REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 16, 1992 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 Great Northern Gas Company for an order to amend Order No. 256-1 to delete certain lands from the spaced area established in the White River Field, for the production of gas and associated hydrocarbons from the Wasatch Formatio n underlying certain lands.

FINDINGS

The Commission finds as follows:

1. Great Northern Gas 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 June 20, 1972, the Commission authorized Order No. 256-1 to be issued, which established one hundred sixty (160) acre drilling and spacing units for the production of gas and associated hydrocarbons from the Wasatch Formation underlying certain lands, with the permitted well located not less than six hundred (600) feet from the boundary of the quarter section upon which it is located, and no closer than two thousand (2000) feet from any other prod ucing gas well in the spaced area. Order No. 256-2 deleted certain lands from the spaced area previously established in Order No. 256-1. 5. At the time of administrative hearing, testimony was presented to delete the following lands from the spaced area due to the steep topography of the area, preventing wells to be located in accordance with Order No. 265-1, and thus prohibiting drilling and development in the below-listed lands, to-wit:

Township 1 North, Range 97 West, 6th P.M. Section 1: All Section 2: S1/2 Section 3: All

Township 2 North, Range 97 West, 6th P.M. Section 35: N1/2 Section 36: S1/2

6. Two protests were received and withdrawn prior to the administrative hearing. Based on the evidence presented at the administrative hearing, the Hearing Officer Recommended that an order of the Commission should be entered amending Order No. 256-1 to delete certain lands from the previously established area.

O R D E R

NOW, THEREFORE, IT IS ORDERED, that the lands as described in Finding 5 herein are hereby deleted from the spaced area of the White River Field as established by Order Nos. 256-1 and 256-2, and that said lands no longer subject to the provisions of said order, and shall be governed by the Rules and Regulations of the Colorado Oil and Gas Conservation Commission and that henceforth the remaining lands in the White River Field, subject to the provisions of Order No. 256-1 shall consist of the following:

Township 1 North, Range 97 West, 6th P.M. Section 2: N1/2

Township 2 North, Range 97 West, 6th P.M. Section 34: All Section 35: S1/2

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

Entered this day of , 1992, as of March 16, 1992.

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 April 9, 1992 C:\WP51\ORDERS\256-3 ??