232-9

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, ADAMS AND WELD COUNTIES, COLORADO

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CAUSE NO. 232

ORDER NO. 232-9

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on August 19, 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 Amoco Production Company for an order granting an exception to the spacing pattern as established by the orders in Cause No. 232 for the Wattenberg Gas Spaced Area.

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 November 17, 1970 the Commission issued its Order No. 232-1 which established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand, said units consisting of the E½ and W½ or the N½ and S½ of each section, with the permitted well located in the SW¼ and the NE¼ of each section and no closer than 990 feet from the boundaries of the quarter section. Subsequent orders extended the limits of the spaced area and provided that exceptions to the permitted well locations for various topographical or surface hazard reasons may be granted by administrative approval, provided owners of the contiguous or cornering units file with the Director a waiver or consent in writing, agreeing to such exceptions.

4. That since there is a circular sprinkler system located in the NE¼ of Section 5, Township 1 North, Range 65 West, 6th P.M., applicant requested administrative approval to drill a well beyond the irrigation sweep of the sprinkler, at a location 2490 feet from the east line and 2900 feet from the north line of said Section 5; however, all required waivers by offset owners were not received for administrative approval of the requested location.

5. That due to the presence of the circular sprinkler system in the NE¼ of said Section 5, the requirement to drill the well at the location authorized by the orders in Cause No. 232 would be unreasonable; therefore, the requested location, as described in Finding 3 herein, should be granted as an exception.

6. That if the well, drilled as an exception, is a commercial gas well in the "J" Sand, the Commission shall, upon completion and testing of said well, 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, and shall make suit-able provisions to prevent the production from the drilling unit of more than its just and equitable share of the gas in the pool.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception is hereby granted for a well to be drilled at a location 2490 feet from the east line and 2400 feet from the north line of Section 5, Township 1 North, Range 65 West, and that it be the permitted well for the designated unit consisting of the N½ of said Section 5; however, if a commercial well is drilled on the location set forth above, instead of a location as provided for by the orders in Cause No. 232, the Commission shall, upon completion and testing of said well, 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, and shall make suitable provisions to prevent the production from the drilling unit of more than its just and equitable share of the gas in the pool.

ORDERED this 19th day or August, 1975.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Frank J. Piro, Secretary