IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE McCLAVE FIELD, BENT AND KIOWA COUNTIES, COLORADO Cause No. 105 Order No. 105-22

REPORT OF THE COMMISSION

This cause came on For hearing before the Commission on September 18, 1978 at 9:00 A.M. in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Texas Oil & Gas Corporation, for an order granting an exception to the spacing pattern as established by the orders in Cause No. 105 for the McClave Field, Bent and Kiowa Counties, Colorado.

FINDINGS

The Commission finds as follows:

1. Texas 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 15, 1957, the Commission issued its Order No. 105-1 which, among other things, established 640-acre drilling and spacing units for the production of gas from the McClave Sand underlying the McClave Field. The order was amended by Order No. 105-2 which provided for the permitted well to be located within a radius of 990 feet from the center of the drilling and spacing unit, with exceptions for topographical reasons. Subsequent orders were issued extending the limits of the spaced area.

5. Wells have been drilled at locations in the SE/4NW/4 and the SW/4NE/4 Section 20, Township 20 South, Range 48 West, 6th P.M., and were plugged and aban-doned as dry holes.

6. A verified petition was filed with the Commission requesting an exep-tion to the permitted well location as established by the orders in Cause No. 105 for a well to be drilled at a location 660 feet From the north line and 660 feet from the east line of Section 20, Township 20 South, Range 48 West, 6th P.M. Waivers agreeing to said location from all offset owners were executed and filed with the Commission and no objections to the petition were received.

7. The allegations in said petition are true and should be adopted as the findings of the Commission; therefore, an exception to tim spacing pattern should be granted for a well to be drilled at said location.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception is hereby granted for a well to be drilled 660 feet from the north line and 660 feet from the east line of Section 20, Township 20 South, Range 48 West, 6th P.M., McClave Field, Bent County, Colorado, and that such well shall be the permitted well For the drilling unit upon which it is located.

(over)

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

ORDERED this 18th day of September, 1978.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary -- 2 --(#105-22)