REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 19, 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 to amend Order No. 327-3 (CORRECTED) to extend the limits of the spaced area of the Mildred Field.

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. Testimony was heard by the Hearing Officer that indicates a common source of supply of gas underlies, in addition to the area set forth in Order No. 327-3 (CORRECTED), the following described lands in Yuma County, Colorado, to-wit:

- 1 -(327-8)

Township 2 South, Range 45 West, 6th P.M. Section 7: W/2 Section 18: W/2 Section 19: All

Township 2 South, Range 46 West, 6th P.M. Sections 1, 9, 10, 11, 22: All

6. The existing locations, drilling and/or producing wells in the area described in Finding 5 herein, be the permitted wells for the units upon which each is located.

7. No objections to the application were received and the Hearing Officer recommends the application be approved based upon the geological and engineering testimony presented at the administrative hearing.

O R D E R

NOW, THEREFORE, IT IS ORDERED, that the area set forth in Finding 5 herein shall be subject to the provisions of Order No. 327-3 (CORRECTED), and the spaced area of the Mildred Field shall henceforth include the following described lands in Yuma County, Colorado, to-wit: -2 -(327-8)

Township 2 South, Range 45 West, 6th P.M. Section 7: W/2 Section 18: W/2 Section 19: All

Township 2 South, Range 46 West, 6th P.M. Section 1: All Sections 9 through 16: All Sections 22 through 24: All

IT IS FURTHER ORDERED, that the existing well locations, drilling and/or producing wells in the area described in Finding 5 herein, shall be the permitted well locations for the units upon which they are located.

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

IT IS FURTHER ORDERED, that the Commission expressly reserves the right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.

Entered this day of , 1990, as of November 19, 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

0794I - 3 -(327-8)