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 WATTENBERG GAS SPACED AREA AND THE WATTENBERG FIELD, WELD COUNTY, COLORADO	) ) ) )	CAUSE NO.  232 and 1 ORDER NO. 232-115 and 1-53  (1-188)

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission at 8:30 a.m. on September 19, 1994 in Room 318, State Centennial Building, 1313 Sherman Street, Denver, Colorado on the verified application of HS Resources, Inc., for an order to allow the HSR Snapper No. 6-34 Well to be recompleted at an exception location for production from the "J" Sand Formation, to authorize the downhole commingling of production from the "J" Sand Formation with production from the "D" Sand Formation, and to approve an allocation method for the production from both formations.

FINDINGS

                        The Commission finds as follows:

                        1.  HS Resources, Inc., 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.  In Cause No. 232, the Commission established 320‑acre drilling and spacing units for the production of gas from the "J" Sand Formation in the Wattenberg Field with one well allowed for each unit to be located in the NE1/4 and SW1/4 and no closer than 990 feet to the boundaries of the quarter section.  On August 21, 1979, the Commission issued Order No. 232‑20 which allowed a second well to be drilled on each 320‑acre unit, including Section 34, Township 1 South, Range 65 West, 6th P.M.

                        5.  Rule 316. of the Rules and Regulations of the Colorado Oil and Gas Conservation Commission requires that wells drilled to a depth of 2500 feet or deeper be located no closer than 600 feet from any lease line, and not less than 1,200 feet from any other producible or drilling oil or gas well drilling to the same common source of supply, unless authorized by an order of the Commission or unless waivers are obtained from those parties who will be affected by the exception location.  The "D" Sand Formation falls under the provisions of Rule 316.

                        6.  Rule 320 of the Rules and Regulations of the Colorado Oil and Gas Conservation Commission requires that an application be submitted for approval for the multiple zone completion or commingling in one well bore.

                        7.  The HSR Snapper No. 6-34 Well has been drilled and completed 1980 feet FNL and 1980 feet FWL in the SE1/4 NW1/4 of Section 34, Township 1 South, Range 65 West, 6th P.M.  The applicant wishes to utilize the existing wellbore to recomplete the well for production from the "J" Sand Formation for the 320-acre drilling and spacing unit consisting of the W1/2, after which the well will be recompleted for production from the "D" Sand Formation for the 160-acre drilling and spacing unit consisting of the NW1/4.  Production from both formations will then be commingled and allocated as described above.

                        8.  Based on the facts stated in the application, having received no protests, and having been heard by the Hearing Officers on September 15, 1994, who recommended approval, the Commission should enter an order approving the application.

ORDER

                        NOW, THEREFORE, IT IS ORDERED that, the HSR Snapper No. 6-34 Well located 1980 feet FNL and 1980 feet FWL in the SE1/4 NW1/4 of Section 34, Township 1 South, Range 65 West, 6th P.M. is hereby approved allowing the well to be recompleted at an exception location for production from the "J" Sand Formation, authorizing the downhole commingling of production from the "J" Sand Formation with production from the "D" Sand Formation, and approving an allocation method for the "J" Sand Formation for the 320-acre drilling and spacing unit consisting of the W1/2 and for the "D" Sand Formation for the 160-acre drilling and spacing unit consisting of the SW1/4, both in said Section 34.

                        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 right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.

                        ENTERED this  day of , 1994, as of September 19, 1994.

                                                                        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

October 12, 1994