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, LA PLATA COUNTY, COLORADO	) ) ) )	CAUSE NO. 112 ORDER NO. 112-11       (Emergency)

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission On September 11, 1961, the Delhi-Taylor Oil Corporation applied to the Commission for an emergency order permitting it to drill and complete two wells for the production of gas in the Mesaverde formation underlying drilling and spacing units designated as the E½ of Section 7, Township 32 North, Range 6 West, and the S½ of Section 5, Township 32 North, Range 6 West, N.M.P.M., La Plata County, Colorado; and further requesting approval of a Notice of Intention to Drill said wells, although all interests of owners in such units were not consolidated by a pooling agreement or otherwise, as required by Rule 2a. of the Commission's Order No. 112-6.

FINDINGS

The Commission finds as follows:

1.      That the Commission has jurisdiction to promulgate the hereinafter prescribed order.

2.      That an emergency exists requiring immediate action by the Commission, and that an emergency order should be issued in accordance with the provisions of 100-6-7(3) CRS 1953, as amended.

3.      That Rule 2a. of Order No. 112-6 provides that no well shall be drilled or completed, and no notice of intention shall be approved by the Commission fox` any 320-acre drilling and spacing unit for the production of gas from the Mesaverde formation underlying the Ignacio-Blanco Field, as described in Order No. 112-6, unless all of the interests of owners within such units are consolidated by pooling agreement or otherwise.

4.      That the E½ of Section 7 and the S½ of Section 5 in Township 32 North, Range 6 West, N.M.P.M., La Plata County, Colorado, lie within the Ignacio-Blanco Field, as defined in Order No. 112- 6.

5.      That the Delhi-Taylor Oil Corporation is the owner of all operating rights in 230 acres more or less out of the 320-acre drilling and spacing unit embracing the E½ of Section 7, Township 32 North, Range 6 West, N.M.P.M., La Plata County, Colorado, and that the requested location of the well for said drilling and spacing unit is situated on the 230 acres of land referred to above and controlled by Applicant.

6.      That the Delhi-Taylor Oil Corporation is the owner of 13/16 of the operating rights in all of the 320 acres in the 320-acre drilling and spacing unit embracing the S½ of Section 5, Township 32 North, Range 6 West, N.M.P.M., La Plata County, Colorado.

7.      That equipment is presently available to drill said wells; and that no waste or violation of correlative rights will occur by virtue of permitting said wells to be drilled immediately, provided that the wells are not produced and production marketed until all interests in said drilling and spacing units have been pooled either voluntarily or by order of the Commission.

ORDER

NOW, THEREFORE, IT IS ORDERED that the Delhi-Taylor Oil Corporation is hereby relieved from the provisions of Rule 2a. of Order No. 112-6, insofar as they pertain to the drilling and spacing units defined as the E½ of Section 7 and the S½ of Section 5, Township 32 North, Range 6 West, N.M.P.M., La Plata County, Colorado.

IT IS FURTHER ORDERED, that no gas shall be produced or marketed from any well or wells drilled and completed within the above described drilling and spacing units until all interests in such drilling and spacing units have been pooled voluntarily or by order of the Commission as a result of an application by any owner of interest.

IT IS FURTHER ORDERED, that this order shall be effective fifteen (15) days, commencing September 13, 1961.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  D.V. Rogers, Secretary