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 HIAWATHA WEST FIELD, MOFFAT COUNTY, COLORADO	) ) ) )	CAUSE NO.   133 ORDER NO.   133-10

REPORT OF THE COMMISSION

                        This cause came for hearing before the Commission on January 18, 1996, 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 Texaco Exploration and Production, Inc., for an order allowing an additional well to be drilled as a second well in Lot 7 of Section 13, Township 12 North, Range 101 West, 6th P.M., for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis, and Mesaverde Formations underlying the 320-acre drilling and spacing unit consisting of Lots 1, 2, 7 and 8 (SE¼) of Section 13 and the NE¼ of Section 24, both in Township 12 North, Range 101 West, 6th P.M.

FINDINGS

                        The Commission finds as follows:

                        1.  Texaco Exploration and Production, Inc., 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 23, 1959 the Commission authorized Order No. 133‑1 to be issued which established 320‑acre drilling and spacing units for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis, and Mesaverde Formations underlying lands in the Hiawatha West Field in Moffat County, Colorado.  The units shall consist of the E½ and W½ or the N½ and S½ of a governmental quarter section, with the permitted well to be located no closer than 600 feet from the boundaries of the unit.

                        5.  Testimony presented at the administrative hearing indicated that the productive zones are not continuous across the area, that the average drainage radius is calculated at 109 acres, and the a second well in the drilling and spacing unit is necessary to produce additional reserves.

                        6.  Based on the facts stated in the application and having been heard by the Hearing Officer who recommends approval of the application, and having received no protests, the Commission should approve the request and amend Order No. 133-1 to allow an additional well to be drilled as a second well in the 320-acre drilling and spacing unit, for production from the Wasatch, Fort Union-Lance-Lewis, and Mesaverde Formations.

O R D E R

                        NOW, THEREFORE IT IS ORDERED, that an additional well is hereby granted to be drilled in Lot 7 of Section 13, Township 12 North, Range 101 West, 6th P.M., for production from the Wasatch, Fort Union-Lance-Lewis, and Mesaverde Formations, as second well for the 320‑acre drilling and spacing unit consisting of Lots 1, 2, 7 and 8 (SE¼) of Section 13 and the NE¼ of Section 24, both in Township 12 North, Range 101 West, 6th P.M.

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

                        Entered this  day of , 1996 as of January 18, 1996.

                                                                        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

February 2, 1996