REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on August 18, 1989 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 Conquest Oil Company for an order amending Order No. 254-1 allowing an exception location in the NE/4 SW/4 of Section 15, Township 2 South, Range 62 West, 6th P.M., Adams County, Colorado for a well to be completed in the "J" Sand Formation subject to the rules contained within Cause No. 254.

FINDINGS

The Commission finds as follows:

1. Conquest Oil Company, 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. On April 18, 1972, the Commission issued Order No. 254-1 which established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "J" Sand underlying lands in the Longbranch Field, Adams County, Colorado. The units consist of the E/2 and W/2 or the N/2 and S/2 of each section, according to the governmental survey, with the permitted well for each unit located in the NW/4 and SE/4 of each section and no closer than 990 feet to the boundaries of each quarter section.

5. Conquest Oil Company has drilled and is completing in the "D" Sand the well Double Shot 11-15 at a location 1980 feet FSL and 1980 feet FWL, Section 15, Township 2 South, Range 62 west, 6th P.M. after obtaining application to Drill No. 89-387 approved June 8, 1989 for "D" Sand exploration in accordance with Rule 318.

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6. At the time of drilling and evaluation of the well, Conquest Oil Company has indications that the "J" Sandstone Formation may be productive of gas.

7. Based on the facts stated in the verified application and exhibits submitted, having received no objections and having been reviewed and recommended by the Director as Hearing Officer, the Commission should grant the request and allow an exception location at 1980 feet FSL and 1980 feet FWL, Section 15, Township 2 South, Range 62 West, 6th P.M., Adams county, Colorado for the well Double Shot 11-15 to be completed in the "J" Sand Formation for the drilling and spacing unit consisting if the W/2 of said Section 15 subject to the rules contained within Cause No. 254, and that there should be no production restriction placed on a well completed at this location as previously ordered in Cause No. 254.

O R D E R

NOW, THEREFORE, IT IS ORDERED, that Order No. 254-1 is amended to allow an exception location 1980 feet FSL and 1980 feet FWL of Section 15, Township 2 South, Range 62 West, 6th P.M. for the existing well Double Shot 11-15 to be completed in the "J" Sand for the drilling and spacing unit consisting of the W/2 of said Section 15.

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IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith as all parties agreed to be bound by the oral order of the Commission.

IT IS FURTHER ORDERED, that the Commission expressly reserves its rights, after giving notice and hearing, to alter, amend or repeal any and/or all of the above orders.

ENTERED this day of ,

1989, as of August 21, 1989.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dennis R. Bicknell, Secretary -3 -0843A (254-16)