REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 20, 1985 at 9:00 Kkktt, in Room 110, State Centennial Building, 1313 Sherman Street, Denver, Colorado, and was continued to June 17, 1985 at 9:00 Kkktt in Room 110, State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law on two (2) applications of Holiday Resources, Inc., requesting an exception to Rule 318 of the Rules and Regulations of the Commission, and allow (1) a well to be drilled 200 feet from the east line and 1980 feet from the south line of Section 24, Township 9 South, Range 57 West, 6th rrrtt, Rubicon Field, Elbert County, Colorado.

FINDINGS

The Commission finds as follows:

1. Holiday Resources, Inc., 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. Based on the facts stated in the verified application and the exhibits submitted, and review and recommendation by the Director, the Commission, at the hearing on May 20, 1085, approved the exception location 200 feet from the east line and 1980 feet from the south line, Section 24, Township 9 South, Range 57 West, 6th rrrtt HoWever, since there was a protest, the Commission continued the hearing to the next scheduled hearing date on June 17, 1985 to consider the exception location 300 feet from the east line and 2233 feet from the north line of said Section 24.

5. The protest by Marlin Oil Co. was withdrawn concerning the exception location 300 feet from the east line 2233 feet from the north line of said Section 24, providing Marlin is allowed to produce its well, the No. 1-24 State which was drilled at a location in the center of the SE/4NE/4 of said Section 24, and further, that Marlin be provided the data on the two wells drilled as exceptions.

6. If a commercial well is completed at the locations set forth above, the Commission should, upon application of any interested person, take such action as will offset any advantage which the person securing the exceptions may have over other producers by reason of the drilling of the wells as exceptions, including suitable provisions to prevent the production from the wells of more than their just and equitable share.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception to Rule 318 of the rules and regulations of the Commission is hereby granted for a well to be drilled at a location (1) 200 feet from the east line and 1980 feet from the south, and a well to be drilled at a location (2) 300 feet from the east line and 2233 feet from the north line Section 24, Township 9 South, Range 57 West, 6th rrrtt, Rubicon Field, Elbert County, Colorado.

IT IS FURTHER ORDERED, that Well No. 1-24 State, located in the center of the SE/4NE/4 Section 24, Township 9 South, Range 57 West, and operated by Marlin Oil Co., shall be allowed to continue producing and that the data obtained from the drilling of the two (2) wells as exceptions shall be provided to Marlin Oil Co.

IT IS FURTHER ORDERED, that if a commercial well is completed at the locations set forth above, the Commission shall, upon application of any interested person, take such action as will offset any advantage which the person securing the exceptions may have over other producers by reason of the drilling of the wells as exceptions, including suitable provisions to prevent the production from the wells of more than their just and equitable share.

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

ENTERED this day of July 1985, as of June 17, 1985.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary