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 LADDER CREEK FIELD, CHEYENNE COUNTY, COLORADO	) ) ) )	CAUSE NO.   219 ORDER NO.   219-6 AMENDED

REPORT OF THE HEARING OFFICER

                        This cause came on for hearing before the Commission at 8:30 a.m. on May 19, 1997 in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, on the application of Mull Drilling Company, Inc. for an order allowing the a well to be drilled at an exception location 1500 feet FSL and 1500 feet FWL in the NE¼ SW¼ of Section 12, Township 15 South, Range 45 West, 6th P.M., for production of oil from the Mississippian Formation for the 80-acre drilling and spacing unit consisting of the E½ SW¼ of said Section 12.

FINDINGS

                        The Commission finds as follows:

                        1.  Mull Drilling Company, 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 October 21, 1969, the Commission authorized Order No. 219-1 to be issued, establishing 80-acre drilling and spacing units for production of oil from the Mississippian Formation for various lands in the Ladder Creek Field, including Section 12, Township 15 South, 45 West, 6th P.M.  Each such drilling unit shall consist of the W½ or the E½ of each quarter section, with the permitted well for each such drilling unit to be located in the center of the NW¼ and SE¼ of each such quarter section, with a tolerance of 150 feet in any direction from the prescribed location permitted for surface conditions.  Order No. 219-5 entered December 16, 1991 reduced the lands included in Ladder Creek Field and segregated the E½ of Section 12 into 40-acre drilling and spacing units.  The W½ of Section 12 remained subject to Order No. 219-1.

                        5.  At the time of the administrative hearing, testimony was presented that an exception to the permitted well location is necessary to avoid a fault running north-south to the west of the permitted well location,  thus increasing the likelihood of encountering hydrocarbons.

                        6.  Granting the exception location will prevent waste and protect correlative rights.

                        7.  At the time of the administrative hearing, Mull Drilling Company, Inc. agreed to be bound by oral order of the Commission.

                        8.  Based on the facts stated in the application, having received no protests to the application, and having been heard by the Hearing Officer who recommends approval of the application, the Commission should enter an order allowing a well to be drilled at an exception location 1500 feet FSL and 1500 feet FWL in the NE¼ SW¼ of Section 12, Township 15 South, Range 45 West, 6th P.M., for production of oil from the Mississippian Formation for the 80-acre drilling and spacing unit consisting of the E½ SW¼ of said Section 12.

O R D E R

                        NOW, THEREFORE, IT IS ORDERED that Order No. 219-1 shall be amended to allow a well to be drilled at an exception location 1500 feet FSL and 1500 feet FWL in the NE¼ SW¼ of Section 12, Township 15 South, Range 45 West, 6th P.M., for production of oil from the Mississippian Formation for the 80-acre drilling and spacing unit consisting of the E½ SW¼ of said Section 12.

                        IT IS FURTHER ORDERED, that should a commercial well be 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 procedures by reason of the drilling of the well as an exception location.

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

                        ENTERED this 28th day of May, 1997, as of May 19, 1997.

                        AMENDED this _____________ day of June, 1997, as of May 19, 1997.

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                            OF THE STATE OF COLORADO

                                                                        By

                                                                                           Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

July 26, 2018