REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on December 16, 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 law, on the verified application of W.R. Murfin d/b/a Murfin Drilling Company, for an order extending the limits of the spaced area of the Channing Field as provided by Order No. 424-1 by the addition of Section 34, Township 21 South, Range 46 West, 6th P.M.

FINDINGS

The Commission finds as follows:

1. W. R. Murfin d/b/a Murfin Drilling Company, 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 January 21, 1985, the Commission authorized Order No. 424-1 to be issued which established 640-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Middle Morrow Sandstone (McClave Sandstone) underlying certain lands in the Channing Field, Prowers County, Colorado. Each unit consists of a governmental section of land with the permitted well located no closer than 990 feet from the boundaries of the section line. 5. Based upon the facts stated in the verified application and exhibits submitted, and receiving no objections, and having been reviewed and recommended by the Director as Hearing Officer, the Commission should enter an order extending the spaced area of the Channing Field as established by Order No. 424-1 by the addition of Section 34, Township 21 South, Range 46 West, 6th P.M., and that a 640-acre drilling and spacing unit be established for said lands for the production of gas and associated hydrocarbons from the Middle Morrow Sandstone (McClave Sandstone) and the permitted well be located no closer than 990 feet from the section lines.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Section 3.4, Township 21 South, Range 46 West, 6th P.M. shall be included in the spaced area of the Channing Field and shall be subject to the provisions of Order No. 424-1 and the spaced area of the Channing Field for the production of gas and associated hydrocarbons from the Middle Morrow Sandstone (McClave Sandstone) shall henceforth consist of the following described lands in Prowers County, Colorado, to-wit:

Township 21 South, Range 46 West, 6th P.M. Sections 32 thru 34: All Township 22 South, Range 46 West, 6th P.M. Sections 2 thru 5: All Sections 9 thru 11: All

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

ENTERED this 10th day of January 1986, as of December 16, 1985.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary 2 " (424)