BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION AND AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE IGNACIO-BLANCO FIELD, LA PLATA COUNTY, COLORADO	) ) ) )	CAUSE NO.   112 ORDER NO.   112-133

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission on May 19, 1997, at 8:30 a.m. in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing, as required by law, on the application of Texaco Exploration & Production Company, Inc. for an order amending Order No. 112-61 to allow the Sam Burch No. 26 Well to be drilled as an additional well at a legal location in the E½ of Section 10, Township 32 North, Range 9 West, N.M.P.M., for production from the Fruitland Coal seams for the 320-acre drilling and spacing unit consisting of the E½ of Section 10.

FINDINGS

                        The Commission finds as follows:

                        1.  Texaco Exploration & Production Company, 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 pursuant to the terms of a Memorandum of Understanding between the Commission and the Bureau of Land Management.

                        4. On June 15, 1988, the Commission issued Order No. 112‑60 which established 320‑acre drilling and spacing units for the production of gas and associated hydrocarbons from the Fruitland coal seams, underlying certain lands in the Ignacio‑Blanco Field including Section 10, Township 32 North, Range 9 West, N.M.P.M., with the units to consist of a governmental half section and the permitted well to be located in the NE¼ and the SW¼ of each section, no closer than 990 feet from the boundaries of the quarter section, nor closer than 130 feet to any interior quarter section line.  Order No. 112-61 was subsequently adopted amending Order No. 112-60 to establish additional field rules for the Fruitland Coal Formation.

                        5.  Evidence presented at the administrative hearing indicated that one well will not efficiently and economically drain the 320‑acre drilling and spacing unit consisting of the E½ of Section 10, and that an additional well is necessary to prevent waste and protect correlative rights, and to recover gas and associated hydrocarbons from the Fruitland Coal seams.

                        6.  At the time of the administrative hearing, the Applicant agreed to be bound by oral order of the Commission.

                        7.  The Southern Ute Indian Tribe submitted a letter dated May 15, 1997, providing their strong support for this matter.

                        8.  The Bureau of Land Management submitted a letter dated May 15, 1997, providing their concurrence to this matter in accordance with the Memorandum of Understanding dated August 22, 1991.

9.  Based on the facts stated in the application and the testimony and exhibits presented at the time of the administrative hearing by the applicant, the Commission should approve the request to amend Order No. 112-61 to allow the Sam Burch No. 26 Well to be drilled as an additional well at a legal location in the E½ of Section 10, Township 32 North, Range 9 West, N.M.P.M., for production from the Fruitland Coal seams for the 320-acre drilling and spacing unit consisting of the E½ of Section 10.

ORDER

                        NOW, THEREFORE, IT IS ORDERED that Order No. 112-61 is hereby amended to allow the Sam Burch No. 26 Well to be drilled as an additional well at a legal location in the E½ of Section 10, Township 32 North, Range 9 West, N.M.P.M., for production from the Fruitland Coal seams for the 320-acre drilling and spacing unit consisting of the E½ of Section 10.

                        IT IS FURTHER ORDERED, that in accordance with G.4.b. paragraph 2 of the MOU of August 22, 1991, between the BLM and COGCC, this order is hereby deemed to be an order by the BLM.  As such, any appeal or challenge of this order with respect to Indian lands shall go through the BLM State Director Review process outlined in 43 CFR 3165.3.

                        IT IS FURTHER ORDERED, that should a commercial well be completed at the location set forth above, the Commission shall, upon application of any interested person, take such action as will offset any advantage which the person securing the exception may have over other procedures by reason of the drilling of the well as an exception location.

                        IT IS FURTHER ORDERED that the provisions contained in the above order shall become effective forthwith, as the party agreed to accept the verbal order of the Commission.

                        IT IS FURTHER ORDERED that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.

                        ENTERED this  day of May, 1997, as of  May 19, 1997.

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                           OF THE STATE OF COLORADO

                                                                        By

                                                                                     Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

July 3, 2018