IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE CHIEFTAIN FIELD, ADAMS COUNTY, COLORADO Cause No. 291

Order No. 291-12

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 20, 1985 at 9:0.0 A.M., in Room 110, State Centennial building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the Commission's own motion as a result of Order No. 291-11 to consider allowing the drilling of an additional well on each 80-acre drilling and spacing unit in the remaining lands in the spaced area as established by Order No. 291-2 and not included in Order No. 291-11.

FINDINGS

The Commission finds as follows:

1. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

2. 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. On April 15, 1985, the Commission authorized Order No. 291-11 to be issued which authorized an additional well to be drilled on each 80-acre drilling and spacing unit for the production of oil and associated hydrocarbons from the "J" Sand underlying the S/2 Section 4, Township 2 South, Range 63 West, 6th P.M.

4. Geological evidence presented at the hearing on April 15, 1985 indicated that the "J" Sand reservoir is continuous and to protect the correlative rights of other operators in the spaced area, the option to drill an additional well on the remaining 80-acre units in the spaced area should be allowed, described as follows:

Township 2 South, Range 63 West, 6th P.M.

Section 3: All

Section 4: N/2

Section 9: All

Section 10: All

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order Nos. 291-2 and 291-11 are hereby amended and the following shall apply to wells drilled, completed or recompleted in the "J" Sand underlying the lands described herein, in addition to other applicable rules and regulations and orders of the Commission heretofore adopted and not in conflict herewith:

Rule 1. The option to drill a second well, in addition to the permitted well as provided for by Order No. 291-2, is hereby authorized to be drilled on each 80-acre drilling and spacing unit for the production of oil and associated hydrocarbons from the "J" Sand underlying the following described lands in a portion of the Chieftain Field, Adams County, Colorado, to-wit:

Township 2 South, Range 63 West, 6th P.M.

Section 3: All

Section 4: All

Section 9: All

Section 10: All

Rule 2. Said additional well shall be located in the center of the undrilled 40-acre tract with a tolerance of 200 feet in any direction.

 IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith. ENTERED this 30th day of May 1985, as of May 20, 1985.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary 2 " (291-12)