IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE SPINDLE FIELD, ADAMS AND WELD COUNTIES, COLORADO Cause No. 250 Order No. 250-18

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 19, 1978 at 9 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of J.R. Drilling and Exploration Company, for an order to amend Order No. 250-15 and rescind that part of the order concerning the restriction of the production from Well No. 2 Buffalo, located in the SE/4 NE/4 Section 13, Township 2 North, Range 68 West 6th P.M.

FINDINGS

The Commission finds as follows:

1. J.R. Drilling and Exploration Company, 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 16, 1978, the Commission issued its Order No. 250-15 which considered Well No. 2 Buffalo, located in the SE/4 NE/4 Section 13, Township 2 North, Range 68 West, 6th P.M., as an additional well on the 80-acre drilling and spacing unit consisting of the E/2 NE/4 of said Section 13. However, in order to offset any advantage said well may have over other producing wells, production from the well is restricted to fifty percent (50%) of the amount the well is capable of producing.

5. Evidence present at the hearing indicates that the restriction of produc-tion from said well should be rescinded, provided the well not be allowed to produce in any one month, in excess of its present capacity of 230 Mcf per day.

6. Such a change in the production restriction will not adversely affect the correlative rights or the offset owners.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order No. 250-15 is hereby amended and Well No. 2 Buffalo, located in the SE/4 NE/4 Section 13, Township 2 North, Range 68 West, 6th P.M., shall be allowed to produce gas from the Sussex and Shannon formations, at a rate, not exceed in any one month its present capacity of 230 Mcf per day; Overproduction shall be adjusted on a monthly basis and shall be made up during the month immediately following.

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 order.

(over)

ORDERED this 19th day of June, 1978.

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

2 (#250-18)