REPORT TO THE COMMISSION

This cause came on for hearing before the Commission on September 19, 1977 at 9 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Sun Oil Company, for an order granting an exception to the well location as established by Order No. 113-1.

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 on November 26, 1957, the Commission issued its Order No. 113-1 which established 320-acre drilling and spacing units for the production of gas from a stray member of the Upper Lewis formation, known locally as the Basal Lance, under-lying certain lands in the Craig-North Field, with the permitted well located in the NE/4-or SW/4 of each section, and no closer than 660 feet from the boundaries of the unit. The W/2 Section 29, Township 8 North, Range 90 West, 6th P.M. was designated a drilling and spacing unit.

4. That evidence presented at the hearing indicates that a well drilled at the permitted location in the SW/2 of said Section 29 would not be productive; therefore, an exception to the spacing pattern, as established by Order No. 113-1 should be allowed for a well to be drilled at a location in the approximate center of the NW/2 of said Section 29 and that it be the permitted well for the unit consisting of the W/2 of said Section 29.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception to the spacing pattern established by Order No. 113-1 is hereby granted for a well to be drilled at a location in the approximate center of the NW/4 Section 29, Township 8 North, Range 90 West, 6th P.M., and that it be the permitted well for the unit consisting of the W/2 of said Section 29.

IT IS FURTHER ORDERED, that the order contained herein shall become effective forthwith.

ORDERED this 19th day of September, 1977.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE COLORADO

By Frank J. Piro, Secretary