REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 18, 1985 at 9:00 A.M., in the Community Room, 1 United Bank Center, 17th & Lincoln Streets, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Corbin J. Robertson for an order establishing certain designated drilling and spacing units ranging in size from 130.67 acres to 204.04 acres, for the production of gas and associated hydrocarbons from the Lewis "A" formation underlying certain lands in Moffat County, Colorado.

FINDINGS

The Commission finds as follows:

1. Corbin J. Robertson, 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. Based upon 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 establishing certain designated drilling and spacing units ranging in size from 130.67 to 204.04 acres for the production of gas and associated hydrocarbons from the Lewis "A" formation underlying the following described lands in Moffat County, Colorado, to-wit:

Township 12 North, Range 91 West, 6th P.M. Section 7: All Section 8: All Section 17: All Section 18: SE/4 Section 19: Lots 5, 6, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20 Section 20: All Section 29: Lots 1, 2, 3, 4, 5, 6, 7, 8 Section 30: Lots 5, 6, 7, 8, 9, 10, 11, 12

Township 12 North, Range 92 West~ 6th P.M. Section 13: All Section 24: Lot 2 and that part of Lot 3 described by metes and bounds as follows: Beginning at the Northwest corner of Lot 3, thence South along the West line of Section 24 265.5 feet, thence East 4835.16 feet to the East line of Section 24, thence North along the East line of Section 24 265.5 feet to the Northeast corner of Lot 3, thence West 4835.16 feet to the point of beginning. All of Lot 6.

Section 25: A portion of Lot 1 described by metes and bounds as follows: Beginning at a point otherwise known as Northwest corner of Lot 6, thence South 89 ' 56' East 2621.52 feet, thence South 001' East 2649.57 feet, thence North 89059' West 2606.34 feet, thence North 2648.58 feet to the point of beginning.

Township 12 North, Range 91 West, 6th P.M.

Township 12 North, Range 92 West, 6th P.M. Resurvey Tract 37: All Resurvey Tract 38: All Resurvey Tract 39: All Resurvey Tract 40: All

5. In order to prevent the 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 of the State, an order should be made establishing certain designated drilling and spacing units, ranging in size from 130.67 acres to 204.04 acres, for the production of gas and associated hydrocarbons from the Lewis "A" formation, common source of supply of gas and associated hydrocarbons underlying the lands described herein; that said units should be as designated and described in the order herein, with the permitted well located no closer than 600 feet from the boundaries of the units, and that exceptions should be granted for topographic reasons at the discretion of the Director upon adequate showing of inaccessibility. In addition, Well No. 1-19 Sand Hills Federal, located 2040 feet from the north line and 600 feet from the east line of designated Unit No. 15, should be considered the permitted well for said unit, and Well No. 1-13 Gladhill Draw State, located 1900 feet from the east line and 1600 feet from the south line of Unit No. 5, be the permitted well for said unit.

6. All available geological and engineering data concerning said formation indicate that one (1) well will efficiently add economically drain the designated units ranging in size from 130.67 to 204.04 acres, for the production of gas and associated hydrocarbons from the Lewis "A" formation, and that the drilling units of the size and shape described in the herein order, are not smaller than the maximum area that can be efficiently drained by one well producing from said formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to wells drilled, completed, or recompleted in the Lewis "A" formation underlying lands in the West Side Canal 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. Drilling and spacing units ranging in size from 130.67 to 204.04 acres are hereby established for the production of gas and associated hydrocarbons from the Lewis "A" formation underlying the following described lands in the West Side Canal Field Moffat County, Colorado, to-wit: Township 12 North, Range 91 West, 6th P.M. Section 7: All Section 8: All Section 17: All Section 18: SE/4 Section 19: Lots 5, 6, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20 Section 20: All 2 --(427-1)

Section 29: Lots 1, 2, 3, 4, 5, 6, 7, 8 Section 30: Lots 5, 6, 7, 8, 9, 10, 11, 12

Township 12 North, Range 92 West, 6th P.M. Section 13: All Section 24: Lot 2 and that part of Lot 3 described by metes and bounds as follows: Beginning at the Northwest corner of Lot 3, thence South along the West line of Section 24 265.5 feet, thence East 4835.16 feet to the East line of Section 24, thence North along the East line of Section 24 265.5 feet to the Northeast corner of Lot 3, thence West 4835.16 feet to the point of beginning.

Township 12 North, Range 91 West, 6th P.M.

Township 12 North, Range 92 West, 6th P.M.

