IN THE MATTER Of THE PROMULGATION AND ESTABLISHMENT Of FIELD RULES TO GOVERN OPERATIONS IN THE SORRENTO FIELD, CHEYENNE COUNTY, COLORADO Cause No. 349 Order No. 349-2

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 15, 1980 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 Mull Drilling Company, Inc., for an order extending the limits of the spaced area of the Sorrento Field as estab-lished by Order No. 349-1.

FINDINGS

The Commission finds as follows:

1. Mull Drilling Company, 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 July 16, 1979, the Commission issued Order No. 349-1 which established 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the Morrow Sandstone formation underlying certain lands in Cheyenne County, Colorado. The units consist of the E/2 and W/2 of each quarter section with the permitted well located in the center of the NW/4 and BE/4 of each quarter section, with a tolerance of 150-feet.

5. There is sufficient data to justify a determination that the common source of supply of oil and associated hydrocarbons from the Morrow Sandstone forma-tion extends beyond the present limits of the spaced area as established by Order No. 349-1. Therefore, the application should be granted and the following described lands should be included in the spaced area of the Sorrento Field and made subject to the pro-visions of Order No. 349-1.

Township 13 South, Range 48 West, 6th P.M. Section 31: All

Township 13 South, Range 49 West, 6th P.M. Section 34: All Section 36: All Section 35: All

Township 14. South, Range 48 West, 6th P.M. Section 6: All' Section 18: All Section 7: All

Township 14 South, Range 49 West, 6th P.M. Section 1: All Section 12: All Section 2: All Section 13: All Section 3: All Section 14: All Section 10: All Section 15: All Section 11: All

(over)

ORDER

NOW, THEREFORE, IT IS ORDERED, that the area set forth in Finding 5 herein shall be subject to the provisions of Order No. 349-1, and the spaced area of the Sorrento Field shall henceforth include the following described lands in Cheyenne County, Colorado, to-wit:

Township 13 South, Range 48 West, 6th P.M. Section 31: All

Township 13 South, Range 49 west, 6th P.M. Sections 19 thru,21; 28 thru 30; 31 thru 36

Township 13 South, Range 50 West, 6th P.M. Sections 24, 25 and 36

Township 14 South, Range 48 West, 6th P.M. Section 6: All Section 18: All . . Section 7: All

Township 14 South, Range 49 West, 6th P.M. Sections 1 thru 15

Township 14 South, Range 50 West, 6th P.M. Sections 1 and 12

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 25th day of September, 1980, as of September 15, 1980.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

(#349-2)