should be granted for a well to be drilled 660 feet from the South line and 1140 feet from the East line of said Section 29; and further that an additional provision should be made for the spaced area of the Hombre Field as described in Order No. 238-1 in which the Director may with-out additional notice and hearing grant exceptions to the permitted well locations to avoid surface hazards, provided the owners of the contiguous and cornering drilling units, toward whom the well location is proposed to be moved, file a waiver or con-sent in writing agreeing to said exceptions.

5. That no objection to the Applicant's request was presented.

(over)

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception is hereby granted for a well to be drilled 660 feet from the South line and 1140 feet from the East line of Section 29, Township 3 South, Range 61 West, 6th P.M., Adams County, Colorado.

IT IS FURTHER ORDERED, that for the spaced area of the Hombre Field as described in Order No. 238-1, the Director may without additional notice and hearing grant exceptions to the permitted well locations, as established by said Order No. 238-1, to avoid surface hazards, provided the owners of the contiguous and cornering drilling units, toward whom the well location is proposed to be moved, file and waiver or consent in writing agreeing to said exceptions.

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

ORDERED this 18th day of July, 1972.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

-- 2 --(238-3)