REPORT OF THE COMMISSION

TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:

This cause came on for hearing before the Commission on June 15, 1987, 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 Commission's own motion as a result of Order No. 426-12 which continued the production restriction in the field and further ordered a hearing to be held at the June 1987 hearing date at which time, unless a unit agreement and unit operating agreement have been entered, the Commission would take such further action as it deems appropriate.

FINDINGS

The Commission finds as follows:

1. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

2. 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.

3. Although there was disagreement by representatives of operators in the Field as to changes in the restriction order of the Commission pending finalization of unitization, it was agreed that all parties are close to an agreement toward unitization and that only a short additional period of time was needed.

4. In view of the above, an additional period of time until the July 1987 hearing date should be given during which time the production restriction as provided for in Order No. 426-9(corrected) should remain in effect.

5. A hearing should be held on the July 1987 hearing date at which time, unless a Unit Agreement and Unit Operating Agreement have been finalized, operators in the Field should be requested to appear and present testimony in order for the Commission to make the proper determination for operations in the field.

ORDER

NOW, THEREFORE IT IS ORDERED that Order No. 426-9 (corrected) and subsequent orders providing for production restrictions on wells producing from the Morrow formation underlying lands in the Mt. Pearl Field, Cheyenne County, Colorado shall remain in effect.

IT IS FURTHER ORDERED that a hearing shall be held at the July 20, 1987 hearing date at which time, unless a Unit Agreement and Unit Operating Agreement have been finalized for the Mt. Pearl Field, operators in the field are requested to appear at such hearing and present testimony in order for the Commission to make the proper determination for operations of the field.

IT IS FURTHER ORDERED that the above orders shall become effective forthwith.

ENTERED this 2nd day of July 1987, as of June 15, 1987.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary 2 --(426-14)