IN THE MATTER OF GENERAL RULES AND REGULATIONS WITH RESPECT TO THE CONSERVATION OF OIL AND GAS IN THE STATE OF COLORADO, AND RULES OF PRACTICE AND PROCEDURE PERTAINING THERETO AND IN PARTICULAR WITH REFERENCE TO RULE 323

BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER Of THE PROMULGATION AND ESTABLISHMENT Of FIELD RULES TO GOVERN OPERATIONS IN THE CODELL-NIOBRARA SPACED AREA, WELD COUNTY, COLORADO

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CAUSE NO. 407

ORDER NO. 407-22

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 21, 1986 at 9:00 a.m., in Room 110 State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Sunshine Valley Petroleum Corporation for an order granting an exception to the permitted well location as provided for in Order No. 407-1 for a well, the No. 16-29 Miller drilled at a location in the SE1/4SE1/4 Section 29, Township 6 North, Range 64 West, 6th P.M. outside the 200 foot tolerance.

FINDINGS

The Commission finds as follows:

1. Sunshine Valley Petroleum 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 December 19, 1983 the Commission authorized Order No. 407-1 to be issued which established 80-acre drilling and spacing units for production of oil, gas and associated hydrocarbons from the Codell formation. The permitted well location is in the center of the 40-acre governmental tract with a tolerance of 200 feet in any direction. Exceptions may be granted providing the owners of the contiguous and cornering units file a waiver or consent in writing.

5. Based on the facts stated in the verified application the matter was reviewed and recommended for approval by the Director as Hearing Officer on March 13, 1986. The Commission should therefore grant an exception to the permitted well location as provided for by Order No. 407-1 for Well No. 16-29 Miller drilled at a location 427.85 feet from the east line and 645.9 feet from the south line Section 29, Township 6 North, Range 69 West, 6th P.M.

6. Waivers from offset owners were received by the time of hearing.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception to the permitted well location as provided for by Order No. 407-1 is hereby granted for Well No. 16-29 Miller drilled at a location 427.85 feet from the east line and 645.9 feet from the south line Section 29, Township 6 North, Range 69 West, 6th P.M.

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

ENTERED this 6th day of May 1986, as of April 21, 1986

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Frank J. Piro, Secretary