229-5

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 JAMOBREE [sic] FIELD, ADAMS COUNTY, COLORADO

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CAUSE NO. 229

ORDER NO. 229-5

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 13, 1981 at 9:00 a.m. in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing, as required by law, on the application of Macey & Mershon Oil, Inc., for an order granting an exception to the spacing pattern as established by Order No. 229-2 for the Jamboree Field, Adams County, Colorado.

FINDINGS

The Commission finds as follows:

1. Macey & Mershon Oil, Inc., as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

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 May 18, 1977, the Commission issued Order No. 229-2, which amended Order No. 229-1 and established 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the "D" and "J" Sands underlying certain lands in the Jamboree Field, Adams County, Colorado. The units consist of the E½ and W½ or the N½ and S½ of each quarter section with the permitted well located in the center of the NE¼ and SW¼ of each quarter section with a tolerance of 200 feet in any direction.

5. The unit consisting of the N½SE¼ Section 28, Township 1 South, Range 64 West, 6th P.M. is partially outside the pool of the Jamboree Field and adjacent to a producing unit, and the requirement to drill a well at the permitted location on the unit would be unreasonable. Therefore, an exception to the spacing pattern established by said Order No. 229-2 should be granted for a well to be drilled at a location in the center of the NW¼SE¼ Section 28, Township 1 South, Range 64 West, 6th P.M., with a tolerance of 200 feet and that it be the permitted well for the unit upon which it is located.

6. 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 from the pool.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception is hereby granted to the spacing pattern established by Order No. 229-2 for the Jamboree Field, Adams County, Colorado, for a well to be drilled at a location in the center of the NW¼SE¼ Section 28, Township 1 South, Range 64 West, 6th P.M., and that said well shall be the permitted well for the unit upon which it is located; 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 forthwith.

ENTERED this 12th day of March 1981, as of February 13, 1981.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Frank J. Piro, Secretary