IN THE MATTER Of THE PROMULGATION AND ESTABLISHMENT Of FIELD RULES TO GOVERN OPERATIONS IN THE SHIRE GULCH FIELD (CORCORAN FORMATION), MESA COUNTY, COLORADO Cause No. 347 Order No. 347-4

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 19, 1981 at 9:00 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law on the application of Chandler & Associates, Inc., for an order extending the limits of the spaced area of the Shire Gulch Field as established by Order No. 347-1.

FINDINGS

The Commission finds as follows:

1. Chandler & Associates, Inc., 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 January 15, 1979, the Commission issued Order No. 347-1 which established 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Corcoran formation underlying certain lands in Mesa County, Colorado. The units consist of a quarter section of land, with the permitted well located no closer than 600 feet from the boundaries of the unit upon which it is located.

5. There is sufficient data to justify a determination that the common source of supply of gas and associated hydrocarbons from the Corcoran formation extends beyond the present limits of the spaced area as established by Order No. 347-1. There-fore, the application should be granted and the following described lands should be included in the spaced area of the Shire Gulch Field (Corcoran formation) and made subject to the provisions of Order No. 347-1.

Township 9 South, Range 96 West, 6th P.M. Section 32: All Township 10 South, -Range 96 West, 6th P.M. Section 5: All

ORDER

NOW, THEREFORE, IT IS ORDERED, that the area set forth in Finding 5 herein shall be subject to the provisions of Order No. 347-1 and the spaced area of the Shire Gulch Field (Corcoran formation) shall henceforth include the following desc-ribed lands in Mesa County, Colorado, to-wit:

Township 9 South, Range 96 West, 6th P.M. Section 31: All Section 32: All

(over)

Township 10 South, Range 96 West, 6th P.M. Section 5: All Section 6: All

Township 9 South, Range 97 West, 6th P.M. Section 35: All Section 36: All Township 10 South, Range 97 West, 6th P.M. Section 1: All Section 2: All

IT IS FURTHER ORDERED, that the provisions contained in the above order 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.

ENTERED this 17th day of March, as of October 19, 1981.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

2 --

(#347-4)