REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 19, 1982 at 9:00 A.M., in Room 110, State Centennial Building, Denver, Colo-rado, after giving Notice of Hearing, as required by law, on the application of Security Resources Corporation and M. Peyton Bucy, for an order extending the limits of the spaced area as established by Order No. 285-5, 309-3 and 122-2 in the South Canyon Area so far as it pertains only to the Morrison formation for the production of gas.

FINDINGS

The Commission finds as follows:

1. Security Resources Corporation and M. Peyton Bucy, as plicants herein, are interested parties 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 juris-diction to promulgate the hereinafter prescribed order.

4. On April 17, 1978, the Commission issued Order Nos. 285-5, 309-3 and 122-2 which established 320-acre drilling and spacing units for the production of gas from the Dakota and Morrison formations underlying an area consisting of portions of the South Canyon Spaced Area and the Prairie Canyon Field. The units consist of the South Canyon Spaced Area and the Prairie Canyon Field. The units consist of the N/2 and S/2 or the E/2 and W/2 of a section according to the governmental survey with the permitted well located no closer than 300 feet to the boundaries of the unit and no closer than 1620 feet from any existing gas well. Exceptions may be granted admini-stratively due to topography or environmental reasons provided waiver or con-sents are obtained from offset operators.

5. Testimony presented at the hearing indicates a common source of supply of gas from the Morrison formation underlies, in addition to the area set forth in Order Nos. 285-5, 309-3 and 122-2, insofar as it pertains to the Morrison formation, the following described lands in Garfield County, Colorado, to-wit: Township 7 South, Range 103 West, 6th P.M. Section 19: All Section 32: All Section 29: All Section 33: All Section 30: All Section 34: S/2 Section 31: All and that such area be made subject to the provisions of said Order Nos. 285-5, 309-3 and 122-2 insofar as it pertains to the Morrison formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the area set forth in Finding 5 herein shall be subject to the provisions of Order Nos. 285-5, 309-3 and 122-2 as far as it pertains to the Morrison formation and that portion of the South Canyon Area for the production of gas from said Morri-son formation, shall henceforth include the following described lands in Garfield County, Colorado, to-wit:

(over)

Township 7 South, Range 103 West, 6th P.M. Section 19: All Section 32: All Section 29: All Section 33: All Section 30: All Section 34: S/2 Section 31: All

Township 7 South, Range 104 West, 6th P.M. Sections 13 thru 36: All

Township 7 South, Range 105 West, 6th P.M. Sections 13, 24, 25 and 36: All

IT IS FURTHER ORDERED, that the provisions contained in the 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 14th day of May, 1982, as of April 19, 1982.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

(#285-7)