REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on August 21, 1973, at 9 A.M., in the Auditorium, Social Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of L.V. Lundgren, for an order granting an exception to the spacing pattern established by Order No. 259-1 for a well to be drilled in the center of the NW/4 SW/4 Section 2, Township 5 South, Range 62 West, 6th P.M., Arapahoe County, Colorado, 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 October 17, 1972, the Commission issued its Order No. 259-1 which, among other things, established 320-acre drilling and spacing units for the pro-duction of gas and associated hydrocarbons from the "J" Sand underlying the Peace Pipe Field. That said units consist of the E/2 and W/2 or N/2 and S/2 of each section with the permitted well to be located in the NW/4 and SE/4 of each section and no closer than 600 feet to the boundaries of the quarter section.

4. That a well has been drilled in the permitted location in the NW/4SE/4 of Section 2, Township 5 South, Range 62 West, 6th P.M., and was plugged and abandoned as a dry hole.

5. That in order to protect the correlative rights of the parties involved, an exception to the spacing pattern as established by Order No. 259-1 in the Peace Pipe Field should be granted for a well to be drilled in the center of the NW/4 SW/4 of Section 2, Township 5 South, Range 62 West, 6th P.M., and that it be the permitted well for the drilling unit upon which it is located.

ORDER

NOW, THEREFORE, IT IS ORDERED, an exception is hereby granted for a well to be drilled in the center of the NW/4 SW/4 of Section 2, Township 5 South, Range 62 West, 6th P.M., Peace Pipe Field, Arapahoe County, Colorado, and that said well shall be the permitted well for the drilling unit upon which it is located.

(over)

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

ORDERED this 21st day of August 1973.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

(#259-2)