REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 18, 1989 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 Gary A. Cooper and Lawrence E. Frickey to establish a 40-acre drilling and spacing unit for production of gas and associated hydrocarbons from the "J" Sand for the Cooper #1-16 located 1430 feet FEL and 1970 feet FSL of Section 16, Township 1 South, Range 68 West, 6th P.M., Adams County, Colorado operated by Martin Exploration Management Company, said well currently awaiting completion in the "J" Sand formation.

FINDINGS

The Commission finds as follows:

1. Gary A. Cooper and Lawrence E. Frickey, as applicant herein, are interested parties in the subject matter of the above-mentioned 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. A protest to the application has been filed by Martin Exploration Management Company as operator of the Cooper #1-16 well described above.

5. An administrative hearing was held by the Acting Director as Hearing Office after an explanation of the process, the agreement of the applicants and protestant to such a hearing, the agreement to accept the recommendation of the Hearing Officer to be made to the Commission on September 18, 1989 without further pleadings to the Commission, and to be bound by the verbal order of the Commission.

6. A recommendation to deny the application as filed was made by the Hearing Officer because to grant the application would lead to

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the drilling of unnecessary wells, there is insufficient evidence to indicate any unusual geologic or reservoir conditions were encountered in the Cooper #1-16 well, and that previously issued orders of the Commission indicate that one well in the "J" Sand will economically and efficiently drain 160-acres.

7. The Hearing Officer asked if the further relief sought by the applicants could be enlarged to establish a 160-acre drilling and spacing unit for the Cooper #1-16; the Commission finds this request to be beyond the scope of the present application.

O R D E R

NOW, THEREFORE IT IS ORDERED, that the application of Gary A. Cooper and Lawrence E. Frickey to establish a 40-acre drilling and spacing unit consisting of the NW/4 of the SE/4, Section 16, Township 1 South, Range 68 West, 6th P.M., Adams County, Colorado for production of gas and associated hydrocarbons from the "J" Sand formation in the well Cooper #1-16 described herein-above operated by Martin Exploration Management Company is denied.

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IT IS IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith as all parties agreed to be bound by the oral orders of the Commission.

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.

ENTERED this day of ,

1989, as of September 18, 1989.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dennis R. Bicknell, Secretary

Dated at Suite 380 1580 Logan Street Denver, Colorado 80203

0902A

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