IN THE MATTER Of THE PROMULGATION AND ESTABLISHMENT Of FIELD RULES TO GOVERN OPERATIONS IN THE BRACEWELL FIELD, WELD COUNTY, COLORADO Cause No. 381 Order No. 381-6

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 19, 1991, in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing, as required by law on the application of Bataa Oil, Inc. for a well to be drilled at an exception location 2270 feet FSL and 960 feet FEL in Section 21, Township 6 North, Range 66 West, 6th P.M., Weld County, Colorado, for the 80-acre drilling and spacing unit consisting of the E/2 SE/4 of said Section 21, for production of oil, gas and associated hydrocarbons from the Codell and Niobrara formations underlying said lands.

FINDINGS

The Commission finds as follows:

1. Bataa Oil Inc. as applicant herein, is an interested party in the subject matter of the above-entitled 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 June 27, 1983, the Commission authorized Order No. 381-1 to be issued, which among other things, established 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the Codell formation underlying the below-1isted lands in Weld County, Colorado. The units consist of the E/2 and W/2 or the N/2 and S/2 of each quarter section, according to governmental survey, with the permitted well located, except for Sections 17, 18, 19 and 20, in the center of the NE/4 and the SW/4 of each quarter section, with a tolerance of 200 feet in any direction.

Township 5 North, Range 66 West, 6th P.M. Section 1: N/2 Section 2: N/2 Township 6 North, Range 66 West, 6th P.M. Sections 15 through 18: All Section 19: E/2 Sections 20 through 23: All Section 24: S/2 Sections 25 through 29: All Sections 32 through 36: All

5. The Commission authorized Order No. 381-2 to be issued on June 18, 1984 which amended Order No. 381-1 to include production from the Niobrara formation and Order No. 381-3 was authorized to be issued on June 18, 1984 which allowed multiple completion and commingling in the Codell and Niobrara formations. On February 18, 1985, the Commission authorized Order No. 381-5 to be issued, which amended Order Nos. 381-1, 381-2 and 381-3 to allow an option well to be drilled on the undrilled 40-acre tract. 6. Based on the facts stated in the verified application and having been heard by the Hearing Officer who recommended approval of the application based on pipeline obstructions and geologic testimony, and having received no protests, the Commission should enter an order allowing a well to be drilled at an exception location for the 80-acre drilling and spacing unit described above, for the production of oil, gas and associated hydrocarbons.

ORDER

NOW, THEREFORE, IT IS ORDERED, that, an exception to the permitted well location as provided for in Order No. 381-1 for the Bracewell Field is hereby granted for a well to be drilled 2270 feet FSL and 960 feet FEL in Section 21, Township 6 North, Range 66 West, 6th P.M., Weld County, Colorado, for production of oil, gas and associated hydrocarbons from the Codell and Niobrara formations, for the 80-acre drilling and spacing unit consisting of the E/2 SE/4 of said Section 21.

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 27th day of March 1991, as of March 19, 1991.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Patricia C. Beaver, Secretary

Dated at Suite 380 1580 Logan Street Denver, Colorado 80203 March 27, 1991 10891

-- 2 (381-6)