IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE PEACE PIPE FIELD, ARAPAHOE COUNTY, COLORADO Cause No. 259 Order No. 259-4

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 20, 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 Apex Operating Company, Inc. for an order amending Order No. 259-1 and allow a well to be located 660 feet FEL and 1980 feet FNL of Section 34, Township 4 South, Range 62 West, 6th P.M. to test both the "D" Sand formation and the "J" Sand formation and that such well be considered the well for the unit consisting of the E/2 of said Section 34.

FINDINGS

The Commission finds as follows:

1. Apex Operating Company, Inc., 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 October 17, 1972, the Commission authorized Order No. 259-1 to be issued by which 320-acre drilling and spacing units were established for the production of gas and associated hydrocarbons from the "J" Sand underlying certain lands in the Peace Pipe Field. The units consist of the E/2 and W/2 or the N/2 and S/2 of a section with the permitted well located in the NW/4 and SE/4 of a section.

5. Based on the facts stated in the verified application and exhibits submitted and receiving no objection and having been heard by the Director as Hearing Officer on February 15, 1990 and recommended for approval, the Commission should enter an order amending Order No. 259-1 and allow the completion of the existing well Hart 34-42 located in the SE/4 NE/4 of said Section 34 into the "J" Sand formation and that the well be considered the well for the unit consisting of the E/2 of said Section 34.

O R D E R

NOW, THEREFORE, IT IS ORDERED, that Order No. 259-1 is

hereby amended and that the well Hart 34-42 located 660 feet FEL and 1980 feet FNL in Section 34, Township 4 South, Range 62 West, 6th P.M. is at an exception location, and a completion attempt can be made into the "J" Sand formation for the production of gas and associated hydrocarbons underlying the herein described units and that the Hart 34-42 well is considered the designated well for the drilling and spacing unit consisting of the E/2 of said Section 34.

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 February 20, 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

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