REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 17, 1983 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 Rocky Mountain Production Co., for an order to amend Order No. 268-2 and establish a 160-acre drilling and spacing unit consisting of the SW/4 Section 1, Township 6 South, Range 62 West, 6th P.M., and that Well No. 24-1 UPRR Keen located in the SE/4 SW/4 of said Section 1 be considered the permitted well for the said unit.

FINDINGS

The Commission finds as follows:

1. Rocky Mountain Production 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 September 17, 1974, the Commission issued Order No. 268-2 which established 320-acre drilling and spacing units, which were designated for the production of gas and associated hydrocarbons from the "J" Sand underlying certain lands in the Doubletree Field. The permitted well is at a location in the NW/4 NW/4 or the NW/4 SE/4 of each section with a tolerance of 200 feet in any direction. Certain lands were deleted by Order No. 268-4. The S/2 Section 1, Township 6 South, Range 62 West, was designated a unit and a well was drilled in the permitted location in the NW/4 SE/4 of said Section 1, which is now in a depletion stage. Well No. 24-1 UPRR Keen was drilled in the SE/4 SW/4 of said section with the expectation of being an oil producer; however, the well has been completed as capable of gas production from the "J" Sand.

5. Evidence presented at the hearing indicates that there is a structural anomaly in the SW/4 of Section 1 and said Well No. 24-1 UPRR Keen penetrated a reservoir separate from that to the east, and that the permitted well located in the NW/4 SE/4 of said Section 1, will not adequately drain the gas and associated hydrocarbons underlying the 320-acre drilling and spacing unit consisting of the S/2 of said Section 1.

6. A drilling and spacing unit of 160-acres consisting of the SW/4 of said Section 1 should be established and Well No. 24-1 UPRR Keen, located in the SE/4 SW/4 Section 1, Township 6 South, Range 62 West, 6th P.M. should be considered the permitted for the unit, and that the drilling unit is not smaller than the maximum area that can be efficiently and economically drained by said well.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order No. 268-2 is hereby amended and a 160-acre drilling and spacing unit consisting of the SW/4 Section 1, Township 6 South, Range 62 West, 6th P.M., is hereby established for the production of gas and associated hydrocarbons from the "J" Sand underlying said unit. The permitted well for the unit shall be Well No. 24-1 UPRR Keen, located in the SE/4 SW/4 Section 1, Township 6 South, Range 62 West, 6th P.M.

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 16th of November 1983, as of October 17, 1983.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary