IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE BLACK JACK UNIT, ARAPAHOE COUNTY, COLORADO Cause No. 439 Order No. 439-2

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 18, 1993 at 8:30 a.m. in Room 318, State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Walsh Production, Inc., to rescind Order No. 439-1, entered November 21, 1988, which approved a certain Unit Agreement for the Black Jack Unit for the "J" Sand Formation underlying certain lands in the Black Jack Field, Ara pahoe 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 in said Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

4. On November 21, 1988, the Commission entered Order No. 439-1 which approved a certain Unit Agreement for operation of the "J" Sand Formation underlying the below described lands, to-wit:

Township 4 South, Range 57 West, 6th P.M. Section 9: NE1/4, N1/2 SE1/4, SE1/4 SE1/4 Section 10: W1/2

5. That the records of the Commission show that no production is being reported and that all wells have been properly plugged and abandoned.

6. Based on the facts in the application and having been heard by the Hearing Officer on June 16, 1993, and recommended for approval, the Commission should enter an order approving the application.

ORDER

NOW, THEREFORE IT IS ORDERED that Order No. 439-1, entered November 25, 1988, is hereby rescinded and that the Rules and Regulation of the Oil and Gas Conservation Commission shall govern future operations for the lands described in Finding 4 contained herein above.

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 , 1993 as of June 18, 1993.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dated at Suite 380 Patricia C. Beaver, Secretary 1580 Logan Street Denver, Colorado 80203 June 23, 1993 ??