REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 17, 1985 at 9:00 A.M., in Room 110 State Centennial Building, 1313 Sherman Street, Denver, Colarado, after giving Notice of Hearing as required by law, on the application of Elk Energy Corporation for an order rescinding Order Nos. 301-1 and 301-2 for the Taco Field, Washington County, Colorado.

FINDINGS

The Commission finds as follows:

1. Elk Energy Corporation, 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 September 16, 1975, the Commission issued Order No. 301-1 which established a 360-acre drilling and spacing unit for the production of gas from the "D" Sand underlying the following described lands in Washington County, Colorado, to-wit:

Township 1 North, Range 53 West, 6th P.M. Section 17: E/2SW/4, SE/4 Section 20- NE/4NW/4, N/2NE/4

By Order No. 301-2, issued on April 18, 1977, all interests in the 360-acre unit described above were pooled according to 34-60-116 C.R.S., as amended.

5. Based on the facts stated in the verified application and exhibits submitted, and receiving no objections, and having been reviewed and recommended by the Director, the Commission should enter an order rescinding Order Nos. 301-1 and 301-2.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order Nos. 301-1 and 301-2 for the Taco Field, Washington County, Colorado is hereby rescinded and operations in the area, as described in Finding 4 herein, shall be governed by the general rules and regulations of the Commission.

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

ENTERED this 1st day of July, 1985, as of June 17, 1985.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary