REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 21, 2981, at 9:00 A.M. in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the Commission's own motion, to deter-mine the proper spacing for lands in the Rock Creek Field. Yuma County. Color"ado.

FINDINGS

The Commission finds as follows:

1. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

2. 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. On August 21, 1979, the Commission issued its Order No. 351-1 which established 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Niobrara formation underlying certain lands in the Rock Creek Field.

4. Civil Action No. 79-CV-8079 challenged the validity of said Order No. 351-1. A stipulation was agreed upon for settlement of said action in which the Com-mission would hold an additional hearing concerning the proper spacing of the field.

5. No additional evidence was presented to the Commission at the hearing concerning this matter. The Commission, after reviewing the evidence previously sub-mitted, which was incorporated into this hearing, reaffirmed its previous position that the proper spacing for the production of gas from the Niobrara formation underlying lands in the Rock Creek Field should be 160-acre drilling and spacing units, and that the pro-visions of Order No. 351-1 should remain in effect.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the Oil and Gas Conservation Commission of the State of Colorado reaffirms its position that 160-acre drilling and spacing units for the production of gas from the Niobrara formation underlying the lands described in said Order No. 351-1 is the proper spacing and that the provisions of Order No. 35 1-1 for the Rock Creek Field, Yuma County, Colorado, shall remain in effect.

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal arty and/or all of the above order.

ENTERED this 7th day of 1981, as of September 21, 1981. OIL AND GAS

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary