IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE LONE TREE FIELD, ADAMS AND ARAPAHOE COUNTIES, COLORADO Cause No. 288 Order No. 288-15

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 20, 1977 at 9 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Amoco Production Company for an order granting an exception to the spacing pattern as established by Order No. 288-1 for a well to be drilled in the SE/4NE/4 Section 6, Township 4 South, Range 59 West, 6th P.M., and in addition to amend said Order No. 288-1 to allow, when a v{ell has been drilled at the permitted location and completed as a dry hole, the drilling of an exception well in the center of the undrilled 40-acre tract of the drilling unit without notice or hearing by the Commission. The application was amended to delete that por-tion concerning the drilling of a well in the undrilled 40-acre tract without notice or hear-ing, and only the granting of the exception well was requested.

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 o[ the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

3. That on July 23, 1974, the Commission issued its Order No. 288-1 which, among other things, established 80-acre drilling units for the production of oil and associated hydrocarbons from the "J" Sand, with the permitted well for each drilling unit to be located in the center of the NE/4 and SW/4 of each quarter section, with a toler-ance of 200 feet in any direction.

4. That evidence presented at the hearing indicates that a well drilled in the permitted location in the NE/4NE/4 Section 6, Township 4 South, Range 59 West, 6th P.M. resulted in a dry hole; therefore, an exception should be granted to said Order No. 288-1 for a well to be drilled at a location in the center of the SE/4NE/4 of said Section 6 with a tolerance of 200 feet in any direction, and that it be the permitted well for the unit consisting of the E/2NE/4 of said Section 6.

5. That if a commercial well is drilled on the location as set forth in Finding 4 herein instead of on a location as provided for in Order No. 288-1, the Commis-sion should, at the request of interested persons, 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.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception is hereby granted for a well to be drilled in the center of the SE/4NE/4 Section 6, Township 4 South, Range 9 West, 6th P.M., with a tolerance of 200 feet in any direction, and that it be the per-mitted well for the unit consisting of the E/2NE/4 of said Section 6; however, if a commer-cial well is drilled on the location as set forth above, instead of on a location as provided for in Order No. 288-1, the Commission shall, at the request of interested persons, take

(over) 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 forthwith.

ORDERED this 20th day of June, 1977.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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