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 OPAL FIELD, MORGAN COUNTY, COLORADO	) ) ) )	CAUSE NO. 130 ORDER NO. 130-2

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 17, 1962, at 10 a.m., in Room 132, State Services Building, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Mc Knab [sic] Production Company, Inc. for an order amending Rule 2 of Order No. 130-1, as it pertains to the location of the permitted gas well for Unit #1, to allow the drilling of a well in the E½SW¼ NW¼ [sic] of Section 15, Township 4 North, Range 58 West of the 6th P.M., Morgan County, Colorado, and that such well, if it is completed as a commercial producer of gas, be the permitted gas well for Unit #1.

FINDINGS

The Commission finds as follows:

1.      That due notice of the time, and place and purpose of the hearing has been given in all respects as required by law.

2.      That 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.

3.      That on December 10, 1959, the Commission issued its Order No. 130-1, establishing three drilling units for the production of gas from the "J" sand formation of the Opal Field; and that the permitted gas well for Unit #1 was the McKnab-Onken No. 2 well located in the center of the SW¼NW¼ of Section 15, Township 4 North, Range 58 West.

4,      That said McKnab-Onken No. 2 well proved to be a non-commercial well and was therefore abandoned and plugged on November 31, 1961.

5.      That Applicant is of the opinion, based on further geological and engineering studies, that a well drilled at an adjacent location would produce gas in commercial quantities, and that a well should be drilled in the E½SW¼ NW¼ [sic] of said Section 15, Township 4 North, Range 58 West, Morgan County, Colorado, which well, if completed as a commercial producer of gas, should be the permitted gas well for said Unit #1.

6.      That Rule 2 of Order No. 130-1 should be amended only as it pertains to said Unit #1, to authorize the drilling of a well to be located in the E½SW¼ NW¼ [sic] of Section 15, Township 4 North, Range 58 West, Morgan County, Colorado, as the permitted well for said Unit #1 if it is completed as a commercial producer of gas.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Rule 2 of Order No. 130-1 is hereby amended only as it pertains to the location of the permitted well for Unit #1, as follows:

Unit #1 - NW¼ and N½SW¼ of Section 15, Township 4 North, Range 58 West; and the permitted gas well for such unit shall be located in the E½SW¼ NW¼ [sic] of said Section 15.

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

ORDERED this 17th day of April 1962.

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