407-221 Amended

BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN

OPERATIONS IN THE CODELL-NIOBRARA SPACED AREA AND THE WATTENBERG GAS SPACED AREA, WELD COUNTY, COLORADO

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CAUSE NOS. 407 and 232

ORDER NOS. 407-221& 232-165

AMENDED

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 29, 1996, in Rifle Town Hall, Council Chambers, Rifle, Colorado, after giving Notice of Hearing, as required by law on the application of SOCO Wattenberg Corporation, for an order to amend Cause No. 407 to allow the Booth No. 23-12I4 "J" Well, located 2,389 feet FSL and 468 feet FWL, in the NW¼ SW¼ of Section 23, Township 4 North, Range 64 West, 6th P.M., to be recompleted at an exception location for commingled production from the Codell, Niobrara and "J" Sand Formations.

FINDINGS

The Commission finds as follows:

1. SOCO Wattenberg 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. In Order No. 407‑1, the Commission established 80‑acre drilling and spacing units for the production of oil and/or gas and associated hydrocarbons from the Codell Formation. Wells shall be located in the center of the 40‑acre tract or quarter‑quarter section with a tolerance of 200 feet in any direction. In Order Nos. 407‑10 and 407‑13, the Commission amended Order No. 407‑1 to include production from the Niobrara Formation in certain lands and to allow the downhole commingling of production from the Codell and Niobrara Formations, including Section 23, Township 4 North, Range 64 West, 6th P.M.

5. In Cause No. 232, the Commission established 320-acre drilling and spacing units with said units to consist of the N½ and S½ or the E½ and W½ of a governmental section for production from the "J" Sand Formation and with the authorized well to be located in the NE¼ and the SW¼ of each section no closer than 990 feet from the boundaries of the quarter section. By Order No. 232-20, the Commission authorized the drilling of a second well for each 320-acre drilling and spacing unit with the additional well to be located no closer than 990 feet from the boundaries of the quarter section upon which it is located, including Section 23, Township 4 North, Range 64 West, 6th P.M.

6. Order Nos. 407-66 and 232-47 issued April 16, 1991, among other things, allowed the recompletion, downhole commingling and approval of allocation methods for production from the "J" Sand, Codell, and Niobrara Formations, including Section 23, Township 4 North, Range 64 West, 6th P.M.

7. Order Nos. 407-185 and 232-140 issued January 17, 1995 approved the recompletion of the Booth No. 23-12I4 Well, however, the footages of intersection with the Codell Formation were incorrect and this application is intended to correct the footages of the proposed intersection with the Codell Formation to 1,652 feet FSL and 1,074 feet FWL.

8. This matter was heard by the Hearing Officer who recommends approval based upon the testimony presented at the administrative hearing that an exception to the permitted well location is necessary to reduce surface impact and recover additional reserves from the Codell and Niobrara Formations.

9. An order of the Commission should be entered amending Order Nos. 407-185 and 232-140, allowing the Booth No. 23-12I4 "J" Well to be recompleted at a surface location 2,389 feet FSL and 468 feet FWL, in the NW¼ SW¼ of Section 23, Township 4 North, Range 64 West, 6th P.M., for production from the Codell Formation at an exception location directionally intersecting the base of the Codell Formation at 1,652 feet FSL and 1,074 feet FWL and the Niobrara Formation, for the 80-acre drilling and spacing unit consisting of the N½ SW¼ of Section 23, and to allow the commingling of production with the "J" Sand Formation, for the 320-acre drilling and spacing unit consisting of the W½ of Section 23 and approval of the allocation method.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order Nos. 407-185 and 232-140 are hereby amended to allow the Booth No. 23-12I4 "J" Well to be recompleted at a surface location 2,389 feet FSL and 468 feet FWL, in the NW¼ SW¼ of Section 23, Township 4 North, Range 64 West, 6th P.M., for production from the Codell Formation at an exception location directionally intersecting the base of the Codell Formation at 1,652 feet FSL and 1,074 feet FWL and the Niobrara Formation, for the 80-acre drilling and spacing unit consisting of the N½ SW¼ of Section 23, and to allow the commingling of production with the "J" Sand Formation, for the 320-acre drilling and spacing unit consisting of the W½ of Section 23 and shall approve the allocation method.

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

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.

ENTERED this 15^th day of August, 1996, as of July 29, 1996.

AMENDED this ___________ day of May, 1998, as of July 29, 1996.

OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

April 7, 2023