IN THE MATTER Of THE PROMULGATION AND ESTABLISHMENT Of FIELD RULES TO GOVERN OPERATIONS IN THE CODELLNIOBRARA FORMATION SPACED AREA, WELD COUNTY, COLORADO Cause No. 407 Order No. 407-12

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 20, 1985 at 9:00 A.M., in Room 110 State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Energy Search Co. for an order to re-designate certain 80-acre drilling and spacing units as provided for by Order No. 407-1 in the N/2 Section 6, Township 6 North, Range 66 West, or in the alternative to establish the NW/4NE/4 of said section as a drilling and spacing unit.

FINDINGS

The Commission finds as follows:

1. Energy Search 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 December 19, 1983, the Commission authorized Order No. 407-1 to be issued which, among other things, established 80-acre drilling and spacing units for the production of oil and/or gas from the Codell formation underlying certain lands in Adams, Boulder, Jefferson, Larimer and Weld Counties, Colorado. The units consist of the W/2 and E/2 or the N/2 and S/2 of a governmental quarter section with the permitted well located in the center of a quarter-quarter section with a tolerance of 200 feet with the option to drill an additional well in the undrilled 40-acre tract. The Niobrara formation was included by Order No. 407-10.

5. Based on the facts stated in the verified application and receiving no objections to the request, the Commission should re-designate the 80-acre drilling and spacing units in the N/2 Section 6, Township 6 North, Range 66 West and establish the NW/4NE/4 and the NE/4NW/4 as an 80-acre drilling and spacing unit, leaving the remaining units to be the SW/4NE/4 and the SE/4NW/4; the E/2NE/4; and the W/2NW/4 of said Section 6.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order No. 407-1 is hereby amended and the 80-acre drilling and spacing units for the production of oil and gas from the Codell and Niobrara formations in the N/2 Section 6, Township 6 North, Range 66 West are hereby re-designated to consist of the NW/4NE/4 and the NE/4NW/4; the SW/4NE/4 and the SE/4NW/4; the E/2NE/4; and the W/2NW/4 of said Section 6.

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 31ST day of May 1985, as of May 20, 1985.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary 2 --(407-12)