REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 16, 1984 at 9:00 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Rock Oil Corporation for an order establishing 80-acre drilling and spacing units for the production of oil, gas and associated hydrocarbons from the "J" Sand underlying certain lands in Adams County, Colorado.

FINDINGS

The Commission finds as follows:

1. Rock Oil 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 Conremission 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. Based upon the facts stated in the verified application, the Commission should, according to 34-60-108 (7), C.R.S. 1973, as amended, enter an order establishing 80-acre drilling and spacing units for the production of oil, gas and associated hydrocarbons from the "J" Sand underlying the following described lands in Adams County, Colorado, to-wit:

Township 3 South, Range 65 West, 6th P.M. Section 1: All 5. In order to prevent waste of oil and gas, as defined by law; to protect the correlative rights of all parties concerned;to prevent the drilling of unnecessary wells, and to insure proper and efficient development and promote conservation of the oil and gas resources in the State, an order should be made establishing 80-acre drilling and spacing units for the production of oil, gas and associated hydrocarbons from the "J" Sand, a common source of supply underlying the lands defined herein, that said units should be 80-acres, more or less, and consist of the E/2 and W/2 of each quarter section, according to the governmental survey, with the permitted well located in the center of the NE/4 and SW/4 of each quarter section.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the "J" Sand underlying the Box Eider Creek Field herein described, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith.

Rule 1. Eighty (80) acre drilling and spacing units shall be and the same is hereby established for the production of oil, gas and associated hydrocarbons from the "J" Sand underlying the following described lands in the Box Eider Creek Field, Adams County, Colorado, to-wit:

Township 3 South, Range 65 West, 6th P.M. Section 1: All

Rule 2. Said drilling units shall consist of 8.0-acres, more or less, and shall consist of the E/2 and W/2 of each quarter section according to the governmental survey. The permitted well shall be located in the center of the NE/4 and SW/4 of each quarter section. Exceptions to the permitted well location may be granted by the Director, without further hearing, provided waivers or consents in writing are received from offset owners towards which the location would be moved.

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 14TH dAy of August 1984, as of July 16, 1984.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary (417-1)