REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 15, 1982 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 Champlin Petroleum Company, for an order granting an exception to the spacing pattern as established by Order No. 291-2 for the Chieftain Field, Adams County, Colorado.

FINDINGS

The Commission finds as follows:

1. Champlin Petroleum Company, 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 June 17, 1975, the Commission issued Order No. 291-2 which established 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the "J" Sand underlying a portion of the Chieftain Field, Adams County, Colorado. The units consist of the N/2 and S/2 of each governmental quarter section with the permitted well located in the center of the NW/4 and SE/4 of each quarter section, with a tolerance of 200 feet. A well, the No. 1 Kalcevic Farms, has been drilled at a location in the NE/4NE/4 Section 3, Township 2 South, Range 63 West, 6th P.M. and was considered an exception to Order No. 291-2 for production from the "J" Sand.

5. Testimony indicates that in order to effectively and efficiently drain the reservoir and protect correlative rights, an exception should be granted for a well, the No. 2 Kalcevic Farms, to be drilled at a location in the SW/4NE/4 Section 3, Township 2 South-Range 63 West, 6th P.M., and that it would be in pattern with the exception granted for Well No. 1 Kalcevic.

6. No objections to the application were received.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception to the spacing pattern as established by Order No. 292-2 for the Chieftain Field, Adams County, Colorado, is hereby granted for Well No. 2 Kalcevic Farms, drilled at a location in the SW/4NE/4 Section 3, Township 2 South, Range 63 West, 6th P.M., and that production of oil and associated hydrocarbons from the "J" Sand reservoir is hereby allowed, and that said well be the permitted well for the unit upon which it is located.

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

(over)

ENTERED this 12th day of December, 1982, as of November 15, 1982.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary -- 2 --(~291-10)