REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 18, 1977 at 9 A.M. in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing, as required by law, on the application of Quest Oil Company for an order to reestablish and redesignate the two (2) drilling and spacing units designated as Units 4 and 5 and consisting of the N/2 and S/2 of Section 13, Township 6 South, Range 62 West, 6th P.M., or in the alternative to delete from the spaced area, as established by Order No. 268-2, all of Section 13 and the E/2 Section 14, Township 6 South, Range 62 West, 6th P.M.

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 September 17, 1974, the Commission issued its Order No. 268-2 for the Doubletree Field, which established seven (7) designated 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand underlying certain lands in Elbert County, Colorado known as the Doubletree Field.

4. That testimony presented at the hearing indicates that there is not sufficient data or evidence to support the fact that the portion of the spaced area consisting of all of Section 13 and the E/2 Section 14, Township 6 South, Range 62 West, 6th P.M. is underlain by gas and associated hydrocarbons as a common source of supply in the Doubletree Field, and in order to promote additional drilling, said lands should be deleted from the gas spaced area of the Doubletree Field, as established by Order No. 268-2, and made subject to the general rules and regulations of the Commission.

5. That the location of the well to be drilled by the applicant in the area to be deleted in the NW/4 NW/4 of said Section 13, should be in compliance with the per-mitted well locations as provided for in Order No. 268-2.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the lands consisting of all of Section 13 and the E/2 Section 14, Township 6 South, Range 62 West, 6th P.M., are hereby deleted from the gas spaced area of the Doubletree Field, as established by Order No. 268-2, and said lands shall no longer be subject to the provisions of said Order and shall be subject to the general rules and regulations of the Commission; how-ever, the well to be drilled by the applicant and located in the NW/4 NW/4 of said Section 13 shall be in compliance with the permitted well locations as provided for in Order No. 268-2.

IT IS FURTHER ORDERED, that the remaining lands in the gas spaced area of the Doubletree Field and subject to the provisions of Order No. 268-2 are described as follows:

(over)

Township 6 South, Range 62 West, 6th P.M. Unit No. 1: Section 1: S/2 Unit No. 2: Section 12: N/2 Unit No. 3: Section 12: S/2 Unit No. 7: Section 11: E/2

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any part of and/or all of the above order.

ORDERED this 18th day of April, 1977.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

(#268-4)