REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on December 20, 1982 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 Rock Oil Corporation for an order granting an exception to Order No. 254-1 and allow a well to be drilled in the SW/4 Section 28, Township 2 South, Range 62 West, 6th P.M., at a location 1650 feet from the west line and 990 feet from the east line of the SW/4 of said section. The application was amended to request that the exception well location be in the center of the SW/4 of said Section 28, with a tolerance of 200 feet for geographical requirements.

FINDINGS

The Commission finds as follows:

1. Rock Oil Corporation, 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 April 18, 1972, the Commission issued Order No. 254-1 which established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand underlying lands in the Longbranch Field, The units consist of the E/2 and W/2 or the N/2 and S/2 of each section with the permitted well located in the NW/4 and SE/4 of each section, no closer than 990 feet to the boundaries of the quarter section upon which it is located.

5. A well, the No. 28-6 Hearing was drilled in the permitted well location for the drilling and spacing unit consisting of the W/2 of said Section 28, and was completed as a producing gas well from the "J" Sand. The well has since been plugged and abandoned.

6. An exception should be granted to Order No. 254-1 for a well to be drilled in the SW/4 of Section 28, Township 2 South, Range 62 West, 6th P.M., Longbranch Field, Adams County, Colorado, at a location in the center of said SW/4 with a tolerance of 200 feet for geographical requirements, in order to protect correlative rights; however, should a commercial well be completed at the location as 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 well as an exception may have over other producers by reason of drilling the well as an exception, including suitable provisions to prevent the production from the drilling unit consisting of the W/2 of said Section 28, of more than its just and equitable share of gas from the reservoir.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception to the permitted well location as provided for in Order No. 254-1 for the Longbranch Field, Adams County, Colorado, is hereby granted for a well to be drilled in the center of the SW/4 Section 28, Township 2 South, Range 62 West, 6th P.M., with a tolerance of 200 feet for geographical requirements for the production of gas from the "J" Sand.

IT IS FURTHER ORDERED, that should a commercial well be completed at the location as set forth above, the Commission shall upon application of any interested party take such action as will offset any advantage which the person securing the well as an exception may have over other producers by reason of drilling the well as an exception, including suitable provisions to prevent the production from the drilling unit consisting of the W/2 of said Section 28, of more than its just and equitable share of gas from the reservoir.

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

ENTERED this 19th day of January, 1983, as of December 20, 1982.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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