REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 21, 1988 at 8:30 A.M. in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law; on the application of Walsh Production, Inc. for an order approving a certain Unit Agreement for the Black Jack Unit Area, providing for unit operations for the reservoir consisting of the J' Sand underlying certain lands in the Black Jack Field, Arapahoe County, Colorado.

FINDINGS

The Commission finds as follows:

1. Walsh Production, 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 is said Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

4. The matter was heard by the Deputy Director as Hearing Officer and a recommendation for approval was made. No protests were received.

5. The plan for unit operations has one-hundred percent of those persons required to pay costs of the unit operations and by over eighty percent of the owners of production and proceeds attributable to royalty, overriding royalty and production payments.

ORDER

NOW, THEREFORE, IT IS ORDERED that:

1. The Unit Agreement covering lands in the Black Jack Unit Area which agreement is attached to and made a part of the original order of this commission on file in the office of the Commission is approved as being in the public interest for conservation.

2. The Cretaceous J' Sand reservoir, common source of supply, underlies the following described lands in Arapahoe County, Colorado:

Township 4 South, Range 57 West, 6th P.M. Section 9: NE/4; N/2 SE/4; SE/4 SE/4 Section 10: W/2 containing 600 acres, more or less.

3. The provisions contained in said Unit Agreement as they pertain to 34-60-118 C.R.S. of the Oil and Gas Conservation Act are just and reasonable and are incorporated therein as the Commission's plan of unit operations for such lands.

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 25th day of November 1988, as of November 21, 1988.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO By Dennis R. Bicknell, Secretary

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