REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on August 21, 1979 at 9:00 A.M., in Room 318-A, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Niobrara Illuminating Gas Associates for an order to extend the limits of the gas spaced area of the De Nova Field, Washington County, Colorado.

FINDINGS

The Commission finds as follows:

1. Niobrara Illuminating Gas Associates, 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 November 18, 1978, the Commission issued Order No. 339-1 for the De Nova Field, which established 160-acre drilling and spacing units for the produc-tion of gas and associated hydrocarbons from the Niobrara formation. The units consist of a quarter section with the permitted well located no closer than 900 feet from the boundaries of the unit.

5. Testimony presented at the hearing indicates a common source of supply of gas underlies, in addition to the area set forth in Order No. 339-1, the following de-scribed lands in Washington County, Colorado, to-wit:

Township 2 South, Range 49 West, 6th P.M. Section 3: S/2 Section 10: N{; SE/4 Section 4: S/2 Section 15: All Section 5: S/2 Section 16: S/2 Section 6: S/2 Section 17: S/2 Section 7: W/2 Section 18: All and that such area be made subject to the provisions of said Order No. 339-1.

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.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the area set forth in Finding 5 herein shall be subject to the provisions of Order No. 339-1, and the spaced area of the De Nova Field shall henceforth include the following described lands in Washington County, Colorado, to-wit:

(over)

Township 2 South, Range 49 West, 6th P.M. Section 3: S/2 Section 9: All Section 4: S/2 Section 10: All Section 5: S/2 Section 15: All Section 6: S/2 Section 16: All Section 7: All Section 17: All Section 8: All Section 18: 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 provisions contained in the above orders shall become effective forthwith.

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 21st day of August, 1979.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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(#339-2)

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