Place water, sugar and yeast into bowl of stand mixer with a dough hook attachment. Stir together and let stand for 5-10 minutes. This will 'proof' the yeast. It should be foamy and bubbly. If not start over and check the expiration date on your yeast.
After water and yeast are proofed, add oil and mix on low for a few seconds.
Add salt, egg and melted butter and mix until incorporated.
Add flour a cup at a time until a ball has formed on the dough hook. You may need to adjust the amount of flour added according to your altitude. You want it to be a soft consistency, not too sticky, not too dry.
Form into 12-14 balls and place on a baking sheet sprayed with cooking spray.
Set aside and let rise for 45 minutes.
Cook rolls in a 400 degree oven for 12-14 minutes. Keep an eye on them and don't let them overcook.
Serve with butter.