IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE CODELL-NIOBRARA SPACED AREA, WELD COUNTY, COLORADO Cause No. 407 Order No. 407-150

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 20, 1994, in Room 318, State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing, as required by law on the application of Snyder Oil Corporation, for an order to amend Cause No. 407 to allow a well to be located at an exception location for commingled production from the Codell and Niobrara Formations.

FINDINGS

The Commission finds as follows:

1. Snyder Oil 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. In Order No. 407-1, the Commission established 80-acre drilling and spacing units for the production of oil and/or gas and associated hydrocarbons from the Codell Formation. Wells shall be located in the center of the 40-acre tract or quarter-quarter section with a tolerance of 200 feet in any direction. In Order Nos. 407-10 and 407-13, the Commission amended Order No. 407-1 to include production from the Niobrara Formation in certain lands and to allow the downhole commingling of production from the Codell and Niobrara Formations, including Section 23, Township 4 North, Range 64 West, 6th P.M.

5. This matter was heard by the Hearing Officers who recommend approval based upon the testimony presented at the administrative hearing that an exception to the permitted well location is necessary to minimize interference with agricultural activities.

6. A protest was filed and withdrawn prior to the administrative hearing by Norwest Bank of Greeley, National Assosication, as Trustee of the Conrad J. Herbst Trust, who owns interest in the S1/2 SW1/4 of Section 14, Township 4 North, Range 64 West, 6th P.M.

7. An order of the Commission should be entered allowing the Coleman No. 23-414 Well to be drilled at an exception location 668 feet FNL and 348 feet FWL in the NW1/4 NW1/4 of Section 23, Township 4 North, Range 64 West, 6th P.M., for commingled production from the Codell and Niobrara Formations, for the 80-acre drilling and spacing unit consisting of the W1/2 NW1/4 of Section 23. ORDER

NOW, THEREFORE, IT IS ORDERED, that Order Nos. 407-1 and 407-10 shall be amended to allow the Coleman No. 23-414 Well to be drilled at an exception location 668 feet FNL and 348 feet FWL in the NW1/4 NW1/4 of Section 23, Township 4 North, Range 64 West, 6th P.M., for commingled production from the Codell and Niobrara Formations, for the 80-acre drilling and spacing unit consisting of the W1/2 NW1/4 of Section 23.

IT IS FURTHER ORDERED, that should a commercial well be completed at the location set forth above, the Commission shall, upon application of any interested person, take such action as will offset any advantage which the person securing the exception may have over other procedures by reason of the drilling of the well as an exception location.

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 day of , 1994, as of June 20, 1994.

AMENDED this day of , 1994.

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 August 19, 1994 ??

(407#150)