IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF COLOMEADOW FARMS UNIT AND FIELD RULES IN THE HOMBRE FIELD, ADAMS AND ARAPAHOE COUNTIES, COLORADO Cause No. 238 Order No. 238-7

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 21, 1990 at 8:30 A.M., in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, after the Commission was advised by Quinoco Petroleum, Inc. that unit operations in the Colomeadow Farms Unit were being stopped and that an order terminating the Colomeadow Farms Secondary Recovery Unit be issued.

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 June 16, 1989 the Commission issued Order No. 238-6 approving a Unit Agreement and Unit Operating Agreement for the "J" Sand formation underlying the following described lands in Adams County, Colorado to-wit:

Township 3 South, Range 61 West, 6th P.M. Section 31: Lot 3, Lot 4, E/2 W/2, SE/4 Section 32: W/2

4. That on March 9, 1990, Quinoco Petroleum, Inc. advised the Commission in writing that a secondary recovery waterflood would not be feasible for the unit lands and that plugging and abandonment notices for all wells contained within the unit had been filed with the Commission.

5. That the Colomeadow Farms Unit Agreement and Unit Operating Agreement approved by the Commission by Order No. 238-6 should be terminated and the lands described in Finding 3 hereinabove should be governed by the Rules and Regulations of the Commission.

ORDER

NOW. THEREFORE, IT IS ORDERED, that:

1. The Unit Agreement and Unit Operating Agreement covering lands in the Colomeadow Farms "J" Sand Unit Area which were approved by the Commission in Order No. 238-6 are hereby terminated.

IT IS FURTHER ORDERED, that the provisions for permitted well locations and all other operations shall henceforth be governed by the Rules and Regulations of the Commission for the below listed lands to-wit: Township 3 South, Range 61 West, 6th P.M. Section 31: Lot 3, Lot 4, E/2 W/2, SE/4 Section 32: W/2

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

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 orders.

ENTERED this 24TH Day of MAY 1990, as of May 21, 1990.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dennis R. Bicknell, Secretary

Dated at Suite 380 1580 Logan Street Denver, Colorado 80203 1243A -- 2 --(238-7)