REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 19, 1987 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 Barrett Energy Company, for an order pooling all interests in the drilling and spacing unit consisting of the SE/4, Section 3, Township 7 South, Range 95 West, 6th P.M., Garfield County, Colorado, for the development and operation of the Wasatch formation for the production of gas and associated hydrocarbons underlying said unit, pursuant to 34-60-116 C.R.S., as amended.

FINDINGS

The Commission finds as follows:

1. Barrett Energy 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. The SE/4, Section 3, Township 7 South, Range 95 West, 6th P.M. has been established as a drilling and spacing unit by the Commission by Order No. 440-1, issued December 16, 1985.

5. Effort has been made to obtain the voluntary pooling of all interests; however an offer was made to Mr. John 0. Watson to obtain a lease or in the alternative to participate in the well. An AFE was submitted on July 29, 1987 in accordance with Rule 534 of the Rules of Practice and Procedure. No response has been received and said owner should be deemed to be non-consenting.

6. Based on the facts stated in the verified application, and receiving no objections and having been reviewed by the Director as Hearing Officer on October 15, 1987 and recommended for approval, the Commission should enter an order pooling all interests in the 160-acre drilling and spacing unit herein described in order to insure proper and efficient development of the gas and associated hydrocarbons from the Wasatch formation underlying said unit.

7. An order of the Commission pooling all interests in said drilling unit is necessary in order to afford each owner of interest in each said drilling unit the opportunity to recover and receive his just and equitable share of the gas and associated hydrocarbons from the common source of supply underlying said drilling unit.

8. Production obtained from said drilling unit should be allocated to each tract therein on the basis of the proportion that the number of acres in each tract bears to the total number of acres within said drilling unit.

ORDER

NOW THEREFORE IT IS ORDERED, that:

1. Pursuant to the provisions of 34-60-116, C.R.S., amended, of the Oil and Gas Conservation Act of the State of Colorado all interests in the drilling and spacing unit consisting of the SE/4, Section 3, Township 7 South, Range 95 West, 6th P.M., Garfield County, Colorado, are hereby pooled for the development of gas and associated hydrocarbons from the Wasatch formation underlying said unit.

2. Mr. John J. Watson is considered a non-consenting owner and is subject to the provisions of 34-60-116(7) C.R.S., as amended. 3. The production obtained from said drilling unit shall be allocated to each owner therein in the unit on the basis of the proportion that the number of acres in each tract bears to the total number of mineral acres within said drilling unit; each owner of an interest in said drilling unit shall be entitled to receive his share of the production of the well located on said drilling unit applicable to his interest in said drilling unit.

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

IT IS FURTHER ORDERED, that the Commission reserves its right, after Notice and Hearing, to alter, amend or repeal any and/or a of the above orders. ENTERED this 16th day of November -1987, as of October 19, 1987.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

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