IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE LONE TREE FIELD, ADAMS AND ARAPAHOE COUNTIES, COLORADO Cause No. 288 Order No. 288-13

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 17, 1977 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 E. Doyle Huckabay, Lid., for an order granting three (3) exceptions to the spacing pattern established by Order No. 288-1 for the Lone Tree Field. Adams and Arapahoe Counties, 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 July 23, 1974, the Commission issued its Order No. 288-1 which among other things, established 80-acre drilling units for the production of oil and associated hydrocarbons from the "J" Sand, with the permitted well for each drilling unit to be located in the center of the NE/4 and SW/4 of each quarter section, with a toler-ance of 200 feet in any direction.

4. That evidence presented at the hearing indicates that three (3) wells drilled in the permitted locations in the NE/4NE/4 Section 30, the SW/4SE/4 Section 30, Township 3 South, Range 59 West, 6th P.M., and in the SW/4SE/4 Section 6, Township 4 South, Range 59 West, 6th P.M., resulted in dry holes; therefore, exceptions should be granted to said Order No. 288-1 for wells to be drilled at locations: (1) the center of the SE/4NE/4 Section 30, Township 3 South, Range 59 West, 6th P.M. and that it be the permitted well for the unit consisting of the E/2NE/4 of said Section 30; (2) the center of the NW/4SE/4 Section 30, Township 3 South, Range 59 West, 6th P.M., and that it be the permitted well for the unit consisting of the W/2SE/4 of said Section 30; and (3) the center of the NW/4SE/4 Section 6, Township 4 South, Range 59 West, 6th P.M., and thai ii be the permitted well for the unit consisting of the W/2SE/4 of said Section 6, all locations with a tolerance of 200 feet in any direction.

5. Thai if a commercial well is drilled on any of the locations as set forth in Finding 4 herein instead of on locations as provided for in Order No. 288-1, the Com-mission should at the request of interested persons take such action as will offset any advantage which the person securing the exceptions may have over other producers by reason of the drilling of the well as an exception.

ORDER

NOW, THEREFORE. IT IS ORDERED, that an exception is hereby granted for a well to be drilled in the center of the SE/4NE/4 Section 30, Township 3 South, Range 59 West, 6th P.M., with a tolerance of 200 feet in any direction, and that it be the permit-ted well for the unit consisting of the E/2-NE/4 of said Section 30; for a well to be drilled in the center of the NW/4SE/4 Section 30, Township 3 South, Range 59 West, 6th P.M. within a tolerance of 200 feet in any direction, and that it be the permitted well for the unit con-sisting of the W/2SE/4 of said Section 30; and for a well to be drilled in the center of the NW/4SE/4 Section 6, Township 4 South, Range 59 West, 6th P.M., with a tolerance of 200

(over) feet in any direction, and that it be the permitted well for the unit consisting of the W/2SE/4 of said Section 6; however, if a commercial well is drilled on any of the locations as set forth above, instead of on locations as provided for in Order No. 288-1, the Commission shall, at the request of interested persons, take such action as will offset any advantage which the person securing the exceptions may have over other producers by reason of the drilling of the wells as exceptions.

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

ORDERED this 17th day of January, 19771

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary (#288-13)