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 PAPOOSE CANYON FIELD, MONTEZUMA AND DOLORES COUNTIES, COLORADO	) ) ) ) )	CAUSE NO. 231 ORDER NO. 231-5

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 18, 1984 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 Samson Resources Co., for an order granting an exception to Order No. 231-2 and delete certain lands from the 160-acre drilling and spacing units consisting of the NE1/4 and the SE1/4 Section 25, Township 39 North, Range 20 West, N.M.P.M., and allow a well to be drilled on each unit as an exception to the permitted well location.

FINDINGS

The Commission finds as follows:

1.      Samson Resources Co., 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 January 19, 1971, the Commission issued Order No. 231-2 which established 160-acre drilling and spacing units for the production of oil from the oil zone in the Desert Creek formation underlying certain lands in the Papoose Canyon Field, Montezuma and Dolores Counties, Colorado.  The units consist of 160-acres, more or less, and consist of a quarter section of land according to the governmental survey, with the permitted well located no closer than 990 feet to the boundaries of the quarter section.

5.      Evidence presented at the hearing indicates that Lots 2 and 3, located in the NE1/4 Section 25, Township 39 North, Range 20 West, N.M.P.M. and Lot 4, located in the SE1/4 Section 25, Township 39 North, Range 20 West, N.M.P.M. are within the Bureau of Land Management’s Squaw/Papoose Canyon Wilderness Study Area and are precluded by Section 308 of Public Law 98-146 and BLM policy to be leased, therefore said lands should be excluded from the 160-acre drilling and spacing units.

6.      Evidence presented at the hearing indicates that due to geological conditions and the proximity of the wilderness study area, location of a well at the permitted well location would be inequitable and unreasonable, therefore exceptions to the permitted well location as provided for in Order No. 231-2 should be granted for a well, the No. 2-25 Ada, to be drilled at a location 1170 feet from the north line and 660 feet from the east line of said Section 25 and that it be the permitted well for the unit consisting of the NE1/4 (with Lots 2 and 3 deleted) of said section, and a well, the No. 4-25 Haught, to be drilled at a location 1700 feet from the south line and 660 feet from the east line of said Section 25 and that it be the permitted well for the unit consisting of the SE1/4 (with Lot 4 deleted) of said section.  Both locations should have a tolerance of 100 feet to the north, south or west (or anywhere between such directions) to avoid surface hazards or obstructions.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Lots 2 and 3 are hereby deleted from the 160-acre drilling and spacing unit as established by Order No. 231-2 and consisting of the NE1/4 Section 25, Township 39 North, Range 20 West, N.M.P.M., and Lot 4 is hereby deleted from the 160-acre drilling and spacing unit as established by Order No. 231-2 and consisting of the SE1/4 Section 25, Township 39 North, Range 20 West, N.M.P.M.

IT IS FURTHER ORDERED, that an exception to the permitted well location as provided for in Order No. 231-2 for the Papoose Canyon Field is hereby granted for a well, the No. 2-25 Ada, to be drilled at a location 1170 feet from the north line and 660 feet from the east line Section 25, Township 39 North, Range 20 West, N.M.P.M. and that it be the permitted well for the unit consisting of the NE1/4 (Lots 2 and 3 deleted) of said Section 25 and a well, the No. 4-25 Haught, to be drilled at a location 1700 feet from the south line and 660 feet from the east line of said Section 25 and that it be the permitted well for the unit consisting of the SE1/4 (Lot 4 deleted) of said section. Both locations shall have a tolerance of 100 feet to the north, south or west (or anywhere between such directions) to avoid surface hazards or obstructions .

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

ENTERED this 5th day of July 1984, as of June 18, 1984.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By	Frank J. Piro, Secretary