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 PAPOOSE CANYON FIELD, DOLORES COUNTY, COLORADO	) ) ) )	CAUSE NO. 231 ORDER NO. 231-3

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on December 20, 1982 at 9:00 a.m. in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of MCOR Oil & Gas Corporation, for an order granting an exception to the permitted well location as provided for by Order No. 231-2, and allow a well to be drilled 900 feet from the north line and 700 feet from the west line, Section 17, Township 39 North, Range 19 West, N.M.P.M., and that it be the permitted well for the unit consisting of the NW1/4 of said section, and to pool all interests in said unit for the development and operation of the production of oil from the Desert Creek formation underlying said unit.  That portion of the application concerning the pooling was not considered at the hearing.

FINDINGS

The Commission finds as follows:

1.      MCOR Oil & Gas Corporation, as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

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 January 19, 1971, the Commission issued Order No. 231-2, which established 160-acre drilling and spacing units for the production of oil from the oil zone in the Desert Creek formation underlying certain lands in the Papoose Canyon Field.  The units consist of a quarter section of land with the permitted well located no closer than 990 feet to the boundaries of the quarter section.  Exceptions to the permitted well location may be granted providing the owners of the contiguous and cornering units file a waiver or consent in writing with the Commission.

5.      Evidence presented at the hearing indicate that a well located in the permitted well location would encounter topographic hazards; therefore, an exception to the permitted well location as provided for in Order No. 231-2 should be granted and a well allowed to be drilled at a location 900 feet from the north line and 700 feet from the west line Section 17, Township 39 North, Range 19 West, N.M.P.M., Papoose Canyon Field, Dolores County, Colorado.  However, if a commercial well is completed at the location as set forth above, the Commission should, upon application of any interested person take such action as will offset any advantage which the person securing the exception may have over other producers by reason of drilling the well as an exception, including suitable provisions to prevent the production from the unit of more than its just and equitable share of oil from the reservoir.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception to the permitted well location as provided for in Order No. 231-2 for the Papoose Canyon Field, Dolores County, Colorado, is hereby granted for a well to be drilled at a location 900 feet from the north line and 700 feet from the west line Section 17, Township 39 North, Range 19 West, N.M.P.M., and that it shall be the permitted well for the unit consisting of the NW1/4 of said section.

IT IS FURTHER ORDERED, that if a commercial well is completed at the location as set forth above, the Commission shall, upon application of any interested person take such action as will offset any advantage which the person securing the exception may have over other producers by reason of drilling the well as an exception, including suitable provisions to prevent the production from the unit of more than its just and equitable share of oil from the reservoir.

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

ENTERED this 14th day of January 1983, as of December 20, 1982.

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