REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 18, 1976 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 Fuel Resources Development Company, for an order extending the field limits of the Cathedral Field, and establishing for the additional area 160-acre drilling and spacing units for the production of gas from the Mancos formation as provided for in Order No. 269-1. The application was amended at the time of hearing to delete from the lands to be added to the spaced area the following: SW/4 Section 29; NE/4 Section 31; N/2, N/2 SE/4 Section 32; N/2 SW/4 Section 33, Township 2 South, Range 101 West and the S/2 N/2 Section 7; S/2 N/2 Section 8; S/2 NW/4 Section 9, Township 3 South, Range 101 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 embrace, in said Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

3. That on July 17, 1973, the Commission issued its Order No. 269-1 for the Cathedral Field which established 160-acre drilling and spacing units for the production of gas from the Mancos formation underlying certain lands in Rio Blanco County, Colorado Said drilling units consist of a governmental quarter section (or lots and/or quarter-quarter sections comprising approximately 160-acres), with the permitted well located no closer than 600 feet from the boundaries of the quarter section upon which it is located. Excep-tions may be granted to the permitted well location without notice and hearing, provided the owners of the contiguous and cornering 160-acre unit file with the Commission a waiver or consent in writing, agreeing to said locations.

4. That testimony presented at the hearing indicates a common source of supply of gas underlies, in addition to the area set forth in Order No. 269-1, the following described lands in Rio Blanco County, Colorado, to-wit: Township 2 South, Range 100 West, 6th P.M. Section 19: All Section 30: All Section 31: All Township 2 South, Range 101 West, 6th P.M. Sections 16 thru 18: All Sections 20 thru 28: All Section 29: N/2, SE/4 Section 33: N/2, SE/4 Sections 34 thru 36: All Township 3 South, Range 100 West, 6th P.M. Section 31: All

(over) Township 3 South, Range 101 West, 6th P.M. Section 2: All Section 3: All Section 4: SE/4 Section 7: S/2 Section 8: S/2 Section 9: S/2, NE/4 Section 10: All Section 11: All Sections 14 thru 23: All Section 25: S/2 Sections 26 thru 36: All Township 3 South, Range 102 West, 6th P.M. Section 3: SW/4 Sections 10 thru 15: All Sections 22 thru 27: All Sections 34 thru 36: All and that such area should be made subject to the provisions of Order No. 269-1.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the area as set forth in Finding 4 herein shall be subject to the provisions of Order No. 269-1, and the Cathedral Field shall henceforth include the following described lands in Rio Blanco County, Colorado, to-wit:

Township 2 South, Range 100 West, 6th P.M. Section 19: All Section 30: All Section 31: All Township 2 South, Range 101 West, 6th P.M. Sections 16 thru 18: All Sections 20 thru 28: All Section 29: N/2, SE/4 Section 33: N/2, SE/4 Section 34 thru 36: All Township 3 South, Range 100 West, 6th P.M. Section 5: SW/4 Sections 6 thru 8: All Section 9: S/2 Sections 16 thru 21: All Section 22: W/2 Sections 2 7 thru 31: All Township 3 South, Range 101 West, 6th P.M. Sections 1 thru 3: All Section 4: SE/4 Section 7: S/2 Section 8: S/2 Section 9: S/2, NE/4 Sections 10 thru 36: All Township 3 South, Range 102 West, 6th P.M. Section 3: SW/4 Sections 10 thru 15: All Sections 22 thru 27: All Sections 34 thru 36: All -- 2 --(#269-2)

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 order.

ORDERED this 18th day of October, 1976.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

-- 3 --(#269-2)