REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 15, 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 applications of Gear Petroleum Co. for an order to add Sections 28 and 33, Township 13 South, Range 48 West, 6th P.M. to the spaced area of the Mt. Pearl Field as established by Order No. 426-1 and to pool all interests in a proposed 80-acre drilling and spacing unit consisting of the S/2SE/4 of said Section 28, according to 34-60-.116 C.R.S., as amended.

FINDINGS

The Commission finds as follows:

1. Gear Petroleum Co., 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 February 18, 1985, the Commission authorized Order No. 426-1 to be issued which established 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the Morrow formation underlying certain lands in the Mount Pearl Field, Cheyenne County, Colorado. The units consist of the E/2 and W/2 or the N/2 and S/2 of each quarter section with the permitted well located in the center of the NW/4 and SE/4 of each quarter section with a tolerance of 200 feet in any direction.

5. The burden of proof was not sustained by the applicant, that a common source of supply extends into said Sections 28 and 33 and that 80-acre drilling and spacing units would be the proper size units in said Sections 28 and 33, Township 13 South, Range 48 West, 6th P.M.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the applications of Gear Petroleum Co. for an order extending the 80-acre drilling and spacing units for the production of oil and associated hydrocarbons in the Mt. Pearl Field, Cheyenne County, Colorado and to pool all interests in a proposed unit consisting of the S/2SE/4 Section 18, Township 13 South, Range 48 West, 6th P.M. are hereby denied. 1985, as of July 15, 1985.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary