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.   133-8

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission on December 20, 1993, at 8:30 a.m., in the Boettcher Auditorium, Colorado History Museum, 1300 Broadway, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified amended application of Texaco Exploration and Production, Inc., for an order allowing the Duncan Unit 2 Well No. 2 to be drilled as an additional well 232 feet FSL and 1000 feet FWL in the SE1/4 SW1/4 of Section 17, Township 12 North, Range 100 West, 6th P.M., Moffat County, for the production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis, and Mesaverde Formations underlying the 320-acre drilling and spacing unit consisting of the SW1/4 of Section 17 and the NW1/4 of Section 20, both in Township 12 North, Range 100 West, 6th P.M.

FINDINGS

                        The Commission finds as follows:

                        1.  Texaco Exploration and Production, Inc., 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 600 feet from the boundaries of the unit.

                        5.  The Duncan "A" No. 3 Well located in the SW1/4 NW1/4 of Section 20, Township 12 North, Range 100 West, 6th P.M. has been drilled and is producing from the A5 zone of the Wasatch Formation for the 320-acre drilling and spacing unit consisting of the SW1/4 of Section 17 and the NW1/4 of Section 20, both in Township 12 North, Range 100 West, 6th P.M.  The Duncan Unit 2 Well No. 1 located in the SE1/4 NW1/4 of said Section 20 has been drilled and is producing from zones of the Wasatch Formation other than the A5 zone for the above-described 320-acre drilling and spacing unit.  Evidence presented at the administrative hearing indicated that one well producing from the A5 zone and one well producing from other zones in the Wasatch Formation will not efficiently and economically drain the 320-acre drilling and spacing unit.

                        6.  That in order to protect correlative rights and prevent waste, the Duncan Unit 2 Well No. 2 should be allowed to be drilled as an additional well 232 feet FSL and 1000 feet FWL in the SE1/4 SW1/4 of Section 17, Township 12 North, Range 100 West, 6th P.M., Moffat County, for production from the Wasatch, Fort Union-Lance-Lewis, and Mesaverde Formations, for the 320‑acre drilling and spacing unit consisting of the SW1/4 of Section 17 and the NW1/4 of Section 20, both in Township 12 North, Range 100 West, 6th P.M.

                        7.  Based on the facts stated in the verified application and having been heard by the Hearing Officers 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 2 Well No. 2 to be drilled as an additional well at the location described in Finding 6, for production from the Wasatch, Fort Union-Lance-Lewis, and Mesaverde Formations.

O R D E R

                        NOW, THEREFORE IT IS ORDERED, that the Duncan Unit 2 Well No. 2  is hereby granted to be drilled 232 feet FSL and 1000 feet FWL in the SE1/4 SW1/4 of Section 17, Township 12 North, Range 100 West, 6th P.M., Moffat County, for production from the Wasatch, Fort Union-Lance-Lewis, and Mesaverde Formations, as an additional well for the 320‑acre drilling and spacing unit consisting of the SW1/4 of Section 17 and the NW1/4 of Section 20, both in Township 12 North, Range 100 West, 6th P.M.

                        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 day of , 1994 as of December 20, 1993.

                                                                        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

January 9, 1994