REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 15, 1995 at 8:30 a.m., at the Division of Wildlife, Hunter Safety Building, 711 Independent Avenue, Grand Junction, Colorado, after giving Notice of Hearing as required by law, on the verified application of HS Resources, Inc., for an order to allow the Miller No. 15-31 Well located in the SW1/4 SE1/4 of Section 31, Township 5 South, Range 62 West, 6th P.M., to be drilled at an exception locatio n for production from the "D" Sand Formation.

FINDINGS

The Commission finds as follows:

1. HS Resources, Inc., as applicant herein, 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 March 21, 1977, the Commission issued Order No. 321-1 which established 80-acre drilling and spacing units for certain lands in the Chinook Field for production of oil and associated hydrocarbons from the "D" Sand Formation, consisting of the N1/2 and S1/2 of each quarter section, according to the governmental survey thereof, with the permitted well for each such drilling unit to be located in the center of the SE1/4 and NW1/4 of each quarter sect ion, with a tolerance of 200 feet in any direction, including Section 31, Township 5 South, Range 62 West, 6th P.M., Arapahoe County.

5. Testimony presented at the administrative hearing indicated that a well was drilled and abandoned at the legal location in the SE1/4 SE1/4 of Section 31, Township 5 South, Range 62 West, 6th P.M., and that an exception to the legal location is necessary to develop the "D" Sand Formation reserves.

6. Based upon the facts stated in the verified application, having received no protests to the application, and having been heard by the Hearing Officer who recommends approval, the Commission should enter an order allowing the Miller No. 15-31 Well to be drilled at an exception location 660 feet FSL and 2400 feet FEL in the SW1/4 SE1/4 of Section 31, Township 5 South, Range 62 West, 6th P.M., for production from the "D" Sand Formation, for the 80-acre drilling and spacing unit consisting of the S1/2 SE1/4 of Section 31.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the Miller No. 15-31 Well is hereby approved to be drilled at an exception location 660 feet FSL and 2400 feet FEL in the SW1/4 SE1/4 of Section 31, Township 5 South, Range 62 West, 6th P.M., for production from the "D" Sand Formation, for the 80-acre drilling and spacing unit consisting of the S1/2 SE1/4 of Section 31.

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 orders.

ENTERED this day of , 1995, as of May 15, 1995.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Patricia C. Beaver, Secretary Dated at Suite 801 1120 Lincoln Street Denver, Colorado 80203 June 20, 1995 ??

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