REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 17, 1986 at 9:00 A.M., in Room 110, State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the Commission's own motion as a result of Order No. 291-14 to consider allowing the drilling of an additional well on each 80-acre drilling and spacing unit in the remaining lands in the spaced area as established by Order No. 291-1 and not included in Order No. 291-14.

FINDINGS

The Commission finds as follows:

1. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

2. 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. On February 21, 1986, the Commission authorized Order No. 291-13 to be issued which amends Order No. 291-1 and allows the option to drill an additional well on the 320-acre drilling and spacing units for the production of gas and associated from the "J" Sand underlying the following described lands in Adams County, Colorado:

Township 2 South, Range 63 West, 6th P.M. Section 9: All Section 16: All Section 10: All Section 21: All Section 15: All Section 22: All Such additional well to be located in the undrilled quarter section at a location no closer than 990 feet from the boundaries of the quarter section.

4. Geological evidence presented to the Director as Hearing Officer on February 19, 1986 indicated that the "J" Sand reservoir is continuous and to protect the correlative rights of other operators in the spaced area as established by Order No. 291-1, the option to drill an additional well on the 320-acre drilling and spacing units, not included in Order No. 291-14, should be allowed for the production of gas and associated hydrocarbons from the "J" Sand underlying the following described lands:

Township 2 South, Range 63 West, 6th P.M. Section 8: All Section 20: All Section 17: All Section 28: All Section 18: S/2 Section 29: All Section 19: All Section 30: All

ORDER

NOW, THEREFORE, IT IS ORDERED, that Order Nos. 291-1 and 291-14 are hereby amended and the following shall apply to wells drilled, completed or recompleted in the "J" Sand underlying the lands described herein, in addition to other applicable rules and regulations and orders of the Commission heretofore adopted and not in conflict herewith:

Rule 1. The option to drill a second well, in addition to the permitted well as provided for by Order No. 291-1, is hereby authorized to be drilled on each 320-acre drilling and spacing unit for the production of gas and associated hydrocarbons from the "J" Sand, underlying the following described lands in the Chieftain Field, Adams County, Colorado, to-wit: Township 2 South, Range 63 West, 6th P.M. Section 8: All Section 19: All Section 9: All Section 20: All Section 10: All Section 21: All Section 15: All Section 22: All Section 16: All Section 28: All Section 17: All Section 29: All Section 18: S/2 Section 30: All Rule 2. Said additional well shall be located in the be located in the undrilled quarter section at a location no closer than 990 feet from the boundaries of the quarter section.

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

ENTERED this 4th day of April 1986, as of March 17, 1986.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary (291-15)