REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 18, 1994 at 8:30 a.m., in Room 610, 1525 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of HS Resources, Inc. for an order to allow the drilling of three additional wells at exception locations on certain 160-acre drilling and spacing units, for production from the Niobrara Formation.

FINDINGS

The Commission finds as follows:

1. HS Resources, Inc., 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 August 21, 1978, the Commission issued Order No. 331-2 which established 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Niobrara Formation in the Buckboard Field, with the permitted well to be located no closer than 900 feet the boundaries of the quarter section upon which it is located.

5. Testimony presented at the administrative hearing indicated that one well would not efficiently and economically drain an area of approximately 160-acres, due in part to the amount of faulting in the field, and that in order to prevent the waste of oil and gas, as defined by law, to protect correlative rights of all parties concerned, and to insure proper and efficient development and promote conservation of the oil and gas resources of the State, an order should be entered allowing an additional well to be drilled on each 160-acre drilling and spacing unit for the production of gas and associated hydrocarbons from the Niobrara Formation for the below-described lands:

Township 3 North, Range 46 West, 6th P.M.

HSR Schafer 8-9 Section 9 1980' FNL, 660' FEL NE1/4 HSR Stone 6-8 Section 8 1980' FNL, 1980' FWL NW1/4 HSR Meyer 8-8 Section 8 1980' FNL, 660' FEL NE1/4

6. Based on the facts stated in the verified application, and receiving no protests and having been heard by the Hearing Officer on May 13, 1994 and recommended for approval, the Commission should enter an order authorizing three wells to be drilled at exception locations for certain 160-acre drilling and spacing units, with the permitted well location as described in Finding 5, for production from the Niobrara Formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that three wells are hereby approved to be drilled and completed at exception locations as additional wells on certain 160-acre drilling and spacing units, with the permitted wells to be located as described below, for production from the Niobrara Formation.

Township 3 North, Range 46 West, 6th P.M.

HSR Schafer 8-9 Section 9 1980' FNL, 660' FEL NE1/4 HSR Stone 6-8 Section 8 1980' FNL, 1980' FWL NW1/4 HSR Meyer 8-8 Section 8 1980' FNL, 660' FEL NE1/4

IT IS FURTHER ORDERED, that the provisions contained in the above order 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 day of , 1994, as of July 18, 1994.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Patricia C. Beaver, Secretary

Dated at Suite 380 1580 Logan Street Denver, Colorado 80203 July 28, 1994 ??

(331#4)