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.   222-5

REPORT OF THE COMMISSION

                                  This cause came on for hearing before the Commission on April 20, 1992, at 8:30 a.m., in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Mull Drilling Company, Inc. for an order allowing an additional well to be drilled in the SE1/4 SW1/4 of Section 21, 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 E1/2 SW1/4 of said Section 21.

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.  That the Champlin-Hanavan No. 3-21 Well has been drilled and is producing in the SW1/4 SW1/4 of Section 21, Township 13 South, Range 44 West, 6th P.M.  Evidence presented at the hearing indicated that a well drilled at the permitted location as set forth in Order No. 222‑1 may not recover oil and associated hydrocarbons from the Mississippian Formation.

                                  6.  That a protest was filed by Buttes Resources Company.

                                  7.  That in order to protect correlative rights and prevent waste, the UPRR Hanavan No. 1 Well should be allowed to be drilled in the center of the SE1/4 SW1/4 of Section 21, Township 13 South, Range 44 West, 6th P.M., for the 80‑acre drilling and spacing unit consisting of the E1/2 SW1/4 of said Section 21.

O R D E R

                                  NOW, THEREFORE IT IS ORDERED, an exception is hereby granted for the UPRR Hanavan No. 1 Well to be drilled in the center of the SE1/4 SW1/4 of Section 21, 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 April 20, 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

May 12, 1992