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 SMOKY CREEK FIELD, CHEYENNE COUNTY, COLORADO	) ) ) )	CAUSE NO.   222 ORDER NO.   222-4 AMENDED

                                                                REPORT OF THE COMMISSION

                                  This cause came on for hearing before the Commission on December 17, 1991, at 8:30 a.m., in Room 101, Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified applications of Mull Drilling Company, Inc. for an order allowing additional wells to be drilled at exception locations in the NW1/4 NE1/4, in the NW1/4 SE1/4 and in the SE1/4 SE1/4 in Section 28, Township 13 South, Range 44 West, 6th P.M., Cheyenne County, for the production of oil and associated hydrocarbons from the Mississippian Formation underlying the 80-acre drilling and spacing units consisting of the W1/2 NE1/4, the W1/2 SE1/4 and the E1/2 SE1/4 of said Section 28.

FINDINGS

                                  The Commission finds as follows:

                                  1.  Mull Drilling Company, 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 October 21, 1969 the Commission authorized Order No. 222‑1 to be issued which established 80‑acre drilling and spacing units for the production of oil and associated hydrocarbons underlying the Smoky Creek Field in Cheyenne County, Colorado.  The units shall consist of the E1/2 and W1/2 or the N1/2 and S1/2 of a governmental quarter section, with the permitted well to be located in the center of the NE1/4 and SW1/4 of each quarter section, with a tolerance of 150 feet in any direction to avoid surface obstructions and hazards.

                                  5.  Wells have been drilled and are producing in the SW1/4 NE1/4, in the SW1/4 SE1/4 and in the NE1/4 SE1/4 in Section 28, Township 13 South, Range 44 West, 6th P.M.   Evidence presented at the administrative hearing indicated that two wells will more efficiently and economically drain an 80‑acre drilling and spacing unit, resulting in the recovery of additional oil and associated hydrocarbons from the Mississippian Formation.

                                  7.  That in order to protect correlative rights and prevent waste, additional wells should be allowed to be drilled at an exception locations in the center of the NW1/4 NE1/4, in the center of the NW1/4 SE1/4 and in the center of the SE1/4 SE1/4 in Section 28, Township 13 South, Range 44 West, 6th P.M., for the 80‑acre drilling and spacing units consisting of the W1/2 NE1/4, the W1/2 SE1/4 and the E1/2 SE1/4 of said Section 28.

                                  8.  Based on the facts stated in the verified application and having been heard by the Hearing Officer who recommended approval of the application, and having received no protests, the Commission should approve the request and amend Order No. 222-1 to allow the above-described wells to be completed at exception locations for production from the Mississippian Formation, and subject to the approval of the Commission.

O R D E R

                                  NOW, THEREFORE IT IS ORDERED, that additional wells are hereby approved to be drilled at exception locations in the center of the NW1/4 NE1/4, in the center of the NW1/4 SE1/4 and in the center of the SE1/4 SE1/4 in Section 28, Township 13 South, Range 44 West, 6th P.M., for production from the Mississippian Formation.

                                  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 ,

1992 as of December 18, 1991.

                                  Amended this _______________ day of ____________________, 1992 as of February 28, 1992.

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                              OF THE STATE OF COLORADO

                                                                        By

                                                                             Patricia C. Beaver, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado  80203

February 7, 1992

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