Resurvey Tract 37: All Resurvey Tract 38: All Resurvey Tract 39: All Resurvey Tract 40: All Rule 2. Said drilling and spacing units are hereby designated and described as follows:

UNIT NO. DESCRIPTION

1. Township 12 North, Range 91 West, 6th P.M. Section 8: All of Lots 1 and 2 Section 17: All of Lots 1, 2, 7 and 8 Containing 170.08 acres more or less. 2 Section 8: All of Lots 3 and 4 Section 17: All of Lots 3, 4, 5 and 6 Containing 170.75 acres more or less. 3 Section 7: All of Lots 5 and 6 E/2 of Resurvey Tracts 37 and 38 Containing 171.08 acres more or less. 4 Township 12 North, Range 91 West, 6th P.M. Section 7: All of Lots 7 and 8 W/2 of Resurvey Tracts 37 and 38 Township 12 North, Range 92 West, 6th P.M. Section 13: All of Lots 8 and 9 Containing 168.15 acres more or less. 5 Township 12 North, Range 92 West, 6th P.M. Section 13: All of Lots 1and 2 and a portion of Lot 6 described by metes and bounds as follows:

Beginning at a point otherwise known as Corner (Northeast corner of Lot 6) 13, thence South 3160.60 feet, thence North 89053' West 2183.28 feet, thence North 000'30'' West 3377.55 feet, thence East 2640.49 feet, thence South 221.40 feet, thence West 456.72 feet to point of beginning. Containing 171.74 acres more or less. 6 Section 13: All of Lots 3, 4 and 5 and a portion of Lot 6 described by metes and bounds as follows:

Beginning at a point otherwise known as Southwest corner of Section 13, thence North 0 1' West 3372.18 feet, thence East 2638.48 -- 3 --(427-1)

feet, thence South 0 0'30" East 3377.55 feet, thence North 89 53' West 2638.00 feet to point of beginning. Containing 204.40 acres more or less.

7 Section 24: A portion of Lots 2 and 3 described by metes and bounds as follows: Beginning at Northwest corner of Lot 2 of Section 24, thence South 89053' East 2410. 64 feet, thence South 2640.00 feet, thence West 2410.64 feet, thence North 2644.90 feet to point of beginning. Containing 146.23 acres more or less.

8 Section 24: A portion of Lots 2 and 3 described by metes and bounds as follows: Beginning at Northeast corner of Lot 2 of

Section 24, thence North 89 53' West 2410.64 feet, thence South 2644.90 feet, thence East 2410.64 feet, thence North 2640.00 feet to point of beginning. Containing 146.23 acres, more or less.

9 Township 12 North, Range 91 West, 6th P.M. All of Resurvey Tract 39

Township 12 North, Range 92 West, 6th P.M. Section 13: All of Lot 10 Section 24: All of Lot 4 Containing 159.14 acres more or less.

10 Township 12 North, Range 91 West, 6th P.M. Section 18: All of the SE/4 Containing 160 acres more or less.

11 Section 17: All of Lots 11 and 12, S/2SW/4 Containing 160.24 acres more or less.

12 Section 17: All of Lots 9, 10, 13 and 14 Containing 159.66 acres more or less.

13 Section 20: All of Lots 1, 2, 5 and 6 Containing'159.71 acres more or less.

14 Section 20: All of Lots 3 and 4, N/2NW/4 Containing 159.94 acres more or less.

15 Section 19: All of Lots 5, 6, 11 and 12 Containing 160.44 acres more or less.

16 All of Resurvey Tract 40 Containing 158.66 acres more or less.

17 Section 19: All of Lots 15, 16, 17 and 18

Township 12 North, Range 92 West, 6th P.M. Section 24: All of Lot 6 Section 25: A portion of Lot 1 described by metes and bounds as follows: Beginning at a point otherwise known as Northwest corner of Lot 6, thence South 89 56' East 2621.52 feet, thence South 0 1' East 2649.57 feet, thence North 89 59' West 2606.34 feet, thence North 2648.58 feet to point of beginning. Containing 157.12 acres more or less.

18 Township 12 North, Range 91 West, 6th P.M. Section 19: All of Lots 13, 14, 19 and 20 Containing 160.76 acres more or less.

19 Section 20: All of Lots 9, 10, 11 and 12 Containing 160.89 acres more or less.

20 Section 20: All of Lots 7, 13, 14, 15 and 16 Containing 161.07 acres more or less.

21 Section 29: All of Lots 1, 2, 7 and 8 Containing 160.51 acres more or less.

22 Section 29: All of Lots 3, 4, 5 and 6 Containing 161.49 acres more or less.

23 Section 30: All of Lots 5, 6, 11 and 12 Containing 161.45 acres more or less.

24 Section 30: All of Lots 7. 8, 9 and 10 Containing 130.67 acres more or less.

Rule 3. The permitted well for each unit shall be located no closer than 600 feet from the boundaries of the unit and exceptions may be granted by the Director for topographic reasons upon adequate showing of inaccessibility. Well No. 1-19 Sand Hills Federal, located 600 feet from the east line and 2040 feet from the north line of Unit No. 15 shall be considered the permitted well for said unit, and Well No. 1-13 Gladhill Draw State, located 1900 feet from the east line and 1600 feet from the south line of Unit No. 5 shall be the permitted well for said unit.

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 April 1985, as of March 18, 1985.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary - 5 -

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