REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 16, 1972, at 9 A.M., in Room 132, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Edward Mike Davis, which was amended at the time of the hearing, for an order granting an exception to the spacing pattern estab-lished by Order No. 251-1 for a well to be drilled in the center of the SW/4 SW/4 of Section 19, Township 2 South, Range 61 West, 6th P.M., and that it be the permitted well for the drilling and spacing unit consisting of the W/2 SW/4 of said Section.

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 March 21, 1972, the Commission issued its Order No. 251-1 which, among other things, established 80-acre drilling and spacing units for the produc-tion 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 SE/4 of each quarter section.

4. That the applicant drilled a well in the permitted location of the NW/4 SW/4 of Section 19, Township 2 South, Range 61 West 6th P.M., which was abandoned as a dry hole.

5. 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 SW/4 of Section 19, Township 2 South, Range 61 West, 6th P.M., and that it be the permitted well for the drilling unit consisting of the W/2 SW/4 of said Section 19; however, on the basis of the evidence introduced at the hearing, it would appear, prima facie, that the granting of this exception would give an advantage over offset producers, and in order to prevent the production from the well drilled as an exception of more than its just and equitable share of oil and gas in the pool, some restriction should be placed on the production from said well.

ORDER

NOW, THEREFORE, IT IS ORDERED, an exception is hereby granted for a well to be drilled in the center of the SW/4 SW/4 of Section 19, Township 2 South, Range 6 l West, 6th P.M., Irondale Field, Adams County, Colorado, and that said well shall be the permitted well for the drilling unit consisting of the W/2 SW/4 of said section; however, if a commercial well is completed at the location set forth above, the operator shall appear it the regular scheduled hearing of the Oil and Gas Conservation Commission following (over) the completion of the well and present such geological and engineering evidence as may be necessary, in order for the Commission to establish a producing rate to prevent the pro-duction from the drilling unit of more than its just and equitable share of the oil and gas in the pool.

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

ORDERED this 23rd day of May 1972.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary