REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 19, 1993, in Room 318, State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing, as required by law on the application of Westport Oil and Gas Company, for an order to amend Cause No. 471 to allow a well to be drilled at an exception location 500 feet FSL and 1980 feet FWL in the SE1/4 SW1/4 of Section 6, Township 18 South, Range 41 West, 6th P.M., for th e 80-acre drilling and spacing unit consisting of the E1/2 SW1/4, for production from the Morrow Sandstone Formation.

FINDINGS

The Commission finds as follows:

1. Westport Oil and Gas Company as applicant 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. In Order No. 471-1 issued August 21, 1989, the Commission established 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the Morrow Sandstone Formation, including Section 6, Township 18 South, Range 41 West, 6th P.M. Said units consist of the E1/2 and the W1/2 or the N1/2 and the S1/2 of a governmental quarter section, with the permitted well to be located no closer than 600 feet from the boundaries of the unit and no closer than 1200 feet from any other producible or drilling well when producing from or drilling into the Morrow Sandstone Formation.

5. This matter was heard by the Hearing Officers who recommend approval based upon the testimony presented at the administrative hearing that an exception to the permitted well location is necessary in order to encounter hydrocarbons in the Morrow Sandstone Formation.

6. No objections to the application were received and an order of the Commission should be entered allowing a well to be drilled at an exception location 500 feet FSL and 1980 feet FWL in the SE1/4 SW1/4 of Section 6, Township 18 South, Range 41 West, 6th P.M., for the 80-acre drilling and spacing unit consisting of the E1/2 SW1/4, for production from the Morrow Sandstone Formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order No. 471-1 shall be amended to allow a well to be drilled at an exception location 500 feet FSL and 1980 feet FWL in the SE1/4 SW1/4 of Section 6, Township 18 South, Range 41 West, 6th P.M., for the 80-acre drilling and spacing unit consisting of the E1/2 SW1/4, for production from the Morrow Sandstone Formation.

IT IS FURTHER ORDERED, that should a commercial well be completed at the location set forth above, the Commission shall, upon application of any interested person, take such action as will offset any advantage which the person securing the exception may have over other procedures by reason of the drilling of the well as an exception location.

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 day of July, 1993, as of July 19, 1993.

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 July 30, 1993 ??

(471#4)