BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF THE PROMULGATION AND                                 )                         CAUSE NO. 429

ESTABLISHMENT OF FIELD RULES TO GOVERN                             )

OPERATIONS IN THE BRUSH CREEK FIELD,                                      )                         ORDER NO. 429-3

MESA COUNTY, COLORADO                                                                  )

                        This cause came on for hearing before the Commission at 9:00 a.m. on December 6, 2005, Suite 801, in The Chancery Building, 1120 Lincoln Street, Denver, Colorado, for an order to allow up to three (3) additional wells to be optionally drilled and completed in the 160-ace drilling and spacing unit consisting of the SE¼ of Section 1, Township 9 South, Range 94 West, 6^th P.M., for production of gas and associated hydrocarbons from the Mesaverde Formation.

                        The Commission finds as follows:

                        1. Laramie Energy, LLC ("Laramie"), 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 pursuant to the Oil and Gas Conservation Act.

                        4. On May 20, 1985, the Commission issued Order No. 429-1, which established 160-acre drilling and spacing units for certain lands in the Brush Creek Field including Section 1, Township 9 South, Range 94 West, 6^th P.M., for production of gas and associated hydrocarbons from the Mesaverde Formation (including the Cozzette-Corcoran Sandstones), with the permitted wells to be located no closer than 600 feet from the quarter section lines.

                        5. On October 19, 2005, Laramie, by its attorney, filed with the Commission a verified application for an order to allow up to three (3) additional wells to be optionally drilled and completed in the 160-acre drilling and spacing unit consisting of the SE¼ of Section 1, Township 9 South, Range 94 West, 6th P.M., for production of gas and associated hydrocarbons from the Mesaverde Formation.

                        6. Testimony and exhibits presented at the administrative hearing indicated that all lands in the application area are leased by Laramie or EnCana Oil and Gas.

                       7. Testimony and exhibits presented at the administrative hearing described the geological deposition of the Mesaverde Formation in the application lands.

                        8. Testimony and exhibits presented at the administrative hearing showed the original gas in place for the Brush Creek Field averages 74.1 BCF per section and that the original gas in place for the formations included in the application lands will be 16.4 BCF for the SE¼ of Section 1.

                        9. Testimony and exhibits presented at the administrative hearing showed that the average drainage radius is 8 acres for all wells and 9 acres for new wells in the Brush Creek Field. Additional testimony showed that with a well density of one well per 160 acres, the gas recovery factor will average 4% for all wells and will average 5% for new wells. In addition, testimony showed that with a well density of four (4) wells per 160 acres, the average gas recovery for all wells is projected to average 17%, and that the average gas recovery for new wells is projected to average 19%. Further, testimony showed that in the SE¼ of Section 1 the gas recovery factor is projected to be 4% for one well and 17% for four (4) wells.

                        10. Testimony and exhibits presented at the administrative hearing indicated that the economics of the application are viable.

                        11. Testimony and exhibits presented at the administrative hearing showed that additional reserves will be recovered, waste will be prevented and correlative rights will be protected if the application is approved.

                        12. Laramie Energy, LLC agreed to be bound by oral order of the Commission.

                        13. Based on the facts stated in the verified application, having received no protests and having been heard by the Hearing Officer who recommended approval, the Commission should enter an order to allow up to three (3) additional wells to be optionally drilled and completed in the 160-acre drilling and spacing unit consisting of the SE¼ of Section 1, Township 9 South, Range 94 West, 6th P.M., for production of gas and associated hydrocarbons from the Mesaverde Formation.

                        NOW, THEREFORE, IT IS ORDERED, that up to three (3) additional wells are hereby approved to be optionally drilled and completed in the 160-acre drilling and spacing unit consisting of the SE¼ of Section 1, Township 9 South, Range 94 West, 6th P.M., for production of gas and associated hydrocarbons from the Mesaverde Formation.

                        IT IS FURTHER ORDERED, that the provisions contained 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 any and/or all of the above orders.

                        IT IS FURTHER ORDERED, that under the State Administrative Procedure Act the Commission considers this order to be final agency action for purposes of judicial review within thirty (30) days after the date this order is mailed by the Commission.

                        IT IS FURTHER ORDERED, that an application for reconsideration by the Commission of this order is not required prior to the filing for judicial review.

                        ENTERED this __________ day of December, 2005, as of December 6, 2005.

                                                                        OIL AND GAS CONSERVATION COMMISSION

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

December 16, 2005