REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 17, 1972, at 9 A.M., in Room 132 State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Colton and Colton and the Polumbus Corporation, for an Order granting an exception to Rule 316 of the Rules and Regulations of the Oil and Gas Conservation Commission of the State of Colorado, for a well to be drilled at a location 330 feet from the south line and 660 feet from the east line, Section 31, Township 3 North, Range 57 West, 6th P.M., Morgan County.

FINDINGS

The Commission finds as follows:

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

2. 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.

3. That geologic evidence presented at the hearing indicates that a well drilled in the center of the SE/4 SE/4 of Section 31, Township 3 North, Range 57 West, would result in a non-commercial or marginal oil well and that in order to protect the correlative rights of the parties involved, an exception to Rule 316 of the Rules and Regulations of the Commission should be granted for a well to be drilled at a location 330 feet from the south line and 660 feet from the east line of Section 31, Township 3 North, Range 57 West, 6th P.M., Morgan County, Colorado.

4. That if a commercial well is drilled at the location set forth above instead of at a location as provided for in said Rule 316, the Commission will, upon application of interested parties, take such action as will offset any advantage which the person securing the exception may have over other producers by reason of the drilling of the well as an exception.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception is hereby granted for a well to be drilled at a location 330 feet from the south line and 660 feet from the east line of Section 31, Township 3 North, Range 57 West, 6th P.M., Morgan County, Colorado; however, if a commercial well is drilled at the location set forth above in-stead of at a location as provided for in said Rule 316, the Commission shall, at the request of interested parties, take such action as will offset any advantage which the person securing the exception may have over other producers by reason of the drilling of the well as an exception.

(over)

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

ORDERED this 17th day of October 1972.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO By Frank J. Piro, Secretary