REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on December 21, 1981 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 Gulf Energy Corpora-tion for an order that the Commission find that Well No. 2 Farm Ranch, drilled at an off-pattern location as provided for in Order No. 310-1 is completed in a separate reser-voir from that spaced by said Order No. 310-1, and that the well be permitted to produce in accordance with the general rules and regulations, or in the alternative should the Commission determine the well is completed in the same reservoir, then an exception should be granted to the spacing pattern as established by said order.

FINDINGS

The Commission finds as follows:

1. Gulf Energy Corporation, 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 August 17, 1976, the Commission issued Order No. 310-1 which established 80-acre drilling and spacing units for the production of oil from the "J" Sand underlying certain lands in the Radar Field, Adams County, Colorado. The permitted well for each unit is at a location in the center of the NW/4 and SE/4 of each quarter sec-tion, with a tolerance of 200 feet For topography or to avoid surface hazards. A well was drilled and completed for production from the "J" Sand at a location in the SW/4NW/4 Section 34, Township 2 South, Range 64 West, 6th P.M.

5. Geological testimony presented at the hearing was insufficient for the Commission to determine i[ a separate reservoir exists; however, the Well No. 2 Farm Ranch, SW/4NW/4 Section 34, Township 2 South, Range 64 West, 6th P.M., drilled at an off-pattern location, is the only well on the unit capable of producing from the "J" Sand and therefore, should be considered an exception and be the permitted well [or the unit upon which it is located.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception to Order No. 310-1 is hereby granted for the Well No. 2 Farm Ranch, drilled at a location in the SW/4NW/4 Section 34, Township 2 South, Range 64 West, 6th P.M., Radar Field, Adams County, Colorado, and that it shall be allowed to produce from the "J" Sand and be the permitted well for the unit upon which it is located.

IT IS FURTHER ORDERED, that the above order shall become effective forthwith. (over)

ENTERED this 19th day of January, 1982, as of December 21, 1981.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary -- 2 --(#310-4)