REPORT OF THE COMMISSION

This cause came on for hearing before the Oil and Gas Conservation Commission on December 19, 1988 at 8:30 A.M. in Room 101, State Education Building, 201 East Colfax, Denver, Colorado after giving Notice of Hearing as required by law, on the verified application of Walsh Production, Inc. to exempt the Walsh Lilli Federal C #6-1 located in the SE/4 NW/4 Section 1, Township 8 North, Range 59 West, 6th P.M., Weld County, Colorado from the field rules of Lilli Field as established in Cause No. 451.

FINDINGS

The Commission finds as follows:

1. Walsh Production, Inc. as applicant herein, is an interested party in the subject matter of the above-entitled matter.

2. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law having been continued at the applicant's request from the November hearing.

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. In Cause No. 451, the Commission has authorized various orders to be issued which established the Lilli Field from the D 1. Sand and usually referred to as the Lilli D' Bar Sand and further established daily production limits for both oil and gas for any well producing from this sand.

5. The Walsh Production, Inc. well Federal C #6-1 located in the SE/4 NW/4 of Section 1. is located within the spaced area established as Lilli Field and is productive of oil and associated hydrocarbons from a D' Sand in the Cretaceous D' Sand interval.

6. Based on the facts stated in the verified application and the exhibits presented to the Hearing Officer who recommends approval for the application and having received no protests or objections, the Commission should approve the request and issue an order establishing the Cretaceous D' 2 Sand producing oil and associated hydrocarbons in the Federal C #6-1 as a separate source of supply from the Lilli D' Bar Sand source of supply established in Cause No. 451 and exempt the production from the restrictions ordered on production in Cause No. 451.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the Cretaceous D 2 Sand producing oil and associated hydrocarbons is a separate source of supply from the Lilli D' Bar Sand as established in Cause No. 451 in the well Federal C #6-1 in the SE/4 NW/4 Section 1, Township 8 North, Range 59 West, 6th P.M., Weld County, Colorado and that the production from the Federal C #6-1 is exempted from any production restrictions established by any past or future orders of Cause No. 451 for Lilli Field.

ENTERED this 21st day of December 1988, as of December 19, 1988.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dennis R. Bicknell, Secretary