REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 14, 1991 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 application of Barrett Resources Corporation for an order to establish a 160-acre drilling and spacing unit consisting of the SE/4 of Section 28, Township 6 South, Range 96 West, 6th P.M., Garfield County, for the production of gas and associated hydrocarbons from the Mesaverde formation.

FINDINGS

The Commission finds as follows:

1. Barrett Resources Corporation as 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. The Commission takes note that on February 20, 1990, Order No. 479-1 was authorized to be issued, which among other things, established 320-acre drilling and spacing units for the production of gas from the Mesaverde formation underlying certain lands in Garfield County, Colorado, with the drilling units consisting of the E/2 and W/2 or the N/2 and S/2 of a governmental section with the operator of the first well permitted in a section to designate the drilling unit, and with the permitted well to be no closer than 600 feet to the boundaries of the said unit and no closer than 1200 feet from any other well producing or producible from the same formation. On April 20, 1990, the Commission issued Order No. 479-2 which amended Order No. 479-1 to allow an infill well to be drilled on the undrilled 160-acre tract.

5. Barrett Resources Corporation has drilled and completed its GV-26-28 Well to the Mesaverde formation, as defined in the Dual Induction Lateral Log as the interval from 3505 feet to 6542 feet, in the

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SW/4 SE/4 of Section 28 and should be considered the permitted well for the 160-acre drilling and spacing unit consisting of the SE/4 of said Section 28.

6. The matter was heard by the Hearing Officer who recommends approval based upon the testimony presented at an administrative hearing.

7. No objections to the application were received and an order of the Commission should be entered allowing a well to be drilled at the above described exception location.

O R D E R

NOW, THEREFORE, IT IS ORDERED, that a 160-acre drilling and spacing unit consisting of the SE/4 of Section 28, Township 6 South, Range 96 West, 6th P.M., Garfield County, shall hereby be established for the production of gas and associated hydrocarbons from the Mesaverde formation.

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IT IS FURTHER ORDERED, that the GV-26-28 Well located in the SW/4 SE/4 of said Section 28 shall be the permitted well for the SE/4 unit, and that the interval from 3505 feet to 6542 feet, as found on the Dual Induction Lateral Log for said well, shall be defined as the Mesaverde formation.

IT IS FURTHER ORDERED, that the provisions in the above order shall become effective forthwith.

Entered this day of , 1991, as of June 14, 1991.

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 1, 1991 1290I - 3 -(495-1)