REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 20, 1981, at 9:00 A.M., in Room 110, State Centennial Building, Denver, Colorado, and was con-tinued to August 17, 1981, after giving Notice of Hearing as required by law, on the Commission's own motion, to determine the proper spacing for lands in the Mildred Field, Yuma County, Colorado.

FINDINGS

The Commission finds as follows:

1. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

2. 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. On November 21, 1977, the Commission issued its Order' No. 327-1 which established 640-acre drilling and spacing units for the production of gas from the Niobrara formation underlying certain lands in the Mildred Field. The spaced area was extended by Order No. 327-2, issued March 20, 1978. By Order No. 327-3, dated August 22, 1978, the size of the drilling and spacing units within the spaced area was reduced to 160-acres.

4. Civil Action No. C-83212 challenged the validity of said Order No. 327-3. A stipulation was agreed upon for settlement of said action in which the Commis-sion would hold an additional hearing concerning the proper spacing of the field.

5. No additional evidence was presented to the Commission at the hearing concerning this matter. The Commission, after reviewing the evidence previously sub-mitted, which was incorporated into this hearing, reaffirmed its previous position that the proper spacing for the production of gas from the Niobrara formation underlying lands in the Mildred Field should be 160-acre drilling and spacing units, and that the provisions of Order No. 327-3 should remain in effect.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the Oil and Gas Conservation Commission of the State of Colorado reaffirms its position that 160-acre drilling and spacing units for the production of gas from the Niobrara formation underlying the lands described in said Order No. 327-3 is the proper spacing, and that the provisions of Order No. 327-3 for the Mildred Field, Yuma County, Colorado, shall remain in effect.

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.

(over)

ENTERED this 9th day of September 1981, as of August 17, 1981.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

.

-- 2 --(#327-4)