REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 19, 1983 at 9:00 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Southland Royalty Co., for an order extending the spaced area of the Cathedral Field to include certain lands in Rio Blanco County, Colorado.

FINDINGS

The Commission finds as follows:

1. Southland Royalty Co., 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 July 17, 1973, the Commission issued its Order No. 269-1 for the Cathedral Field which established, among other things, 160-acre drilling and spacing units for the production of gas from the Mancos formation underlying certain lands in Rio Blanco County, Colorado. Said drilling units consist of a governmental quarter section (or lots and/or quarter-quarter sections comprising 160-acres), with the permitted well located no closer than 600 feet from the boundaries of the quarter section upon which it is located. The spaced area was extended by Order Nos. 269-2 and 269-3.

5. That testimony presented at the hearing indicates a common source of supply of gas underlies, in addition to the area set forth in Order Nos. 269-1 and 269-2, the following described lands in Rio Blanco County, Colorado, to-wit:

Township 2 South, Range 100 West, 6th P.M. Section 29: S/2 Section 32: All Township 3 South, Range 100 West, 6th P.M. Section 4: All Section 5: N/2, SE/4 Section 9: N/2 and that such area should be made subject to the provisions of Order Nos. 269-1, 2 and 3.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the area as set forth in Finding 5 herein shall be subject to the provisions of Order Nos. 269-1, 2 and 3, and the Cathedral Field shall henceforth include the following described lands in Rio Blanco County, Colorado, to-wit:

Township 2 South, Range 100 West, 6th P.M. Section 19: All Section 29: S /2 Section 30: All Section 31: All Section 32: All

Township 2 South, Range 101 West, 6th P.M. Section 9: All Sections 16 thru 18: All Sections 20 thru 28: All Section 29: N/2, SE/4

Section 33: N/2, SE/4 Sections 34 thru 36: All Township 3 South, Range 100 West, 6th P.M. Section 4: All Section 5: All Sections 6 thru 8: All Section 9: All Sections 16 thru 21: All Section 22: W/2 Sections 27 thru 31: All Township 3 South, Range 101 West, 6th P.M. Sections 1 thru 3: All Section 4: SE/4 Section 7: S/2 Section 8: S/2 Section 9: S/2, NE/4 Sections 10 thru 36: All Township 3 South, Range 102 West, 6th P.M. Section 3: SW/4 Sections 10 thru 15: All Sections 22 thru 27: All Sections 34 thru 36: All IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

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

ENTERED this 11th d a y 0 f September

1983, as of September 19, 1983.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO By Frank J. Piro, Secretary

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(269-4)