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 BUCK PEAK FIELD, MOFFAT COUNTY, COLORADO	) ) ) )	CAUSE NO. 103 ORDER NO. 103-6

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 20, 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 Czar Resources, Inc., for an order order [sic] deleting Sections 19, 30 and 31, Township 6 North, Range 89 West, 6th P.M. from the spaced area as established by Order Nos. 103-1 and 103-2, and making said lands subject to the general rules and regulations of the Commission, and further to allow the drilling of a well at a location in the NW¼NW¼SW¼ Section 30, Township 6 North, Range 89 West, 6th P.M.

FINDINGS

The Commission finds as follows:

1.      Czar Resources, Inc., 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 April 8, 1957, the Commission issued Order No. 103-1 for the Buck Peak Field, Moffat County, Colorado, which established 80-acre drilling and spacing units for the production of oil from the Tow Creek Zone of the Mancos formation, and 320-acre drilling and spacing units for the production of gas from the Morapas Sand of the Mancos formation and the Mesaverde formation.  Sections 19, 30 and 31, Township 6 North, Range 89 West, 6th P.M., were added to the spaced area by Order No. 103-2 and said lands were made subject to the provisions of Order No. 103-1.

5.      Evidence presented at the hearing indicates that the common sources of supply of oil and gas in the Tow Creek zone [sic] of the Mancos formation, the Morapas Sand and the Mesaverde formation underlying the lands in the Buck Peak Field, as described in Order Nos. 103-1 and 103-2 extends into Sections 19, 30 and 31, Township 6 North, Range 89 West, 6th P.M., and that said lands should remain subject to the provisions of the orders of 103-1 and 103-2.  However, an exception should be allowed for a well to be drilled at a location in the NE¼NW¼SW¼ Section 30, Township 6 North, Range 89 West, 6th P.M.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Sections 19, 30 and 31, Township 6 North, Range 39 West, 6th P.M., shall remain subject to the provisions of Order Nos. 103-1 and 103-2, Buck Peak Field, Moffat County, Colorado.

IT IS FURTHER ORDERED, that an exception to the spacing pattern established by Order Nos. 103-1 and 103-2 shall be allowed for a well to be drilled in the NE¼NW¼SW¼ Section 30, Township 6 North, Range 89 West, 6th P.M., and that it shall be the permitted well for the unit upon which it is located.

ENTERED this 14th day of August 1981, as of July 20, 1981.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  Frank J. Piro, Secretary