REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 21, 1969, at 10 A.M., in Conference Room 260, Columbine Building, 1845 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application for a permit to drill a well located in the E/2 of Section 34, Township 18 South, Range 45 West, and that the N/2 SE/4 of Section 34 be designated the 80-acre drilling unit for the well.

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 February 18, 1969, the Commission issued its Order No. 2 13-1 which, among other things, established 80-acre drilling and spacing units for production of oil from the Mississippian formation in the Cavalry Field and it was further ordered that any application for a permit to drill a well located in the E/2 of Section 34, Township 18 South, Range 45 West, 6th P.M., be submitted for a hearing before the Commission.

4. That the Brandon townsite with its many separate interest owners is in effect one lease and should not be divided for the purpose of spacing and that said town-site occupies most of the N/2 SE/4 of said Section 34.

5. That because of the Brandon townsite, the drilling units as set forth in Order No. 213-1 should be realigned for the SE/4 of Section 34, so that one unit would consist of the N/2 SE/4, and the other unit would consist of the S/2 SE/4 and that the geo-logical testimony presented at the hearing did not prove that such realignment will abuse the correlative rights of any interested party; and that in order to avoid surface hazards in the townsite, the well for the N/2 SE/4 should be located approximately 520 feet from the east line, and 1757 feet from the south line of said Section 34.

ORDER

NOW, THEREFORE, IT IS ORDERED that the application for a permit to drill a well located approximately 520 feet from the east line and 1757 feet from the south line of Section 34, Township 18 South, Range 45 West, Cavalry Field, Kiowa County, Colorado is hereby approved and that the N/2 SE/4 of said Section 34 is hereby designated the 80-acre drilling unit for the well.

(over)

IT IS FURTHER ORDERED that the S/2 NE/4 of said Section 34 is hereby designated as an 80-acre drilling unit for the production of oil from the Mississippian formation of the Cavalry Field.

ORDERED this 21st day of October 1969.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

(#213 -2)