231-6

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, DOLORES AND MONTEZUMA COUNTIES, COLORADO

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CAUSE NO. 231

ORDER NO. 231-6

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 15, 1985 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 verified application of Davis Oil Company for an order extending the spaced area of the Papoose Canyon Field as established by Order No. 231-2 to include certain lands in Dolores and Montezuma Counties, Colorado.

FINDINGS

The Commission finds as follows:

1. Davis Oil Co., 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 January 19, 1971, the Commission authorized Order No. 231-2 for the Papoose Canyon Field to be issued, which established 160-acre drilling and spacing units for the production of oil and associated hydrocarbons from the Desert Creek formation underlying certain lands in Dolores and Montezuma Counties, Colorado. The units consist of a governmental quarter section with the permitted well located no closer than 990 feet to the boundaries of the quarter section.

5. Based on the facts stated in the verified application and the exhibits submitted and receiving no objections and having been reviewed and recommended by the Director, the Commission should extend the spaced area of the Papoose Canyon Field as established by Order No. 231-2 by the addition of the following described lands in Dolores and Montezuma Counties, Colorado:

Township 39 North, Range 20 West, N.M.P.M.

Section 15: S1/2

Section 22: All

Section 27: N1/2

6. Since the additional lands as described hereinabove consist of irregular sections the units should be designated as follows:

(1)	Section 15: S1/2	164.08 acres, more or less
(2)	Section 22: N1/2	187.94 acres, more or less
(3)	Section 22: S1/2	188.05 acres, more or less
(4)	Section 27: N1/2	187.04 acres, more or less

and that Well No. 1 Stateline Fee, located 660 feet from the east line and 1980 feet from the south line of said Section 22 should be considered the permitted well for Unit No. 3.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the spaced area of the Papoose Canyon Field for the production of oil and associated hydrocarbons from the Desert Creek formation shall henceforth include, in addition to the area as described in Order No. 231-2, the following described lands in Dolores and Montezuma Counties, Colorado, to-wit:

Township 39 North, Range 20 West, N.M.P.M.

Section 15: S1/2

Section 22: All

Section 27: N1/2

and that such lands shall be subject to the provisions of Order No. 231-2.

IT IS FURTHER ORDERED, that the following shall be designated drilling and spacing units:

(1)	Section 15: S1/2	164.08 acres, more or less
(2)	Section 22: N1/2	187.94 acres, more or less
(3)	Section 22: S1/2	188.05 acres, more or less
(4)	Section 27: N1/2	187.04 acres, more or less

The permitted well shall be at a location no closer than 990 feet from the boundaries of the unit. Exceptions may be granted by the Director for topographic reasons upon adequate showing of inaccessibility. The permitted well for Unit No. 3 shall be Well No. 1 Stateline Fee, located 660 feet from the east line and 1980 feet from the south line of said Section 22.

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

ENTERED this 31st day of July, 1985, as of July 15, 1985 [sic]

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Frank J. Piro, Secretary