REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 15, 1990 at 8:30 a.m., in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Pacific Enterprises Oil Company (USA), for an order to establish a 640-acre drilling and spacing unit consisting of Section 23, Township 7 North, Range 87 West, 6th P.M., Routt County, Colorado, for the production of oil and associated hydrocarbons from the Niobrara formation underlying said unit.

FINDINGS

The Commission finds as follows:

1. Pacific Enterprises Oil Company (USA) 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. That evidence presented at the hearing is insufficient to establish a 640-acre drilling and spacing unit for Section 23, Township 7 North, Range 87 West, 6th P.M., Routt County.

5. Based on the facts stated in the verified application, and the testimony presented at the hearing, the Commission should enter an order denying the application to establish a 640-acre drilling and spacing unit herein described for the production of oil and associated hydrocarbons from the Niobrara formation underlying said unit.

O R D E R

NOW, THEREFORE IT IS ORDERED, that the Pacific Enterprises Oil Company (USA) application for an order to establish a 640-acre drilling and spacing unit for the production of oil and associated hydrocarbons from the Niobrara formation in Section 23, Township 7 North, Range 87 West, 6th P.M., Wolf Mountain Field, Routt County is denied.

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 ,

1990, as of October 15, 1990.

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 0710I