BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF AN EXCEPTION TO                                 )        CAUSE NO. 1

THE WELL LOCATION REQUIREMENTS OF                          )

RULE 318 OF THE RULES AND REGULATIONS                    )        ORDER NO. 1‑30 (Formerly 1-135)

OF THE OIL AND GAS CONSERVATION                                 )

COMMISSION, MOFFAT COUNTY, COLORADO                     )              

 

REPORT OF THE COMMISSION

 

             This cause came on for hearing before the Commission on  October 19, 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 Washington Energy Exploration, 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 from the Dakota Formation underlying these lands.

 

FINDINGS

 

             The Commission finds as follows:

 

             1.  Washington Energy Exploration, 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, provided further that the Commission may grant an exception to the requirements of this rule because of topographical conditions, archeological conditions or irregular sections or if waivers from offsetting owners can be obtained.  The SW1/4 NW1/4 of Section 28, Township 5 North, Range 98 West, 6th P.M., Moffat County, lies within the area covered by this rule.

 

             5.  Washington Energy Exploration, Inc. requested waivers as required by Rule 318, from mineral owners offsetting the proposed location 1524 feet FNL and 620 feet FWL in the SW1/4 NW1/4 of Section 28, Township 5 North, Range 98 West, 6th P.M.  Waivers were not obtained from all mineral owners.

 

             6.  The application was filed as an emergency hearing due to a pending lease expiration and this matter was heard by the Hearing Officer who recommends approval based upon testimony describing the rough topography and the ability to use an existing access road for operations that was presented at the administrative hearing.

 

             7.  No objections to the application were received and 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 1524 feet FNL and 620 feet FWL in the SW1/4 NW1/4 of Section 28, Township 5 North, Range 98 West, 6th P.M., Moffat County, Colorado, for production from the Dakota 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 October 21, 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

October 29, 1992