REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 18, 1982 at 9:00 A.M., in Room "G". State Capitol Building, Denver, Colorado, after giving Notice of Hearing, as required by law, on the application of ChieFtain Oil and Gas Corn-pany, for an order to grant an exception to Rule 318 for Well No. 1-A Colson, located in the NE/4NE/4 Section 5, Township 4 North, Range 68 West, 6th P.M., but located at producing depths, less than 600 feet From the lease line, and an application from Skaer Enterprises, Inc. For an order restricting production from said well, or in the alter-native to order the straightening of the hole to comply with the location limits in accor-dance with said Rule 318.

FINDINGS

The Commission Finds as Follows:

1. Chieftain Oil and Gas Company, and Skaer Enterprises, Inc., as applicants herein, are interested parties 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. A well, the No. 1-A Colson, was drilled by Chieftain Oil and Gas Co. at a surface location 667 Feet From the east line and 773 feet From the north line, Section 5, Township 4 North, Range 68 West, 6th P.M.

5. Testimony at the hearing indicates that the bottom of the hole and the various producing depths of said well are at locations considerably less than 600 feet from the lease line, and in violation of Rule 318 of the Rules and Regulations of the Commission; therefore the hole should be straightened or the well plugged and a new well drilled in compliance with said Rule 318.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the Well No. 1-A Colson drilled by ChieFtain Oil and Gas Company, drilled at a surface location 667 Feet From the east line and 773 feet From the north line Section 5, Township 4 North, Range 68 West, 6th P.M., shall be straightened to be in compliance with Rule 318 of the Rules and Regulations of the Commission, or be plugged and abandoned and a new well drilled.

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

ENTERED this 11th day of June 1982, as of May 18, 1982.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary