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 JAMBOREE FIELD, ADAMS COUNTY, COLORADO	) ) ) )	CAUSE NO.  229 ORDER NO. 229-8

REPORT OF THE COMMISSION

                                  This cause came on for hearing before the Commission on May 18, 1992 at 8:30 a.m. in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Energy Minerals Corporation for an order amending Order 229‑2 to allow a well to be drilled at an exception location in the NW1/4 SW1/4 of Section 5, Township 2 South, Range 64 West, 6th P.M., Adams County, for the production of oil and associated hydrocarbons from the "D" and "J" Sands, for the 80-acre drilling and spacing unit consisting of the N1/2 SW1/4 of said Section 5.

FINDINGS

                                  The Commission finds as follows:

                                  1.  Energy Minerals Corporation 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 May 18, 1977, the Commission authorized Order No. 229‑2 to be issued, which amended Order No. 229-1 and established 80‑acre drilling and spacing units for the commingled production of oil and associated hydrocarbons from the "D" and "J" Sands underlying certain lands in the Jamboree Field, Adams County, Colorado.  The units consist of the E1/2 and W1/2 or the N1/2 and S1/2 of each quarter section, with the permitted well to be located in the NE1/4 and SW1/4 of each quarter section, with a tolerance of 200 feet in any direction.  The N1/2 SW1/4 of Section 5, Township 2 South, Range 64 West, 6th P.M. is included in these lands.

                                  5.  This matter was heard by the Hearing Officer who recommends approval based upon testimony presented at an administrative hearing showing that a well drilled in the NW1/4 SW1/4 of Section 5, Township 2 South, Range 64 West, 6th P.M.  would be more likely to encounter hydrocarbons than a well drilled at the permitted location.

                                  6.  No objections to the application were received and an order of the Commission should be entered allowing a well to be drilled at the above-described exception location.

O R D E R

                                  NOW, THEREFORE, IT IS ORDERED, that an exception is hereby granted to the spacing pattern established by Order No. 229-2, for the Jamboree Field, Adams County, Colorado, for a well to be drilled at a location in the center of the NW1/4 SW1/4 of Section 5, Township 2 South, Range 64 West, 6th P.M., Adams County, for commingled production from the "D" and "J" Sands and that said well shall be the permitted well for the unit upon which it is located.

                                  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 in the above order shall become effective forthwith.

                                  Entered this day of ,

1992, as of May 18, 1992.

                                                                        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 27, 1992