REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on August 21, 1995 at 8:30 a.m., in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of HS Resources, Inc., for an order to allow the permitted well for the 80-acre drilling and spacing units located in the E1/2 and the SW1/4 of Section 22 and the W1/2 of Section 23, all in Township 5 South, Range 63 West, 6th P.M., to be located in either the center of the NE1/4 and the SW1/4 or the NW1/4 and SE1/4 of each quarter section, with a tolerance of 200 feet in any direction, for production from the "D" Sand Formation.

FINDINGS

The Commission finds as follows:

1. HS Resources, 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 February 20, 1973, the Commission issued Order No. 263-1 which established 80-acre drilling and spacing units for certain lands in the Antler Field for production of oil and associated hydrocarbons from the "D" Sand Formation, consisting of the E1/2 and W1/2 or the N1/2 and S1/2 of each quarter section, according to the governmental survey thereof, with the permitted well for each such drilling unit to be located in the center of the NE1/4 and SW1 /4 of each quarter section with a tolerance of 200 feet in any direction, including the SW1/4 and E1/2 of Section 22 and the W1/2 of Section 23, all in Township 5 South, Range 63 West, 6th P.M., Arapahoe County.

5. Testimony presented at the administrative hearing indicated that the approval to allow permitted wells to be located in alternate quarter-quarter sections is necessary for orderly development of the "D" Sand Formation on 80-acre drilling and spacing units.

6. Based upon the facts stated in the verified application, having received no protests to the application, and having been heard by the Hearing Officer who recommends approval, the Commission should enter an order allowing the permitted well for the 80-acre drilling and spacing units located in the E1/2 and the SW1/4 of Section 22 and the W1/2 of Section 23, all in Township 5 South, Range 63 West, 6th P.M., to be located in either the center of the NE1 /4 and the SW1/4 or the NW1/4 and SE1/4 of each quarter section, with a tolerance of 200 feet in any direction, for production from the "D" Sand Formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the permitted well for the 80-acre drilling and spacing units located in the E1/2 and the SW1/4 of Section 22 and the W1/2 of Section 23, all in Township 5 South, Range 63 West, 6th P.M., shall be located in either the center of the NE1/4 and the SW1/4 or the NW1/4 and SE1/4 of each quarter section, with a tolerance of 200 feet in any direction, for production from the "D" Sand Formation.

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 its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.

ENTERED this day of , 1995, as of August 21, 1995.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Patricia C. Beaver, Secretary Dated at Suite 801 1120 Lincoln Street Denver, Colorado 80203 September 20, 1995 ??