REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 15, 1993 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 Snyder Oil Corporation for an order amending Cause Nos. 407 and 493 to allow the Reynolds No. 28-3 Well to be recompleted at an exception location 1025 feet FNL and 1110 feet FWL in the NW1/4 NW1/4 of Section 2 8, Township 5 North, Range 65 West, 6th P.M., for the 80-acre drilling and spacing unit consisting of the W1/2 NW1/4 of Section 28 for production from the Sussex Formation and to allow the downhole commingling of the production with that from the Codell and Niobrara Formations.

FINDINGS

The Commission finds as follows:

1. That Snyder Oil Corporation, 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. That 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 the W1/2 NW1/4 of Section 28, Township 5 North, Range 65 West, 6th P.M. has been established as an 80-acre drilling and spacing unit as authorized by Cause No. 407, and that the Reynolds No. 28-3 Well with a surface location 1025 feet FNL and 1110 feet FWL in the NW1/4 NW1/4 of said Section 28 is a designated well for the unit for the Niobrara and Codell Formations underlying said unit, and that the bottom hole location of the completion zone in the Niobrara and Codell Formations is within the tolerance authorized by Cause No. 407.

5. That the surface location of 1025 feet FNL and 1110 feet FWL in the NW1/4 NW1/4 is outside the tolerance allowed for wells to be completed in the Sussex Formation as authorized by Cause No. 493. The Reynolds No. 28-3 Well has a deviated borehole but the Sussex Formation interval was encountered in the vertical portion of the borehole.

6. That all protests to the application have been withdrawn, and having been heard by the Hearing Officer who recommends approval, the Commission should enter an order authorizing the exception location.

O R D E R

NOW, THEREFORE IT IS ORDERED, that Order Nos. 407-1, 407-10 and 493-2 shall be amended to allow the Reynolds No. 28-3 Well to be recompleted at an exception location 1025 feet FNL and 1110 feet FWL of NW1//4 NW1/4 of Section 28, Township 5 North, Range 65 West, 6th P.M. in the Sussex Formation and that the downhole commingling of the production from the Sussex with that from the Niobrara and Codell Formations shall be allowed.

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/or all of the above orders.

ENTERED this day of March, 1993 as of March 15, 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 March 25, 1993 ??

(493-24)