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. 226-19

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 18, 1975 at 9 a.m., in Room 532, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Thomas G. Vessels, for an order granting an exception to Rule 318 of the Rules and Regulations of the Commission, for a well to be located 330 feet from the north line and 330 feet from the east line of Section 22, Township 4 South, Range 60 West, 6th P.M., 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 the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

3.      That on May 19, 1970 the Commission issued its Order No. 226-1 for the Peoria Field which, among other things, established 320-acre drilling and spacing units for the production of gas from the "J" Sand underlying certain lands in Arapahoe County, Colorado.  On November 17, 1970 the Commission issued its Order No. 233-1 for the Peoria North Field which established 80-acre drilling and spacing units for the production of oil from the "J" Sand underlying certain lands in Arapahoe County, Colorado.

4.      That the proposed location of the well is within the spaced area for production of gas from the "J" Sand as established by Order No. 226-1 and outside the boundaries of the spaced area for production of oil from the "J" Sand as established by Order No. 233-1; therefore, the location should be considered an exception to Rule 318 of the Rules and Regulations of the Commission.

5.      That evidence presented at the hearing indicates that a well drilled for the production of oil from the "J" Sand at a location in accordance with Rule 318 of the Rules and Regulations of the Commission will result in a dry hole; therefore an exception should be granted for a well to be drilled no closer than 330 feet from the north line and 330 feet from the east line of Section 22, Township 4 South, Range 60 West, 6th P.M.

6.      That if a commercial gas well is completed in the "J" Sand at the location set forth above, no production should be allowed until a further hearing is held before the Commission.  However, if the well is completed as a commercial oil well in the "J" Sand, the Commission should, at the request of interested persons, take such action as will offset any advantage which the person securing the exception may have over other producers by reason of the drilling of the well as an exception.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception is hereby granted for a well to be drilled at a location no closer than 330 feet from the north line and no closer than 330 feet from the east line of Section 22, Township 4 South, Range 60 West, 6th P.M., Arapahoe County, Colorado

IT IS FURTHER ORDERED, that if a commercial gas well in the "J" Sand is completed at the location as set forth above, no production shall be allowed until a further hearing is held before the Commission.  If the well is completed as a commercial oil well in the "J" Sand, the Commission shall, at the request of interested persons, take such action as will offset any advantage which the person securing the exception may have over other producers by reason of the drilling the well as an exception.

ORDERED this 18th day of November, 1975.

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