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 HIAWATHA WEST FIELD, MOFFAT COUNTY, COLORADO	) ) ) )	CAUSE NO. 133 ORDER NO. 133-5

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 21, 1992, 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 Texaco USA for an order allowing an additional well to be drilled at an exception location 1785 feet FNL and 2217 feet FEL in the SW1/4 NE1/4 of Section 19, Township 12 North, Range 100 West, 6th P.M., Moffat County, for the production of gas and associated hydrocarbons from the Wasatch and Fort Union-Lance-Lewis Formations underlying the 320-acre drilling and spacing unit consisting of the SE1/4 of Section 18 and the NE1/4 of said Section 19. 

FINDINGS

The Commission finds as follows:

1.      Texaco USA as applicant herein, is an interested party in the subject matter of the above-referenced matter.

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 June 23, 1959 the Commission authorized Order No. 133-1 to be issued which established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations underlying lands in the Hiawatha-West Field in Moffat County, Colorado.  The units shall consist of the E1/2 and W1/2 or the N1/2 and S1/2 of a governmental quarter section, with the permitted well to be located no closer than 660 feet from the boundaries of the unit.

5.      The Duncan Unit No. 1 Well No. 2 has been drilled and is producing from the A5 sand member of the Wasatch Formation, as correlated by Texaco USA, in the SW1/4 NE1/4 of Section 19, Township 12 North, Range 100 West, 6th P.M.  Evidence presented at the administrative hearing indicated that the Duncan Unit No. 1 Well No. 3 proposed to be drilled at an exception location in the SW1/4 NE1/4 for production from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations would not be completed in the A5 sand member of the Wasatch Formation while the Duncan Unit No. 1 Well No. 2 was producing from that zone.  In addition, the Bureau of Land Management has requested that the proposed well be drilled using the same well pad as the existing well.

6.      That in order to protect correlative rights and prevent waste, a well should be allowed to be drilled at an exception location in the SW1/4 NE1/4 of Section 19, Township 12 North, Range 100 West, 6th P.M., for the 320-acre drilling and spacing unit consisting of the SE1/4 of Section 18 and the NE1/4 of Section 19.

7.      Based on the facts stated in the verified application and having been heard by the Hearing Officer who recommended approval of the amended application, and having received no protests, the Commission should approve the request and amend Order No. 133-1 to allow the Duncan Unit No. 1 Well No. 3 to be drilled and completed at an exception location 1785 feet FNL and 2217 feet FEL in the SW1/4 NE1/4 of Section 19, Township 12 North, Range 100 West, 6th P .M., for production from the Wasatch (excluding the A5 sand member), Fort Union-Lance-Lewis and Mesaverde Formations, and subject to the approval of the Commission.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an additional well is hereby granted to be drilled at an exception location 1785 feet FNL and 2217 feet FEL in the SW1/4 NE1/4 of Section 19, Township 12 North, Range 100 West, 6th P.M., for production from the Wasatch excluding the A5 Sand member, Fort Union-Lance-Lewis and Mesaverde Formations.

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 rights, after notice and hearing to alter, amend or repeal any and/or all of the above orders.

Entered this 13th day of October, 1992 as of September 21, 1992.

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

October 8, 1992