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 application of Morgan Energy Corporation for an order granting an exception to Rule 318 of the rules and regulations and allow a well to be drilled at a location 1650 feet from the south line and 330 feet from the east line, Section 4, Township 1 South, Range 62 West, 6th P.M.

FINDINGS

The Commission finds as follows:

1. Morgan Energy Corporation, 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. A well has been drilled at a location 1980 feet from the south line and 330 feet from the west line Section 3, Township 1 South, Range 62 West, 6th P.M., and completed as a producer from the "D" Sand.

5. Evidence presented at the hearing indicates that the "D" Sand is a common source of supply which extends from the SW/4 of said Section 3 into the SE/4 of Section 4, Township 1 South, Range 62 West, and that in order to protect the correlative rights of the Applicant, a well should be allowed to be drilled at a location 1650 feet from the south line and 330 feet from the east line, Section 4, Township 1 South, Range 62 West, 6th P.M.

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 1650 feet from the south line and 330 feet from the east line, Section 4, Township 1 South, Range 62 West, 6th P.M., Wickiup Field, Adams County, Colorado.

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

ENTERED this 30th day of July, 1985, as of July 15, 1985.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary