Code of Colorado Regulations
400 - Department of Natural Resources
404 - Oil and Gas Conservation Commission
2 CCR 404-1 - PRACTICE AND PROCEDURE
Section 403 - YUMA/PHILLIPS COUNTY SPECIAL WELL LOCATION RULE

a. This Special Well Location Rule ("Yuma WLR") governs Wells drilled to and completed in the Niobrara Formation for the following lands:

Township 1 North Range 44 West: Sections 7, 18, 19, 30 through 33 Range 45 West: Sections 7 through 36 Range 46 West: Sections 4 through 9 Range 47 West: All Range 48 West: All

Township 2 North Range 46 West: All Range 47 West: All Range 48 West: All

Township 3 North Range 45 West: Sections 1 through 18 Range 46 West: All Range 47 West: All Range 48 West: All

Township 4 North Range 45 West: All Range 46 West: All Range 47 West: All Range 48 West: All

Township 5 North Range 45 West: All Range 46 West: All Range 47 West: All Range 48 West: All

Township 6 North Range 45 West: All Range 46 West: All Range 47 West: All Range 48 West: All

Township 7 North Range 45 West: All Range 46 West: All Range 47 West: All

Township 8 North Range 45 West: All Range 46 West: All Range 47 West: All

Township 9 North Range 45 West: Sections 19 through 36 Range 46 West: Sections 19 through 36 Range 47 West: Sections 19 through 36

Township 1 South Range 44 West: Sections 3 through 10, 16 through 21, 27 through 34 Range 45 West: Sections 3 through 5 Range 46 West: Sections 4 through 9, 16 through 36 Range 47 West: All Range 48 West: All

Township 2 South Range 44 West: Sections 3 through 6 Range 45 West: Section 7: W1/2, Section 18: W1/2, Section 19: All Range 46 West: Sections 1 through 24 Range 47 West: All Range 48 West: All

Township 3 South Range 48 West: All

Township 4 South Range 48 West: All

b. Within the Yuma WLR area, Operators may conduct drilling operations to the Niobrara Formation as follows:

c. Any Well drilled to the Niobrara Formation in the Yuma WLR area prior to July 30, 2006, but not located as described in Rule 403.b will be treated as properly located for purposes of this Rule 403.

d. This Yuma WLR does not alter the size or configuration of any drilling units established by the Commission in the Yuma WLR area prior to July 30, 2006.

e. This Yuma WLR will not serve to bar the granting of relief to Owners who file an application alleging abuse of their correlative rights to the extent that such Owners can demonstrate that their opportunity to produce from the Niobrara Formation at locations herein authorized does not provide an equal opportunity to obtain their just and equitable share of oil and gas from such formation.

f. Well exception locations to this Yuma WLR will be subject to the provisions of Rule 401.c.

g. This Yuma WLR is a Well location rule and supersedes existing Commission orders in effect at the time of its adoption only to the extent that the existing orders relate to permissible Well locations and the number of Wells that may be drilled in a quarter section. Commission orders in effect when this Rule is adopted nonetheless apply with respect to the size of drilling units already established by the Commission in the Yuma WLR area. This Yuma WLR is not intended to establish Well spacing. Accordingly, when an area subject to Rule 403 is otherwise unspaced, it does not act to space the area but instead provides the permissible locations for any new Niobrara Formation Wells. Similarly, Rule 403 does not affect production allocation for existing or future Wells. An Operator may allocate production pursuant to the applicable lease, contract terms or established Drilling and Spacing Units recognizing the Owner's right to apply to the Commission to resolve any outstanding correlative rights issues.