IN THE MATTER OF GENERAL RULES AND REGULATIONS WITH RESPECT TO THE CONSERVATION OF OIL AND GAS IN THE STATE OF COLORADO, AND RULES OF PRACTICE AND PROCEDURE PERTAINING THERETO AND IN PARTICULAR WITH REFERENCE TO RULE 323

BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF THE INVESTIGATION TO TAKE MEASURES TO PREVENT WASTE OF OIL AND GAS IN THE PLUM BUSH CREEK FIELD, WASHINGTON COUNTY, COLORADO

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CAUSE NO. 57

ORDER NO. 57-4

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 21, 1955 at 10:00 A.M., in Room 243, State Capitol, Denver, Colorado after Notice of Hearing as required by law, on the application of the McRae Oil & Gas Corporation, a Delaware Corporation, for exceptions to Order No. 57-3, for two wells to be drilled off the established 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 insufficient testimony was submitted to substantiate the granting of an exception for a well to be drilled in the Center of the Northeast Quarter of the Northwest Quarter of the Southwest Quarter (NE/4 NW/4 SW/4) of section Thirty-five (35), Township Two (2) South, Range Fifty-six (56) West of the 6th P.M., Washington County, Colorado.

4. That an exception to Order No. 57-3 should be allowed for a well to be drilled on the following described location:

Center of the Northeast Quarter of the Southwest Quarter of the Southwest Quarter (NE/4 SW/4 SW/4) of Section Thirty-five (35), Township Two (2) South, Range Fifty-six (56) West of the 6th P.M., Washington County, Colorado,

and that said well should be the permitted oil or gas well for the drilling and spacing unit upon which it is located; however, if a commercial well is drilled on the location set forth above instead of on the location defined in Order No. 57-3, the Commission should take such action as will offset any advantage which the person securing the exception may have over other producers by reason of the drilling of the well as an exception.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to the lands set forth in this Order, in addition to other applicable rules, regulations and orders of the Commission heretofore adopted and not in conflict herewith:

IT IS FURTHER ORDERED, that an exception shall be granted for a well to be drilled in the Center of the Northeast Quarter of the Southwest Quarter of the Southwest Quarter (NE/4 SW/4 SW/4) of section Thirty-five (35), Township Two (2) South, Range Fifty-six (56) West of the 6th P.M., Washington County, Colorado, and that said well shall be the permitted oil or gas well for the drilling and spacing unit upon which it is located; however, if a commercial well is drilled on the location set forth above instead of on the location defined in Order No, 57-3, the Commission shall take such action as will offset and advantage which the person securing the exception may have over other producers by reason of the drilling of the well as an exception.

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 rules and regulations.

ORDERED this 21st day of November, 1955.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Secretary