BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
in the matter of the promulgation and establishment if field rules to govern operations in the baxter pass field, rio blanco, colorado	) ) ) )	CAUSE NO.  1 and 365 ORDER NO. 1-65 and 365-3

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission at 8:30 a.m. on January 6, 1997, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado on the application of Cabot Oil & Gas Corporation, for an order to allow the Baxter Pass No. 41-28 Well to be drilled at an exception location for production from the Dakota-Morrison Formation or in a formation other than the Dakota-Morrison Formation.

FINDINGS

                        The Commission finds as follows:

                        1.  Cabot Oil and Gas Corporation, 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 May 28, 1980, the Commission issued Order No. 365-1 which established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Dakota-Morrison Formation underlying certain lands in the Baxter Pass Field.  The units consist of the N½ and S½ of each section with the existing wells being the permitted wells for the units upon which each is located, and for the remaining units the permitted wells to be located in accordance with Rule 318.  On August 17, 1981, the Commission issued Order No. 365-2 which, among other things, expanded the Baxter Pass Field to include Section 28, Township 4 South, Range 103 West, 6th P.M., with the designated units to consist of the E½ and W½ of said Section 28.

                        5.  Rule 318. of the Rules and Regulations of the Colorado Oil and Gas Conservation Commission requires that wells drilled to a depth of 2,500 feet or deeper be located no closer than 600 feet from any lease line, and not less than 1,200 feet from any other producible or drilling oil or gas well drilling to the same common source of supply, unless authorized by an order of the Commission or unless waivers are obtained from those parties who will be affected by the exception location.  Wells drilled for production from the Dakota-Morrison Formation in the Baxter Pass Field fall under the provisions of Rule 318.

                        6.  This matter was heard by the Hearing Officer who recommends approval based upon the testimony presented at the administrative hearing that an exception to the permitted well location is necessary to avoid topographic hazards.

                        7.  An order of the Commission should be entered allowing the Baxter Pass No. 41-28 Well to be drilled at an exception location 1,108 feet FNL and 323 feet FEL in the NE¼ NE¼ of Section 28, Township 4 South, Range 103 West, 6th P.M., to the depth of 6,750 feet to test the Dakota-Morrison Formation or any other formation.

                        8.  Based on the facts stated in the application, having received no protests, and having been heard by the Hearing Officer who recommends approval, the Commission should enter an order approving the application.

ORDER

                        NOW, THEREFORE, IT IS ORDERED that Order No. 365-1 is hereby amended to allow the Baxter Pass No. 41-28 Well to be drilled at an exception location 1,108 feet FNL and 323 feet FEL in the NE¼ NE¼ of Section 28, Township 4 South, Range 103 West, 6th P.M., to the depth of 6,750 feet to test the Dakota-Morrison Formation or any other formation.

                        IT IS FURTHER ORDERED, that should a commercial well be completed at the location set forth above, the Commission shall, upon application of any interested person, take such action as will offset any advantage which the person securing the exception may have over other procedures by reason of the drilling of the well as an exception location.

                        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 January, 1997, as of January 6, 1997.

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                              OF THE STATE OF COLORADO

                                                                        By

                                                                                       Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

July 25, 2019