IN THE MATTER OF A REQUEST TO ISSUE AN EMERGENCY ORDER RESTRICTING PRODUCTION IN THE WEST LILLI FIELD AREA WELD COUNTY, COLORADO Cause No. 459 Order No. 459-1

REPORT OF THE COMMISSION

On March 8, 1988, Diversified Operating Corporation, by its attorney, filed a written request for the Commission to enter an emergency order restricting the production of wells located in Section 12, Township 8 North, Range 59 West, 6th P.M., Weld County,.Colorado operated by Benson Minerals Group to 125 barrels of oil per day. The basis of the request was that the production from said wells was from a common source of supply under Lilli Field, that the production rate of 350 barrels per day at the Travelers 12-10 was seriously damaging Diversified Operating Company's correlative rights, and that the water production was doing additional damage to the reservoir. On March 8, 1988, the Commission was furnished copies of the documents submitted by Diversified. On March 9, 1988 the Commission found as follows:

FINDINGS

1. The matter is scheduled to be heard at the next regular Commission hearing on March 21, 1988.

2. The current and future drilling and completion in the area will allow better interpretation of the reservoir or reservoirs at the time of hearing.

3.. Current production rate at the Travelers 12-10 well was in response to the Commission's request for information, and the Commission's request for a reduced rate on February 26, 1988.

4. There is insufficient reason to issue an emergency order at this time.

ORDER

THEREFORE IT IS ORDERED that an emergency order not be issued.

IT IS FURTHER ORDERED that the Commission expressly reserves its rights, after notice of hearing, to alter, amend or repeal any and/or all of the above order.

Entered this day of 1988, as of March 9, 1988.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dennis R. Bicknell, Secretary