REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on December 17, 1984, at 9:00 A.M., in suite 380, Logan tower Building, 1580 Logan Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of TXO Production Corporation, for an order granting an exception to Rule 318 of the Rules and Regulations of the Commission for a well to be drilled 300 feet from the south line and 500 feet from the east line Section 23, Township 15 South, Range 46 West, 6th P.M., for production from the Morrow formation.

FINDINGS

The Commission finds as follows:

1. TXO Production 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 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 of the parties jurisdiction to promulgate the hereinafter prescribed order.

4. The burden of proof was not sustained by the applicant than exception to Rule 318 for a well to be drilled at a location 500 feet from the south line and 500 feet from the east line Section 23, Township 15 South, Range 46 West, 6th P.M. should be allowed; therefore, the application should be denied.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the application of TXO Production Corporation requesting as exception to rule 318 of the rules and regulations of the Commission, for a well to be drilled 300 feet from the south line and 500 feet from the east line Section 23, Township 15 South, Range 46 west, 6th P.M. is hereby denied. ENTERED this 10th day of January 1985 as of

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary