REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 18, 1976 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 establishing a 640-acre drilling unit for the production of gas and associated hydrocarbons from the Dakota formation underlying certain lands in Garfield County, Colorado.

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 the Dakota formation constitutes a common source of supply of gas and associated hydrocarbons underlying the following described lands in Garfield County, Colorado, to-wit:

Township 5 South, Range 102 West, 6th P.M. Section 14: All

4. That in order to prevent waste of oil and gas, as defined by law; to protect the correlative rights of all parties concerned; to prevent the drilling of unneces-sary wells, and to insure proper and efficient development and promote conservation of the oil and gas resources, an order should be made establishing a 640-acre drilling and spacing unit for the production of gas and associated hydrocarbons from the Dakota forma-tion, a common source of supply underlying the lands defined herein; that said unit should be 640-acres and consist of the lands as herein described, and the permitted well for said unit should be the No. 1-14 Govt., located 2740 feet from the south line and 1606 feet from the west line of said Section 14 (surface location) and approximately 2299 feet from the south line and 2322 feet from the west line of said Section 14 (location at total depth).

5. That all geological and engineering data concerning the Dakota formation indicate that one well will efficiently and economically drain an area of approximately 640-acres, and that the drilling unit of the size and shape hereinabove described is not smaller than the maximum area that can be efficiently drained by one well producing from said Dakota formation.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regula-tions shall apply hereafter to a well drilled, completed, or recompleted in the Dakota formation underlying the Rock Canyon Field, herein described, in addition to other appli-cable rules and regulations and orders of the Commission, if any, heretofore adopted and not in conflict herewith:

(over)

Rule 1. A Six Hundred Forty (640) acre drilling and spacing unit shall be and the same is hereby established for the production of gas and associated hydrocarbons, from the Dakota formation underlying the following described lands in the Rock Canyon Field, Garfield County, Colorado, to-wit:

Township 5 South, Range 102 west, 6th P.M. Section 14: All

Rule 2. The permitted well for the above described unit shall be the No. 1-14 Govt., located 2740 feet from the south line and 1606 feet from the west line of said Section 14 (surface location) and approximately 2299 feet from the south line and 2322 feet from the west line of said Section 14 (location at total depth).

IT IS FURTHER ORDERED, that the provisions contained in the above order and rules and regulations 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 18th day of October, 1976.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary -- 2 --(#314-1)