141-1

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 BATTLESHIP FIELD, JACKSON COUNTY, COLORADO

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CAUSE NO. 141

ORDER NO. 141-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 26, 1960, at 10:00 a.m., in the Game Room of the Albany Hotel, Denver, Colorado, after publication and service or receipt of Waivers of Service of Notice of Hearing as required by law, on the application of the Humble Oil & Refining Company, Carter Division, for an order authorizing Applicant to drill a well in the SW¼ NE¼ NE¼ of Section 22, Township 10 North, Range 79 West, 6th P.M., 480 feet from the south line of said quarter-quarter section, and 369 feet east of the west line of said quarter-quarter section, as an exception to Rule 317 of the Rules and Regulations of The Oil and Gas Conservation Commission of the State of Colorado. Pursuant to said application, the Commission set the above matter for bearing on January 26, 1960. At the request of Applicant, hearing in this cause was continued to February 23, 1960, and further continued to March 29, 1960, at which time Applicant amended the above petition and requested a continuance. On April 4, 1960, Applicant filed an Amended Application to replace the one filed on December 30, 1959, requesting authorization to drill a well in the SW¼ NE¼ NE¼ of Section 22, Township 10 North, Range 79 West, 6th P.M., at a location approximately 400 feet from the south line and 500 feet east of the west line of said quarter-quarter section, or in that vicinity, and for the deviation of said well from the vertical to the west if same is found to be necessary.

FINDINGS

The Commission finds as follows:

1. That due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

2. That 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.

3. That the N½ of the NE¼ of Section 22, Township 10 North, Range 79 West of the 6th P.M., Jackson County, Colorado, is offset by wells producing oil and gas from the Lakota or Dakota formations.

4. That said offset wells were drilled prior to April 30, 1956, upon which date Rule 317 of the Commission's general rules and regulations became effective.

5. That a major fault is present in the immediate area, and lies generally in a northwest-southeast diagonal direction across the lands defined in Finding 3 hereof.

6. That the requirement to drill a well in said N½ of the NE¼ of Section 22, at a location authorized by said Rule 317, would be inequitable and unreasonable, and that an exception should be granted to allow a well to be drilled at a surface location approximately 400 feet north of the south line and 500 feet east of the west line of the NE¼ NE¼ of Section 22, Township 10 North, Range 79 West of the 6th P.M., Jackson County, Colorado.

7. That in the event it is found to be necessary, due to encountering the fault in the drilling of subject well at said surface location, permission should be granted to deviate the well bore from the vertical a distance great enough to avoid drilling into or through such fault, provided that such deviation is confined, as nearly as practicable, to a straight westerly line from said location, but in no case should the location at the bottom of the hole be closer than 330 feet to the lease line or property line.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception to Rule 317 of this Commission's Rules and Regulations is hereby granted for a well to be drilled at a surface location approximately 400 feet north of the south line and 500 feet east of the west line of the Northeast Quarter of the Northeast Quarter (NE¼ NE¼) of Section Twenty-two (22), Township Ten (10) North, Range Seventy-nine (79) West of the 6th P.M., Jackson County, Colorado.

IT IS FURTHER ORDERED, that in the event it is found to be necessary, due to encountering the fault in the drilling of subject well at said surface location, permission is hereby granted to deviate the well bore from the vertical a distance great enough to avoid drilling into or through such fault, provided that such deviation is confined, as nearly as practicable, to a straight westerly line from said location, but in no case shall the location at the bottom of the hole be closer than 330 feet to the lease line or property line.

ORDERED this 26th day of April 1960.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

D.V. Rogers, Secretary