REPORT OF THE COMMISSION

TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:

This cause cam on for hearing before the Commission on July 20, 1987 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, in the application of Union Pacific Resources Company for an order extending the spaced area of the Arapahoe Field as established by Order No. 449-1, by the addition of the following described lands in Cheyenne County, Colorado: Township 14 South, Range 42 West, 6th P.M. Section 13: All Section 24: All Section 14: All Section 25: All

Township 14 South, Range 41 West, 6th P.M.

Section 18: All Section 19: All Section 30: All

FINDINGS

The Commission finds as follows:

1. Union Pacific Resources Company, as applicant herein, is an interested party in the subject matter of the above-referenced hearing.

2. That 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 May 19, 1987, the Commission authorized Order No. 449-1 to be issued which established 80 acre drilling and spacing units for the production of oil and associated hydrocarbons from the Morrow formation, underlying certain lands in the Arapahoe Field, Cheyenne County, Colorado. The units consist of the E/2 and W/2 or the N/2 and S/2 of each quarter section with the permitted well at a location in the center of the NE/4 and SW/4 of each quarter section with a tolerance of 200 feet in any direction.

5. Testimony at the time of hearing was insufficient to indicate that the same common source of supply as defined in Order No. 449-1 extends into the area requesting to be added, therefore the application should be denied.

ORDER

NOW THEREFORE IT IS ORDERED that the application of Union Pacific Resources Company requesting the extension of the spaced area as established by Order No. 449-1 by the addition of lands described herein above is hereby denied.

ENTERED this 7th day of August 1987, as of July 20, 1987.

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

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