REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on August 20, 1990 at 8:30 a.m., in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Tamarack Energy, Inc. for an order deleting certain lands from the provisions of Order No. 431-1 with the deleted lands to be included in a federal gas unit known as the Muddy Creek Unit. FINDINGS

The Commission finds as follows:

1. Tamarack Energy 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 upon the facts stated in the verified application and receiving no protests and having been reviewed and recommended by the Director, the Commission should enter an order deleting the below-listed lands from the provisions of Order No. 431-1, to-wit:

Township 11 South, Range 90 West, 6th P.M. Section 1: All Section 2: All Section 11: All

O R D E R

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to wells drilled, completed, or recompleted in the Cozzette and Corcoran formations underlying certain lands in the Coal Basin Field, herein described, in addition to other applicable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

Rule 1. One hundred sixty (160) acre drilling and spacing

units shall be and the same are hereby established for the production of gas and associated hydrocarbons from the Cozzette and Corcoran formations underlying the following described lands in Gunnison & Delta Counties, Colorado, to-wit:

Gunnison County Township 10 South, Range 90 West, 6th P.M. Section 34: All Section 35: All Section 36: W/2

Township 11 South, Range 90 West, 6th P.M. Sections 3 thru 4: All Section 5: N/2, N/2S/2, SW/4SW/4 Sections 6 and 7: All Section 8: Lots 5 and 6, SW/4SW/4 Sections 9 and 10: All Section 15: NW/4 Section 16: N/2, SW/4 Section 17: All, except HES 256 Section 18: All Section 19: N/2 Section 20: NW/4

Gunnison and Delta Counties Township 11 South, Range 91 West, 6th P.M. Section 1: Hes 270, 313, 257 and 312

Rule 2. Each unit shall consist of 160-acres, more or less, and consist of a quarter section of land, according to the governmental survey with the permitted well located in the center of each unit with a tolerance of 300 feet in any direction. Wells presently producing or producible, or permitted within the proposed area shall be designated the permitted well for the unit upon which they are located.

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 ,

1990, as of August 20, 1990.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dennis R. Bicknell, Secretary Dated at Suite 380 1580 Logan Street Denver, Colorado 80203

0550I