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.   112-135

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission at 8:30 a.m. on September 16, 1997 in the La Plata County Commissioner Hearing Room, 1060 E. 2^nd Avenue, Durango, Colorado, after giving Notice of Hearing, as required by law, on the application of Williams Production Company for an order amending Order No. 112-61 to allow the Ignacio 33-7 No. 1 Well located 1,980 feet FNL and 660 feet FEL in the SE¼ NE¼ of Section 18, Township 33 North, Range 7 West, N.M.P.M., to be recompleted at an exception location as the second well for the drilling and spacing unit consisting of the E½ of Section 18 for production from the Mesaverde Formation.

FINDINGS

                        The Commission finds as follows:

                        1.  Williams Production Company, 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 November 9, 1959, the Commission issued Order No. 112-6 establishing 320-acre drilling and spacing units for production from the Mesaverde Formation underlying certain lands in the Ignacio-Blanco Field, including Section 18, Township 33 North, Range 7 West, N.M.P.M.  Order No. 112-6 provided for the drilling of one well for the production of gas and associated hydrocarbons from the Mesaverde Formation.  On July 16, 1979, the Commission issued Order No. 112-46 authorizing the drilling of one additional well in each 320-acre drilling and spacing unit.  The permitted well shall be located 990 feet from the boundaries of the unit.

                        5.  The Ignacio 33-7 No. 1 Well located 1,980 feet FNL and 660 feet FEL in the SE¼ NE¼ of Section 18, Township 33 North, Range 7 West, N.M.P.M., currently produces from the Dakota Formation

                        6.  Testimony presented at the administrative hearing indicated that drilling a new well would not be economic and that allowing the recompletion of the Ignacio 33-7 No. 1 Well would prevent additional surface disturbance in the area.

                        7.  That the recompletion of the well would prevent the drilling of unnecessary wells, would prevent waste and would protect correlative rights.

                        8.  That at the time of the administrative hearing, Williams Production Company, agreed to be bound by oral order of the Commission.

                        9.  Based on the facts stated in the application, having received no protests and having been heard by the Hearing Officer on September 12, 1997, who recommends approval, the Commission should approve the application.

ORDER

                        NOW, THEREFORE, IT IS ORDERED that the Ignacio 33-7 No. 1 Well located 1,980 feet FNL and 660 feet FEL in the SE¼ NE¼ of Section 18, Township 33 North, Range 7 West, N.M.P.M., is hereby approved to be recompleted at an exception location as the second well for the drilling and spacing unit consisting of the E½ of Section 18 for production from the Mesaverde Formation

                        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.

                        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 October, 1997, as of September 16, 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