REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 18, 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 St. Michael Exploration and Bellwether Exploration Co. for an order to permit multiple completion of wells in the Codell and Niobrara formations and, where there is no difference in ownership between formations, to commingle production from said formations in the wellbore for wells located in the spaced area of the Bracewell and Greeley Fields, Weld County, Colorado.

FINDINGS

The Commission finds as follows:

1. St. Michael Exploration and Bellwether Exploration Co., as applicants herein, are interested parties 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 June 27, 1983, the Commission authorized Order No . 318-1 which established 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the Codell formation underlying lands in the Bracewell Field. By Order No. 381-2, the Niobrara formation was included in the spaced area of the Bracewell Field as provided for in Order No. 381-1. By Order No. 410-1, dated March 12, 1984, 80-acre drilling and spacing units were established for the production of oil and associated hydrocarbons from the Codell and Niobrara formations underlying lands in the Greeley Field, Weld County, Colorado.

5. Multiple completion of wells in the Codell and Niobrara formations, and where there is no difference in ownership between formations to commingle production from said formations in the wellbore, should be permitted for existing wells and wells to be drilled in the following described areas in Weld County, Colorado:

Township 6 North, Range 65 West, 6th P.M. Sections 19 thru 22 Sections 27 thru 30

Township 5 North, Range 66 West, 6th P.M. Section 1: N/2 Section 2: N/2

Township 6 North, Range 66 West, 6th P.M. Sections 15 thru 18 Section 19: E/2 Sections 20 thru 23 Section 24: S/2 Sections 25 thru 29, 32 thru 36

6. Effective date of the foregoing order should be upon approval by the FERC of the Niobrara formation as a "tight formation" as recommended by Order No. NG-44-1.

ORDER

NOW, THEREFORE, IT IS ORDERED, that multiple completion of wells in the Codell and Niobrara formations, and where there is no difference in ownership between formations, to commingle production from said formations in the wellbore is hereby permitted for existing wells and wells to be drilled in the following described area in Weld County, Colorado.

Township 6 North, Range 65 West, 6th P.M. Section 19 thru 22 Section 27 thru 30

Township 5 North, Range 66 West, 6th P.M. Section 1: N/2 Section 2: N/2

Township 6 North, Range 66 West, 6th P.M. Section 15 thru 18 Section 19: E/2 Section 20 thru 23 Section 24: S/2 Section 25 thru 29, 32 thru 36

.

IT IS FURTHER ORDERED, that the above order shall not become effective until approval is given by the FERC designating the Niobrara formation as a "tight formation" as recommended by the oil and Gas Commission on June 18, 1984 by Order No. NG-44-1.

ENTERED this 16 day of July 1984, as of June 18, 1984

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary 381-3 & 410-2)

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