204-4

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 BOXER FIELD, MORGAN COUNTY, COLORADO

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CAUSE NO. 204

ORDER NO. 204-4

REPORT OF THE COMMISSION

On the application of Cardinal Petroleum Company, a hearing was held on May 16, 1967, for an exception to the general rules of this Commission as to the location of a well in the Boxer Field. Additional testimony was taken at the continued hearing on June 20, 1967, to establish the rate of production for the No. 4X-Funk Well drilled as the exception.

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 the Commission issued its Order No, 204-1 which authorized a well to be drilled as an exception to Rule 316 and located in the center of the NW¼SW¼SE¼ of Section 21, Township 2 North, Range 58 West, 6th P.M., Morgan County, Colorado and known as the No. 4-X Funk Well.

4. That Order No. 204-2 was issued to establish a temporary allowable for said No. 4-X Funk Well until field rules could be established for the "D" Sand of the Boxer Field, and a permanent allowable determined.

5. That Order No. 204-3, among other things, establishes a maximum daily production of 150 barrels of oil or 300, 000 [sic] cubic feet of gas from said "D" Sand.

6. That in order to offset the advantage the No. 4-X Funk Well has by being drilled 330 feet from the lease line, and to protect the correlative rights of all owners involved, a reasonable limitation should be placed on the amount of production said well can produce.

7. That for said No. 4-X Funk Well, a limitation of 50% of the maximum daily allowable of a well in the Boxer Field is reasonable and will afford the operators an opportunity to produce their just and equitable share of the oil and gas underlying the tract on which said well is located.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the No. 4-X Funk Well located in the center of the NW¼SW¼SE¼ of Section 21, Township 2 North, Range 58 West, 6th P.M., Morgan County, Colorado, shall be allowed to produce at a rate equal to fifty percent (50%) of the maximum allowed production of a well producing from the "D" Sand formation of the Boxer Field, as set forth by the orders of this Commission governing production from said field.

IT IS FURTHER ORDERED, that the provisions of Order No, 204-3, as they pertain to testing for gas-oil ratios and reporting of individual well production, shall apply to said No. 4-X Funk Well.

IT IS FURTHER ORDERED, that this order shall become effective July 7, 1967, ORDERED this 7th day of July 1967.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

D.V. Rogers, Acting Secretary