REPORT OF THE COMMISSION

TO ALL INTERESTED PERSONS AND TO WHOM IT MAY CONCERN:

This cause came on for hearing before the Commission on February 13, 1987 at 9:00 A.M. in Room 110, State Centennial Building, 1313 Sherman Street, Denver. Colorado, on the, application of Murfin Drilling company, for an order extending the spaced area of the Neenoshe Field as established by Order No. 388-1 by the addiction of certain lands in Kiowa County. FINDINGS The Commission finds as follows:

1. Murfin Drilling Company 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 the notice of the aforesaid hearing, and of the parties interested therein, as well as jurisdiction to promulgate the hereinafter prescribed order.

4. On August 16, 1982, the Commission authorized Order No. 388-1 to be issued by which 640-acre drilling and spacing units were established, consisting of governmental Sections, for the production of gas and associated hydrocarbons from the Middle Morrow Sand underlying Section 21, 22, 27 and 28, Township 19 South, Range 47 West, 6th P.M. The permitted well location was designated for each unit. I

5. Based on the facts stated in the verified application and exhibits submitted, and having received no objections, and having been heard by the Director as Hearing Officer on February 12, 1987, the Commission should enter an Order extending the spaced area of the Neenoshe Field by the addition of the following described lands in Kiowa County, Colorado.

Township 19 South, Range 47 West, 6th P.M. Section 19: All Section 29: All Section 20: All Section 30: All

6. The permitted well for the additional units as described in Finding 5 herein should be at a location no closer than 600 feet from the boundaries of that unit.

ORDER

NOW THEREFORE IT IS ORDERED that Order No. 388-1 is hereby amended and the lands described in Finding 5 herein shall be subjected to the provisions Of Order No. 388-1, except that the permitted well location for said area shall be at a location no closer than 600 feet from the boundaries of the unit. The spaced area of the Neenoshe Field shall henceforth consist of the following described lands in Kiowa County, Colorado:

Township 19 South, Range 47 West 6th P.M. Section 19: All Section 27: All Section 20: ALL Section 28: All Section 21: All Section 29: All Section 22: All Section 30: All

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

ENTERED this 25th day of February 1987, as of February 13, 1987.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

(388-3)