REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 21, 1985 at 9:00 A.M., in Room 110, State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by lay, 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 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. The burden of proof was not sustained by the applicant that an exception to Rule 318 for a well to be drilled at a location 1650 feet from the north line and 330 feet from the east line Section 126, Township 15 South, Range 46 West, 6th P.M. should be allowed; therefore, the application should be denied.

ORDER

NOW, THEREFORE, IF IS ORDERED, that the application of TXO Production Corporation requesting an exception to Rule 318 of the rules and regulations of the Commission, for a well to be drilled 1650 feet from the north line and 330 feet from the east line Section 26, Township 15 South, Range 46 West, 6th P.M. is hereby denied.

ENTERED this 1st day of February, 1985 as of January 21, 1985.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary