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. 103-4

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 19, 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, for an order granting permission for the production of gas from the Morapos Sand of the Mancos formation and the Mesaverde formation, from the well drilled by applicants pursuant to Order No. 103-3, in the NE¼SE¼ of Section 25, Township 6 North, Range 90 West, 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 on April 8, 1957, the Commission issued its Order No. 103-1 which, among other things, established 320-acre drilling and spacing units for production of gas from the Morapos Sand of the Mancos formation and the Mesaverde formation underlying the Buck Peak Field, and provided that such drilling unit be the E½ or W½ of each section, and that the permitted well for each such drilling unit be located in the SE¼ and the NW¼ of each such section, not closer than 660 feet from the boundary line of such quarter section.

4.      That on June 15, 1965, the Commission issued its Order No. 103-3 which ordered that an exception be 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, approximately 483 feet west of the east line and 497 feet south of the north line of the NE¼SE¼ of said Section 25 for the production of oil and gas from the Tow Creek Zone of the Mancos formation, such well to be located no closer than 330 feet from the boundary line of said quarter-quarter section, and that said well be the permitted well for the drilling unit upon which it would be located.

5.      That the Voloshin No. 2 well drilled pursuant to said Order No. 103-3 has been found to be non-productive of oil from the Tow Creek Zone of the Mancos formation, but that gas was encountered in the Morapas Sand of the Mancos formation and the Mesaverde formation, and that subject well may be capable of commercial production from said zones.

6.      That in order to prevent the drilling of unnecessary wells, said Voloshin No. 2 well should be allowed as the permitted well for the production of gas from the drilling unit consisting of the E½ of said Section 25.

7.      That said Voloshin No. 2 well will adequately and efficiently drain as to gas, the drilling unit consisting of the E½ of said Section 25.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception is hereby allowed for the Voloshin No. 2 well 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, for the production of gas from the Morapos Sand of the Mancos formation and the Mesaverde formation; and said well shall be the permitted well for the drilling unit described as the E½ of Section 25, Township 6 North, Range 90 West.  However, 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 completion of said well as an exception.

ORDERED this 19th day of October 1965.

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