REPORT OF THE COMMISSION

This cause came on for hearing before the Commission at 8:30 a.m. on September 25, 1995, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, on the amended verified application of Ballard Energy Limited Partnership 1992 for an order extending the Lewis "A" Formation as a common source of supply of gas and associated hydrocarbons for certain lands adjacent to the previously spaced area.

FINDINGS

The Commission finds as follows:

1. Ballard Energy Limited Partnership 1992, as applicant herein, is an interested party in the subject matter of the above-referenced matter.

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 March 18, 1985, the Commission issued Order No. 427-1, amended on February 15, 1995, which established irregular drilling and spacing units ranging in size from 130.67 to 204.04 acres for production of gas and associated hydrocarbons from the Lewis "A" Formation, with the permitted well to be located no closer than 600 feet from the boundaries of the unit, allowing exceptions to the permitted well location to be granted by the Director for topogra phic reasons or provided offset owners consent to exception locations.

5. On July 11, 1995, BTA Oil Producers filed a Motion to Intervene and a motion for continuance in this matter stating that additional lands should be included in the extension of the Lewis "A" Formation as a common source of supply in the West Side Canal Field. On July 17, 1995, the Application was amended to include three additional sections and on August 31, 1995, another amendment to the Application was filed withdrawing two of these sections. The Motion to Intervene was subsequently withdrawn September 9, 1995, and an administrative hearing was held on September 21, 1995.

6. At the time of the administrative hearing, testimony was presented to describe the Lewis Formation as the subsurface interval from 3,850 feet to 4,300 feet as shown on the Dual Induction Log for the Sand Hills Federal No. 3-19 Well located in the SE1/4 of Section 19, Township 12 North, Range 91 West, 6th P.M. Additional testimony indicated that the Lewis Formation is a common source of supply and that 160 acres is not smaller than the area that can be economically and effectively drained by one well.

7. Based on the facts stated in the amended verified application and having been heard by the Hearing Officer who recommends approval of the application, the Commission should enter an order extending the West Side Canal Field to include the below-listed lands in Moffat County for production of gas and associated hydrocarbons from the Lewis Formation, with the permitted well to located in accordance with the provisions of Order No. 427-1.

Township 12 North, Range 91 West, 6th P.M. Section 29: Lots 9 through 16 (S1/2) Section 30: Lots 13 through 20 (S1/2) Section 31: Lots 5 through 20 (All) Section 32: Lots 1 though 12, E1/2NW1/4, W1/2NE1/4 (All) Section 33: All

O R D E R

NOW, THEREFORE, IT IS ORDERED that Order No. 427-1 shall be amended to extend the West Side Canal Field to include the below-listed lands for production of gas and associated hydrocarbons from the Lewis Formation.

Township 12 North, Range 91 West, 6th P.M. Section 29: Lots 9 through 16 (S1/2) Section 30: Lots 13 through 20 (S1/2) Section 31: Lots 5 through 20 (All) Section 32: Lots 1 though 12, E1/2NW1/4, W1/2NE1/4 (All) Section 33: All

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

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.

ENTERED this day of , 1995, as of September 25, 1995.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Patricia C. Beaver, Secretary

Dated at Suite 801 1120 Lincoln Street Denver, Colorado 80203 September 28, 1995 ??

(427#2)