183-2

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 COMANCHE FIELD, PROWERS COUNTY, COLORADO

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CAUSE NO. 183

ORDER NO. 183-2

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 20, 1965, at 10 a.m., in Room 132, State Services Building, Denver, Colorado, after publication of Notice of Hearing and receipt of Waivers of Service as required by law and the rules and regulations of the Commission, on the application of Davis Drlg., Inc., a foreign corporation duly authorized to transact business in the State of Colorado, for an order granting an exception to the spacing pattern established by Order No. 183-1, for a well to be drilled in the SW¼SW¼ of Section 24, Township 21 South, Range 46 West, in the Comanche Field.

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 on October 20, 1964, the Commission issued its Order No. 183-1 establishing 80-acre drilling units for the production of oil and gas from the Mississippian formation underlying the Comanche Field, and providing that each such drilling unit be the W½ or E½ of each quarter section, with the permitted well to be located in the center of the NW¼ or SE¼ of each quarter section, and that a tolerance of 150 feet in any direction from the prescribed location be permitted.

4. That testimony presented at the hearing relating to development of the Comanche Field since issuance of Order No. 183-1 indicates that a well drilled at the designated location for the unit defined as the W½SW¼ of Section 24, Township 21 South, Range 46 West, 6th P.M., Prowers County, Colorado, may be too low; and that, therefore, in order to have a better chance of completing a producing oil and gas well, an exception should be granted for a well to be drilled in the approximate center of the SW¼SW¼ of said Section 24, and that a tolerance of 100 feet in any direction from such location should be permitted in the event surface obstructions or undue hazards are encountered.

5. That if a commercial well is completed at the location set forth above, upon application of any interested party, and after notice and hearing, the Commission should take such action as will offset any advantage the operator of such exception may have over other producers by the drilling of the well as an exception, and should include in the order suitable provisions for prevention of production from said drilling unit of more than its just and equitable share of the oil and gas in the Mississippian formation.

6. That all offset owners to said drilling unit were notified of Applicant’s request, and that no objections were received.

ORDER

NOW, THEREFORE, IT IS ORDERED that an exception is hereby granted for a well to be drilled in the approximate center of the SW¼SW¼ of Section 24, Township 21 South, Range 46 West, 6th P.M., Prowers County, Colorado, and that a tolerance of 100 feet in any direction from such location shall be permitted in the event surface obstructions or undue hazards are encountered; and said well shall be the permitted well for the drilling unit upon which it is located.

IT IS FURTHER ORDERED, that if a well capable of producing oil and gas is completed on such location instead of on the location provided in Order No. 183-1, the Commission, at the request of any interested person and after notice and hearing, may take such action as will offset any advantage the operator of such exception may have over other producers by reason of the drilling of said well as an exception.

ORDERED this 20th day of April 1965.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

William R. Smith, Secretary