This cause came on for hearing before the Commission on April 19, 1995 at 8:30 a.m. in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the amended application of Snyder Oil Corporation to approve an allocation method for two wells to be recompleted for commingled production from the "J" Sand, 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 Cause No. 232, the Commission established 320-acre drilling and spacing units for the production of gas from the "J" Sand in the Wattenberg Field with one well allowed for each unit to be located in the NE1/4 and SW1/4 and no closer than 990 feet to the boundaries of the quarter section. On August 21, 1979, the Commission issued Order No. 232-20 which allowed a second well to be drilled on each 320-acre unit, including Section 6, Township 4 North , Range 64 West, 6th P.M. and Section 35, Township 5 North, Range 64 West, 6th P.M.

5. 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 for certain lands and to allow the downhole commingling of production from the Codell and Niobrara Formations, including Section 6, Township 4 North, Range 64 West, 6th P.M. and Section 35, Township 5 North, Range 64 West, 6th P.M.

6. In Order Nos. 407-66 and 232-37, the Commission, among other things, allowed wells drilled, completed, or recompleted in the Codell and/or Niobrara Formations, where the production is commingled or dually completed with the "J" Formation, to be approved administratively, with additional rules established for well locations, unit designations and production allocation methods, for certain lands, including Section 6, Township 4 North, Range 64 West, 6t h P.M. and Section 35, Township 5 North, Range 64 West, 6th P.M.

7. Snyder Oil Corporation has proposed an allocation method for production from the "J" Sand Formation for the 320-acre drilling and spacing unit consisting of the W1/2 of Section 6 and the Codell and Niobrara Formations for the 80-acre drilling and spacing units consisting of the N1/2NW1/4 for the Ard No. 6-3I4J Well. In Order Nos. 407-189 and 232-144, the Commission approved the drilling of the Hoshiko No. 3-10H4J Well for production from the "J" Sa nd Formation for the 320-acre drilling and spacing unit consisting of the N1/2 of Section 35 and the Codell and Niobrara Formations for the 80-acre drilling and spacing unit consisting of the N1/2SE1/4 of Section 35.

8. Having received no protests and been heard by the Hearing Officers who recommend approval, the Commission should enter an order approving the proposed allocation method for production from the "J" Sand, Codell and Niobrara Formations. O R D E R

NOW, THEREFORE, IT IS ORDERED, that the allocation method for the Ard No. 6-3I4J Well, located in the NE1/4 NW1/4 of Section 6, Township 4 North, Range 64 West, 6th P.M. and the Hoshiko No. 3-10H4J Well, located in the NW1/4 SE1/4 of Section 35, Township 5 North, Range 64 West, 6th P.M. for production from the "J" Sand, Codell and Niobrara Formations is hereby approved.

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

Entered this day of , 1995, as of April 19, 1995.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Patricia C. Beaver, Secretary Dated at Suite 801 1120 Lincoln Street Denver, Colorado 80203 May 15, 1995 ??