BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION ANDAND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE IGNACIO-BLANCO FIELD, LA PLATA COUNTY, COLORADO	) ) ) )	CAUSE NO.   112 ORDER NO.   112-127

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission on January 6, 1997 at 8:30 a.m. in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing, as required by law, on the application of Markwest Resources, Inc., for an order to allow the Tiffany No. 4-12 Well located 1,140 feet FSL and 1,170 feet FEL in the SE¼ SE¼ of Section 12, Township 32 North, Range 7 West, to be recompleted at an exception location for the drilling and spacing unit consisting of the S½ of Section 12 for production from the Fruitland Coal seams.

FINDINGS

                        The Commission finds as follows:

                        1.  Markwest Resources, Inc., 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 June 15, 1988, the Commission issued Order No. 112‑60 which established 320‑acre drilling and spacing units for the production of gas and associated hydrocarbons from the Fruitland Coal seams, underlying certain lands in the Ignacio‑Blanco Field including Section 12, Township 32 North, Range 7 West, N.M.P.M., with the units to consist of a governmental half section and the permitted well to be located in the NE¼ and the SW¼ of each section, no closer than 990 feet from the boundaries of the quarter section, nor closer than 130 feet to any interior quarter section line.  Order No. 112-61 was subsequently adopted amending Order No. 112-60 to establish additional field rules for the Fruitland Coal seams.

                        5.  Markwest has purchased the Tiffany No. 4-12 Well for the purpose of recompleting the well to the Fruitland Coal seams.  The Tiffany No. 4-12 Well is located in the SE/4 SE/4 of Section 12 and is currently producing from the Mesaverde Formation.

                        6.  Testimony presented at the administrative hearing indicated that because Section 12 is currently spaced by Order No. 112-85, wells must be located 990 feet from the section line and 130 feet from any interior quarter section line.  Wells shall be located in the NE¼ or the SW¼ of the section.  The Tiffany No. 4-12 Well is located in the SE¼ of Section 12 and is therefore an exception to this order.

                        7.  Based on the facts stated in the application, having received no protests and having been heard by the Hearing Officer on January 2, 1997, and recommended for approval, the Commission should approve the application.

ORDER

                        NOW, THEREFORE, IT IS ORDERED that the Tiffany No. 4-12 Well located 1,140 feet FSL and 1,170 feet FEL in the SE¼ SE¼ of Section 12, Township 32 North, Range 7 West, N.M.P.M., is hereby approved to be recompleted at an exception location for the 320-acre drilling and spacing unit consisting of the S½ of Section 12 for production from the Fruitland Coal seam.

                        IT IS FURTHER ORDERED, that should a commercial well be completed at the location set forth above, the Commission shall, upon application of any interested person, take such action as will offset any advantage which the person securing the exception may have over other procedures by reason of the drilling of the well as an exception location.

                        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 right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.

                        ENTERED this  day of January, 1997, as of January 6, 1997.

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                           OF THE STATE OF COLORADO

                                                                        By

                                                                                     Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

July 3, 2018