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 VILAS FIELD, BACA COUNTY, COLORADO	) ) ) )	CAUSE NO. 197 ORDER NO. 197-5

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 18, 1977 at 9 a.m., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Mutual Oil of America, Inc., for an order granting an exception to the spacing pattern as established by Order No. 197-1 for the Vilas Field, Baca County, Colorado.

FINDINGS

The Commission finds as follows:

1.      That due notice of the time, 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 June 14, 1966, the Commission issued its Order No. 197-1 which, among other things, established 640-acre drilling and spacing units, for the production of gas and associated hydrocarbons from the Topeka Limestone formation underlying the Vilas Field, Baca County, Colorado, with the permitted well located within a radius of 1200 Feet of the center of the drilling unit.  Subsequent orders added and deleted lands from the spaced area.

4.      That evidence presented at the hearing indicates that a well drilled at the permitted location would unduly interfere with agricultural operations due to the installation of a sprinkler system; therefore, an exception should be granted for a well to be drilled in the center of the NE¼NE¼ (660 feet from the north line and 660 feet from the east line) Section 27, Township 31 South, Range 44 West, 6th P.M.

5.      That if a commercial well is drilled on the location as set forth in Finding 4 herein instead of on a location as provided for in Order No. 197-1, the Commission should, at the request of interested persons, take such action as will offset any advantage which the person securing the exception may have over other producers by reason of the drilling of the well as an exception.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception is hereby granted for a well to be drilled in the center of the NE¼NE¼, 660 feet from the north line and 660 feet from the east line Section 27, Township 31 South, Range 44 West, 6th P.M., Vilas Field, Baca County, Colorado, and that it be the permitted well for the unit upon which it is located; however, if a commercial well is drilled on the location as set forth above, instead of on a location as provided for in Order No. 197-1, the Commission shall, at the request of interested persons, take such action as will offset any advantage which the person securing the exception may have over other producers by reason of the drilling of the well as an exception.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	Frank J. Piro, Secretary