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 AND THE CODELL-NIOBRARA SPACED AREA, WELD COUNTY, COLORADO	) ) ) ) )	CAUSE NO.  232 and 407 ORDER NO. 232-149 and 407-194

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission on April 19, 1995 at 8:30 a.m. in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the amended application of Snyder Oil Corporation to approve an allocation method for two wells to be recompleted for commingled production from the "J" Sand, Codell and Niobrara Formations.

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 NE¼ and SW¼ 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, including Section 8, Township 4 North, Range 64 West, 6th P.M.

                        5.  In Order No. 407‑1, the Commission established 80‑acre drilling and spacing units for the production of oil and/or gas and associated hydrocarbons from the Codell Formation.  Wells shall be located in the center of the 40‑acre tract or quarter‑quarter section with a tolerance of 200 feet in any direction.  In Order Nos. 407‑10 and 407‑13, the Commission amended Order No. 407‑1 to include production from the Niobrara Formation for certain lands and to allow the downhole commingling of production from the Codell and Niobrara Formations, including Section 8, Township 4 North, Range 64 West, 6th P.M.

                        6.  In Order Nos. 407-66 and 232-37, the Commission, among other things, allowed wells drilled, completed, or recompleted in the Codell and/or Niobrara Formations, where the production is commingled or dually completed with the "J" Formation, to be approved administratively, with additional rules established for well locations, unit designations and production allocation methods, for certain lands, including Section 8, Township 4 North, Range 64 West, 6th P.M.

                        7.  Snyder Oil Corporation has proposed an allocation method for production from the "J" Sand Formation for the 320-acre drilling and spacing unit consisting of the E½ of Section 8 and the Codell and Niobrara Formations for the 80-acre drilling and spacing units consisting of the E½NE¼ for the Ruff No. 8-1I4 Well.  In addition, an allocation method has been proposed for the Gehring No. 8-15I4J Well for production from the "J" Sand Formation for the 320-acre drilling and spacing unit consisting of the E½ of Section 8 and the Codell and Niobrara Formations for the 80-acre drilling and spacing unit consisting of the W½SE¼ of Section 8.

                        8.  Having received no protests and been heard by the Hearing Officers who recommend approval, the Commission should enter an order approving the proposed allocation method for production from the "J" Sand, Codell and Niobrara Formations.

O R D E R

                        NOW, THEREFORE, IT IS ORDERED, that the allocation method for the Ruff No. 8-1I4 Well, located in the NE¼ NE¼ of Section 8, Township 4 North, Range 64 West, 6th P.M. and the Gehring No. 8-15I4J Well, located in the SW¼ SE¼ of Section 8, Township 4 North, Range 64 West, 6th P.M. for production from the "J" Sand, Codell and Niobrara Formations is hereby approved.

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

                        Entered this  day of , 1995, as of April 19, 1995.

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                            OF THE STATE OF COLORADO

                                                                        By

                                                                                      Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado  80203

May 17, 1995