REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 21, 1990 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 verified application of Bert A. Lear for an order limiting the withdrawal of fluids from a well #1 Asmus located 2215 feet from the south line and 2215 feet from the east line of the SE/4, Section 18, Township 2 South, Range 55 West, 6th P.M., currently completed in the "J" Sand and operated by R.C. Qualls. Bert A. Lear is the operator of a well #3 Gilbert located in the SE/4 NW/4 of said Section 18, which is currently producing oil from the same "J" Sand horizon and it is alleged that the excess withdrawal of fluids from the #1 Asmus will cause premature depletion and watering out of the #3 Gilbert leading to the premature abandonment of the #3 Gilbert and waste of the remaining resource in the reservoir.

FINDINGS

The Commission finds as follows:

1. That Bert A. Lear, 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 following extensive testimony taken in this matter, the Commission denied the application.

O R D E R

NOW, THEREFORE, IT IS ORDERED, that the application of Bert A. Lear concerning the above-mentioned matter is not approved.

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 ,

1990, as of May 21, 1990.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dennis R. Bicknell, Secretary

Dated at Suite 380 1580 Logan Street Denver, Colorado 80203

1254A