REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 17, 1977 at 9 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the Commission's own motion, to determine ff approval should be given to a well location offsetting the boundaries of a spaced area, but not in conformance with the well spacing pattern.

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 on May 18, 1976, the Commission issued its Order No. 309-1 for the Bridle Field, which established 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Dakota and Morrison formations. Each unit consists of a governmental quarter section with the permitted well locations in the center of the NW/4-NE/4 Section 9; NW/4NW/4, NW/4NE/4, NE/4SW/4, NE/4SE/4 Section 10, Township 8 South, Range 104 West, 6th P. IV[., with a tolerance of 200 feet.

4. That on September 19, 1977, Texas Gas Exploration Company filed with the Commission an application for "Permit to Drill" (OGCC Form 2) for a well to be drilled in the SE/4NW/4, 1960 feet from the north line and 3398 feet from the east line Section 9, Township 8 South, Range 104 West, 6th P.M. Said location offsets the spaced area of the Bridle Field and does not conform to the well location pattern as established by Order No. 309-1.

5. That since the well location is outside the boundaries of the spaced area and not subject to the provisions of Order No. 309-1, said location should only be subject to the provisions of the general rules and regulations of the Commission that pertain to well locations.

6. That, therefore, the application for a permit to drill a well at the location described in Finding 4 herein should be approved; however, should a commer-cial well be completed at said location, the Commission may at the request of interested persons, and after notice and hearing, take such action as will offset any advantage which the person securing the location may have over other producers by reason of the drilling of the well at said location.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the application for a permit to drill a well at a location in the SE/4NW/4, 1960 feet from the north line and 3398 feet from the east line, Section 9, Township 8 South, Range 104 West, 6th P.M. is hereby approved; however, should a commercial well be completed at said location, the Commission may, at the request of interested persons, and after notice and hearing, take such action as will offset any advantage which the person securing the location may have over other producers by reason of the drilling of the well at said location.

(over)

ORDERED this 17th day of October, 1977.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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