IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE WAGON TRAIL FIELD, BENT COUNTY, COLORADO Cause No. 271 Order No. 271-5

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 21, 1980 at 9:00 A.M. in Room 110, State Centennial Building, Denver, Colorado after giving Notice of Hearing as required by law, as a result of Order No. 271-4 in which the Com-mission granted an exception to the spacing pattern for the Wagon Trail Field and further ordered production data on the exception well and an offset well be submitted to the Com-mission at a hearing in order to determine what restriction, if any, should be placed on the exception well.

FINDINGS

The Commission finds as follows:

1. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

2. 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. On October 15, 1979 the Commission issued Order No. 271-4 which granted an exception to the spacing pattern as established by Order No. 271-1 for the No. 1 Poison well located 660 feet from the south line and 660 feet from the west line of Section 10, Township 23 South. Range 48 West, 6th P.M., Bent County, Colorado. It was further ordered that said No. 1 Poison well be shut-in until the No. 1 Sniff "B" well located 2310 feet from the north line and 2310 feet from the west line of Section 9, Town-ship 23 South, Range 48 West, 6th P.M., was completed in the Middle Sandstone member of the Morrow formation, and then both wells to be produced for a period or sixty (60) days.

4. Evidence presented at the hearing indicates that said Well No. 1 Poison, drilled as an exception, does have an advantage over the offset well, Well No. 1 Sniff "B", and in order to offset such advantage and prevent the production from the drill-ing unit of more than its just and equitable share of gas from the pool, a restriction of production should be placed on said Well No. 1 Poison, and such restriction should consist of having said well shut-in for a period of five (5) days each month.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Well No. 1 Poison located 660 feet from the south line and 660 feet from the west line of Section 10, Township 23 South, Range 48 West, 6th P.M., Wagon Trail Field, Bent County, Colorado shall be restricted in production as follows:

1. Said well shall be shut-in for a period of five (5) consecutive full days during each month of production.

2. Production from said well shall be reported as required on OGCC Form 7, indicating the days the well has been shut-in.

(over)

IT IS FURTHER ORDERED, that the provisions in the above order shall become effective February 1, 1980.

ORDERED this 21st day of January, 1980.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

-- 2 --

(#271-5)