REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 19, 1959, at 10 A.M. the Pine Room of the Albany Hotel, Denver, Colorado, after publication of Notice of Hearing as required by law, on the application of the Ancora Corporation for an order excepting that certain bench of the "D" sand formation commonly referred to as the D-4 sand; from Order No. 134-1, issued September 3, 1959, pertaining to the Nugget Field, Washington County, Colorado, insofar as same covers the SE/2 of Section 20, and the NE/2 of Section 29, Township 1 South, Range 56 West, 6th P.M., and for a further order authorizing applicant to drill a test well for oil and gas at a location des-cribed as the NE/2NE/2NE/2 of Section 29, Township 1 South, Range 56 West, 6th P.M., Washington County, Colorado

FINDINGS

The Commission finds as follows:

1. Thai due notice of the time, place and purpose of the hearing has been giver in all respects as required by law.

2. That 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.

3. That testimony presented at the hearing indicates that that certain bench of the "D" sand formation known as the D-3 sand (referred to as the D-4 sand in above ap-plication) should be removed from the provisions of Order No. 134-1, issued September 3, 1959, in the Nugget Field, Washington County, Colorado, insofar as it pertains to the SE/2 of Section 20 and the NE/2 of Section 29, Township 1 South, Range 56 West of the 6th P.M., Washington County, Colorado.

4. That an exception to Rule 317 of the Rules and Regulations of the Oil and Gas Conservation Commission of the State of Colorado should be granted for a well to be drilled in the NE/2 NE/2 NE/2 of Section 29, Township 1 South, Range 56 West, 6th P.M., Washington County, Colorado; however, if a commercial well is drilled on the location set forth above instead of on a location as provided in said Rule 317, the Commission should, at the request of interested persons, and after notice and hearing, take such ac-tion as will offset any advantage which the person securing the exception may have over other producers by reason of the drilling of the well as an exception.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the following rules and regulations shall be= and the same ere hereby adopted for the "D" sand formation of the Nugget Fief Washington County, Colorado=

Rule 1. That bench of the "D" sand formation known as the D-3 sand is hereby removed from the provisions of Order No. 134-1, insofar as it pertains to the Southeast Quarter (SE/4) of Section Twenty (20) and the Northeast Quarter (NE/4) of Section Twenty nine (29), Township One (1) South, Range Fifty-six (56) West of the 6th P.M., Washing-ton County, Colorado.

Rule 21 An exception is hereby granted for a well to be drilled in the Center of the Northeast Quarter of the Northeast Quarter of the Northeast Quarter (CNE/2 NE/2 NE/2 of Section Twenty-nine (29), Township One (1) South, Range Fifty-six (56) West of the 6th P.M., Washington County, Colorado; however, if a commercial well is drilled on the location set forth above instead of on a location as provided in Rule 317 of the Rules and Regulations of the Oil and Gas Conservation Commission of the State of Colorado, the Commission shall, at the request of interested persons, and after notice and hearing, take such action as will offset any advantage which the person securing the exception ms have over other producers by reason of the drilling of the well as an exception.

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, rules and regulations .

ORDERED this 19th day of November, 1959.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Annabel Hogsett, Secretary -- 2 --