REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 20, 1978 at 9:00 A.M. in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing, as required by law, on the application of Energy Minerals Corporation, for an order to amend Order No. 250-12 and allow the drilling of additional wells on each 80-acre drilling and spacing unit in Section 16, Township 2 North, Range 67 West, 6th P.M. for the production of oil and gas and associated hydrocarbons from the Sussex and Shannon formations underlying said lands.

FINDINGS

The Commission finds as follows:

1. Energy Minerals Corporation, as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

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 here-inafter prescribed order.

4. On May 18, 1976, the Commission issued its Order No. 250-12 which allowed for the drilling of additional wells in each 80-acre drilling and spacing unit, established by previous orders in Cause No. 250, for the production of oil from the Sussex and Shannon formations. However, additional wells were authorized to be drilled for the production of oil from the Shannon formation only in Section 16, Township 2 North, Range 67 West, 6th P.M.

5. Evidence presented at the hearing indicates that one well will not ade-quately drain an area of 80-acres from the Sussex and Shannon formations; therefore, Order No. 250-12 should be amended to include Section 16, Township 2 North, Range 67 West, 6th P.M., and allow the drilling of an additional well on each 80-acre drilling and spacing unit for the production of gas, oil and associated hydrocarbons from the Sussex formation and gas and associated hydrocarbons from the Shannon formation, and that such additional wells be located in the center of a 40-acre tract with a tolerance of 200 feet in any direction, and further authorization should be granted to re-enter existing Shannon wells to achieve production from the Sussex formation or drill new wells to the Sussex formation and further to allow downhole commingling of production from the Sussex and Shannon formations.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order No. 250-12 is hereby amended and additional wells are hereby allowed to be drilled on each 80-acre drilling and spacing unit in Section 16, Township 2 North, Range 67 West, 6th P.M. for the production of gas, oil and associated hydrocarbons from the Sussex formation, and production of gas and associated hydrocarbons from the Shannon formation. The location of such wells shall be the center of each 40-acre tract with a tolerance of 200 feet in any direction.

(over)

IT IS FURTHER ORDERED, that existing Shannon wells may be re-entered to achieve production from the Sussex formation or new wells may be drilled for produc-tion from the Sussex formation, as may be necessary, and downhole commingling of production from the Sussex and Shannon formations for all wells in said Section 16 is hereby allowed.

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

ORDERED this 20th day of November, 1978.

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

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