REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 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 Pennzoil United, Inc., for an order granting an exception to the spacing pattern established by Order No. 25 1-1 for a well to be drilled in the center of the SW/4 NE/4 of Section 24, Township 2 South, Range 62 West, 6th P.M., and that it be the permitted well for the drilling and spacing unit upon which it is to be located.

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 March 21, 1972, the Commission issued its Order No. 25 l-1 which, among other things, established 80-acre drilling and spacing units for the pro-duction of oil from the "D" and "J" Sands underlying the Irondale Field, with the per-mitted well for each unit to be located in the center of the NW/4 and the SE/4 of each quarter section.

4. That the applicant drilled a well in the permitted location of the NW/4 NE/4 of Section 24, Township 2 South, Range 62, West, 6th P.M., which was plugged and abandoned as a dry hole.

5. That evidence presented at the hearing indicates that an exception to the spacing pattern as established by Order No. 251-1 in the Irondale Field should be granted for a well to be drilled in the center of the SW/4 NE/4 of Section 24, Township 2 South, Range 62 West 6th P.M., and that it be the permitted well for the drilling unit upon which it is located; however, 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 advantage which the person securing the exception may have over other producers by reason of the drilling of the well as an exception, including suitable provi-sions to prevent the production from the drilling unit of more than its just and equitable share of the oil and gas in the pool.

ORDER

NOW, THEREFORE, IT IS ORDERED, an exception is hereby granted for a well to be drilled in the center of the SW/4 NE/4 of Section 24, Township 2 South, Range 62 West, 6th P.M., Irondale Field, Weld County, Colorado, and that said well shall be the permitted well for the drilling unit upon which it is located; however, if a commercial well is completed at the location set forth above the Commission shall, upon application (over) of any interested person, take such action as will offset any advantage which the person securing the exception may have over other producers by reason of the drilling of the well' as an exception.

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

ORDERED this 18th day of April 1972.

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