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 PEORIA FIELD, ARAPAHOE COUNTY, COLORADO	) ) ) )	CAUSE NO. 226 ORDER NO. 226-10

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 20, 1971, at 9 a.m., in Room 132, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Sun Oil Company for an order granting two exceptions to the spacing pattern established by Order Nos. 226-2, 226-6 and 226-8 for the Peoria Field, Arapahoe 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 tile parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

3.      That on July 21, 1970, the Commission issued its Order No. 226-2 which, among other things, established 80-acre drilling units for the production of oil from the "J" Sand with the permitted well for each drilling unit to be located in the center of the NE¼ and SW¼ of each quarter section, with a tolerance of 200 feet in any direction.  The spaced area was further extended by Order Nos. 226-6 and 226-8.

4.      That testimony presented at the hearing indicates that an exception to the spacing pattern established in the Peoria Field should be granted for a well to be drilled 200 feet West of the center of the NW¼ SE¼, Section 4, Township 5 South, Range 60 West, 6th P.M., and that it be the permitted well for the drilling unit comprising the W½ SE¼ of said Section 4; and for a well to be drilled 200 feet West of the center of the SE¼ NW¼, Section 20, Township 4 South, Range 60 West, 6th P.M., and that it be the permitted well for the drilling unit comprising the E½ NW¼ of said Section 20.

5.      That in order to offset any advantage said wells may have over other producers by reason of the drilling of the wells as exceptions, and to prevent the production from a drilling unit of more than its just and equitable share of the oil and gas from the pool, a temporary restriction of 50% of the maximum daily allowable of a well as established by Order No. 226-9 should be placed on the production from said wells until such time as sufficient information is available to establish a permanent allowable.

6.      That the establishment of said temporary restriction should be without prejudice to the rights of any party to request a permanent allowable when sufficient information is available.

ORDER

NOW, THEREFORE, IT IS ORDERED that an exception is hereby granted for a well to be drilled 200 feet West of the center of the NW¼ SE¼, Section 4, Township 5 South, Range 60 West, 6th P.M., and that it be the permitted well for the drilling unit comprising the W½ SE¼ of said Section 4; and for a well to be drilled 200 feet West of the center of the SE¼ NW¼, Section 20, Township 4 South, Range 60 West, 6th P.M., and that it be the permitted well for the drilling unit comprising the E½ NW¼ of said Section 20; however, if wells capable of producing oil and gas from the "J" Sand are completed at the excepted locations, a temporary restriction of 50% of the maximum daily allowable of a well as established by Order No. 226-9 shall be placed on the production from each said well.

IT IS FURTHER ORDERED that such temporary restriction shall remain until such time as sufficient information is available to establish a permanent allowable and shall be without prejudice to the rights of any party to request such a permanent, allowable.

IT IS FURTHER ORDERED that the provisions contained in the above orders shall become effective forthwith.

IT IS FURTHER ORDERED that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal the above orders.

ORDERED this 20th day of July, 1971.

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