REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 20, 1989 at 8:30 A.M., in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Chris G. Katselas for an order granting an exception to Order No. 254-1 allowing the re-entry of the well UPRR - Habel 2-27, Township 2 South, Range 62 West, 6th P.M., Adams County, Colorado, and that a completion attempt be allowed in both the D and J' Sands.

FINDINGS

The Commission finds as follows:

1. Chris G. Katselas, 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, Adams County, Colorado. The units consist of the E/2 and W/2 or the N/2 and S/2 of each section, according to the governmental survey, with the permitted well for each unit located in the NW/4 and SE/4 of each section and no closer than 900 feet to the boundaries of each quarter section.

5. On August 24, 1972, Edward Mike Davis plugged as a dry hole the UPRR-Habel 2-27 drilled 600 feet FSL and 600 feet FEL in Section 27, Township 2 South, Range 62 West.

6. At the administrative hearing held March 17, 1989, the applicant requested the application be amended to allow a well to be drilled at any location 200 feet west or 200 feet north of the UPRR-Habel 2-27 if mechanical problems should be encountered upon re-entry. The Hearing Officer recommended approval of the amendment.

7. Based on the facts stated in the verified application and exhibits submitted, having received no objections, and having waivers submitted, and having been reviewed and recommended by the Deputy Director as Hearing Officer, the Commission should grant the request and allow the UPRR-Habel 2-27 well to be re-entered for production from both the D and J' Sands, and the well should be the permitted well for the unit consisting of the E/2 of said Section 27.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order No. 254-1 should be amended to allow the UPRR-Habel 2-27, located 600 feet from the south line and 600 feet from the east line, Section 27, Township 2 South, Range 62 West, 6th P.M., Adams County, Colorado to be re-entered for production from both the D and J' Sands and that it be the designated well for the unit consisting of the E/2 of Section 27.

IT IS FURTHER ORDERED, that should mechanical problems be encountered upon re-entry, a well can be drilled at any location 200 feet west and 200 feet north of location of the UPRR-Habel 2-27 well site.

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

IT IS FURTHER ORDERED, that the commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.

ENTERED this 24th day of March -/ 1989, as of March 20, 1989.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dennis R. Bicknell, Secretary

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