REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 21, 1976 at 9 A.M., in Room 1B-29, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Fuel Resources Deve-lopment Company to amend Order No. 285-1, to include the production of both oil and gas from a stratigraphic zone between the top of the Dakota formation to the top of the Morri-son formation underlying the spaced area of the South Canyon Area. The application was amended at the hearing to delete any reference to production of oil.

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 December 20, 1973, the Commission issued its Order No. 285-1, as corrected on April 24, l 974, for the South Canyon Area which, among other things, established 320-acre drilling and spacing units for the production of gas from the Dakota formation, defined as being those geological zones and horizons encountered between the depths below the surface of 4, 072 feet to 4, 232 feet in Well No. 5 Govt. located in the SE/4 NW/4 Section 5, Township 7 South, Range 103 West, 6th P.M., and a common source of supply underlying the following described lands in Garfield County, Colorado, to-wit:

Township 6 South, Range 103 West, 6th P.M. All Sections

Township 6 South, Range 104 West, 6th P.M. All Sections Township 6 South, Range 105 West, 6th P.M. All Sections Township 7 South, Range 103 West, 6th P.M. All Sections Township 7 South, Range 104 West, 6th P.M. All Sections except 33 Township 7 South, Range 105 West, 6th P.M. All Sections

4; That testimony presented at the hearing indicates that in addition to the Dakota formation, as defined, as being a common source of supply of gas, there is also the Cedar Mountain formation as a common source of supply of gas underlying the area spaced by Order No. 285-1, and as described in Finding 3 herein. Therefore, Order No. 285-1, as corrected, should be amended to include the production of gas from a stratigraphic zone between the top of the Dakota formation to the top of the Morrison formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order No. 285-1, as corrected, is hereby amended to include the production or gas from a stratigraphic zone defined as being between the top of the Dakota formation to the top of the Morrison formation under-lying the lands described in Finding 3 herein.

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

ORDERED this 21st day of September.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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