REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 17, 1986 at 9:00 A.M., in Room 110 State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Champlin Petroleum Company for an order extending the spaced area of the Mt. Pearl Field as established by Order No. 426-1 by the addition of certain lands in Cheyenne County, Colorado.

FINDINGS

The Commission finds as follows:

1. Champlin Petroleum Company, as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

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

3. 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. On February 18, 1985, the Commission authorized Order No. 426-1 to be issued which established 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the Morrow formation underlying certain lands in the Mt. Pearl Field. The units consist of the E/2 and W/2 or the N/2 and S/2 of each quarter section according to the governmental survey. The permitted well is at a location in the center of the NW/4 and SE/4 of each quarter section with a tolerance of 200 feet in any direction. The Director may grant exceptions to the permitted well location provided waivers or consents in writing are received from offset owners toward which the location is moved.

5. Section 31, Township 13 South, Range 48 West and Section 6, Township 14 South, Range 48 West are presently in the spaced area of the Sorrento Field and subject to the provisions of Order No. 349-1, and therefore should be deleted from this request.

6. Geological and engineering testimony presented at the hearing indicate that the Morrow formation constitutes a common source of supply in addition to the lands described in Order No. 426-1 the following described lands in Cheyenne County, Colorado, to-wit:

Township 13 South, Range 47 West, 6th P.M. Sections 19 thru 21, 28 thru 33: All Township 13 South, Range 48 West, 6th P.M. Sections 28 thru 30, 32 and 33: All Township 14 South, Range 48 West, 6th P.M. Sections 4 and 5: All and that said additional lands should be made subject to the provisions of Order No. 426-1.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the lands described in Finding 5 herein shall be included in the spaced area of the Mt. Pearl Field and shall be subject to the provisions of Order No. 426-1. The spaced area of the Mt. Pearl Field for the production of oil and associated hydrocarbons from the Morrow formation shall henceforth consist of the following described lands in Cheyenne County, Colorado, to-wit:

Township 13 South, Range 47 West, 6th P.M. Sections 19 thru 21: All 28 thru 33: All

Township 13 South, Range 48 West, 6th P.M. Sections 25 thru 30, 32 thru 36: All Township 14 South, Range 48 West, 6th P.M. Sections 1 thru 5: All

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

ENTERED this day of 1986, as of January 17, 1986.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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