REPORT OF THE COMMISSION

This cause came on for hearing before the Commission at 3:00 p.m. on April 19, 1993 in Room 318, Centennial Building, 1313 Sherman Street, Denver, Colorado on the verified application of Snyder Oil Corporation for an order approving a proposed allocation method for the below listed three wells for production that may be obtained from the Dakota, "J" Sand, Codell and Niobrara, and Sussex Formations underlying the 320-acre drilling and spacing units, to-wi t:

Well Name Location

Miles No. 33-32M Well W1/2 Sec. 33, Township 2 North, Range 68 West Travelers No. 28-112M S1/2 Sec. 28, Township 2 North, Range 68 West Mleynek No. 28-10M S1/2 Sec. 28, Township 2 North, Range 68 West

in accordance with Rule 11 of Commission Order Nos. 499-15, 232-89, 407-125, 493-22 and 496-3.

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 Robert J. Grigsby, a mineral interest owner in parts of the above described units, did not approve the proposed allocation method contained as Exhibit "A" in Snyder Oil Corporation's letter to Robert J. Grigsby, and that Robert J. Grigsby did file with the Commission a valid protest to the application.

5. That the Miles No. 33-32M Well and the Mleynek No. 28-10M Well are currently completed only in the "J" Sand Formation with production starting in February, 1993 and the Travelers No. 28-112M Well is currently completed only in the Dakota Formation with production starting in March 1993 and that no distribution of proceeds from sale of production from any of the three wells has taken place.

6. That all other interests in the above three wells have agreed to the proposed allocation method presented as Exhibit "A".

7. That the Hearing Officer reviewed an administrative hearing held earlier in the day with Mr. Grigsby and Snyder Oil Corporation to consider the proposed allocation method as well as the spacing considerations ordered by the Commission in Cause Nos. 499, 232, 407, and 493. The Hearing Officer further reported that Mr. Grigsby and Snyder Oil Corporation representatives were to meet prior to April 30, 1993 to discuss other areas of concern not the subje ct of this application.

8. That the Hearing Officer reported that Mr. Grigsby had another appointment preventing his remaining in Denver for the remainder of the hearing and would like to request a continuance until the May, 1993 hearing of the Commission to allow him time to review the information and consult with reservoir engineers. He would advise the Technical Secretary by April 30, 1993 as to his intentions to further pursue the matter before the Commission.

9. That Snyder Oil Corporation opposed the request for continuance because all other interests have approved the method, the operational desire to commence recompletion work, and to maximize the return on investment for the benefit of all concerned.

10. That the Commission denied the request for a continuance and should accept the proposed allocation method contained in Exhibit "A" which should be made the approved allocation method for each of the above three wells for the respective drilling and spacing units.

O R D E R

NOW, THEREFORE, IT IS ORDERED, that the allocation method contained in Exhibit "A" of the letter from Snyder Oil Corporation to Robert J. Grigsby dated February 9, 1993 be the approved allocation method for the below-listed wells, to-wit:

Well Name Unit and Location Miles No. 33-32M W1/2 Sec 33, Township 2 North, Range 68 West Travelers No. 28-112M S1/2 Sec 28, Township 2 North, Range 68 West Mleynek No. 28-10M S1/2 Sec 28, Township 2 North, Range 68 West

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 , 1993 as of April 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 May 4, 1993 ??