REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 20, 1991 at 8:30 a.m., in Room 101, State Education Building, 201 East Colfax Avenue, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Martin Exploration Management Company and Petrogulf Corporation, for an order to prohibit Vessels Oil and Gas Company from stimulating its Caldwell Farms No. 1-A Well located in the SE/4 NW/4 of Section 15, Township 1 South, Range 68 West, 6th P.M., for the production of gas and associated hydrocarbons from the "J" Sandstone formation, by fracturing, or limiting the size of such fracturing, and further to limit production from said well so that the drainage area is limited to the S/2 NW/4 of said Section 15.

FINDINGS

The Commission finds as follows:

1. Martin Exploration Management Company and Petrogulf Corporation, as applicants herein, are interested parties 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. That evidence presented at the hearing indicates that the "J" Sandstone formation requires stimulation by artificial fracturing in order for production to occur in Section 15, Township 1 South, Range 68 West, 6th P.M.

5. The Commission takes note of the applicants' concern that damage to and interference with their Mathena No. 1-15 Well may occur due to any stimulation performed by Vessels Oil and Gas Company on the Caldwell Farms No. 1-A Well. Upon request by the Commission, information should be furnished to determine if any damage and/or interference has occurred from the stimulation of the Caldwell Farms No. 1-A Well.

6. Any interested party who has reason to believe that damage and/or interference has occurred through the completion practices

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utilized in the Caldwell Farms No. 1-A Well, may at any time in the future, file an application to seek relief through a Commission hearing.

7. That a protest to the application was received from Vessels Oil and Gas Company.

O R D E R

NOW, THEREFORE, IT IS ORDERED, the request to prohibit Vessels Oil and Gas Company from stimulating its Caldwell Farms No. 1-A Well located in the SE/4 NW/4 of Section 15, Township 1 South, Range 68 West, 6th P.M., for the production of gas and associated hydrocarbons from the "J" Sandstone formation, is hereby denied.

IT IS FURTHER ORDERED, that, upon request by the Commission, information shall be furnished to determine if any damage and/or interference has occurred from the stimulation of the Caldwell Farms No. 1-A Well.

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IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith as all parties present at the hearing agreed to accept the verbal order of the Commission.

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 , 1991, as of May 20, 1991.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Patricia C. Beaver, Secretary

Dated at Suite 380 1580 Logan Street Denver, Colorado 80203 May 31, 1991 1242I

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