REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 19, 1977 at 9 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Provident Resources, Inc. for an order to extend the limits of the spaced area of the Foundation Creek Field, and to establish for the additional area, 160-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Mancos "B" formation as provided for in Order No. 287-3.

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 October 18, 1976, the Commission issued its Order No. 287-3 which established 160-acre drilling and spacing units for the production of gas and asso-ciated hydrocarbons from the Mancos "B" formation underlying certain lands in Rio Blanco County, Colorado. The units consist of a governmental quarter section with the permitted well located no closer than 600 feet from the boundaries of the unit upon which it is loca-ted.

4. That testimony presented at the hearing indicates a common source of supply of gas and associated hydrocarbons in the Mancos "B" formation underlies, in addition to the area set forth in Order No. 287-3, the following described lands, to-wit:

Rio Blanco County, Colorado Township 4 South, Range 102 West, 6th P.M. Section 35: All Garfield County Township 5 South, Range 102 West, 6th P.M. Section 2: All (consisting of Lots 5, 6, 7 and 8, containing 158.92 acres) and that such area be made subject to the provisions of Order No. 287-3; however, all of Section 2, Township 5 South, Range 102 West, 6th P.M. (containing 158.92 acres) should be designated a drilling and spacing unit with the permitted well, the No. 5-2-5-102 Govt., located approximately 610 feet from the north line and 1210 feet from the east line of said Section 2, and the permitted well for the drilling and spacing unit consisting of the NE/4 Section 35, Township 4 South, Range 102 West, 6th P.M., should be Well No. 9-35-4-102, located approximately 2102 feet from the north line and 492 feet from the east line of said Section 35.

(over)

ORDER

NOW, THEREFORE, IT IS ORDERED, that the area as set forth in Find-ing 4 herein shall be subject to the provisions of Order No. 287-3, and the Foundation Creek Field, for the production of gas and associated hydrocarbons from the Mancos "B" formation, shall henceforth include the following described lands, to-wit:

Rio Blanco County, Colorado

Township 4 South, Range 102 West, 6th P.M. Section 25: All Section 35: All Section 26: E/2 Section 36: E/2

Garfield County, Colorado

Township 5 South, Range 102 West, 6th P.M. Section 2: All (consisting of Lots 5, 6, 7 and 8, containing 158.92 acres )

IT IS FURTHER ORDERED, that all of Section 2 (consisting of Lots 5, 6, 7 and 8, containing 158.92 acres) Township 5 South, Range 102 West, 6th P.M., be designated a drilling and spacing unit with the permitted well, the No. 5-2-5-102 Govt., located approximately 610 feet from the north line and 1210 feet from the east line of said Section 2, and the permitted well for the drilling and spacing unit consisting of the NE4 Section 35, Township 4 South, Range 102 West, 6th P.M. shall be Well No. 9-35-4-102, located approximately 2102 feet from the north line and 492 feet from the east line of said Section 35.

IT IS FURTHER ORDERED, that the provisions contained in the above orders 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.

ORDERED this 21st day of September, 1977.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary -- 2 --(#287-4)