REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 19, 1986 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 Texaco, Inc., for an order establishing 160-acres, more or less, drilling and spacing units for the production of oil and associated hydrocarbons from the Minturn formation underlying certain lands in Moffat County, Colorado.

FINDINGS

The Commission finds as follows:

1. Texaco, 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. Evidence presented at the hearing indicate that the Minturn formation constitutes a common source of supply of oil and associated hydrocarbons underlying the following described lands in Moffat County, Colorado, to-wit:

Township 4 North, Range 95 West, 6th P.M. Section 8: Lots 3 thru 6, 8, 10, 12, 14 19, 21, 23, 25, Resurvey Tract 39 comprised of Lots 9, 11, 13, 15, 18, 20, 22, 24, Resurvey Tract 38 comprised of Lots 7, 16 and 17

Section 16: Lots 6, 8, S/2 NW/4, Resurvey Tract 38 comprised of Lots 5 and

Section 17: Lots 2, 3, 6, NW/4 NE/4, S/2 N/2, SE/4, Resurvey Tract 38 comprised of Lot 1, Resurvey Tract 39 Comprised of Lot 1, Resurvey Tract 39 comprised of Lots 4 and 5 5. In order to prevent waste of oil and gas as defined by law; to protect the correlative rights of all parties concerned;to prevent the drilling of unnecessary wells, and to insure proper and efficient development and promote conservation of the oil and gas resources, an order should be made establishing 160-acre, more or less, drilling and spacing units for the production of oil and associated hydrocarbons from the Minturn formation, a common source of supply underlying the lands described herein; that the units should consist of 160-acres, more or less, and should be designated and described as follows with the permitted well location for each unit:

Township 4 North, Range 95 West, 6th P.M.

Unit A: Permitted Well Section 8: Lots 5,6,8-11,22-25 600 feet FSL and 1450 feet FWL 221.59 acres of Section 8 Unit B: Section 17: Lots 1,2 NW/4 NE/4 S/2 NE/4 At any location within said 160.09 acres drilling and spacing units Unit C: located not less than 660 feet from the boundary of said Section 8: Lots 3,4,7, 12-21 spacing unit and not less than 221.49 acres 1320 feet from any other well Unit D: producing from the Minturn formation in Sections 16 and 17. Section 17: Lots 3-6, S/2 NW/4 160.18 acres Unit E: Section 17: SE/4 160.00 acres Unit F: Section 16: Lots 5-8, S/2 NW/4 160.16 acres

6. All available geological and engineering data concerning said Minturn formation indicate that one well will efficiently and economically drain an area of approximately 160-acres, more or less, and that the drilling units of the size and shape hereinabove described are not smaller than the maximum area that can be efficiently and economically drained by one well producing from said Minturn formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall apply hereafter to a well drilled, completed, or recompleted in the Minturn formation underlying the Temple Canyon 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) acres, more or less, drilling and spacing units shall be and the same is hereby established for the production of oil and associated hydrocarbons from the Minturn formation underlying the following described lands in the Temple Canyon Field, Moffat County, Colorado, to-wit:

Township 4 North, Range 95 West, 6th P.M. Section 8: Lots 3 thru 6, 8, 10, 12, 14 19, 21, 23, 25, Resurvey Tract 39 comprised of Lots 9, 11, 13, 15, 18, 20, 22, 24, Resurvey Tract 38 comprised of Lots 7, 16 and 17

Section 16: Lots 6, 8, S/2 NW/4, Resurvey Tract 38 comprised of Lots 5 and

Section 17: Lots 2, 3, 6, NW/4 NE/4, S/2 N/2, SE/4, Resurvey Tract 38 comprised of Lot 1, Resurvey Tract 39 comprised of Lot 1, Resurvey Tract 39 comprised of Lots 4 and 5

Rule 2. Said drilling units shall consist of 160-acres, more or less, and shall be designated and described as follows with the permitted well location for each unit:

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Township 4 North, Range 95 West, 6th P.M.

Unit A: Permitted Well Section 8: Lots 5,6,8-11,22-25 600 feet FSL and 1450 feet FWL 221.59 acres of Section 8 Unit B: Section 17: Lots 1,2 NW/4 NE/4 S/2 NE/4 At any location within said 160.09 acres drilling and spacing units located not less than 660 feet Unit C: from the boundary of said Section 8: Lots 3,4,7, 12-21 spacing unit and not less than 221.49 acres 1320 feet from any other well producing from the Minturn Unit D: formation in Sections 16 and 17. Section 17: Lots 3-6, S/2 NW/4 160.18 acres Unit E: Section 17: SE/4 160.00 acres Unit F: Section 16: Lots 5-8, S/2 NW/4 160.16 acres

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 10th day of June, 1986, as of May 19, 1986.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO By Frank J. Piro, Secretary

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