REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 15, 1974 at 9 A.M. in the Auditorium, Social Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Webb Resources, Inc., for an order granting an exception to the spacing pattern established by Order No. 254-1 for the Longbranch Field, Adams County, Colorado. At the time of the hearing the application was amended to request that the well to be drilled as an exception be located 600 feet from the north line and 600 feet from the west line Section 16, Township 2 South, Range 62 West, 6th P, M.

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 April 18, 1972, the Commission issued its Order No. 254-1 which, among other things, established 320-acre drilling and spacing units for the produc-tion of gas and associated hydrocarbons from the "J" Sand, with the permitted well located in the NW/4 and the SE/4 of each section and not less than 990 feet to the boundaries of the quarter section upon which it is located.

4. That geological evidence presented at the hearing indicates that the drilling and spacing unit consisting of the W/2 Section 16, Township 2 South, Range 62 West, 6th P.M. is located partly outside the limits of the "J" Sand reservoir of the Longbranch Field and probably within the limits of the "J" Sand reservoir of the Totem Field, located to the northwest. In addition, a well location, 990 feet from the north line and 990 feet from the west line of said Section 16, would be in the channel of Kiowa Creek and moving the location further to the southeast, and still conforming with the spacing pattern of the Longbranch Field, could result in a non-commercial or marginal well. Therefore, an exception should be granted for a well to be drilled 600 feet from the north line and 600 feet from the west line of said Section 16 and that it be the permitted well for the unit upon which it is located.

5. That if a commercial well is drilled on the location as set forth in Find-ing 4 herein instead of on a location as provided for in Order No. 254-1, the Commission should, at the request of interested persons, 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.

(over)

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception is hereby granted for a well to be drilled at a location 600 feet from the north line and 600 feet from the west line of Section 16, Township 2 South, Range 62 West, 6th P.M., and that it be the permitted well for the unit upon which it is located; however, if a commercial well is drilled on the location as set forth above, instead of a location as provided for in Order No. 254-1, the Commission; shall at the request of interested persons, 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.

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

ORDERED this 23rd day of October 1974.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary