IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE MCCLAVE FIELD, Cause No. 105 Order No. 105-26

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 18, 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 TXO Production Corporation for an order to allow an additional well to be drilled on certain 640-acre drilling and spacing units in the McClave Field.

FINDINGS

The Commission finds as follows:

1. TXO Production 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 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 one well will not adequately and efficiently drain the gas from the McClave Sand underlying the following described drilling and spacing units; therefore, an additional well should be allowed to be drilled on said units at locations as follows:

Well Location Unit

BENT COUNTY

Township 21 South, Range 48 West, 6th P.M.

1. 3960' FSL - 1320' FEL Section 2Lots 1 - 10 Section 2 2. 3960' FSL - 1320' FEL Section 3Lots 1 - 10 Section 3 3. 1320' FSL - 1320' FEL Section 2S/2 Sec. 1, S/2 Sec. 2 4. 1320' FSL - 1320' FEL Section 3S/2 Sec. 3, S/2 Sec. 4 KIOWA COUNTY

Township 20 South, Range 48 West, 6th P.M.

1. 1940' FNL - 1940' FEL Section 29 Section 29

ORDER

NOW, THEREFORE, IT IS ORDERED, that an additional well is hereby authorized to be drilled on each of the drilling and spacing units as established by the orders in Cause No. 105 for production of gas from the McClave Sand at locations described as follows:

Unit Well Location BENT COUNTY

Township 21 South, Range 48 West, 6th P.M.

1. 3960' FSL - 1320' FEL Section 2Lots 1 - 10 Section 2 2. 3960' FSL - 1320' FEL Section 3Lots 1 - 10 Section 3 3. 1320' FSL - 1320' FEL Section 2S/2 Sec. 1, S/2 Sec. 2 4. 1320' FSL - 1320' FEL Section 3S/2 Sec. 3, S/2 Sec. 4

KIOWA COUNTY

Township 20 South, Range 48 West, 6th P.M.

1. 1940' FNL - 1940' FEL Section 29 Section 29

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

ENTERED this 10th day of August 1983, as of July 18,1983.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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