REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 21, 1976 at 9 A.M., in Room 1B-29, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the applications of Tom Brown, Inc. and Michigan Wisconsin Pipe Line Company for an order extending the limits of the spaced area of the Barrel Springs Field as established by Order No. 284-1 and to realign a drilling and spacing unit designated by said order and further to designate certain other units. The application of Tom Brown, Inc. was amended at the time of the hearing to not include Section 20, Township 25 South, Range 45 West, 6th P.M. in the lands to be added to the spaced area of the Barrel Springs Field.

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 parries interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

3. That on December 18, 1973, the Commission issued its Order No. 284-1 for the Barrel Springs Field which, among other things, established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Morrow for-mation underlying certain lands in Prowers County, Colorado. Said units consist of any combination of two contiguous governmental quarter sections with the permitted well loca-ted no closer than 990 feet from the boundaries of the unit. The S/2 Section 22, Township 25 South, Range 45 West, 6th P.M. was designated a drilling and spacing unit.

4. That testimony presented at the hearing indicates a common source of supply of gas underlies, in addition to the area set forth in Order No. 284-1 the following described lands in Prowers County, Colorado, to-wit:

Township 25 South, Range 45 West, 6th P.M. Section 21: All Section 34: E/2, SW/4 Section 26: SW/4 Section 35: NW/4 and that such area should be made subject to the provisions of Order No. 284-1.

5. That testimony presented at the hearing indicates that the drilling unit designated by Order No. 284-1 and consisting of the S/2 of Section 22, Township 25 South, Range 45 West, 6th P.M., should be realigned and that the designated units for said Section 22 consist of the E/2 and W/2. In addition, the SW/4 of said Section 26 and the NW/4 of said Section 35 be designated a drilling unit and the Well No. 1-26 Bailey, located 600 feet from the west line and 1320 feet from the south line of said Section 26 should be the permitted well for such unit; and that the E/2 of said Section 34 be designated a unit and Well No. 1 Appling et al, located 990 feet from the north line and 990 feet from the west line of the NE/4 of said Section 34 should be the permitted well for such unit.

(over)

ORDER

NOW, THEREFORE, IT IS ORDERED, that the area as set forth in Find-ing 4 herein shall be included in the spaced area of the Barrel Springs Field and shall be subject to the provisions of Order No. 284-1 and the Barrel Springs Field shall henceforth include the following described lands in Prowets County, Colorado, to-wit:

Township 25 South, Range 45 West, 6th P.M. Section 21: All Section 28: All Section 22: All Section 29: All Section 23; All Section 32: All Section 26; N/2, SW/4 Section 33: All Section 27: All Section 34: All Section 35; NW/4

IT IS FURTHER ORDERED, that the designated drilling and spacing unit consisting of the E/2 of Section 22, Township 25 South, Range 45 West, 6th P.M., shall be realigned and the drilling units for said Section 22 shall consist of the N/2 and S/2 and that the SW/4 of Section 26, and the NW/4 of Section 35, Township 25 South, Range 45 West, 6th P.M., shall be designated a drilling and spacing unit and Well No. 1-26 Bailey, located 600 feet from the west line and 1320 feet from the south line of said Section 26, be the permitted well for such unit; and that the E/2 of Section 34, Township 25 South, Range 45 West, 6th P.M., shall be designated a drilling and spacing unit and Well No. 1 Appling et al, located 990 feet from the north line and 990 feet from the west line of the NE/4 of said Section 34, Township 25 South, Range 45 West, 6th P.M. shall be the permitted well for such unit.

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.

ORDERED this 21st day of September, 1976.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO By Frank J. Piro, Secretary

-- 2 --(#284-2)

BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

IN THE MATTER OF THE PROMULGATION ) AND ESTABLISHMENT OF FIELD RULES TO ) CAUSE NO. 284 GOVERN OPERATIONS IN THE BARREL ) SPRINGS FIELD, PROWERS COUNTY, ) ORDER NO. 284-2 COLORADO ) CORRECTION OF ORDER TO ALL INTERESTED PERSONS AND TO WHOM IT MAY CONCERN: Order No. 284-2 is in error and should be corrected to read as follows: IT IS FURTHER ORDERED, that the designated drilling and spacing unit consisting of the S/2 of Section 22, Township 25 South, Range 45 West, 6th P.M. shall be realigned and the drilling units for said Section 22 shall consist of the E/2 and W/2 and that.

DATED this 7th day of October, 1976. OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO By Frank J. Piro, Secretary

Frank J. Piro, Secretary