REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 18, 1976 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. 284-1 for the Barrels Springs Field, Prowers County, Colorado.

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 December 18, 1973, the Commission issued its Order No. 284-1 which established 320-acre drilling and spacing units for the production of gas and associa-ted hydrocarbons from the Morrow formation underlying certain lands in the Barrel Springs Field. Said units consist of any combination of two (2) contiguous governmental quarter sections with the permitted well located no closer than 990 feet from the bounda-ries of the unit. The spaced area was further extended by Order No. 284-2.

4. That evidence presented at the hearing indicates that a well drilled at a permitted location as provided for by said Order No. 284-1 would result in a dry hole; therefore an exception should be granted for a well to be drilled at a location 1320 feet from the north line and 600 feet from the west line of Section 26, Township 25 South, Range 45 West, 6th P.M., and that it be the permitted well for the unit consisting of the N/2 of said Section 26.

5. That if a commercial well is drilled on the location as set forth in Find-ing 4 herein, said well should be tested and shut-in, and the Commission should review the data obtained from the drilling of the well at the next scheduled hearing date following completion of the well in order to determine what restrictions, if any, should be placed on the production from said well.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception is hereby granted for a well to be drilled at a location 1320 feet from the north line and 600 feet from the west line of Section 26, Township 25 South, Range 45 West, 6th P.M., and that it be the permitted well for the unit consisting of the N/2 of said Section 26.

IT IS FURTHER ORDERED, that if a commercial well is drilled on the location as set forth above, the well shall, upon completion, be tested and shut-in and the Commission shall, at the next scheduled hearing date, review the data obtained from the drilling of the well in order to determine what restrictions, if any, shall be placed on the production from said well.

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.

ORDERED this 18th day of October, 1976.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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