IN THE MATTER Of THE PROMULGATION AND ESTABLISHMENT Of FIELD RULES TO GOVERN OPERATIONS IN THE CODELL FORMATION IN ADAMS, BOULDER, JEFFERSON, LARIMER AND WELD COUNTIES, COLORADO Cause No. 407 Order No. 407-3

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 21, 1984 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 Skaer Enterprises, Inc. for an order deleting certain lands in Larimer and Weld Counties from the spaced area as established by Order No. 407-1 and make said lands subject to the general rules and regulations of the Commission.

FINDINGS

The Commission finds as follows:

1. Skaer Enterprises, Inc., 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 issued Order No. 407-1 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 E/2 and W/2 or the N/2 and S/2 of a governmental quarter section with the permitted well located in the center of the quarter-quarter section with a tolerance of 200 feet with the option to drill an additional well in the undrilled 40-acre tract.

5. Evidence presented at the hearing indicates that the Codell formation reservoir underlying the following described lands is not the same common source of supply as that identified in Order No. 407-1 and that operation and development of production from the Codell formation in this area should continue to be under the general rules and regulations of the Commission as in the past.

Township 5 North, Range 68 West, 6th P.M. Sections 17 thru 22, 27 thru 33 Township 5 North, Range 69 West, 6th P.M. Sections 24, 25, 36

Township 4 North, Range 68 West, 6th P.M. Sections 4 thru 8, 17 thru 20, 29 thru 31

Township 4 North, Range 69 West, 6th P.M. Sections 1, 12, 13, 23 thru 26, 35, 36

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following described lands are heresy deleted from the spaced area as established by Order No. 407-1 and shall be subject to the general rules and regulations of the Commission.

Township 5 North, Range 68 West, 6th P.M. Sections 17 thru 22, 27 thru 33 Township 5 North, Range 69 West, 6th P.M. Sections 24, 25, 36

Township 4 North, Range 68 West, 6th P.M. Sections 4 thru 8, 17 thru 20, 29 thru 31

Township 4 North, Range 69 West, 6th P.M. Sections 1, 12, 13, 23 thru 26, 35, 36

IT IS FURTHER ORDERED, that the remaining lands subject to the provisions of Order No. 407-1 for the Codell formation shall henceforth consist of the following described lands in Adams, Boulder, Jefferson, Larimer and Weld Counties, to-wit:

Township 1 North, Ranges 64 thru 70 West (inclusive), 6th P.M. All

Township 2 North, Ranges 64 thru 69 West (inclusive), 6th P.M. All Township 2 North, Range 70 West, 6th P.M. Sections 1 thru 5, 8 thru 36

Township 3 North, Ranges 64 thru 69 West (inclusive), 6th P.M. All

Township 3 North, Range 70 West, 6th P.M. Sections 1, 12, 13, 21 thru 28, 33 thru 36

Township 4 North, Ranges 64 thru 69 West (inclusive), 6th P.M. All except the following:

SW/4 Section 9, T. 4N., R. 67 W. Sections 4 thru 8, 17 thru 20, 29 thru 31, T. 4N. R. 68 W. Sections 1, 12, 13, 23 thru 26, 35 and 36, T. 4N. R. 69 W.

Township 5 North, Ranges 64 thru 68 West (inclusive), 6th P.M. All except the following:

N/2 Sections 1 and 2, T. 5 N., R. 66 W., Sections 17 thru 22, 27 thru 33, T. 5 N., R. 68 W.

Township 5 North, Range 69 West, 6th P.M. Sections 1 thru 4, 9 thru 16, 20 thru 23, 26 thru 29, 31 thru 35

Township 6 North, Range 64 West, 6th P.M. All

Township 6 North, Range 65 West, 6th P.M. Sections 1 thru 18, 23 thru 26, 31 thru 36

Township 6 North, Range 66 West, 6th P.M. Sections 1 thru 14 Section 19: W/2 Section 24: N/2 Sections 30 and 31

Township 6 North, Ranges 67 thru 68 West (inclusive), 6th P.M. All

Township 6 North, Range 69 West, 6th P.M. Sections 1 thru 4, 9 thru 16, 21 thru 28, 33 thru 36

Township 1 South, Ranges 64 thru 70 West (inclusive), 6th P.M. All

Township 2 South, Ranges 69 and 70 West (inclusive), 6th P.M. All -- 2 --(407-3)

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 17th day of June 1984, as of May 21, 1984.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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