REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 15, 1984 at 9:00 A.M., in Suite 380, Logan Tower Building, 1580 Logan Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of G.J. Morgan for an order pooling all interests in the 160-acre drilling and spacing unit consisting of the W/2NW/4 Section 19, Township 8 North, Range 92 West and the E/2NE/4 Section 24, Township 8 North, Range 9 West for the development and operation of oil, gas and associated hydrocarbons from the Lance, Fox Hills and Lewis Sand members of the Lewis Shale formation, and the 320-acre unit consisting of the NW/4 Section 19, Township 8 North, Range 92 West and the NE/4 Section 24, Township 8 North, Range 93 West 6th P.M. for the development and operation of oil, gas and associated hydrocarbons from the Mesaverde Group (excluding the Almond formation) and the Morapos Sand member of the Mancos Shale formation, in accordance with 34-60-116 C.R.S. 1973, as amended. Testimony was taken at the October 15, 1984 hearing concerning the pooling, however proper Notice of Hearing was not given concerning the pooling interest in the above-described units. Therefore, after proper Notice of Hearing was given the pooling matter was presented to the Commission at the December 17, 1984 hearing.

FINDINGS

The Commission finds as follows:

1. Glen J. Morgan, 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 ha's 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. In order to insure proper and efficient development of the spacing units and to promote conservation of the oil and gas resources of the State, an order should be made pooling all interests in the 320-acre spacing unit consisting of the NW/4 Section 19, Township 8 North, Range 92 West and the NE/4 Section 24, Township 8 North, Range 93 West, 6th P.M. for the operation and development of oil, gas and associated hydrocarbons from the Mesaverde Group (excluding the Almond formation) and the 160-acre unit consisting of the W/2NW/4 Section 19, Township 8 North, Range 92 West and the E/2NE/4 Section 24, Township 8 North, Range 93 West, 6th P.M. for the operation and development of oil, gas and associated hydrocarbons from the Lance, Fox Hills and Lewis Sand member of the Lewis Shale formation.

5. An order of the Commission pooling all interests in said spacing units is necessary-in order to afford each owner of an interest in said units the opportunity to recover and receive his just and equitable share of the oil and associated hydrocarbons from the common source of supply underlying said unit.

6. Production obtained from said spacing unit should be allocated to each mineral owner therein on the basis of the proportion that the number of net mineral acres owned by each owner bears to the total number of mineral acres within said unit.

ORDER

NOW, THEREFORE, IT IS ORDERED, that: 1. Pursuant to the provisions of 34-60-116, C.R.S., as amended, of the Oil and Gas Conservation Act of the State of Colorado, all interests in the 320-acre spacing unit consisting of the NW/4 Section 19, Township 8 North, Range 92 West and the NE/4 Section 24, Township 8 North, Range 93 West, 6th P.M. are hereby pooled for the operation and development of oil, gas and associated hydrocarbons from the Mesaverde Group (excluding the Almond formation) and all interests in the 160-acre un t consisting of the W/2NW/4 Section 19, Township 8 North, Range 92 West and the E/2NE/4 Section 24, Township 8 North, Range 93 West, 6th P.M. are hereby pooled for the operation and development of oil, gas and associated hydrocarbons from the Lance, Fox Hills and Lewis Sand member of the Lewis Shale formation.

2. The production obtained from said drilling units shall be allocated to each owner therein in the unit to the total number of mineral acres within said drilling units; each owner of an interest in said drilling unit shall be entitled to receive his share of the production of the well located on said drilling units applicable to his interest in said drilling unit.

3. The unleased mineral owners should be afforded the opportunity to elect whether to participate in the operating of said well, and pay his or her proportionate share of the actual costs thereof, which proportionate share shall be determined by dividing the number of net mineral acres owned by said unleased mineral owner by the total number of mineral acres in each spacing unit.

IT IS FURTHER ORDERED, that the provisions contained in the above order shall be effective as of October 15, 198 .

ENTERED this 10th day of January, 1985, as of December 17, 1984.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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