231-10

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 PAPOOSE CANYON FIELD, MONTEZUMA AND DOLORES COUNTIES, COLORADO

)

CAUSE NO. 231

ORDER NO. 231-10

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 16, 1987 at 9:00 a.m. in Room 110 State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the Commission's own motion to consider deleting certain lands in the Papoose Canyon Field from the spacing provisions of Order Nos. 231-1 and 231-2.

FINDINGS

The Commission finds as follows:

1. Due to notice of the time, place and purpose of the hearing has been given in all aspects as required by law.

2. 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. On November 17, 1970 the Commission issued Order No. 231-1 by which 320 acre drilling and spacing units were established for the production of gas and associated hydrocarbons from the Desert Creek formation. On January 19, 1971, the Commission issued Order No. 231-2 by which 160 acre drilling and spacing units were established for the production of oil and associated hydrocarbons from the oil zone of the Desert Creek formation, underlying certain lands in the Papoose Canyon Field.

4. Celsius Energy Company has applied to the Bureau of Land Management for the formation of a federal unit known as the Island Butte Unit. The following described lands, which are included in the spaced area of Order Nos. 231-1 and 231-2, are also included in the proposed federal unit. It is a requirement of the Bureau of Land Management that final approval of such a unit be contingent upon the deletion of such lands from provisions of any spacing orders established by the Commission. The Commission should therefore, delete the following described lands from the spacing provisions as established by Order Nos. 231-1 and 231-2.

Spacing Order No. 231-2	Spacing Order No. 231-1
Desert Creek Formation Oil	Desert Creek Formation Gas
T-38N, R-19W, N.M.P.M.	T-38N, R-19W, N.M.P.M.
Section 7: SW1/4	Section 7: SW1/4
Section 17: S1/2	Section 17: S1/2
Section 18: All	Section 18: All
T-38N, R-20W, N.M.P.M.	T-38N, R-20W, N.M.P.M.

(cont’d.)
Section 12: W1/2, SE1/4	Section 12: W1/2, SE1/4
Section 13: All	Section 13: N1/2

ORDER

NOW, THEREFORE, IT IS ORDERED that the following described lands in Montezuma and Delores Counties, Colorado are hereby deleted from the spacing provisions of Order Nos. 231-1 and 231-2 and said lands shall henceforth be subject to the general Rules and Regulations of the Commission:

Spacing Order No. 231-2	Spacing Order No. 231-1
Desert Creek Formation Oil	Desert Creek Formation Gas
T-38N, R-19W, N.M.P.M.	T-38N, R-19W, N.M.P.M.
Section 7: SW1/4	Section 7: SW1/4
Section 17: S1/2	Section 17: S1/2
Section 18: All	Section 18: All
T-38N, R-20W, N.M.P.M.	T-38N, R-20W, N.M.P.M.
Section 12: W1/2, SE1/4	Section 12: W1/2, SE1/4
Section 13: All	Section 13: N1/2

IT IS FURTHER ORDERED that the above orders shall become effective forthwith.

IT IS FURTHER ORDERED that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal all or any part of the above order.

ENTERED this 10th day of December 1987, as of November 16, 1987.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Frank J. Piro, Secretary