REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 18, 1982 at 9:00 A.M., in Room 110, State Centennial Building, Denver, Colorado after giving Notice of Hearing as required by law, on the application of Macey & Mershon Oil, Inc., for an order extending the limits of the spaced area of the Chieftain Field as established by Order Nos. 291-1 and 291-3.

FINDINGS

The Commission finds as follows:

1. Macey & Mershon Oil, Inc., as applicants herein, are interested parties 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 May 21, 1974, the Commission issued its Order No. 291-1 for the Chieftain Field which, among other things, established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand underlying certain lands in Adams County, Colorado. Said units consist of the E/2 and W/2 or the N/2 and S/2 of a governmental section, with the permitted well located in the NW/4 and SE/4 of each section and no closer than 990 feet from the boundaries of the quarter section. The spaced area was extended by Order No. 291-3.

5. Testimony presented at the hearing indicates a common source of supply of gas and associated hydrocarbons underlies, in addition to the area set forth in Order Nos. 291-1 and 291-3 the following described lands in Adams County, Colorado, to-wit:

Township 2 South, Range 63 West, 6th P.M. Section 8: N/2 and that such area should be made subject to the provisions of Order Nos. 291-1 and 291-3.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the area as set forth In Finding 5 herein shall be included in the spaced area of the Chieftain Field and shall be subject to the provisions of Order Nos. 291-1 and 291-3 and the Chieftain Field shall henceforth include the following described lands in Adams County, Colorado, to-wit:

Township 2 South, Range 63 West, 6th P.M. Section 8: All Section 19: All Section 9: All Section 20: All Section 10: All Section 21: All Section 15: All Section 22: All Section 16: All Section 28: All Section 17: All Section 29: All Section 18: S/2 Section 30: All (over)

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 order.

ENTERED this 17th day of November 1982, as of October 18, 1982.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

(#291-9)