REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 18, 1983 at 9:00 A.M., in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Murfin Drilling Co., for an order to delete Section 31, Township 12 South, Range 44 West, 6th P.M. from the spaced area as established by Order No. 320-1, and make said section subject to the general rules and regulations of the Commission.

FINDINGS

The Commission finds as follows:

1. Murfin Drilling Co., 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 February 18, 1977, the Commission Order No. 320-1 which established 80-acre drilling and spacing units for the production of oil from the Mississippian formation underlying lands in the Broken Bow Field. The units consist of the E/2 and W/2 or the N/2 and S/2 of each quarter section with the permitted well located in the center of the NE/4 and SW/4 of each quarter section with a tolerance of 150 feet. Subsequent Order No. 320-3 deleted certain lands from the spaced area.

5. Evidence presented at the hearing indicates that subseq-uent drilling and development in the spaced area of the Broken Bow Field has established the limits of the common source of supply of oil from the Mississippian in the area towards Section 31, Township 12 South, Range 44 West, 6th P.M., and that drilling and development in said Section 31 is in a separate common source of supply. Therefore, in order to promote such development, Section 31, Township 12 South, Range 44 West, 6th P.M. should be deleted from the spaced area as established by Order No. 320-1 and said section made subject to the general rules and regulations of the Commission.

ORDER

NOW, THEREFORE, IT IS ORDERED, that Section 31, Township 12 South, Range 44 West, 6th P.M. is hereby deleted from the spaced area of the Broken Bow Field and is no longer subject to the provisions of Order No. 320-1. The lands remaining in the Broken Bow Field, Cheyenne County, Colorado and subject to the provisions of Order No. 320-1 are described as follows:

Township 12 South, Range 44 West, 6th P.M. Section 33: All Township 13 South, Range 44 West, 6th P.M. Sections 4 thru 9: All

ENTERED this August

10th day of 1983, as of July 18, 1983.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary -

(320-4)