REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 17, 1977 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 Taiga Energy, Inc. for an order to extend the limits of the spaced area of the Thunder Field as established by Order No. 319-1. The application was amended at the hearing to allow for a change in location for the permitted well in the unit consisting of the NE/4 Section 22, Township 4 South, Range 102 West, 6th P.M.

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 February 18, 1977, the Commission issued its Order No. 319-1, which established 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Mancos "B" formation underlying the Thunder Field, Rio Blanco County, Colorado. The units consist of a governmental quarter section with the permitted well located in the center of the SE/4 of each quarter section with a tolerance of 200 feet in any direction.

4. That testimony presented at the hearing indicates a common source of supply of gas underlies, in addition to the area set forth in Order No. 319-1, the following described lands in Rio Blanco County, Colorado, to-wit:

Township 4 South, Range 102 West, 6th P.M. Section 20: S/2, NE/4 Section 21: All Section 22: All and further providing that such additional area be made subject to the provisions of Order No. 319-1, however the permitted well for each unit in said additional area be located in the center of each quarter section, with a tolerance of 200 feet in any direction except that the permitted well for the unit consisting of the NE/4 of said Section 22 be located no closer than 600 feet from the boundaries of said quarter section and further that exceptions to the permitted well locations be granted administratively for topographic reasons, pro-vided the offset owners file a waiver or consent in writing agreeing to the exception. In addition, the following should be considered the locations for the permitted wells for the units upon which each is located:

Well Name Location

Township 4 South, Range 102 West, 6th P.M.

Taiga l-G-20 1330' from the north line and 1759' from the east line NE/4 Section 20

Taiga 3-1-20 1277' from the west line and 1392' from the south line SW/4 Section 20 (ov e r )

Taiga 2-F-20 1571' from the north line and 1786' from the west line NW/4 Section 20

Taiga 7-F-21 1623' from the north line and 1333' from the west line NW/4 Section 21

Taiga 14-1-20 1333' from the south line and 1315' from the east line SE/4 Section 20

Taiga 9-J-21 1527' from the south line and 1540' from the east line SE/4 Section 21

Taiga 8-G-21 1478' from the north line and 1739' from the east line NE/4 Section 21

Taiga 10-N-21 1059' from the south line and 1420' from the west line SW/4 Section 21

Taiga 12-J-22 1357' from the east line and 1636' from the south line SE/4 Section 22

Taiga 13-1-22 1362' from the south line and 1229' from the west line SW/4 Section 22

Taiga 11-F-22 1533' from the north line and 1433' from the west line NW/4 Section 22

ORDER

NOW, THEREFORE, IT IS ORDERED, that the area as set forth in Find-ing 4 herein shall be included in the spaced area of the Thunder Field and shall be subject to the provisions of Order No. 319-1 and the Thunder Field shall henceforth include the following described lands in Rio Blanco County, Colorado, to-wit:

Township 4 South, Range 102 West, 6th P.M. Section 17: S/2 Section 20: All Section 18: S/2 Section 21: All Section 19: All Section 22: All

IT IS FURTHER ORDERED, that the permitted well for each unit in the additional area shall be located in the center of each quarter section, with a tolerance of 200 feet in any direction, except that the permitted well in the unit consisting of the NE/4 of said Section 22 shall be located no closer than 600 feet to the boundaries of the quarter section and further that exceptions to the permitted well locations be granted administratively for topographic reasons, provided the offset owners file a waiver or consent in writing agreeing to the exception. In addition, the wells and locations as described in Finding 4 herein shall be considered the locations for the permitted wells for the units upon which each is located.

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.

ORDERED this 17th day of October, 1977.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

(#319-2)