REPORT TO THE COMMISSION

This cause came on for hearing before the Commission on December 17, 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 to restrict the production from each well underlying certain lands in Adams and Arapahoe Counties. for each month, to an amount no greater than one-half of the actual production in the prior month from the highest producing well which offsets the well to be restricted.

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 Well No. 2 Linnebur, located in the NW/4SE/4 Section 31, Township 3 South, Range 59 West. 6th P. M., and Well No. 2 Healey, located in the NW/4NW/4 Section 6, Township 4 South. Range 59 West. 6th P.M., were drilled as exceptions to the spacing pattern as established by Order No. 288-1 and were completed as commercial wells.'

4. That evidence presented at the hearing indicates that said wells as described in Finding 3 herein, do have an advantage over other producers by reason of drilling the wells as exceptions. and in order to prevent production from each drilling unit upon which each well is located, of more than its just and equitable share of oil and gas from the reservoir, a restriction should be placed on each well.

5. That such restriction in production for each exception well should be fifty percent (50%) of the average of the daily production of oil from all direct offset wells drilled in accordance with the spacing pattern as established by Order No. 288-l; provided, however that such restriction should not be less than fifty (50) barrels of oil per day.

ORDER

NOW. THEREFORE. IT IS ORDERED. that restriction of production from the "J" Sand reservoir shall be placed on Well No. 2 Linnebur, located in the NW/4SE/4 Section 31, Township 3 South. Range 59 West, 6th P.M., and Well No. 2 Healey, located in the NW/4NW/4 Section 6, Township 4 South, Range 59 West, 6th P. M. Lone Tree Field, Adams and Arapahoe Counties. COlorado. in accordance with the followihg:

1. The daily allowable.. calculated on a monthly basis, for each well herein described, shall be fifty percent (50%) of the average of the daily production of oil from all direct offset wells drilled in accordance with the spacing pattern established by Order No. 288-1; provided. however that each exception well shall have a minimum daily allowable of fifty (50) barrels of oil.

(over)

2. The daily allowable for. the month of January, 1975 shall be determined from the production from the offset wells which occurr, ed ill the month of November, 1974. The daily allowable for each succeeding month shall be determined from the report of the production from the offset wells subnmitted during the previous month.

3. Operatots and owners of the exception wells and offset wells shall file with the Commission a monthly report of production by wells as required on OGCC Form 7, on or before the fifteenth (15th) day of each momth succeeeding the month in which the produc-tion occurs.

4. Under and over production of oil shall be adjusted on a monthly basis. Underproduction of oil during any one month may be made up only during the month imme-diately following; and any overprocduction of oil obtained during any one month shall be made up during the month immediately fol]owing. Any overproduction of oil in excess of ten percent (10%) of the total monthly allowable shall be considered in violation, unless a valid reason is given.

IT IS FURTHER ORDERED that this order shall become effective January 1, 1975.

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above order rules and regulations.

ORDERED this 17th day of December, 1974.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE COLORADO

By Frank J. Piro, Secretary

(#288-5)