BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE BUCK PEAK FIELD, MOFFAT AND ROUTT COUNTIES, COLORADO	) ) ) )	CAUSE NO. 103 ORDER NO. 103-3

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 15, 1965, at 10 a.m., in Room 132, State Services Building, Denver, Colorado, after publication of Notice of Hearing and service or appropriate waiver thereof, on the application of The Atlantic Refining Company and the Hondo Oil & Gas Company, a wholly owned subsidiary of The Atlantic Refining Company, requesting an order granting an exception to the spacing pattern previously ordered by the Commission for the Tow Creek Zone of the Mancos formation underlying the Buck Peak Field, for a well to be drilled in the NE¼SE¼ of Section 25, Township 6 North, Range 90 West of the 6th P.M., Moffat County, Colorado.

FINDINGS

The Commission finds as follows:

1.      That due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

2.      That 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.

3.      That the Commission has previously issued its Order No. 103-1, subsequently amended as to area by Order No. 103-2, which, among other things, established 80-acre drilling and spacing units for production of oil from the Tow Creek Zone of the Mancos formation underlying the Buck Peak Field, and provided that each such drilling unit should be the E½ or W½ of a quarter section, and that the permitted well for such drilling unit be located in either the NW¼ or SE¼ of each quarter section.

4.      That based on the performance of wells previously drilled in the Buck Peak Field, and on engineering and geological testimony presented at the hearing, indications are that a well drilled in the location requested by Applicant would be more productive than a well drilled in the required location.

5.      That an exception to the permitted well location for the Tow Creek Zone of the Mancos formation underlying the Buck Peak Field should be granted for a well to be drilled in the NE¼SE¼ of Section 25, Township 6 North, Range 90 West, 6th P.M., Moffat County, Colorado, approximately 483 feet west of the east line and 497 feet south of the north line of the NE¼SE¼ of said Section 25, but that in no event should such a well be located closer than 330 feet from the boundary line of said quarter quarter section.

6.      That if a commercial well is completed at the location set forth in Finding 5 above, the Commission should, upon application of any interested party and after notice and hearing, take such action as will offset any advantage the operator of such exception may have over other producers by the drilling of the well as an exception to the established spacing pattern.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception is hereby allowed for a well to be drilled in the NE¼SE¼ of Section 25, Township 6 North, Range 90 West, 6th P.M., Moffat County, Colorado, such well to be located no closer than 330 feet from the boundary line of said quarter quarter section; and that said well shall be the permitted well for the drilling unit upon which it is located; however, if a well capable of producing oil and gas is completed on such location rather than on the location provided in Order No. 103-1, as amended, the Commission may, at the request of any interested person and after notice and hearing, take such action as will offset any advantage the operator of such exception may have over other producers by reason of the drilling of said well as an exception.

ORDERED this 15th day of June 1965.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  W.R. Smith, Secretary