REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on August 21, 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 Martin Oil Service, Inc., for an order to allow the drilling of an additional well at a location in the approximate center of the NW/4 SW/4 Section 24, Township 2 North, Range 68 West, 6th P.M., with a tolerance of 150 feet, for the production of oil and associated hydrocarbons from the Shannon formation.

FINDINGS

The Commission finds as follows:

1. Martin Oil Service, 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. That by Order No. 250-11 issued on February 16, 1976, the Commis-sion established 80-acre spacing and drilling units for the production of oil and gas from the Sussex formation. Subsequent orders in Cause No. 250 allowed the drilling of additional wells on each 80-acre unit for production from the Sussex; however, Order No. 250-14, issued May 16, 1977, which allowed such additional drilling in the S/2 Sec-tion 24, Township 2 North, Range 68 West, 6th P.M., did not include a location in the NW/4 SW/4 of said Section 24.

5. That evidence presented at the hearing indicates that one well will not adequately drain the oil underlying the 80-acre drilling unit and that an additional well is necessary and should be allowed to be drilled at a location in the approximate center of the NW/4 SW/4 Section 24, Township 2 North, Range 68 West, 6th P.M., with a tolerance of 150 feet, for the production of oil and associated hydrocarbons from the Shannon formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an additional well is hereby authorized to be drilled for the production of oil and associated hydrocarbons from the Shannon formation at a location in the approximate center of the NW/4 SW/4 Section 24, Township 2 North, Range 68 West, 6th P.M., with a tolerance of 150 feet.

ORDERED this 21st day of August, 1978.

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