REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 18, 1978 at 9:00 A.M. in Room 110, State Centennial Building, Denver., Colorado, after giving Notice of Hearing as required by law, on the application of Frank R. Komatz and Lou Fistell, for an order granting an exception to the spacing pattern as established by Order No. 254-1 for the Longbranch Field for a well to be drilled no closer than 330 feet from the north and west lines of the NE/4 of Section 28, Township 2 South, Range 62 West, 6th P.M.

FINDINGS

The Commission finds as follows:

1. Frank R. Komatz and Lou Fistell, as applicants herein, are interested parties 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 8, 1972, the Commission issued its Order No. 254-1 which established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand underlying the Longbranch Field. The units consist of the E/2 and W/2 or the N/2 and S/2 of 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 unit. An exception was granted, by Order No. 254-4 issued June 26, 1973, for a well to be drilled in the NW/4 Section 28, Township 2 South, Range 62 West, 6th P.M. at a location 990 feet from the west line and 990 feet from the north line of the boundaries of the NE/4 of said Section 28. The well was completed as a dry hole.

5. Evidence presented at the hearing indicates that a well drilled as an exception at a location 330 feet from the west and north lines of the NE/4 of said Section 28 is not necessary in order for the applicant to obtain his just and equitable share of the production from the drilling unit and would adversely effect the correlative rights of the offset owners; therefore, the application should be denied.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the application of Frank R. Komatz and Lou Fistell requesting an exception to the spacing pattern as established by Order No. 254-1 is hereby denied.

ORDERED this 18th day of September, 1978.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary