222-2

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 SMOKY CREEK FIELD, CHEYENNE COUNTY, COLORADO

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CAUSE NO. 222

ORDER NO. 222-2

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 16, 1973 at 9 A.M., in the Auditorium, Social Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Buttes Gas and Oil Company, which application was amended at the hearing, for an order granting an exception to Order No. 222-1, for a well to be drilled at a location 400 feet from the east line and 585 feet from the north line of the SE¼ [sic] of Section 20, Township 13 South, Range 44 West, 6th P.M., in the Smoky Creek Field, Cheyenne County, Colorado, and that it be the permitted well for the drilling unit consisting of the E½SE¼ of said Section 20.

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 21, 1969, the Commission issued its Order No. 222-1, 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 and 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 for surface hazards.

4. That Buttes Gas and Oil Company, completed its Nelson No. 1-20 well, located in the center of the NE¼SE¼ Section 20, Township 13 South, Range 44 West, 6th P.M., as the permitted well for the drilling and spacing unit comprising the E½SE¼ of said Section 20, and that attempts to maintain production from said well have failed because of the inability to prevent large amounts of water from entering the well bore.

5. That in order to protect the correlative rights of the parties involved, an exception should be granted for a well to be drilled at a location approximately 400 feet from the east line and 585 feet from the north line of the SE¼ of Section 20, Township 13 South, Range 44 West, 6th P.M., and that it replace the Nelson No. 1-20 well and be the permitted well for the drilling unit consisting of the E½SE¼ of said Section 20.

ORDER

NOW, THEREFORE, IT IS ORDERED, an exception is hereby granted for a well to be drilled approximately 400 feet from the east line and 585 feet from the north line of the SE¼ [sic] of Section 20, Township 13 South, Range 44 West, 6th P.M., Smoky Creek Field, Cheyenne County, Colorado, and that said well shall be the permitted well one drilling unit consisting of the E½SE¼ of said Section. 20.

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

ORDERED this 16th day of January, 2973.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Frank J. Piro, Secretary