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. 105-25

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 21, 1983 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 Sun Exploration and Production Company for an order to allow an additional well to be drilled on a 640-acre drilling and spacing unit in the McClave Field, at a location 990 feet from the south line and 1650 feet from the west line of Section 9, Township 21 South, Range 48 West, 6th P.M.

FINDINGS

The Commission finds as follows:

1. Sun Exploration and Production Company, 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 herinafter prescribed order.

4. On May 15, 1957, the Commission issued Order No. 105-1 which established 640-acre drilling and spacing units for the production of gas from the McClave Sand underlying lands in the McClave Field, Bent and Kiowa Counties, Colorado. 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 unit, with exceptions for topography. Subsequent orders extended the limits of the spaced area. A well, State No. 1-9 has been drilled at a location in the SE/4NW/4 Section 9, Township 21 South, Range 48 West, 6th P.M. and has been producing gas from the McClave Sand reservoir.

5. Evidence presented at the hearing indicates that said Well No. 1-9 State will not adequately and efficiently drain the gas from the McClave Sand underlying the drilling and spacing unit consisting of 640-acres; therefore, an additional well should be allowed to be drilled at a location 990 feet from the south line and 1650 feet from the west line, Section 9, Township 21 South, Range 48 West, 6th P.M.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an additional well is hereby authorized to be drilled in the drilling and spacing unit consisting of Section 9, Township 21 South, Range 48 West, 6th P.M., McClave Field, Kiowa County, at a location 990 feet from the south line and 1650 from the west line of said Section 9.

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

ENTERED this 25th day of March 1983, as of March 21, 1983.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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