REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 20, 1978 at 9 Kkktt, in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of J-W Operating Company, for an order to extend the limits of the gas spaced area of the Waverly Field, Yuma County, Colorado.

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 November 21, 1977, the Commission issued its Order No. 328-1 for the Waverly Field, which established 640-acre drilling and spacing units for the production of gas from the Niobrara formation underlying certain lands in Yuma County, Colorado. Each unit consists of a governmental section with the permitted well located no closer than 990 feet from the boundaries of the quarter section upon which it is located. In addition, a hearing is to be held in nine (9) months to review additional drilling data concerning the spaced area.

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. 328-1, the following described lands in Yuma County, Colorado, to-wit: Township 4 North, Range 46 West, 6th rrrtt Sections 8, 16, 17, 20, 21 & 30: All and that such area be made subject to the provisions of said Order No. 328-1.

5. That the existing locations, drilling and/or producing wells in the area described herein, be the permitted wells for the units upon which they are located.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the area set forth in Finding 4 herein shall be subject to the provisions of Order No. 328-1 and the spaced area of the Waverly Field shah henceforth include the following described lands in Yuma County, Colorado, to-wit: Township 3 North, Range 46 West, 6th rrrtt Section 6: All

Township 4 North, Range 46 West, 6th rrrtt Sections 8, 16, 17, 20, 21, 29, 30, 31 and 32: All

(over)

IT IS FURTHER ORDERED, that the existing locations, drilling and/or producing wells in the area described in Finding 4 herein shall be the permitted well locations for the units upon which they are located.

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

ORDERED this 20th day of March, 1978.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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(#328-2)