REPORT OF THE COMMISSION

TO ALL INTERESTED PERSONS AND TO WHOM IT MAY CONCERN: This cause came on for hearing before the Commission on October 20, 1986 at 9:00 A.M. in Room 110, State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Cimarron Oil Company for an order to amend Order No. 251-1 and allow an additional well to be drilled for production of oil and associated hydrocarbons from the D& J' Sands underlying the Unit consisting of the W /2 SE /4 Section 25, Township 2 South, Range 62 West 6th P.M.

FINDINGS

Cimarron Oil Company as applicant 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 March 21, 1972, the Commission authorized Order No. 251-1 to be issued by which 80 acre drilling and spacing units were established for the production of oil and associated hydrocarbons from the Sand "J" Sands underlying certain lands in the Irondale Field. The Units consist of the E/2 and W/2 or the N/2 and S/2 of each quarter section with the permitted well located in the center of the NW/4 and SE/4 of each quarter section, with a tolerance of 200 feet for surface hazards or obstructions. The spaced area was extended in July 1972, by Order No. 251-4.

5. Based on the facts stated in the verified application and the testimony and exhibits presented before the Director as Hearing Officer on October 17, 1986, the Director recommended to the Commission approval of the application and allow an additional well to be drilled for production of oil and associated hydrocarbons from the D& J' Sands underlying the unit consisting of the W/2 SE/4 Section 25, Township 2 South, Range 62 West 6th P.M. The additional well is to be located in the approximate center of the SW/4 SE/4 of said Section 25.

6. No objections to the application were received.

ORDER

NOW, THEREFORE, IT IS ORDERED that order No. 251-1 is hereby amended and an additional well is hereby allowed to be drilled for production of oil and associated hydrocarbons form the D& J' Sands underlying the drilling and spacing unit consisting of the W/2 SE/4 Section 25, Township 2 South, Range 62 West 6th P.M. The additional well to be located in the approximate center of the SW/4 SE/4 of said Section 25.

IT IS FURTHER ORDERED that the above order shall become effective forthwith.

Entered this 17th November 1986, as of October 20, 1986/ day of j - v

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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(251-1l)