REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 20, 1994 at 8:30 a.m., in Room 318, State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Gasco, Inc., for an order to allow an additional well to be drilled on the 160-acre drilling and spacing units established in the Cathedral Field, for production of gas and associated hydrocarbons from the Mancos Formation underlying certain lands in Rio Blanco County, Colorado.

FINDINGS

The Commission finds as follows:

1. Gasco, 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 in said Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

4. Testimony presented at the administrative hearing indicated that one well will not efficiently and economically drain an area of approximately 160-acres, and that in order to prevent the waste of oil and gas, as defined by law, to protect correlative rights of all parties concerned, and to insure proper and efficient development and promote conservation of the oil and gas resources of the State, an order should be entered allowing an additional well to be drilled on each 160-acre drilling and spacing unit for the production of gas and associated hydrocarbons from the Mancos Formation for the below-described lands.

Township 2 South, Range 101 West, 6th P.M. Section 16: W1/2, SE1/4 Section 17: All Section 18: All Section 20: All Section 21: All Section 22: All Section 25: All Section 26: All Section 27: All Section 28: All Section 29: N1/2, SE1/4 Section 33: E1/2 Section 35: All Section 36: All

Township 3 South, Range 101 West, 6th P.M. Section 1: NW1/4 Section 3: NE1/4

5. A protest was filed by Schuh & Associates, Inc. and withdrawn prior to the administrative hearing.

6. Based upon the facts stated in the verified application, and having been heard by the Hearing Officers who recommend approval, the Commission should enter an order allowing an additional well to be drilled on each 160-acre drilling and spacing unit for the production of gas and associated hydrocarbons from the Mancos Formation underlying the herein-described additional lands in Rio Blanco County, Colorado.

O R D E R

NOW THEREFORE IT IS ORDERED, that an additional well is hereby allowed to be drilled on each 160-acre drilling and spacing unit for the production of gas and associated hydrocarbons from the Mancos Formation underlying the below-described lands in the Cathedral Field in Rio Blanco County, Colorado, for production from the Mancos Formation.

Township 2 South, Range 101 West, 6th P.M. Section 16: W1/2, SE1/4 Section 17: All Section 18: All Section 20: All Section 21: All Section 22: All Section 25: All Section 26: All Section 27: All Section 28: All Section 29: N1/2, SE1/4 Section 33: E1/2 Section 35: All Section 36: All

Township 3 South, Range 101 West, 6th P.M. Section 1: NW1/4 Section 3: NE1/4

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

ENTERED this day of , 1994, as of June 20, 1994.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Patricia C. Beaver, Secretary Dated at Suite 380 1580 Logan Street Denver, Colorado 80203 July 8, 1994 ??

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