BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission at 2:00 p.m. on October 26, 2009, in the Southwest Weld County Services Complex, Southwest Meeting Room, 4209 Weld County Road 24½, Longmont, Colorado, for an order to allow an exception location to the permitted well location for the F. Wilson No. 34 Well located in the NW¼ SE¼ of Section 15, Township 12 North, 100 West, 6^th P.M., with a bottomhole location of 365 feet FNL and 2576 feet FEL, for the production of gas and associated hydrocarbons from the Fort Union, Lance and Lewis Formations.

FINDINGS

The Commission finds as follows:

1.    Wexpro Company (“Wexpro”), 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 pursuant to the Oil and Gas Conservation Act.

4.    Rule 318.a. of the Rules and Regulations of the Oil and Gas Conservation Commission requires that wells drilled in excess of 2,500 feet in depth be located not less than 600 feet from any lease line, and located not less than 1,200 feet from any other producible or drilling oil or gas well when drilling to the same common source of supply.  Section 15, Township 12 North, Range 100 West, 6^th P.M. is subject to this Rule for the Fort Union, Lance and Lewis Formations.

5.    On July 3, 2008, an Application to Drill (“APD”) was approved for Wexpro to drill the F Wilson No. 34 Well, located in the NW¼ SE¼ of Section 15, Township 12 North, 100 West, 6^th P.M., within a federal unit known as the Hiawatha Deep Unit (the “Unit”), with a bottomhole location of 365 feet FNL and 2576 feet FEL, for the production of gas and associated hydrocarbons from the Fort Union, Lance and Lewis Formations.

6.    On August 27, 2009, Wexpro, by its attorneys, filed with the Commission a verified application for an order to allow an exception location to the permitted well location for the F. Wilson No. 34 Well located in the NW¼ SE¼ of Section 15, Township 12 North, 100 West, 6^th P.M., with a bottomhole location of 365 feet FNL and 2576 feet FEL, for the production of gas and associated hydrocarbons from the Fort Union, Lance and Lewis Formations.

7.    On October 15, 2009, Wexpro, by its attorneys, filed with the Commission a written request to approve the application based on the merits of the verified application and the supporting exhibits as is provided for the Rule 511.  Sworn written testimony and exhibits were submitted in support of the application.

8.    Testimony and exhibits submitted in support of the application showed that waivers were requested from all contiguous and cornering owners in lands toward whom the well is proposed to be moved who may be affected by the exception location.  The owner affected by this exception, the Bureau of Land Management, has not filed a protest to this request for exception location.  Additional testimony showed that Wexpro has complied with the requirements of Rule 318.a. and c. and, that Wexpro may be entitled to a variance under Rule 502.b., by virtue of waivers being requested and not obtained by all affected owners, and that no such owner filed an objection to the relief requested therein. 

9.    The above-referenced testimony and exhibits show that granting the application will allow more efficient reservoir drainage, will prevent waste, will assure a greater ultimate recovery of gas, and will not violate correlative rights.

10.  Wexpro Company agreed to be bound by oral order of the Commission. 

11.  Based on the facts stated in the verified application, having received no protests, and based on the Hearing Officer review of the application under Rule 511., the Commission should enter an order to allow an exception location to the permitted well location for the F. Wilson No. 34 Well located in the NW¼ SE¼ of Section 15, Township 12 North, 100 West, 6^th P.M., with a bottomhole location of 365 feet FNL and 2576 feet FEL, for the production of gas and associated hydrocarbons from the Fort Union, Lance and Lewis Formations.

ORDER

NOW, THEREFORE IT IS ORDERED, that an exception location is hereby allowed to the permitted well location for the F. Wilson No. 34 Well located in the NW¼ SE¼ of Section 15, Township 12 North, 100 West, 6^th P.M., with a bottomhole location of 365 feet FNL and 2576 feet FEL, for the production of gas and associated hydrocarbons from the Fort Union, Lance and Lewis Formations.

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.

                        IT IS FURTHER ORDERED, that under the State Administrative Procedure Act the Commission considers this order to be final agency action for purposes of judicial review within thirty (30) days after the date this order is mailed by the Commission.

                        IT IS FURTHER ORDERED, that an application for reconsideration by the Commission of this order is not required prior to the filing for judicial review.

                        ENTERED this__________day of November, 2009, as of October 26, 2009.

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                        OF THE STATE OF COLORADO

                                                                        By____________________________________         

                                                                                    Robert A. Willis, Acting Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

November 2, 2009