REPORT OF THE COMMISSION

This cause came On for hearing before the Commission on September 21, 1987, at 9:00 A.M., in Room 110, State Centennial Building, 1313 Sherman Street, Denver, Colorado, on the verified application of Fueld Resources Development Company (Fuelco), for an order amending Order No. 285-1 and 285-4 by deleting certain lands from the spacing provisions of said orders in Section 10, Township 7 North, Range 104 West, 6th P.M. and establish for the remaining lands in said section an irregular drilling and spacing unit.

FINDINGS

The Commission finds as follows:

1. Fuelco 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 December 20, 1973, the Commission issued Order No. 285-1, as corrected, which established 320 acre drilling and spacing units for the production of gas from the Dakota formation, Order No. 285-4 included the same spacing provisions for the production of gas from the Cedar Mountain formation. The E/2 and W/2 of Section 10, Township 7 South, Range 104 West 6th P.M. were designated drilling and spacing units by permits for wells to be drilled in said section.

5. Based on the facts stated in the verified application and exhibits submitted and having been heard and recommended by the Director as Hearing Officer on September 14, 1987 the Commission should enter an order deleting the following described lands from the spacing provisions of Order Nos. 285-1 and 285-4 in that they are part of a federal unit area:

Township 7 South, Range 104 West 6th PM Section 10: S/2 NW/4, SW/4, NW/4 SE/4, S/2 SE/4 and further that the following described lands remaining in said Section 10 be considered the drilling and spacing unit for the production of gas from the Dakota and Cedar Mountain formations with the permitted well at a location in the NE/4 NE/4 of said Section 10:

Township 7 South, Range 104 West 6th PM Section 10: NE/4, N/2 NW/4, NE/4 SE/4

ORDER

NOW, THEREFORE IT IS ORDERED that Order Nos. 285-1 and 285-4 are hereby amended and the following described lands are hereby deleted from the spacing provisions of said Order Nos. 285-1 and 285-4:

Township 7 South, Range 104 West 6th PM Section 10: S/2 NW/4, SW/4, NW/4 SE/4, S/2 SE/4 and further that the following described lands remaining in said Section 10 shall be the drilling and spacing unit for the production of gas from the Dakota and Cedar Mountain formations in accordance with the permitted well at a location in the NE/4 NE/4 of said Section 10:

Township 7 South, Range 104 West 6th PM Section 10: NE/4, N/2 NW/4, NE/4 SE/4 IT IS FURTHER ORDERED that the above order shall become effective forthwith. IT IS FURTHER ORDER that the Commission expressly reserves its rights, after giving notice and hearing, to alter, amend and/or repeal the above order. ENTERED this 9th day of October, 1987, as of September 21, 1987.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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