REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 15, 1982 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 Dome Petroleum Corporation, for an order establishing 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Mancos "B" formation underlying certain lands in Rio Blanco County, Colorado. The application was amended at the hearing concerning the permitted well location.

FINDINGS

The Commission finds as follows:

1. Dome Petroleum Corporation, 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. Evidence presented at the hearing indicates that the Mancos "B" formation constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Rio Blanco County, Colorado, to-wit:

Township 1 South, Range 102 West, 6th P.M. Section 10:All Section 29:All Section 16:All Section 31:All Section 20:All Section 32:All Section 21:All Section 33:All Section 28:All

5. In order to prevent waste of oil and gas, as defined by law; to protect the correlative rights of allparties concerned;to prevent the drilling of unnecessary wells, and to insure proper and efficient development and promote conservation of the oil and gas resources, an order should be made establishing 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Mancos "B" formation, a common source of supply underlying the lands defined herein; that said units should be 160-acres and consist of a quarter section, according to the governmental survey, and the permitted well for each unit should be located no closer than 600 feet from the boundaries of the unit, and no closer than 1200 feet from another well producing from the same formation. Exceptions may be granted by the Director to avoid surface hazards and topography, provided waivers or consents in writing are obtained from offset owners toward which the well is moved. Existing wells and locations should be considered the permitted wells for the units upon which they are located.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the Mancos "B" formation underlying the Douglas Creek North Field herein described, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith.

(over)

Rule 1. One hundred-sixty (160) acre drilling and spacing units shall be and the same is hereby established for the production of gas and associated hydrocarbons from the Mancos "B" formation underlying the following described lands in the Douglas Creek North Field, Rio Blanco County, Colorado, to-wit:

Township 1 South, Range 102 West, 6th P.M. Section 10: All Section 29: All Section 16: All Section 31: All Section 20: All Section 32: All Section 21: All Section 33: All Section 28: All Rule 2. Said drilling units shall consist of 160-acres and consist of a quarter section, according to the governmental survey. The permitted well shall be located no closer than 600 feet to the boundaries of the unit and no closer than 1200 feet from another well producing from the same formation. Exceptions may be granted by the Director to avoid surface hazards and topography, provided waivers or consents in writing are obtained from offset owners toward which the well is moved. Existing wells and locations shall be considered the permitted wells for the units upon which they are located.

IT IS FURTHER ORDERED, that the provisions contained in the above order and rules and regulations shall become effective forthwith.

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

ENTERED this 13th day of December 1982, as of November 15, 1982.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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