REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 19, 1991 at 8:30 a.m. in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Lynx Exploration Company for an order to rescind Order No. 291-16, issued as of April 20, 1990. This order allowed Union Pacific Resources Company to complete a well at an exception location in the NW/4 NW/4 of Section 4, Township 2 South, Range 63 West, Adams County, 6th P.M., for the unit consisting of the N/2 NW/4 of said Section 4, for the production from the "J" Sand formation underlying these lands. Further, the order prohibited hydraulic fracturing sufficient to break down or fracture the "J" Sand encountered therein.

FINDINGS

The Commission finds as follows:

1. Lynx Exploration Company 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 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 jurisdiction to promulgate the hereinafter prescribed order.

4. On April 16, 1990, the Commission authorized Order No. 291-16 to be issued, which allowed the No. 1-X Wailes 11G-4 well to be completed at an exception location for production of oil and associated hydrocarbons from the "J" Sand formation underlying said Section 4 in Adams County, Colorado, and that certain restrictions were placed on the hydraulic fracturing completion procedures for this well.

5. The matter was heard by the Hearing Officer who recommends approval based upon the change in leasehold testimony presented at an administrative hearing.

6. No objections to the application were received and an order of the Commission should be entered rescinding Order No. 291-16 which effects completion practices in the above-described location.

O R D E R

NOW, THEREFORE, IT IS ORDERED, that Order No. 291-16 is hereby rescinded, for the No. 1-X Wailes 11G-4 well in the NW/4 NW/4 of Section 4, Township 2 South, Range 63 West, 6th P.M., Adams County, Colorado, for production from the "J" Sand formation for the unit consisting of the N/2 NW/4 of Section 4.

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

Entered this day of , 1991, as of March 19, 1991.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Patricia C. Beaver, Secretary Dated at Suite 380 1580 Logan Street Denver, Colorado 80203 1083I