REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 19, 1974 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 Bobcat Oil Company, for an order granting an exception to the spacing pattern as established by Order No. 288-1 for the Lone Tree Field, Adams and Arapahoe Counties, Colorado. The application was amended at the hearing requesting a change of the exception location as described in the Notice of Hearing.

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 regarding the original application.

2. That waiver of Notice of Hearing was received from all interested parties concerned, consenting to the amendment to the application withdrawing its request for an exception location in the center of the NW/4NE/4 Section 31, Township 3 South, Range 59' West, 6th P.M., and requesting instead an order granting an exception location in the center of the SE/4NE/4 of said Section 31.

3. 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.

4. That on July 23, 1974, the Commission issued its Order No. 288-1 a 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 tolerance of 200 feet in any direction.

5. That evidence presented at the hearing indicates that a well drilled in the permitted location, NE/4NE/4 Section 31, Township 3 South, Range 59 West, 6th P.M. resulted in a dry hole; therefore, an exception should be granted for a well to be drilled in the center of the SE/4NE/4 of said Section 31, With a tolerance of 200 feet in any direction to avoid surface hazards or obstructions, and that it be the permitted well for the designated unit consisting of the E/2NE/4 of said Section 31.

6. That if a commercial well is drilled on the location as set forth in Finding 5 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 advan-tage which the person securing the exception may have over other producers by reason of the drilling of the well as an exception.

(over)

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 S1, Township 3 South, Range 59 West, 6th P.M., with a tolerance of 200 feet in any direction to avoid surface hazards or obstructions, and that it be the permitted well for the unit consisting of the E/2NE/4 of said Section S1; however, if a commercial 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 such action as will offset any advantage which the per-son 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 19th day of November, 1974.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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