REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 18, 1975, at 9 A.M., in Room 532, State Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of NOR-AM Exploration Corporation for an order to rescind Order Nos. 267-1 and 167-2 for the Loam Gas Field, Morgan County, Colorado.

FINDINGS

The Commission finds as follows:

1. That due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

2. 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.

3. That on July 2, 1973 the Commission issued its Order No. 267-1 which established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the "D" Sand underlying the following described lands in Morgan County, Colorado, to-wit:

Township 6 North, Range 58 West, 6th P.M. Section 7: W/2 Section 18: W/2

Township 6 North, Range 5 9 West, 6th P.M. Section 12: E/2 Section 13: E/2

Subsequent Order No. 267-2 pooled all interests in the drilling and spacing unit consisting of the NE/4 Section 12, Township 6 North, Range 59 West, and the NW/4 Section 7, Township 6 North, Range 58 West, 6th P.M.

4. That evidence presented at the hearing indicates that the geological conditions in the spaced area appear to be different than what was anticipated and the one producing well has been plugged and abandoned; therefore in order to promote future development, Order Nos. 267-1 and 267-2 are no longer necessary and should be vacated and the area described in Finding 3 herein, should be governed by the general rules and regulations of the Commission.

(over)

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order Nos. 267-1 and 267-2 for the Loam Gas Field, Morgan County, Colorado are hereby rescinded and operations in the area, as described in Finding 3 herein, shall be governed by the general rules and regula-tions of the Commission.

ORDERED this 18th day of November, 1975.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

-- 2 --(#267-3)