REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 19, 1988, at 8:30 A.M. in Room 101, Education Building, 201 East Colfax, Denver, Colorado, after being continued from the Commission hearing on August 15 and 16, 1988, in the matter of determining if the 27-1 well is an exception well.

FINDINGS

The Commission finds as follows:

1. Notice of Intervention were filed by Union Pacific Resources Company, TXO Production Corporation, Mull Drilling Company, Inc. et. al, and Medallion Petroleum, Inc. and all are interested parties in the subject matter of the above referenced matter.

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 the parties interested therein,and jurisdiction to promulgate the hereinafter prescribed order.

4. At the Commission hearing on August 16, 1988,the Commission continued the matter of determining if the 27-1 well is an exception well. The 27-1 well refers to the Arapahoe 27-1 well located in the SE/4 NW/4 Section 27, Township 14 South, Range 42 West, 6th P.M., Arapahoe Field, Cheyenne County, Colorado. The parties involved were to attempt to resolve the matter in the interim.

5. At the September hearing the parties reported they were unable to resolve the matter.

6. Testimony was presented concerning effective reservoir extent under various tracts, production volumes to date, the well Arapahoe 27-1, and various definitions of the meaning of exception, among other things.

7. The Commission determined the Arapahoe 27-1 Well located in the SE/4 NW/4 Section 27, Township 14 South, Range 42 West, 6th P.M., Arapahoe Field, Cheyenne County, Colorado is not an exception well.

ORDER

NOW THEREFORE IT IS ORDERED, that the Arapahoe 27-1 Well located in the SE/4 NW/4 Section 27, Township 14 South, Range 42 West, 6th P.M., Arapahoe Field, Cheyenne County, Colorado is not an exception well.

IT IS FURTHER ORDERED, that this order shall be effective forthwith.

IT IS FURTHER ORDERED, that the Commission expressly reserves its rights, after notice of hearing, to alter amend or repeal any and/or all of the above order.

Entered this 5th day of October, 1988 as of September 19, 1988.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dennis R. Bicknell, Secretary

(449-19)