REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 15, 1986 at 9:00 A.M. in Room 110, State Centennial Building, Denver, Colorado after giving Notice of Hearing, as required by law, on the verified application of George Dolezal (Dolezal) for an order granting an exception to Order No. 274-1 and allow an additional well on the unit consisting of the E/2 Section 4, Township 6 North, Range 92 West, 6th P.M. by the reentry of well No. a Hanawalt, located 1020 ft. from the South line and 420 ft. from the East line of said Section 4.

FINDINGS

The Commission finds as follows:

1. George Dolezal, as applicant, 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 August 21, 1973, the Commission authorized Order No. 274-1 to be issued by which 320 acre drilling and spacing units were established for the production of oil and gas from the Niobrara and Mesaverde formations underlying certain lands in Moffat County, Colorado. The permitted well location is no closer than 900 feet to the boundaries of the unit and no closer than 2640 feet to another existing well. The E /2 Section 4, Township 6 North, Range 92 West, 6th P.M. is a designated unit with the permitted well located 1733 feet FSL and 1686 feet FEL of said Section.

5. Based on the facts stated in the verified application. and exhibits submitted and receiving no objections, and having been heard and recommended by the Director as Hearing Officer, the Commission should enter an order allowing an additional well on the drilling and spacing unit consisting of the E/2 Section 4, Township 6 North, Range 92 West, 6th P.M. Bell Rock Field, Moffat County, Colorado by the re-entry of well No. 1 Hanawalt, located 1020 ft. from the South line and 420 ft. from the East line of said Section 4 for production from the Niobrara and Mesaverde formations.

ORDER

NOW THEREFORE IT IS ORDERED that Order No. 274-1 is hereby amended and an additional well is hereby allowed on the drilling and spacing unit consisting of the E/2 Section 4, Township 6 North, Range 92 West, 6th P.M. Bell Rock Field, Moffat County, Colorado by the re-entry of well No. 1 Hanawalt, located 1020 ft. from the South line and 420 ft. from the East line of said Section 4 for production from the Niobrara and mesaverde formations.

IT IS FURTHER ORDERED that the above order shall become effective forthwith.

ENTERED this 24th day of September 1986, as of September 15, 1986

C

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO By Frank J. Piro, Secretary

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(274-2)