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 PIERCE FIELD, WELD COUNTY, COLORADO	) ) ) )	CAUSE NO. 104 ORDER NO. 104-2

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 16, 1957, at 10:00 a.m., 330 State Office Building, Denver, Colorado, after publication of Notice of Hearing and receipt of Waivers of Service, all as required by law, on the application of The California Company for an exception to Order No. 104-1, in which it requested that the drilling unit comprised of the West Half of the Southwest Quarter (W/2 SW/4) of Section 14, Township 8 North, Range 66 West, be changed to a unit of approximately forty acres comprised of the Southwest Quarter of the Southwest Quarter (SW/4 SW/4) of said Section 14, and that the permitted well for the unit be located in the center of the quarter-quarter section.

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 the drilling unit defined as the West Half of the Southwest Quarter (W/2 SW/4) of Section Fourteen (14), Township Eight (8) North, Range Sixty-six (66) West, 6th P.M., is located partly outside the expected productive limits of the Lyons formation, and is adjacent to two producing units; and that the requirement to drill a well in the approximate center of the Northwest Quarter of the Southwest Quarter (NW/4 SW/4) of Section Fourteen (14) would be inequitable and unreasonable.

4.      That an exception should be granted by allowing the permitted well for said unit to be located approximately One Thousand (1000) feet east of the west section line, and Six Hundred Sixty (660) feet north of the south section line of Section Fourteen (14), Township Eight (8) North, Range Sixty-six (66) West, 6th P.M., Weld County, Colorado; and that said well should be the permitted oil well for the drilling and spacing unit upon which it is located; however, if a commercial well is drilled on the location set forth above, the Commission, after analyzing all available geological and engineering data, should take such action as is necessary to prevent the production from the drilling unit of more than its just and equitable share of the oil and gas in the pool.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception shall be granted for a well to be drilled approximately One Thousand (1000) feet east of the west section line and Six Hundred Sixty (660) feet north of the south section line of Section Fourteen (14), Township Eight (8) North, Range Sixty-six (66) West, 6th P.M., Weld County, Colorado, and that said well shall be the permitted oil well for the drilling and spacing unit upon which it is located; however, if a commercial well is drilled on the location set forth above, the Commission, after analyzing all available geological and engineering data, shall take such action as is necessary to prevent the production from the drilling unit of more than its just and equitable share of the oil and gas in the pool.

ORDERED this 25th day of July, 1957.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  Annabel Hogsett, Secretary