IN THE MATTER OF THE PROMULGATION                 CAUSE NO. 329
AND ESTABLISHMENT OF FIELD RULES TO 
GOVERN OPERATIONS IN THE SCHRAMM                ORDER NO. 329-5    
FIELD, YUMA COUNTY, COLORADO 

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 9, 2001, at 10:00 a.m., in Suite 801, The Chancery Building, Denver, Colorado, after giving Notice of Hearing, as required by law, on the Commission’s own motion to correct the setbacks allowed for first wells drilled in 160-acre drilling and spacing units inadvertently excluded from Amended Order No. 329-4.

FINDINGS

The Commission finds as follows:

1. The Commission 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 have 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 23, 1994, the Commission issued Order No. 329-4 which allowed an additional well to be drilled in each 160-acre drilling and spacing unit for various sections in Townships 1 and 2 North, Ranges 46 and 47 West 6th P.M., for production of gas and associated hydrocarbons from the Niobrara Formation. The order approved the permitted location for any additional well to be located no closer than 560 feet from the outer boundaries of the 160-acre drilling and spacing unit. The application seeking this order included a request to allow any wells drilled as first wells in the 160-acre drilling and spacing units to also be allowed to be located no closer than 560 feet from the outer boundaries of the 160-acre drilling and spacing unit. This request was inadvertently excluded from Order No. 329-4.

5. On June 1, 2001, the Commission requested a hearing be docketed to correct the setbacks allowed for first wells drilled in 160-acre drilling and spacing units inadvertently excluded from Amended Order No. 329-4.

6. No protests to the notice were received and the Commission should issue an order to replace Amended Order No. 329-4 to correct the setbacks allowed for first wells drilled in 160-acre drilling and spacing units.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order No. 329-4 is hereby corrected to allow any first well drilled for production from the Niobrara Formation in the 160-acre drilling and spacing units described below to be located no closer than 560 feet from the outer boundaries of the 160-acre drilling and spacing unit. In addition, the permitted location for any additional well shall be located no closer than 560 feet from the outer boundaries of the 160-acre drilling and spacing unit for the lands described below:

Township 1 North, Range 46 West, 6th P.M.
Sections 4 through 9: All

Township 1 North, Range 47 West, 6th P.M.
Sections 1 through 3: All
Sections 10 through 12: All
Sections 14 and 15: All

Township 2 North, Range 46 West, 6th P.M.
Sections 31 through 33: All

Township 2 North, Range 47 West, 6th P.M.
Sections 34 through 36: All

IT IS FURTHER ORDERED, that the rules and regulations contained herein 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, rules and regulations.

ENTERED this 18th day of July, 2001 as of July 9, 2001.

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 July 18, 2001

(329-5)