REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 15, 1985 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 verified application of Argonex Company for an order granting an exception to the permitted well location as provided for in Order No. 337-1 for a well to be drilled at a location in the NW/4SW/4 Section 3, Township 6 South, Range 62 West, 6th P.M., Deadeye Field, Elbert County, Colorado.

FINDINGS

The Commission finds as follows:

1. Argonex 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 September 18, 1978, the Commission authorized Order No. 337-1 to be issued which established 80-acre drilling and spacing units for the production of oil and associated hydrocarbons from the "D" Sand underlying certain lands in Elbert County, Colorado. The permitted well is located in the center of the NE/4 and SW/4 of each quarter section with a tolerance of 200 feet in any direction.

5. Based on the facts stated in the verified application and exhibits submitted, and receiving no objections, and having been reviewed and recommended by the Director, the Commission should enter an order allowing an exception to the permitted well location as provided for by Order No. 337-1 for a well to be drilled in the NW/4SW/4 Section 3, Township 6 South, Range 62 West, 6th P.M., and that it be the permitted well for the unit upon which it is located.

ORDER

NOW, THEREFORE, IT IS ORDERED, that an exception to the permitted well location as provided for in Order No. 337-1 is hereby authorized for a well to be drilled in the NW/4SW//4 Section 3, Township 6 South, Range 62 West, 6th P.M., Deadeye Field, Elbert County, Colorado, and that it be the permitted well for the unit upon which it is located.

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

ENTERED this 31st day of July 1985, as of July 15, 1985.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary