REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 15, 1986 at 9:00 A.M. in Room 110, State Centennial Building, Denver, Colorado after giving Notice of Hearing, as required by law, on the verified application of TXO Production Corporation for an order authorizing the use of well No. 16 Frazee B for the re-injection of natural gas into the Morrow formation from which it is originally produced in association with the oil production.

FINDINGS

1. TXO Production 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. Based on the facts stated in the verified application with attached exhibits and having received no objection, the matter was heard by the Director as Hearing Officer on September 12, 1986 and recommended to the Commission for approval.

ORDER

NOW, THEREFORE, IT IS ORDERED that the re-injection of natural gas into the Morrow formation, from which it is originally produced in association with oil, by use of well No. 16 Frazee B located in the center of the E/2 SW/4 Section 9, Township 19 South, Range 50 West 6th P.M. Salt Lake Field, Bent County, Colorado, is hereby approved.

IT IS FURTHER ORDERED that said approval is effective forthwith and shall remain in effect until such time as a Unit Agreement and Secondary Recovery Program for the Salt Lake (Morrow) Unit Area is approved by the Commission or until November 1, 1986 whichever occurs first. The expiration date of such approval is subject to further extension by the Director.

ENTERED this 24th day of September 1986, as of September 15, 1986.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary