IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE IRONDALE FIELD, ADAMS COUNTY, COLORADO Cause No. 251 Order No. 251-10

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 15, 1981 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 Ambra Oil and Gas Company for an order granting an exception to the, spacing pattern established by Order No. 251-1 for a well to be drilled in the SW/4NW/4 Section 24, Township 2 South, Range 62 West, 6th P.M., and that it be the permitted well for the drilling and spacing unit upon which it is located.

FINDINGS

The Commission finds as follows:

1. Ambra Oil and Gas 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 March 21, 1972, the Commission issued its Order No. 251-1 which, among other things, established 80-acre drilling and spacing units for the production of oil from the "D" and "J" Sands underlying the Irondale Field, with the permitted well for each unit to be located in the center of the NW/4 and the SE/4 of each quarter section, with a tolerance of 200 feet in any direction to avoid surface hazards or obstructions.

5. Applicant drilled a well in the permitted location in the NW/4-NW/4 of section 24, Township 2 South, Range 62 West, 6th P.M., which was plugged and abandoned as a dry hole.

6. That evidence presented at the hearing indicates that an exception to the spacing pattern as established by Order No. 251-1 in the Irondale Field should be granted for a well to be drilled in the center of the SW/4 NW/4 Section 24, Township 2 South, Range 62 West, 6th P.M., with a tolerance as provided for in Order No. 251-1, and that it be the permitted well for the drilling unit upon which it is located; however, if a commercial well is completed at the location 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 the drilling of the well as an exception, including suitable, provisions to prevent the production from the drilling unit of more than its just and equitable share of the oil and gas in the pool.

ORDER

NOW, THEREFORE, IT [S ORDERED, an exception is hereby granted for a well to be drilled in the center of the SW/4NW/4 Section 24, Township 2 South, Range 62 West, 6th P.M., Irondale Field, Weld County, Colorado, with a tolerance as provided for in Order No. 251-1, and that said well shall be the permitted well for the drilling unit upon which it is located; however, if a commercial well is completed at the location set forth above, the Commission shall, upon application of any interested person, take

(over) 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.

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

ENTERED this 4th day of July 1981, as of June 15, 1981.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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