REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 19, 1979 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 Niobrara Illuminating Gas Associates, for an order to extend the limits of the spaced area of the Spear Field, Washington County, Colorado. The application was amended at the hearing to delete the SW/4 Section 31, Township 2 South, Range 49 West, 6th P.M. From the area requested to be spaced.

FINDINGS

The Commission finds as Follows:

1. Niobrara Illuminating Gas Associates, 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 issued its Order No. 342-1 for the Spear Field which established 160-acre drilling and spacing units for the produc-tion of gas and associated hydrocarbons from the Niobrara formation underlying certain lands in Washington County. Said units consist of a governmental quarter section with the permitted well located no closer than 900 feet from the boundaries of the unit.

5. There is sufficient data to justify a determination that the common source of supply of gas and associated hydrocarbons from the Niobrara formation extends beyond the present limits of the spaced area as established by Order No. 342-1. There-fore, the application should be granted and the Following described lands should be included in the spaced area of the Spear Field and made subject to said Order No. 342-1:

Township 2 South, Range 49 West, 6th P.M. Section 19: SW/4 Section 31: NW/4 Section 30: W/2 Township 2 South, Range 50 West, 6th P.M. Section 24: S/2 Section 35: NE/4 Section 26: E/2 Section 36: N/2

ORDER

NOW, THEREFORE, IT IS ORDERED, that the area set forth in Finding 5 herein shall be subject to the provisions of Order No. 342-1 and the Spear Field shall henceforth include the Following described lands in Washington County, Colorado, to-wit:

Township 2 South, Range 49 West, 6th P.M. Section 19: SW/4 Section 31: NW/4 Section 30: W/2

(over)

Township 2 South, Range 50 West, 6th P.M. Section 24: S/2 Section 35: NE/4 Section 25: All Section 36: N/2 Section 26: E/2

IT IS FURTHER ORDERED, that the provisions 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 the above order.

ORDERED this 17th day of September, 1979.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

DATE Of ENTRY 10/17/79