REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 15, 1990 at 8:30 a.m. in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of J-W Operating Company for an order granting an exception to the permitted well locations as provided for in Order No. 327-3 (CORRECTED) and allow a well to be drilled 600 feet FSL and 600 feet FEL in the SE/4 SE/4 of Section 15 for the unit consisting of the SE/4 of said Section 15, in Township 2 South, Range 46 West, 6th P.M., Yuma County, Colorado, for production from the Niobrara formation underlying these lands.

FINDINGS

The Commission finds as follows:

1. J-W Operating Company 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 August 21, 1978, the Commission authorized Order No. 327-3 (CORRECTED) to be issued, which established 160-acre drilling and spacing units for the production of gas from the Niobrara formation underlying the below-listed lands in Yuma County, Colorado:

Township 2 South, Range 46 West, 6th P.M. Sections 12 thru 16: All Sections 23 and 24: All

The drilling units consist of a governmental quarter section of land, according to the governmental survey thereof, with the permitted well to be located no closer than 900 feet to the boundaries of the quarter section upon which it is located.

5. The matter was heard by the Hearing Officer who

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recommends approval based upon the geologic testimony presented at an administrative hearing.

6. No objections to the application were received and an order of the Commission should be entered allowing a well to be drilled at the above-described exception location.

O R D E R

NOW, THEREFORE, IT IS ORDERED, that an exception to the permitted well location as provided for in Order No. 327-3 (CORRECTED) 1or the Mildred Field is hereby granted for a well to be drilled 600 feet FSL and 600 feet FEL in the SE/4 SE/4 of Section 15, Township 2 South, Range 46 West, 6th P.M., Yuma County, Colorado, for production from the Niobrara formation for the unit consisting of the SE/4 of Section 15.

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IT IS FURTHER ORDERED, that the provision in the above order shall become effective forthwith.

Entered this day of ,

1990, as of October 15, 1990.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Patricia C. Beaver, Secretary

Dated at Suite 380 1580 Logan Street Denver, Colorado 80203

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