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 Co. for an order granting an exception to Order No. 426-1 and allow an additional well to be drilled on the 80-acre drilling and spacing unit consisting of the S/2NW/4 Section 25, Township 13 South, Range 48 West, 6th P.M.

FINDINGS

The Commission finds as follows:

1. Champlin Petroleum Co., 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 S/2NW/4 Section 25, Township 13 South, Range 48 West, 6th P.M. has been designated an 80-acre unit and a producing well is located in the SE/4NW/4 of said Section 25.

5. Testimony at the time of the hearing indicates that there are separate zones in the Morrow reservoir underlying the Mt. Pearl Field and the well located in the SE/4SW/4 of said Section 25 produces from an upper Morrow "A" zone, and common source of supply for the field is referred to as the "B" zone. Therefore, in order to protect correlative rights, a well should be allowed to be drilled as an exception for production of oil and associated hydrocarbons from the Morrow "B" zone at a location 100 feet southwest of the center of the SE/4NW/4 of said Section 25 with a tolerance of 200 feet for topography or to avoid surface hazards.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception to the permitted well location as provided for by Order No. 426-1 is hereby allowed for an additional well to be drilled for the production of oil and associated hydrocarbons from the Morrow "B" zone in the drilling and spacing unit consisting of the S/2NW/4 Section 25, Township 13 South, Range 48 West, 6th P.M. at a location 100 feet southwest of the center of the SE/4NW/4 of said Section 25 with a tolerance of 200 feet in any direction for topography or to avoid surface hazards.

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

ENTERED this 7th day of February 1986, as of January 17, 1986.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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