REPORT OF THE COMMISSION

This cause on for hearing before the Commission on May 15, 1989 at 8:30 a.m. in Room 101, Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Union Pacific Resources Company for an order allowing a continuation of a gas injectivity test in the Morrow formation at the well Grays State 24-36 located in the SE1/4 SW1/4 Section 36, Township 12 South, Range 51 West, 6th P.M., Cheyenne County, Colorado.

FINDINGS

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

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 order.

4. on October 18, 1988, Union Pacific Resources Company made application for a gas injectivity test into the Morrow Sand at the well Grays State 24-36 located in the SE1/4 SW1/4 Section 36, Township 12 South, Range 51 West, 6th P.M., Cheyenne County, Colorado. Administrative approval was given for a testing period to expire on March 2l, 1989. Union Pacific Resources Company requested a 120-day extension on March 13, 1989. The extension was not granted pending a hearing before the Commission.

5. Union Pacific Resources Company has compensated the Colorado State Land Board, owners of the mineral interests of Section 36, Township 12 South, Range 50 West for any lost production caused by using the Grays State 24-36 for the injectivity test.

6. Union Pacific Resources Company anticipates filing an application for a unit agreement for the Bledsoe Ranch area prior to the July 1989 hearing of the Commission.

7. Data presented indicates no violation of any correlative rights is occurring due to the gas injectivity test conducted to date or in the near future.

8. That the gas injectivity test should be allowed to continue under the administrative requirements established by the Director in October 1988 until the July 17, 1989 hearing of the Commission.

O R D E R

NOW, THEREFORE, IT IS ORDERED, that the gas injectivity test currently being conducted in the Morrow Sand at the Grays State 24-36 located in the SE1/4 SW1/4 Section 36, Township 12 South, Range 51 West, 6th P.M. be allowed to continue under the administrative requirements established by the Director in October 1988 until the July 17, 1989 hearing of the Colorado Oil and Gas Conservation Commission.

IT IS FURTHER ORDERED, that with the verbal consent of the interested parties at the time of hearing this 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 an and/or all of the above orders.

ENTERED this 18th day of May, 1989, as of May 15, 1989

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dennis R. Bicknell, Secretary