REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 17, 1978 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 LaWrence Barker, Jr., [or an order establishing an additional 320-acre drilling unit for the production of gas and associated hydrocarbons from the Niobrara formation underlying certain lands in the Douglas Creek-South Field, Rio Blanco County, Colorado.

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 August 17, 1976, the Commission issued its Order No. 311-1, which established a 320-acre drilling and spacing unit consisting of the W/2 Section 2, Township 4 South, Range 102 West, 6th P.M., For the production of gas and associated hydrocarbons From the Niobrara formation.

4. That the Niobrara formation constitutes a common source of supply of gas and associated hydrocarbons underlying the Following described lands in Rio Blanco County, Colorado, to-wit:

Township 4 South, Range 102 West, 6th P.M. Section 10: N/2

5. That in order to prevent waste of oil and gas, as defined by law; to protect the correlative rights of all parties concerned; to prevent the drilling or unneces-sary wells, and to insure proper and efficient development and promote conservation of the oil and gas resources, an order should be made establishing an additional 320-acre drilling and spacing unit for the production of gas and associated hydrocarbons from the Niobrara Formation, a common source of supply underlying the lands defined herein; that said unit should be 320-acres and consist of the lands as herein described, and the permitted well for said unit should be the No. 15 South Douglas Creek Fee, located in the SE/4NW/4 of said Section 10.

6. That all geological and engineering data concerning the Niobrara forma-tion indicate that one well will efficiently and economically drain an area of approximately 320-acres, and that the drilling unit of the size and shape hereinabove described is not smaller than the max[mum area that can be efficiently drained by one well producing From said Niobrara formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regula-tions shall apply hereafter to a well drilled, completed, or recompleted in the Niobrara formation underlying that portion of the Douglas Creek-South Field, herein described, in

(over) addition to other applicable rules and regulations and orders of the Commission, hereto-fore adopted and not in conflict herewith:

Rule 1. A three hundred twenty (320) acre drilling and spacing unit shall be and the same is hereby established for the production of gas and associated hydro-carbons from the Niobrara formation underlying the following described lands in the Douglas Creek-South Field, Rio Blanco County, Colorado, to-wit:

Township 4 South, Range 102 West, 6th P.M. Section 10: N/2 Rule 2. The permitted well for the above-described unit shall be the No. 15 South Douglas Creek Fee, located in the SE/4NW/4 of said Section 10.

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 order, rules and regulations.

ORDERED this 17th day of February, 1978.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

2 --(#311-3)