IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE WATTENBERG FIELD, WATTENBERG GAS SPACED AREA, AND THE CODELL-NIOBRARA SPACED AREA, WELD COUNTY, COLORADO Cause No. 407, 232, 499, 496, 493 Order No. 499-18, 232-97, 407-136, 493-27, 496-5

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission at 8:30 a.m. on May 17, 1993 in the 2nd Floor Auditorium, Colorado Department of Transportation, 4201 East Arkansas Avenue, Denver, Colorado on the verified application of Snyder Oil Corporation for an order approving a proposed allocation method for the below-listed well for production that may be obtained from the Dakota, "J" Sand, Codell and Niobrara Formations underlying the 320-acre drilling and s pacing unit, consisting of the W1/2 Section 32, Township 2 North, Range 65 West, 6th P.M., which also contains the 80-acre drilling and spacing unit consisting of the N1/2 NW1/4 of said Section 32, to-wit:

Well Name Location

Appel Heirs No. 32-30 W1/2 Sec. 32, Township 2 North, Range 65 West

in accordance with Rule 11 of Commission Order Nos. 499-15, 232-89, 407-125, 493-22, and 496-3.

FINDINGS

The Commission finds as follows:

1. That Snyder Oil Corporation, as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

2. That due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

3. That 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. That Terry and Mary Anderson, and Evangelina V. Tacorante, mineral interest owners in all or part of the above described units, did not approve the proposed allocation method contained as Exhibit "A" in Snyder Oil Corporation's letter to all mineral and working interests dated February 19, 1993, and that no protests to the application have been filed with the Commission.

5. That the Appel Heirs No. 32-30 Well is currently completed only in the Dakota Formation with production starting on March 29, 1993 and that no distribution of proceeds from sale of production from the well has taken place.

6. That all other interests in the above well have agreed to the proposed allocation method presented as Exhibit "A".

7. That based on the facts stated in the verified application, and having been heard by the Hearing Officer and recommended for approval, the Commission should enter an order accepting the proposed allocation method contained in the above-referenced Exhibit "A".

O R D E R

NOW, THEREFORE, IT IS ORDERED, that the allocation method contained in Exhibit "A" of the letter from Snyder Oil Corporation to all mineral and working interests dated February 19, 1993 be the approved allocation method for production to be obtained from the Dakota, "J" Sand, and Codell and Niobrara Formations from the below-listed well, to-wit:

Well Name Unit and Location Appel Heirs No. 32-30 W1/2 Sec 32, Township 2 North, Range 65 West

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/or all of the above orders.

ENTERED this day of , 1993 as of May 17, 1993.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Patricia C. Beaver, Secretary

Dated at Suite 380 1580 Logan Street Denver, Colorado 80203 May 20, 1993 ??

(499#18)