REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 19, 1981 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 Sandlin Oil Corporation for an order granting an exception to the provisions of Order No. 291-1 for the Chieftain Field and allow a well to be drilled in the SE/4SE/4 Section 30, Township 2 South, Range 63 West, 6th P.M.

FINDINGS

The Commission finds as follows:

1. Sandlin Oil 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 hereinafter prescribed order.

4. On May 21, 1974, the Commission issued Order No. 291-1 which established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand underlying certain lands in the Chieftain Field. The permitted well for, each unit is at a location in the center of the NW/4 and the SE/4 of each quarter section 990 ft. from the boundaries of the quarter section. Subsequent Order Nos. 291-3 and 291-4 added lands to the spaced area. A well, No. 1-30 Davis, located in the NE/4SE/4 Section 30, Township 2 South, Range 63 West, 6th P.M., was drilled and completed as a producer of gas and associated hydrocarbons from the "J" Sand.

5. Evidence presented at the hearing indicates that the S/2SE/4 of Section 30, Township 2 South, Range 63 West, 6th P.M. although within the boundaries of the Chieftain Field spaced area is not part of the Chieftain reservoir but part of a separate reservoir located to the south. Therefore, in order to protect correlative rights and to allow the applicant to produce his just and equitable share from the reservoir, a well should be allowed to be drilled in the SE/4SE/4 Section 30, Township 2 South, Range 63 West, 6th P.M.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception to the provisions of Order No. 291-1 for the Chieftain Field is hereby granted for a well to be drilled at a location in the SE/4SE/4 Section 30, Township 2 South, Range 63 West, 6th P.M.

IT IS FURTHER ORDERED, that this order shall become effective forthwith. (over)

ENTERED this 17th day of November 1981, as of October 19, 1981.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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