REPORT OF THE COMMISSION

This cause came on for emergency hearing before the Commission on May 27, 1988 at 10:00 A.M., in Suite 580, Logan Tower, 1580 Logan Street, Denver, Colorado on the Motion for,. Rehearing and/or amendment of the Commission's Decision of May 16, 1988 granting Medallion Petroleum, Inc. authorization to redesignate drilling and spacing units in the NW/4 Section 27, Township 14 South, Range 42 West, Cheyenne County, Colorado filed on May 19, 1988 by Mull Drilling Company et al by their attorney, and also a Motion for Stay of the Commission decision granting the redesignation of the drilling and spacing units as above as filed on May 24, 1988 by Mull Drilling Company by their attorney. Responses to both motions were filed by Medallion Petroleum,Inc.by their attorney on May 26, 1988.

FINDINGS

The Commission finds as follows:

1. Mull Drilling Company, Inc.et al and Medallion Petroleum, Inc. are interested parties in the subject matter of the above-referenced hearing.

2. That an emergency requiring immediate action was found to exist and notice of hearing was given to all interested parties in Cause 448-8.

3. The Commission has jurisdiction over the subject matter of the aforesaid hearing and of the parties interested therein, as well as jurisdiction to promulgate the hereinafter prescribed order.

4. That regarding the Motion for Rehearing, the Commission did not exceed its authority, that three Commissioners constitutes a quorum, that consultation with the Commission staff was appropriate, and that the evidence presented was not uncontroverted.

5. That the Motion for Rehearing and/or Amendment should be denied.

6. The Motion for Stay of Commission Decision should be denied.

7. That Order No. 449-8 should be signed and entered by the Commission Secretary on the date of this hearing, May 27, 1988, and that Order No. 449-8 should become effective fifteen days hence which is June 11, 1988.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the Motion for Rehearing and/or Amendment of the Commission decision filed by Mull Drilling Co. et al is denied, that the Motion for Stay of the Commission Decision is denied, that Order No.449-8 shall be signed by the Commission Secretary on May 27, 1988 and shall become effective in fifteen days which is June 11, 1988.

IT IS FURTHER ORDERED, that the provisions of the above order shall become effective upon entry.

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

ENTERED this 1st day 1988, as of May 27, 1988.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dennis R. Bicknell, Secretary