BEFORE THE OIL AND GAS CONSERVATION COMMISSION

                                                              OF THE STATE OF COLORADO

IN THE MATTER OF THE PROMULGATION AND                          )                    CAUSE NO. 232

ESTABLISHMENT OF FIELD RULES TO GOVERN                        )

OPERATIONS IN THE WATTENBERG GAS SPACED                    )                    ORDER NO. 232-100

AREA, ADAMS COUNTY, COLORADO      )    

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission on June 18, 1993  at 8:30 a.m. in Room 318, State Centennial Building, 1313 Sherman Street, Denver Colorado, after giving Notice of Hearing, as required by law, on the verified application of Heartland Oil and Gas Company for an order amending Cause No. 232 to allow the Colorado State C-4 well to be drilled at an exception location no closer than 600 feet from the north boundary and no closer than 600 feet from the west boundary of the NW1/4 SE1/4 of Section 16, Township 2 South, Range 64 West, 6th P.M., Adams County, Colorado for production from the "J" Sand Formation underlying the 320-acre drilling and spacing unit consisting of the S1/2 of said Section 16.

FINDINGS

                        The Commission finds as follows:

                        1.  Heartland Oil and Gas Company, as applicant herein, is an interested party in the subject matter of the above-entitled 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.  In Cause No. 232, the Commission established 320-acre drilling and spacing units with said units to consist of the N1/2 and S1/2 or the E1/2 and W1/2 of a governmental section for production from the "J" Sand Formation and with the authorized well to be located in the NE1/4 and the SW1/4 of each section no closer than 990 feet from the boundaries of the quarter section. By Order No. 232-20, the Commission authorized the drilling of a second well for each 320-acre drilling and spacing unit with the additional well to be located no closer than 990 feet from the boundaries of the quarter section upon which it is located.

                        5.  That Heartland Oil and Gas Company wishes to drill the second well, Colorado State C-4, for the 320-acre drilling and spacing unit consisting of the S1/2 of said Section 16 at an exception location no closer than 600 feet from the north boundary and no closer than 600 feet from the west boundary of the NW1/4 SE1/4 of said Section 16 for production from the "J" Sand Formation.

                        6.  Based on the facts stated in the verified application, receiving no protests, and having been heard by the Hearing Officer on June 16, 1993 and recommended for approval, the Commission should enter an order authorizing the exception location.

ORDER

                        NOW, THEREFORE, IT IS ORDERED, that Cause No. 232 is hereby amended to allow the Colorado State C-4 Well to be drilled at an exception location no closer than 600 feet from the north boundary and no closer than 600 feet from the west boundary of the NW1/4 SE1/4 of Section 16, Township 2 South, Range 64 West, 6th P.M., Adams County, Colorado for production from the "J" Sand Formation underlying the 320-acre drilling and spacing unit consisting of the S1/2 of said Section 16.   

                        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 it 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 June 18, 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

June 23, 1993