REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 15, 1979 at 9 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Texas Oil and Gas Corporation, for an order granting an exception to the spacing pattern as established by Order No. 271-1 for the Wagon Trail Field, Bent County, Colorado.

FINDINGS

The Commission finds as follows:

1. Texas Oil and Gas 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 here-inafter prescribed order.

4. That on August 21, 1973, the Commission issued its Order No. 271-1 which, among other things, established 640-acre drilling and spacing units for the pro-duction of gas and associated hydrocarbons from the Morrow formation underlying the Wagon Trail Field, with the permitted well located no closer than 1320 feet to the bounda-ries of the section.

5. That a well drilled at the permitted location in the NW/4 SE/4 Section 5, Township 23 South, Range 48 West, 6th P.M., was plugged and abandoned as a dry hole.

6. That evidence presented at the hearing indicates that an exception to the spacing pattern established in the Wagon Trail Field should be granted for a well to be drilled 1980 feet from the west line and 660 feet from the south line of Section 5, Town-ship 23 South, Range 48 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 completed at the location 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 exception may have over other producers by reason of the drilling of the well as an exception, including suitable provisions to prevent the production from the drilling unit of more than its just and equitable share of gas in the pool.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception is hereby granted for a well to be drilled 1980 feet from the west line and 660 feet from the south line of Section 5, Township 23 South, Range 48 West, 6th P.M., Wagon Trail Field, Bent County, Colorado, and that said well shall be the permitted well for the drilling unit upon which it is located; however, if a commercial well is completed at the location set forth above, the Commission shall, upon application of any interested person, take such action as will

(over) offset any advantage which the person securing the exception may have over other pro-ducers 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 forthwith.

ORDERED this 15th day of January, 1979.

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

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