BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE CHEYENNE WELLS FIELD, CHEYENNE COUNTY, COLORADO	) ) ) )	CAUSE NO.  212 ORDER NO. 212-14

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission at 8:30 a.m. on November 21, 1995, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, on the verified application of Raydon Exploration, Inc., for an order allowing a well to be drilled at an exception location 2,086 feet FNL and 2,395 feet FEL in the SW¼ NE¼ of Section 9, Township 14 South, Range 44 West, 6th P.M., for production of oil and associated hydrocarbons from the Mississippian Formation for the 80-acre drilling and spacing unit consisting of the W½ of the NE¼ of said Section 9.

FINDINGS

                        The Commission finds as follows:

                        1.  Raydon Exploration, Inc. as applicant herein, is an interested party in the subject matter of the above-referenced matter.

                        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 October 15, 1968 the Commission authorized Order No. 212-1 to be issued which established 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the Mississippian Formation underlying the Cheyenne Wells Field in Cheyenne County, Colorado.  The units shall consist of the E½ and W½ or the N½ and S½ of a governmental quarter section, with the permitted well to be located in the center of the NE¼ and SW¼ of each quarter section, with a tolerance of 150 feet in any direction to avoid surface obstructions and hazards.

                        6.  Geological and engineering evidence presented at the administrative hearing indicated that the exception location was requested based on seismic interpretation that a well drilled 2,086 feet FNL and 2,395 feet FEL would likely cross two faults and the top of an anticline, encountering production from the Spergen Formation.

                        8.  Based on the facts stated in the verified application and having been heard by the Hearing Officers who recommended approval of the application, and having received no protests, the Commission should approve the request and amend Order No. 212-1 to allow a well to be drilled and completed for production of oil and associated hydrocarbons from the Mississippian Formation.

O R D E R

                        NOW, THEREFORE, IT IS ORDERED that Order No. 212-1 is hereby amended and a well is authorized to be drilled at an exception location 2,086 feet FNL and 2,395 feet FEL in the SW¼ NE¼ of Section 9, Township 14 South, Range 44 West, 6th P.M., for production from the Mississippian Formation, for the 80-acre drilling and spacing unit consisting of the W½ of the NE¼ of said Section 9.

                        IT IS FURTHER ORDERED, that should a commercial well be completed at the location set forth above, the Commission shall, upon application of any interested person, take such action as will offset any advantage which the person securing the exception may have over other procedures by reason of the drilling of the well as an exception location.

                        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  1995, as of November 21, 1995.

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                           OF THE STATE OF COLORADO

                                                                        By

                                                                                        Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

December 8, 1995