REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 17, 1984 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 Douglas C. McLeod, dba Petrogulf Energy Co., for an order to replace the well drilled as an exception by Order No. 254-10 which encountered reservoir damage in the "J" Sand, and allow a well to be drilled to the "J" Sand at a location outside the damaged area, no closer than 990 feet from the boundaries of the quarter section consisting of the SW/4 Section 28, Township 2 South, Range 62 West, 6th P.M.

FINDINGS

The Commission finds as follows:

1. Douglas C. McLeod, dba Petrogulf Energy Co., 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 production of gas and associated hydrocarbons from the "J" Sand underlying certain lands in the Longbranch Field. The units consist of the E/2 and W/2 or the N/2 and S/2 or each section with the permitted well located in the NW/4 and SE/4 of each section and no closer than 990 feet from the boundaries of the quarter section. An exception to Order No. 254-1 was granted by Order No. 254-10, December 20, 1982, to allow 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 in any direction. However, said well encountered reservoir damage in the "J" Sand and it is proposed to recomplete the well in the "D" Sand.

5. A replacement well for the well drilled as an exception by Order No. 254-10 should be allowed to be drilled to the "J" Sand at a location outside the damaged reservoir area, no closer than 990 feet to the boundaries of the quarter section consisting of the SW/4 Section 28, Township 2 South, Range 62 West, 6th P.M., and that it be the permitted well for the unit consisting of the W/2 of said Section 28.

6. No objections to the application were received.

ORDER

NOW, THEREFORE, IT IS ORDERED, that a replacement well for the well drilled as an exception by Order No. 254-10 shall be allowed to be drilled into the "J" Sand reservoir at a location no closer than 990 feet to the boundaries of the quarter section consisting of the SW/4 Section 28, Township 2 South, Range 62 West, 6th P.M., Longbranch Field, Adams County, and that it be the permitted well for the unit consisting of the W/2 of said Section 28.

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

ENTERED this 12th day of March . 1984, as of February 17, 1984.

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

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