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 IGNACIO-BLANCO FIELD,                                  ORDER NO. 112‑103 LA PLATA COUNTY, COLORADO	) ) ) )	CAUSE NO.   112 ORDER NO.   112-103

REPORT OF THE COMMISSION

                                  This cause came on for hearing before the Commission on September 21, 1992, at 8:30 a.m., in Room 101, Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Billy Ray and Louise Clary for an order requesting the Weaselskin No. 1 Well located in the NE1/4 of Section 19, Township 33 North, Range 9 West, N.M.P.M. to be shut-in until an offset well could be drilled for the production of gas and associated hydrocarbons from the Fruitland coal seams.

FINDINGS

                                  The Commission finds as follows:

                                  1.  Billy Ray and Louise Clary as applicant herein, is an interested party in the subject matter of the above‑referenced matter.

                                  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 June 17, 1988, the Commission issued Order No. 112‑60 which established 320‑acre drilling and spacing units for the production of methane gas from the Fruitland coal seams underlying certain lands in the Ignacio‑Blanco Field, with the units to consist of the E1/2 and W1/2 or the N1/2 and S1/2 of a governmental section with the permitted well to be located in the NW1/4 and SE1/4 of each unit.  On August 15, 1988, the Commission issued Order No. 112-61 which among other things, established additional reporting requirements to the rules established in Order No. 112-60.

                                  5.  Amoco Production Company has drilled the Weaselskin No. 1 Well in the NE1/4 of Section 19, Township 33 North, Range 9 West, N.M.P.M., for production from the Fruitland coal seams, for the 320-acre drilling and spacing unit consisting the E1/2 of Section 19.

                                  6.  Evidence presented at the hearing indicates that production restrictions were placed on the Weaselskin No. 1 Well by Commission Order No. 112-72 issued August 21, 1989, and that the well has not exceeded the production limit, based on annual reports presented to the Commission.

                                  7.  Based on the facts stated in the verified application and the testimony presented at the time of hearing by the applicant and the protestant, the Commission should deny the request to shut-in the Weaselskin No. 1 Well and require an offset well be drilled for the production of gas and associated hydrocarbons from the Fruitland coal seams.

O R D E R

                                  NOW, THEREFORE IT IS ORDERED, that an order allowing the Weaselskin No. 1 Well located in the NE1/4 of Section 19, Township 33 North, Range 9 West, N.M.P.M. to be shut-in and requiring an offset well be drilled for the production from the Fruitland coal seams is hereby denied.

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

                                  IT IS FURTHER ORDERED, that the Commission expressly reserves its rights, after notice and hearing to alter, amend or repeal any and/or all of the above orders.

                                  Entered this day of , 1992 as of September 21, 1992.

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                              OF THE STATE OF COLORADO

                                                                        By

                                                                             Patricia C. Beaver, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado  80203

October 20, 1992