IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT of FIELD RULES TO GOVERN OPERATIONS IN THE FOUNDATION CREEK FIELD, RIO BLANCO COUNTY, COLORADO Cause No. 287 Order No. 287-2

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 Provident Resources, Inc. to amend Order No. 287-1 to include the production of gas and associated hydrocarbons from the Dakota formation, a common source of supply, as well as the Cedar Mountain formation.

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

3. That on January 15, 1974, the Commission issued its Order No. 287-1 which established a 640-acre drilling and spacing unit consisting of Section 35, Township 4 South, Range 102 West, 6th P.M., for the production of gas and associated hydrocarbons from the Cedar Mountain formation, with the permitted well the No. 1 Steele, located 1250 feet from the north line and 2525 feet from the west line of said Section 35.

4. That testimony presented at the hearing indicates that in addition to the Cedar Mountain formation as being a common source of supply of gas and associated hydrocarbons there is also the Dakota formation as a common source of supply of gas and associated hydrocarbons underlying the area as spaced by Order No. 287-1, and as described in Finding 3 herein. Therefore, Order No. 287-1 should be amended to include the Dakota formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order No. 287-1 is heresy amended to include the production of gas and associated hydrocarbons from the Dakota formation underlying the 640-acre drilling and spacing unit consisting of Section 35, Township 4 South, Range 102 West, 6th P.M., Foundation Creek Field, Rio Blanco County Colorado, and that the permitted well shall be the No. 1 Steele located 1250 feet from the north line and 2525 feet from the west line of said Section 35.

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

ORDERED this 18th day of October, 1976.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary