REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 19, 1982 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 an additional well to be drilled in the SE/4SW/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 a location in the center of the NW/4 and the SE /4 of each section of 900 ft. from the boundaeries by 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 and is the permitted well for the unit consisting of the S/2 of said Section 30.

5. Evidence presented at the hearing indicates that the S/2 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, an additional well should be allowed to be drilled in the SE/4SW/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 an additional well to be drilled at a location in the SE/4SW/4 Section 30, Township 2 South, Range 63 West, 6th P.M.

IT IS FURTHER ORDERED, that this order shall become effective forth-with.

(over )

ENTERED this 16th day of March, 1982, as or February 19, 1982.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

--(#291-6)