REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 16, 1985 at 9:00 A.M., in Room 110 State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Machii-Ross Petroleum Co. for an order amending Order No. 250-12 and allow the drilling of an additional well for production from the Sussex and Shannon formations underlying certain lands in the Spindle Field, Weld County, Colorado. In addition, that downhole commingling and multiple zone completion be allowed for production from the Sussex, Shannon, Niobrara and Codell formations.

FINDINGS

The Commission finds as follows:

1. Machii-Ross Petroleum Co., 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, 1976, the Commission issued Order No. 250-12 which allowed the drilling of an additional well on certain 80-acre drilling and spacing units, established by previous orders in Cause No. 250, for the production of oil from the Sussex and/or Shannon formations and allowed downhole commingling or multiple zone completion for production from said formations. The following described lands were not included in said Order No. 250-12. Township 2 North, Range 67 West, 6th P.M. Section 8: All Section 9: W/2 Section 18: N/2 Township 2 North, Range 68 West, 6th P.M. Section 13: W/2 Section 14: SE/4 Section 23: All Section 24: NW/4, W/2 NE/4

5. Based upon the facts stated in the verified application and exhibit submitted, and receiving no objections, and having been reviewed and recommended for approval by the Director as hearing officer on September 12, 1985, the Commission should enter an order allowing the drilling of an additional well for the production from the Sussex and Shannon formations on each 80-acre drilling and spacing unit located in the area described in Finding 4 herein, and that the location of such additional wells should be in accordance with the provisions of Order No. 250-12. In addition, downhole commingling and multiple zone completion should be allowed for wells located in said area for the production from the Sussex, Shannon, Niobrara and Codell formations.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order No. 250-12 is hereby amended and an additional well is hereby allowed to be drilled for production from the Sussex and Shannon formations on each 80-acre drilling and spacing unit located in the following described area: Township 2 North, Range 67 West, 6th P.M. Section 8: All Section 9: W/2 Section 18: N/2 Township 2 North, Range 68 West, 6th P.M. Section 13: W/2 Section 14: SE/4 Section 23: All Section 24: NW/4, W/2 NE/4 and that location of such wells shall be in accordance with the provisions of Order No. 250-12.

IT IS FURTHER ORDERED, that downhole commingling and multiple zone completion shall be allowed for wells located in the hereinabove described area for the production from the Sussex, Shannon, Niobrara and Codell formations.

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith. ENTERED this 30th day of September 1985, as of September 16, 1985.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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