REPORT OF THE COMMISSION

TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:

Pursuant to a hearing before the Oil and Gas Conservation Commission on March 16, 1987 at 9:00 a.m. in Room 110, State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing, as required by law, the Commission finds it necessary to revise and add to Rule 114, Definitions of the Rules and Regulations of the Commission. Therefore, Rule 114 shall henceforth read as follows:

Rule 114. INTERESTED PARTIES

a. For the purpose of pooling orders or unitization orders, the term Interested Parties shall mean those persons who own any interest in the tracts to be pooled or unitized.

b. In the case of a complaint made by the Commission or any party that any provision of the Act, or any rule, regulation or order of the Commission is being violated, the party or parties complained against shall be deemed the Interested Party or Parties.

c. For purposes of spacing applications and any infill drilling or other applications for modification of existing spacing, the term Interested Parties shall mean the following:

(1) Any owner as that term is defined in the Act, and

(2) For the purpose of participating in the hearing only, any other person who offers to present evidence which the Commission deems to be relevant to the issues raised by the spacing application. A determination by the Commission concerning participation as an Interested Party under this subparagraph (2) shall not be construed as a determination on standing to seek judicial review of any order arising from such proceeding under Section 34-60-111 of the Act or C.R.S. 24-4-106.

d. For purposes of exceptions to existing spacing orders, the term Interested Parties shall mean those parties who meet the qualifications of Rule 114 c. and any owner, as defined in the Act, in a contiguous or cornering tract which is subject to the existing spacing pattern.

e. For purposes of exceptions to the rule governing location of wells, the term Interested Parties shall mean the owner, as defined in the Act, and the owner of the contiguous or cornering tract toward which the well location is proposed to be moved; provided that if the owner of the proposed well is also the owner of the lease on the property toward which the well is proposed to be moved, the mineral interest owner of the lands covered by the offset leas e is also an Interested Party.

DONE AND PREPARED by the Oil and Gas Conservation Commission this 16th day of March 1987. OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

Dated at Denver, Colorado March 16, 1987