REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 20, 1973 at 9 A.M., in the Revenue Department Hearing Room, State Capitol Annex, Denver, Colorado, after giving notice of Hearing as required by law, oh the amended application of Arapaho Petroleum, Inc., for an order deleting certain lands from and adding lands to the spaced area, and changing the drilling and spacing units as established by Order No. 252-1 for the Left Hand Field, Kiowa County, Colorado.

FINDINGS

The Commission finds as follows:

1. That due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

2. 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.

3. That on April 18, 1972, the Commission issued its Order No. 252-1 which, among other things, established twenty-one (21) 640-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Keyes (Lower Morrow) Sandstone underlying the Left Hand Field, Kiowa County, Colorado, with the permitted well for each designated unit to be located within a radius of 1320 feet from the center of such units. Certain wells, already drilled, were considered exceptions.

4. That by subsequent drilling and development in the spaced area, the limits of the common source of supply of gas and associated hydrocarbons in the Keyes (Lower Morrow) Sandstone has been more accurately defined. Therefore, Order No. 252-1 should be amended and the following described lands should be deleted from the spaced area of the Left Hand Field, Kiowa County, Colorado:

Township 18 South, Range 47 West, 6th P.M. Section 17: SW/4 Section 27: NE/4 Section 18: S/2 Section 29: W/2 Section 19: All Section 30: All Section 20: W/4 Section 31: All Section 26: NW/4 Section 32: W/2 Township 19 South, Range 47 West, 6th P.M. Section 5: E/2 NW/4 Section 6: N/2

(over)

Township 18 South, Range 48 West, 6th P.M. Section 13: S/2 Section 25: All Section 14: SE/4 Section 26: E/2 Section 23: E/2 Section 35: NE/4 Section 24: All Section 36: N/2, SE/4

Township 19 South, Range 48 West, 6th P.M. Section 1: NE/4 and said lands be made subject to the general rules and regulations of the Commission, and the following described lands should be added to said field:

Township 18 South, Range 47 West, 6th P.M. Section 35: SE/4 Township 19 South, Range 47 West, 6th P.M. Section 2: E/2 Section 10: All Section 3: SW/4 Section 11: All Section 4: SE/4 Section 14: N/2 Section 9: N/2 Section 15: N/2

5. That in order to prevent the waste of gas, as defined by law; to protect the correlative rights of all parties concerned; to prevent the drilling of unnecessary wells, and to insure proper and efficient development, and to promote conservation of the gas resources of the State, Order No. 252-2 should further be amended to re-establish, for the remaining and additional lands, thirteen designated units consisting of 640-acres, more or less, and one designated unit consisting of approximately 480-acres, and that the permitted well for each such designated unit be located within a radius of 1320 feet from the center of each unit.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order No. 252-1 is hereby amended and the lands as described in Finding 4 herein are hereby deleted from the Left Hand Field; and the following rules and regulations shall apply to wells heretofore and hereafter drilled and completed or recompleted in the Keyes (Lower Morrow) Sandstone, as herein defined, in addition to other rules, regulations, and orders of the Commission heretofore adopted and not in conflict herewith:

Rule 1. Thirteen drilling and spacing units of six hundred forty (640) acres each and one unit of four hundred eighty (480) acres shall be and the same are hereby established for the production of gas and associated hydrocarbons from the Keyes (Lower Morrow) Sandstone, common source of supply underlying the remaining lands of the Left Hand Field, and additional lands as described in Finding 4 herein, and said units shall be numbered and described as follows:

Kiowa County Unit No. l T. 18 S., R. 47 W., 6th P.M. Sec. 27: SW/4 Sec. 33: NE/4 Sec. 28: SE/4 Sec. 34: NW/4 Unit No. 2 T. 18 S., R. 47 W., 6th P.M.

Sec. 28: W/2 Sec. 29: E/2

2 ( #252 - 2)

Unit No. 3 T. 18 S., R. 47 W., 6th P.M. Sec. 34: S/2 T. 19 S., R. 47W., 6th P.M. Sec. 3: N/2 Unit No. 4 T. 19 S., R. 47 W., 6th P.M. Sec. 3: S/2 Sec. 10: N/2 Unit No. 5 T. 19 S., R. 47 W., 6th P.M. Sec. 10: S/2 Sec. 15: N/2 Unit No. 6 T. 18 S., R. 47 W., 6th P.M. Sec. 35: S/2' T. 19 S., R. 47 W., 6th P.M. Sec. 2: N/2 Unit No. 7 T. 19 S., R. 47 W., 6th P.M. Sec. 2: S/2 Sec. 11: N/2 Unit No. 8 T, 19 S., R. 47 W., 6th P.M. Sec. S/2 Sec. 14: N/2 Unit No. 9 T. 18 S., R. 47 W., 6th P.M. Sec. 21: SE/4 Sec. 27: NW/4 Sec. 22: SW/4 Sec. 28: NE/4 Unit No. 10 T. 18 S., R. 47 W., 6th P. M Sec. 20: E/2 Sec. 21: W/2 Unit No. 11 T. 18 S., R. 47W., 6th P.M. Sec. 26: SW/4 Sec. 34: NE/4 Sec. 27: SE/4 Sec. 35: NW/4 Unit No. 12 T. 18 S., R. 47 W., 6th P.M. Sec. 33: S/2 T. 19 S., R. 47W., 6th P.M. Sec. 4: N/2 Unit No. 13 T. 19 S., R. 47 W., 6th P.M. Sec. 4: S/2' Sec. 9: N/2 Unit No. 14 T. 18 S., R. 47 W., 6th P.M. Sec. 32: E/2 Sec. 33: NW/4 Rule 2. The permitted well for each drilling and spacing unit shall be located within a radius of 1320 feet from the center of each unit and the wells already drilled shall be the permitted wells for the units upon which they are located, as follows: Unit 1, Well No. 1-E Merrick, located in the C NE/4 NE/4 Section 33, Township 18 South, Range 47 West, 6th P.M.; Unit 2, Well No. 1 Teal, located in the C NW/4 SW/4 Section 28, Township 18 South, Range 47 West, 6th P.M.

-- 3 --(#252-2)

IT IS FURTHER ORDERED, that this 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, rules, or regulations.

ORDERED this 20th day of November 1973.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

(#252-2)