REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 21, 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 Kansas-Nebraska Natural Gas Co., for an order to extend the limits of the gas spaced area of the Beecher Island Field, Yuma 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 September 16, 1975, the Commission issued its Order No. 300-1 for the Beecher Island Field which established 640-acre drilling and spacing units for the production of gas from the Niobrara formation underlying certain lands in Yuma County. Said units consist of a governmental section with the permitted well located no closer than 990-feet from the boundaries of the unit.

4. That Applicant's Exhibit "B", Niobrara Structure Map for the Beecher Island Field, presented at the hearing indicates that there is a structural high with closure. The wells drilled outside the boundaries of the spaced area below the + 2,000 sea level datum have been dry holes. Furthermore, there is a sufficient number of dry holes to provide enough control to conclude that the producing limit does not extend beyond said datum. Therefore, the application should be denied.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the application by Kansas-Nebraska Natural Gas Co., requesting an extension of the spaced area as established by Order No. 300-1 for the Beecher Island Field, Yuma County, Colorado, is hereby denied.

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal the above order.

ORDERED this 21st day of November, 1977.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary