BEFORE THE OIL AND GAS CONSERVATION COMMISSION

                                                                  OF THE STATE OF COLORADO

IN THE MATTER OF THE PROMULGATION AND                                       )                     CAUSE NO. 304

ESTABLISHMENT OF FIELD RULES TO GOVERN                                    )

OPERATIONS IN THE HAMBERT FIELD,                                                  )                     ORDER NO. 304-13

WELD COUNTY, COLORADO                                                         )                     AMENDED

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission on October 17, 1995, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing, as required by law on the verified amended application of CFG Energy Inc., for an order to amend Cause No. 304 to allow four (4) wells to be produced from the Sussex Formation on each quarter-quarter, to be located at the center of each such quarter-quarter, with a tolerance of 200 feet in any direction for the 160-acre drilling and spacing unit consisting of the NE¼ of Section 20, Township 4 North, Range 65 West, 6th P.M.

FINDINGS

                        The Commission finds as follows:

                        1.  CFG Energy, Inc., 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.  In Cause No. 304, the Commission established 160‑acre drilling and spacing units for the production of oil, gas and associated hydrocarbons from the Sussex Formation.  Wells shall be located no closer than 990 feet from the boundaries of the quarter section, including Section 20, Township 4 North, Range 65 West, 6th P.M.

                        5.  The Shable No. 1 Well located in the SE¼ NE¼ and the Shable No. 1-R Well located NW¼ NE¼  both in Section 20, Township 4 North, Range 65 West, 6th P.M., both are capable of production from the Sussex Formation.  The Shable No. 1-R Well is currently producing from the Sussex Formation for the 160-acre drilling and spacing unit consisting of the NE¼ of said Section 20.

                        6.  Testimony presented at the administrative hearing indicated that the average drainage for a Sussex Formation well in the NE¼ of Section 20 is less than twenty-three (23) acres.

                        7.  Additional testimony indicated that in order to recover all Sussex Formation reserves in the NE¼ of Section 20, additional Sussex Formation wells are needed and 160-acres is not less than the area that can be effectively drained by four wells.

                        8.  No protests to the application were received, and the Hearing Officer recommends that an order of the Commission should be entered allowing four (4) wells to be produced from the Sussex Formation on the 160-acre drilling and spacing unit consisting of the NE¼ of Section 20, Township 4 North, Range 65 West, 6th P.M., including the existing Shable No. 1 Well located in the SE¼ NE¼  and the Shable No. 1R Well located in the NW¼ NE¼, or otherwise from wells located in the center of each quarter-quarter, with a tolerance of 200 feet in any direction.

ORDER

                        NOW, THEREFORE, IT IS ORDERED, that Cause No. 304 shall be amended to allow four (4) wells to be produced from the Sussex Formation on the 160-acre drilling and spacing unit consisting of the NE¼ of Section 20, Township 4 North, Range 65 West, 6th P.M., including the existing Shable No. 1 Well located in the SE¼ NE¼  and the Shable No. 1R Well located in the NW¼ NE¼, or otherwise from wells located in the center of each quarter-quarter, with a tolerance of 200 feet in any direction.

                        IT IS FURTHER ORDERED, that the provisions contained in the above 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     30th          day of          October            , 1995, as of October 17, 1995.

                        AMENDED this  day of , 1995, as of October 17, 1995.

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                               OF THE STATE OF COLORADO

                                                                        By

                                                                             Patricia C. Beaver, Secretary

Dated in Suite 801

1120 Lincoln Street

Denver, Colorado 80203

November 8, 1995