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 IGNACIO BLANCO FIELD, LA PLATA COUNTY, COLORADO	) ) ) )	CAUSE NO. 112 ORDER NO. 112-83

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 19, 1990 at 8:30 a.m., in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Amoco Production Company for an order that would designate the Joe A. Hotter Gas Unit No. 1 as the permitted well for the 320-acre drilling and spacing unit consisting of the E1/2 of Section 17, Township 34 North, Range 9 West, South of the Ute Line, N.M.P.M., Ignacio Blanco Field, La Plata County, Colorado, at an exception location 780 feet FNL and 1980 feet FEL.

FINDINGS

The Commission finds as follows:

1.      Amoco Production Company, as applicant, is an interested party to the matter described herein above.

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.      In Cause 112, the Commission has issued various orders, including Order No. 112-6 which established 320-acre drilling and spacing units for the Fruitland-Pictured Cliffs formations.  Order No 112-46 was issued on July 16, 1979 and allowed an additional well to be drilled on the unit with the permitted well locations no closer than 990 feet to the boundaries of the quarter section.  Order No. 112-46 also allowed the Director to grant exception to the permitted well location, without notice of hearing, to avoid topographical and surface hazards.  If for any other reason, exceptions may be granted provided that owners of the cornering and contiguous units towards which the proposed location would be moved, file a waiver or consent, in writing, agreeing to said exception.

5.      On November 18, 1987 Amoco Production Company submitted an Application for Permit to Drill the Joe A. Hotter Gas Unit No. 1 at a location 780 feet FNL and 1980 feet FEL, Section 17, Township 34 North, Range 9 West, South of the Ute Line, N.M.P.M., La Plata, [sic] County, Colorado.  Amoco selected the location to minimize surface conflicts, and furnished information concerning Amoco's lease position in cornering and contiguous lease.  The application was approved by the Commission on December 4, 1987 and assigned Permit No. 87-994.

6.      On or about December 23, 1987, Amoco Production Company drilled and set pipe at the above location and the well is currently awaiting completion efforts in the Fruitland Coal seams.

7.      Amoco has been unable to obtain waivers from all the owners of the cornering and contiguous units to the E1/2 of said Section 17, consisting of the W1/2 of Section 17 and the S1/2 of Section 8, Township 34 North, Range 9 West, South of the Ute Line, N.M.P.M., La Plata, County, Colorado.

8.      On June 17, 1988 the Commission entered Order No. 112-60 which established separate drilling and spacing units and other field rules for the production of methane gas from the Fruitland Coal seams.  On August 15, 1988 the Commission entered Order No. 112-61 which established additional field rules.  On November 21, 1988 the Commission entered Order No. 112-62 which amended Order No 112-60 by deleting certain lands from the area spaced by Order No 112-60.  The Joe A. Hotter Gas Unit No. 1 is located within the Fruitland Coal seam spaced area established by Order Nos. 112-60, 61 and 62.

9.      Amoco proposes no production restrictions for said well based on its proximity to other productive Fruitland Coal seam wells.

10.      That no protests to the application have been received by the Commission and the Hearing Officer recommends approval of the application.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order Nos. 112-60, 61 and 62 be amended and that the Amoco Production Company well Joe A. Hotter Gas Unit No. 1 is the designated well for the drilling and spacing unit consisting of the E1/2 Section 17, Township 34 North, Range 9 West, South of the Ute Line, N.M.P.M., Ignacio Blanco Field, La Plata, County, Colorado, at an exception location 780 feet FNL and 1980 feet FEL.

IT IS FURTHER ORDERED, that this order shall become effective forthwith as all parties have agreed to be bound by 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 30th day of November, 1990, as of November 19, 1990.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	Patricia C. Beaver, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado  80203