IN THE MATTER OF THE PROMULGATION AND          CAUSE NOS. 284
ESTABLISHMENT OF FIELD RULES TO GOVERN
OPERATIONS IN THE BARREL SPRINGS                         ORDER NO. 284-7
FIELD, PROWERS COUNTY, COLORADO

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission at 8:30 a.m. on May 19, 1997 in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, on the application of Thomas L. Spring for an order allowing the drilling of a well to be located at an exception location 1100 feet FSL and 800 feet FEL in the SEĽ SEĽ of Section 28, Township 25 South, Range 45 West, 6th P.M., for production of gas and associated hydrocarbons from the Morrow Formation for the 320-acre drilling and spacing unit consisting of the E˝ of said Section 28.

FINDINGS

The Commission finds as follows:

1. Thomas L. Spring, as applicant herein, is an interested party in the subject matter of the above-referenced matter.

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 December 18, 1973, the Commission issued Order No. 284-1 which established 320 acre drilling and spacing units for the production of gas and associated hydrocarbons from the Morrow Formation underlying certain lands in the Barrel Springs Field, with the units to consist of any combination on two contiguous governmental quarter sections, with the permitted well to be located no closer than 990 feet from the boundaries of the unit, including Section 28, Township 25 South, Range 45 West, 6th P.M.

5. At the time of the administrative hearing, testimony was presented that an exception to the permitted well location is necessary to recover additional Morrow reserves that were not recovered by the well previously drilled at a legal location and subsequently plugged and abandoned due to a casing leak The exception location is necessary to maintain adequate distance from the plugged and abandoned well.

6. At the time of the administrative hearing, Thomas L. Spring agreed to be bound by oral order of the Commission.

7. Based on the facts stated in the application, having received no protests to the application, and having been heard by the Hearing Officer who recommends approval of the application, the Commission should enter an order allowing a well to be drilled at an exception location 1100 feet FSL and 800 feet FEL in the SEĽ SEĽ of Section 28, Township 25 South, Range 45 West, 6th P.M., for production of gas and associated hydrocarbons from the Morrow Formation for the 320-acre drilling and spacing unit consisting of the E˝ of said Section 28.

O R D E R

NOW, THEREFORE, IT IS ORDERED that Order No. 284-1 shall be amended to allow a well to be drilled at an exception location 1100 feet FSL and 800 feet FEL in the SEĽ SEĽ of Section 28, Township 25 South, Range 45 West, 6th P.M., for production of gas and associated hydrocarbons from the Morrow Formation for the 320-acre drilling and spacing unit consisting of the E˝ of said Section 28.

IT IS FURTHER ORDERED, that should a commercial well be completed at the location set forth above, the Commission shall, upon application of any interested person, take such action as will offset any advantage which the person securing the exception may have over other procedures by reason of the drilling of the well as an exception location.

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 29th day of May, 1997, as of May 19, 1997.

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 May 29, 1997

(284-7)