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 BRANDON FIELD, KIOWA COUNTY, COLORADO	) ) ) )	CAUSE NO. 188 ORDER NO. 188-16

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 17, 1972 at 9 a.m., in Room 132, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of N.L. Koin for an order granting an exception to Order No. 188-1, for a well to be drilled in the center of the SE¼NE¼ Section 4, Township 19 South, Range 45 West, 6th P.M., in the Brandon Field, Kiowa County, Colorado, and that it be the permitted well for the drilling unit consisting of the E½NE¼ of said Section 4.

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 19, 1965, the Commission issued its Order No. 188-1 which among other things, established 80-acre drilling and spacing units for the production of oil from the Mississippian, each drilling unit being the W½ or E½ of each quarter section and the permitted well for each such drilling unit being located in the center of the NE¼ and SW¼ of each quarter section, with a tolerance of 150 feet in any direction.

4.      That Plains Exploration Company completed its CGA "A" No. 1 well in the NE¼NE¼ of Section 4, Township 19 South, Range 45 West, 6th P.M. as the permitted well for the drilling and spacing unit comprising the E½NE¼ of said Section 4.  Said well was completed in the St. Louis and Spergen reservoirs of the Mississippian formation; however, a completion attempt was made in the Warsaw-Osage reservoir but failed because of the presence of a large volume of water.

5.      That testimony presented at the hearing showed that numerous attempts were made to increase the productivity of the St. Louis-Spergen reservoir in the aforementioned well, but they were unsuccessful because of the inability to shut-off [sic] the large volume of water, thereby leaving a substantial amount of recoverable oil under the 80-acre drilling and spacing unit assigned to said well.

6.      That in order to protect the correlative rights of the parties involved, an exception should be granted for a well to be drilled in the center of the SE¼NE¼ of Section 4, Township 19 South, Range 45 West, 6th P.M., and that it be the permitted well for the drilling unit consisting of the E½NE¼ of said Section 4; however, if a commercial well is completed at the location set forth above, the Commission should, upon application of any interested person, take such action as will offset any advantage which the person securing the exception may have over other producers by reason of the drilling of the well as an exception, including suitable provisions to prevent the production from the drilling unit of more than its just and equitable share of the oil and gas in the pool.

ORDER

NOW, THEREFORE, IT IS ORDERED, an exception is hereby granted for a well to be drilled in the center of the SE¼NE¼ Section 4, Township 19 South, Range 45 West, 6th P.M., Brandon Field, Kiowa County, Colorado, and that said well shall be the permitted well for the drilling unit consisting of the E½NE¼ of said Section 4; however, if a commercial well is completed at the location set forth above, the Commission shall, upon application of any interested person, take such action as will offset any advantage which the person securing the exception may have over other producers by reason of the drilling of the well as an exception.

IT IS FURTHER ORDERED that the provisions contained in the above order shall become effective herewith.

ORDERED this 17th day of October 1972.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	Frank J. Piro, Secretary