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 WATTENBERG GAS SPACED AREA, WELD COUNTY, COLORADO	) ) ) )	CAUSE NO.   232 ORDER NO.   232-101

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission at 8:30 a.m. on August 23, 1993 in Room 318, Centennial Building, 1313 Sherman Street, Denver, Colorado on the verified application of Snyder Oil Corporation for an order to amend Order No. 232-93 to allow the UPRC No. 17-12Q Well to be completed at a revised exception location for the drilling and spacing unit consisting of the W1/2 of Section 17, Township 2 North, Range 64 West, 6th P.M., for production from the "J" Sand Formation.

FINDINGS

                        The Commission finds as follows:

                        1.  Snyder Oil Corporation, 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.  In Cause No. 232, the Commission established 320-acre drilling and spacing units for the production of gas from the "J" Sand in the Wattenberg Field with one well allowed for each unit to be located in the NE1/4 and the SW1/4 and no closer than 990 feet to the boundaries of the quarter section.  On August 21, 1979, the Commission issued Order No. 232-20 which allowed a second well to be drilled on each 320-acre unit. Section 17, Township 2 North, Range 64 West, 6th P.M. is included in the area established in Cause No. 232.

                        5.  Order No. 232-93 issued by the Commission April 19, 1993 approved one well out of three wells to be completed at an exception location for production from the "J" Sand Formation. 

                        6.  Snyder Oil Corporation has drilled a well in the NW1/4 of said Section 17 for production from the "J" Sand Formation underlying the 320-acre drilling and spacing unit consisting of the W1/2 of said Section 17.

                        7.  Snyder Oil Corporation has drilled a well in the SW1/4 SW1/4 of said Section 17 for production from the "D" Sand Formation at a location authorized by Rule 316 of the Rules and Regulations of the Commission.

                        8.  Snyder Oil Corporation wishes to revise the previously approved exception location for the UPRC No. 17-12Q Well to 2050 feet FSL and 1100 feet FWL in the NW1/4 SW1/4 of said Section 17 at a location authorized by the aforementioned Rule 316 to establish additional production from the "D" Sand Formation which is postulated to be a channel sand development.

                        9.  The above-listed location is not authorized for "J" Sand well locations established in Cause No. 232. 

                        10.  Based on the facts stated in the application and having been heard by the Hearing Officers on August 19, 1993, and recommended for approval, the Commission should enter an order approving the application.

ORDER

                        NOW, THEREFORE, IT IS ORDERED that Order No. 232-93 is hereby amended to allow the UPRC No. 17-12Q Well to be completed at a revised exception location for production from the "J" Sand Formation for the 320-acre drilling and spacing unit consisting of the W1/2 of Section 17, Township 2 North, Range 64 West, 6th P.M.

                        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  day of ,1993, as of August 23, 1993.

                                                                        OIL AND GAS CONSERVATION COMMISSION 

                                                                        OF THE STATE OF COLORADO

                                                                        By

                                                                                       Patricia C. Beaver, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado 80203

September 2, 1993