BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION AND ) CAUSE NO. 1
ESTABLISHMENT OF FIELD RULES TO GOVERN )
OPERATIONS IN THE DOUGLAS CREEK FIELD, ) ORDER NO. 1‑26 (Formerly 1-127)
RIO BLANCO COUNTY, COLORADO )
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on May 18, 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 Conoco Inc. for an order granting an exception to the permitted well location as provided for in Rule 318 of the Colorado Oil and Gas Conservation Commission Rules and Regulations, for production of gas and associated hydrocarbons from the Mancos "B" Formation underlying these lands.
The Commission finds as follows:
1. Conoco 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. Rule 318 of the Colorado Oil and Gas Conservation Commission Rules and Regulations, in addition to other things, provides that all wells drilled for oil or gas to a common source of supply less than 2,500 feet in depth shall be located not less than 200 feet from any lease line, and shall be located not less than 300 feet from any other producible or drilling oil or gas well when drilling to the same common source of supply. This rule further provides that the Commission may grant an exception to the requirements of Rule 318 due to topographical conditions, archeological conditions or irregular sections or if waivers from offsetting owners can be obtained. The NW1/4 SW1/4 of Section 31, Township 2 South, Range 101 West, 6th P.M., Rio Blanco County, lies within the area covered by this rule.
5. Conoco Inc. requested waivers as required by Rule 318, from mineral owners offsetting the SW1/4 of Section 31. Waivers were not obtained.
6. A protest was filed by DKM Resources, Inc., however upon testimony presented by both the applicant and the protestant at the hearing, an order of the Commission should be entered allowing a well to be drilled at the above-described exception location.
O R D E R
NOW, THEREFORE, IT IS ORDERED, that an exception to the permitted well location as provided for in Rule 318 of the Colorado Oil and Gas Conservation Commission Rules and Regulations, is hereby granted for a well to be drilled 2380 feet FSL and 60 feet FWL in the NW1/4 SW1/4 of Section 31, Township 2 South, Range 101 West, 6th P.M., Rio Blanco County, Colorado, for production of gas and associated hydrocarbons from the Mancos "B" Formation.
IT IS FURTHER ORDERED, that if a commercial well shall be completed at the location set forth above, the Commission shall, upon application of any interested person, take such action as will offset any advantages which the person securing the exception may have over other producers by reason of drilling the well as an exception, including suitable provisions to prevent the production from the well drilled as an exception of more than its just and equitable share of the oil and gas in the pool.
IT IS FURTHER ORDERED, that the provision 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 May 18, 1992.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
Patricia C. Beaver, Secretary
Dated at Suite 380
1580 Logan Street
Denver, Colorado 80203
May 26, 1992