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 SMOKY CREEK FIELD, CHEYENNE COUNTY, COLORADO	) ) ) )	CAUSE NO.   222 ORDER NO.   222-10

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission at 8:30 a.m. on September 20, 1993, in Room 318, Centennial Building, 1313 Sherman Street, Denver, Colorado, on the verified application of Mull Drilling Company, Inc. for an order allowing the H & M Beek No. 1 Well to be drilled at an exception location in the center of the SE1/4 SE1/4 of Section 20, Township 13 South, Range 44 West, 6th P.M., for production of oil from the Mississippian Formation for the 80-acre drilling and spacing unit consisting of the E1/2 of the SE1/4 of said Section 20.

FINDINGS

                        The Commission finds as follows:

                        1.  Mull Drilling Company, 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 21, 1969 the Commission authorized Order No. 222-1 to be issued which established 80-acre drilling and spacing units for the production of oil and associated hydrocarbons underlying the Smoky Creek Field in Cheyenne County, Colorado.  The units shall consist of the E1/2 and W1/2 or the N1/2 and S1/2 of a governmental quarter section, with the permitted well to be located in the center of the NE1/4 and SW1/4 of each quarter section, with a tolerance of 150 feet in any direction to avoid obstruction and hazards.

                        5.  The Buttes Oil and Gas No. 1-10 Well and the North American Exploration No. 1-20X Nelson Twin Well were previously drilled at legal locations in the NE1/4 SE1/4 of said Section 20 and both wells were plugged and abandoned in November 1989.

                        6.  Evidence presented at the administrative hearing indicated that a well in the SE1/4 SE1/4 of Section 20, Township 13 South, Range 44 West, 6th P.M. is necessary in order to recover all the hydrocarbons in the Mississippian Formation underlying the 80-acre drilling and spacing unit consisting of the E1/2 SE1/4 of said Section 20.

                        7.  That the H & M Beek No. 1 Well should be authorized to be drilled at an exception location in the center of the SE1/4 SE1/4 of said Section 20 for the 80-acre drilling and spacing unit consisting of the E1/2 SE1/4 of said Section 20 for production from the Mississippian 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. 222-1 to allow an exception well to be drilled and completed for production from the Mississippian Formation.

O R D E R

                        NOW, THEREFORE, IT IS ORDERED that Order No. 222-1 is hereby amended and the H & M Beek No. 1 Well is authorized to be drilled at an exception location in the center of the SE1/4 SE1/4 of Section 20, Township 13 South, Range 44 West, 6th P.M., with a tolerance of 150 feet in any direction for surface hazards for production from the Mississippian Formation, for the 80-acre drilling and spacing unit consisting of the E1/2 of the SE1/4 of said Section 20.

                        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 September 20, 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

September 27, 1993