BEFORE THE OIL AND GAS CONSERVATION COMMISSION

                        OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION AND                                         )       CAUSE NO. 1

ESTABLISHMENT OF AN EXPLORATORY UNIT                                          )      

TO GOVERN OPERATIONS IN THE LOVELAND                                          )       ORDER NO. 1-24 (Formerly 1-124)

FIELD, LARIMER COUNTY, COLORADO                                                       )

 

                        REPORT OF THE COMMISSION

 

TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:

 

             This cause came on for hearing before the Commission on March 16, 1992 at 8:30 a.m., in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Skaer Enterprises, Inc. for an order to establish an exploratory unit for production from the Niobrara Formation for the 164-acre unit consisting of the NE1/4, N1/2 SE1/4 and SE1/4 NW1/4 (four acres underlying the Chapman Reservoir) of Section 32, Township 5 North, Range 68 West, 6th P.M.

 

                                FINDINGS

            

             The Commission finds as follows:

 

             1.  Skaer Enterprises, Inc., 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 April 19, 1991, the General Assembly of the State of Colorado enacted Senate Bill 91-87, which among other things, authorized the Commission, when unable to determine the existence of a pool and the appropriate acreage to be embraced with a drilling unit, to establish the existence of a pool and the appropriate size and shape of the drilling unit to be applied.

 

             5.  The applicant proposes to drill a well at a surface location in the SE1/4 NE1/4, no closer than 50 feet to the east boundary line of the NE1/4 and no closer than 330 feet to the south boundary line of the NE1/4 of said Section 32, for production of oil, gas and associated hydrocarbons from the Niobrara Formation.  It is proposed that the Niobrara Formation will be encountered at an approximate subsurface depth of 5100 feet, which should be approximately 500 feet from the east boundary line of said Section 32.  The applicant proposes to drill a horizontal wellbore within the Niobrara Formation in a westerly direction to a point in the SW1/4 NE1/4 of Section 32 which is no closer than 330 feet to the west boundary line of said NE1/4 of Section 32 and no closer than 500 feet to the south boundary line of said NE1/4 of Section 32.

 

             6.  Based on the facts stated in the verified application, receiving no protests and having been heard by the Director as Hearing Officer on March 12, 1992 and recommended for approval, the Commission should enter an order establishing an exploratory unit for the 164-acre unit consisting of the NE1/4, N1/2 SE1/4 and SE1/4 NW1/4 (four acres underlying the Chapman Reservoir) of Section 32, Township 5 North, Range 68 West, 6th P.M., for production from the Niobrara Formation.

 

             7.  At the time of administrative hearing the parties agreed to be bound by the verbal order of the Commission in this matter.

 

                                O R D E R

 

             NOW, THEREFORE IT IS ORDERED, that, 1.  Pursuant to the provisions of 34‑60‑116, C.R.S., 1991, as amended, of the Oil and Gas Conservation Act of the State of Colorado, an order to establish an exploratory unit for production from the Niobrara Formation for the 164-acre unit consisting of the NE1/4, N1/2 SE1/4 and SE1/4 NW1/4 (four acres underlying the Chapman Reservoir) of Section 32, Township 5 North, Range 68 West, 6th P.M., is hereby granted.

             IT IS FURTHER ORDERED, that Skaer Enterprises, Inc. is hereby designated as operator of the well to be drilled from a surface location in the SE1/4 NE1/4, horizontally to a location in the SW NE in the SW1/4 NE1/4 of Section 32, Township 5 North, Range 68 West, 6th P.M., Larimer County, Colorado, for production of oil, gas and associated hydrocarbons in the Niobrara Formation.

 

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

 

             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 orders.

 

             ENTERED this              day of                     , 1992, as of March 16, 1992.

 

 

                             OIL AND GAS CONSERVATION COMMISSION

                                    OF THE STATE OF COLORADO

 

 

                             By                                  

                                Patricia C. Beaver, Secretary

 

Dated at Suite 380

1580 Logan Street

Denver, Colorado  80203

April 6, 1992