REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on. October 17, 1983 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 Mesa petroleum Co. for an order amending Order No. 353-1 and permit two (2) wells to be drilled and produced for gas and associated hydrocarbons from the Niobrara formation underlying each 160-acre drilling and spacing unit in the spaced area of the Eckley Field as established by Order No. 353-1.

FINDINGS

The Commission finds as follows:

1. Mesa' Petroleum Co., 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 August 20, 1979, the Commission issued Order No. 353-1 which established 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Niobrara formation underlying the following described lands in Yuma County, Colorado:

Township 3 North, Range 45 West, 6th P.M. Sections 2 thru 6: All Sections 8, 9: All Sections 15 thru 17: All

Township 4 North, Range 45 West, 6th P.M. Sections 26 thru 36: All

Township 3 North, Range 46 West, 6th P.M. Section 1: All Township 4 North, Range 46 west, 6th P.M. Section 25: All Sections 35 and 36: All

The permitted well is at a location no closer than 900 feet to the boundaries of the unit.

5. Geological and engineering evidence presented at the hearing indicates that although the Niobrara is a rather uniform formation underlying the spaced area, faulting in the area causes barriers which impede the flow of gas and one well is insufficient to adequately drain the gas from that part of the reservoir underlying the drilling and spacing units as established by Order No. 353-1. 6. The drilling of an additional well on each drilling and spacing unit is necessary to effectively and efficiently drain that part of the reservoir underlying the unit and will result in a greater ultimate recovery of gas reserves. The additional well should be located no closer than 600 feet from the boundaries of the unit and no closer than 660 feet from another well producing from the Niobrara formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, Order No. 353-1 pertaining to only one permitted well location on each 160-acre drilling and spacing unit for the production of gas and associated hydrocarbons is hereby amended and the following shall apply hereinafter to wells drilled completed or recompleted in said Niobrara formation underlying the lands. described herein, in addition to other applicable rules and regulations and orders of the Commission heretofore adopted and not in conflict herewith.

Rule 1. A second well, in addition to the permitted well as provided for in Order No. 353-1 is hereby authorized to be drilled on each 160-acre drilling and spacing unit for the production of gas and associated hydrocarbons from the Niobrara formation underlying the following described lands in the Eckley Field, Yuma County, Colorado, to-wit:

Township 3 North, Range 45 West, 6th P.M. Sections 2 thru 6: All Sections 8, 9: All Sections 15 thru 17: All Township 4 North, Range 45 West, 6th P.M. Sections 26 thru 36: All Township 3 North, Range 46 West, 6th P.M. Section 1: All Township 4 North, Range 46 West, 6th P.M. Section 25: All Sections 35 and 36: All

Rule 2. Said additional well shall be located no closer than 600 feet from the boundaries of the unit and no closer than 660 feet from another well producing from said Niobrara formation.

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 14th day of November 1983, as of October 17, 1983.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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