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 PAWNEE CREEK FIELD, LOGAN COUNTY, COLORADO	) ) ) )	CAUSE NO. 68 ORDER NO. 68-3

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 15, 1966, at 10 a.m., in Room 330, State Office Building, Denver, Colorado, after publication of Notice of Hearing and receipt of appropriate waivers of service thereof, on the application of Bander & Couch requesting authority to drill a test well as an exception to Rule 316 of the Rules and Regulations of the Oil and Gas Conservation Commission of the State of Colorado, such well to be located in Section 3, Township 7 North, Range 54 West, 6th P.M., Logan County, Colorado.

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 as the result of the configuration of a 26-acre tract, as indicated by the applicant, the provision of Rule 316 of the Rules and Regulations of the Oil and Gas Conservation Commission which requires that a well be located 600 feet from a lease or property line could not be adhered to.

4.      That a well had been drilled in the approximate center of the NE¼SE¼ of Section 3, Township 7 North, Range 54 West, 6th P.M., Logan County, Colorado, and that said well was abandoned; however, geological and engineering testimony presented at the hearing indicates that there is still recoverable oil and gas located on said tract.

5.      That in order to protect correlative rights, an exception to said Rule 316 should be allowed for a well to be drilled in the SE¼NE¼SE¼ of said Section 3, no closer than 330 feet from the east line of said Section 3, and 330 feet from the south line of the NE¼SE¼ of said Section 3, but that if a commercial well is drilled on the location set forth above instead of on a location as provided in said Rule 316, the Commission should, at the request of interested persons, 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 an exception to Rule 316 of the Rules and Regulations of the Oil and Gas Conservation Commission of the State of Colorado be allowed for a well to be drilled in the SE¼NE¼SE¼ of Section 3, Township 7 North, Range 54 West, 6th P.M., Logan County, Colorado, such well to be located no closer than 330 feet from the east line of said Section 3, and 330 feet from the south line of the NE¼SE¼ of said Section 3; however, if a commercial well is drilled on the location set forth above instead of on a location as provided in said Rule 316, the Commission shall, at the request of interested persons, 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.

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

ORDERED this 15th day of February 1966.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By  William R. Smith, Secretary