REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 17, 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 Energy Oil, Inc. for an order granting an exception to Order Nos. 254-1 and 254-10 and allow a replacement well for Well No. 2 Gunzner, drilled at a location 990 feet from the south line and 1650 feet from the west line Section 28, Township 2 South, Range 62 West, 6th P.M., to be drilled at a location 1650 feet from the west line and 2440 feet from the south line of said Section 28 and that it be the permitted well for the unit consisting of the W/2 of said section.

FINDINGS

The Commission finds as follows:

1. Energy Oil, Inc., 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 April 18, 1972, the Commission issued Order No. 254-1 which established 320-acre drilling and spacing units for production of gas and associated hydrocarbons from the "J" Sand underlying certain lands in the Longbranch Field. The units consist of the E/2 and W/2 or the N/2 and S/2 or each section with the permitted well located in the NW/4 and SE/4 of each section and no closer than 990 feet from the boundaries of the quarter section. An exception to Order No. 254-1 was granted by Order No. 254-10, December 20, 1982, and a well, the No. 1-28 Gunzner was drilled in the center of the SW/4 Section 28, Township 2 South, Range 62 West, 6th P.M. However, said well encountered reservoir damage in the "J" Sand and has been shut-in. A replacement well for the well drilled as an exception by Order No. 254-10, the No. 2 Gunzner was drilled to the "J" Sand at a location outside the damaged reservoir area, at a location 990 feet from the south line and 1650 feet from the west line, Township 2 South, Range 62 West, 6th P.M., and is the permitted well for the unit consisting of the W/2 of said Section 28.

5. Based on the facts stated in the verified application and exhibits submitted and having received no objections and having been reviewed and recommended by the Director, the Commission should grant the request and allow a replacement well for said Well No. 2 Gunzner, to be drilled at a location 1650 feet from the west line and 2440 feet from the south line of Section 28, Township 2 South, Range 62 West, and that it be the permitted well for the unit consisting of the W/2 of said Section 28. Said Well No. 2 Gunzner should be abandoned upon successful completion of the replacement well.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception to the permitted well location as provided for in Order No. 254-1 is hereby granted for a replacement well for Well No. 2 Gunzner to be drilled at a location 1650 feet from the west line and 2440 feet from the south line

. Section 28, Township 2 South, Range 62 West, 6th P.M., Longbranch Field, Adams County, Colorado, and that it be the permitted well for the unit consisting of the W/2 of said Section 28. Said well No. 2 Gunzner shall be abandoned upon successful completion of the replacement well.

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

ENTERED this 2nd day of July 1985, as of June 17, 1985.

:

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

(254-13)