REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 15, 1978 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 Amoco Production Co., for an order to allow the drilling of an additional well on each 80-acre drilling and spacing unit for production of oil and associated hydrocarbons from the Shannon formation under-lying Section 19 (except the NW/4 NW/4), Township 2 North, Range 67 West, 6th P.M.

FINDINGS

The Commission finds as follows;

1. Amoco Production 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 February 16, 1976, the Commission issued its Order No. 250-11 for the Spindle Field which, among other things, revised the spaced area for the Spindle Field and established 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the Sussex and Shannon formations underlying said field. The order was amended by Order No. 250-12 which allowed the drilling of an additional well in each 80-acre drilling unit in the Spindle Field. However, certain lands were not included as part of the area where additional drilling is allowed; Section 19, Township 2 North, Range 67 West, 6th P.M. being such lands not included.

5. Evidence presented at the hearing indicates that one well will not adequately drain the oil and associated hydrocarbons from an area of 80-acres from the Shannon formation underlying the area described herein, and the drilling of additional wells will result in greater ultimate recovery of the oil reserves and will prevent waste; the application requests authorization to drill additional wells in all of Section 19, except the NW/4 NW/4 thereof, Township 2 North, Range 67 West, 6th P.M.

ORDER

NOW, THEREFORE, IT IS ORDERED, that additional wells are hereby authorized to be drilled on the 80-acre drilling and spacing units previously established in Section 19 (except the NW/4 NW/4), Township 2 North, Range 67 West, 6th P.M., for the production of oil and associated hydrocarbons from the Shannon formation. Such additional wells shall be located in the center of the NW/4 NE/4, SE/4 NE/4, SE/4NW/4, NW/4 SW/4, SE/4 SW/4, NW/4 SE/4 and the SE/4 SE/4, with a tolerance of 200 feet to avoid sur-face hazards or obstructions.

(over)

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

ORDERED this 15th day of May, 1978.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

-- 2 --(#250-16)