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. 232-40

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on December 19, 1988 at 8:30 a.m. in Room 101, State Education Building, 201 East Colfax, Denver, Colorado after giving Notice of Hearing as required by law, on the verified application of MGF Oil Corporation to amend Order No. 232-1 to allow the existing well MGF #31-28 Jodi, located 660 feet from the north line and 1980 feet from the east line of Section 28, currently completed in the "D" Sand to be recompleted into the deeper "J" Sand with the 320-acre unit to consist of the N1/2 of Section 28, Township 1 North, Range 64 West, 6th P.M., Weld County, Colorado.

FINDINGS

The Commission finds as follows:

1.      That MGF Oil Corporation, as applicant herein, is an interested party in the subject matter of the above referenced matter.

2.      That due notice of the time, place and purpose of the hearing has been has been given in all respects as required by law.

3.      That 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 November 17, 1970, the Commission authorized Order No. 232-1 to be issued which established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand underlying certain lands in Adams and Weld Counties.  The units consist of the E1/2 and W1/2 or the N1/2 and S1/2 of each section with the permitted well for each unit to be located in the NE1/4 and SW1/4 of each section and no closer than 990 feet to the boundaries of the quarter section upon which it is located. Order Nos. 232-2 and 232-3 extended the same 320-acre spacing to additional lands in Adams and Weld Counties including Section 28, Township 1 North, Range 64 West, 6th P.M., Weld County, Colorado.

Order No. 232-3 further provided that the Director may, without additional notice, grant exceptions to the permitted well location in this area provided the owners of the contiguous and cornering drilling units file a waiver or consent in writing agreeing to said exceptions.

5.      Based on the facts stated in the verified application and the exhibits submitted and having received no objections and having been heard by the Deputy Director as Hearing Officer on December 15, 1988, the Commission should approve the request and amend Order No. 232-1 and establish the N1/2 of Section 28, Township 1 North, Range 64 West, 6th P.M., Weld County, Colorado, as a 320-acre drilling and spacing unit and that the existing well MGF Jodi #31-28, located 660 feet from the north line and 1980 feet from the east line of Section 28, when recompleted from the "D" Sand to the "J" Sand, to be the well for the unit.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order No. 232-1 in hereby amended and that the drilling and spacing unit consisting of the N1/2 of Section 28, Township 1 North, Range 64 west, [sic] 6th P.M., Weld County, Colorado is hereby established and that the existing well MGF #31-28 Jodi located 660 feet from the north line and 1980 feet from the east line of Section 28, when recompleted from the "D" Sand to the "J" Sand shall be the well for this unit.

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

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

ENTERED this 21st day of December, 1988, as of December 19, 1988.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	Dennis R. Bicknell, Secretary