REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 12, 1988 at 9:00 A.M.in Room 110, State Centennial Building, 1313 Sherman Street, Denver, Colorado, on the application of J.W. Gibson, for an order extending the spaced area of the Neenoshe Field as established by Order No. 388-1 and 3 by the addition of certain lands in Kiowa County, Colorado.

FINDINGS

1. J.W. Gibson, 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 August 16, 1982, the Commission authorized Order No. 388-1 to be issued by which 640-acre drilling and spacing units were established, consisting of governmental Sections, for the production of gas and associated hydrocarbons from the Middle Morrow Sand underlying Sections 21, 22, 27 and 28, Township 19 South, Range 47 West, 6th P.M. The permitted Well location was designated for each unit.

5. On February 13, 1987, the Commission authorized Order No. 388-3 extending the area of the Neenoshe Field to include Sections 19, 20, 29 and 30, Township 19 South, Range 47 West, 6th P.M. for the production of gas and associated hydrocarbons from the Middle Morrow Sand, and that the permitted well for these additional 640 acre units shall be at a location no closer than 600 feet from the boundaries of the unit.

6. Based on the facts stated in the verified application and exhibits submitted, and having received no objections, and having been heard by the Director as Hearing Officer on February 10, 1988, the Commission should enter an Order extending the spaced area of the Neenoshe Field by the addition of the following described lands in Kiowa County, Colorado:

Township 19 South, Range 47 West, 6th P.M. Section 33: All Section 34: All

7. The permitted well for the additional units as described in Finding 6 should be at a location no closer than 600 feet from the boundaries of the unit.

ORDER

NOW THEREFORE IT IS ORDERED that Order No. 388-1 and Order 388-3 are hereby amended and the lands described in Finding 6 herein shall be subjected to the provisions of Order No. 388-1 and Order No 388-3, except that the permitted well location for said area shall be a location no closer than 600 feet from the boundaries of the unit. The spaced area of the Neenoshe Field shall henceforth consist of the following described lands in Kiowa County, Colorado:

Township 19 South, Range 47 West, 6th P.M. Section 19: All Section 28: All Section 20: All Section 29: All Section 21: All Section 30: All Section 22: All Section 33: All Section 27: All Section 34: All

IT IS FURTHER ORDERED that the above order shall become effective forthwith.

Entered this 23rd day of February 1988, as of February 12, 1988.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dennis R. Bicknell, Secretary

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