BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
IN THE MATTER OF AN EXCEPTION TO THE WELL LOCATION REQUIREMENTS OF THE RULES AND REGULATIONS OF THE OIL AND GAS CONSERVATION COMMISSION FOR OPERATIONS IN THE IGNACIO-BLANCO FIELD, LA PLATA COUNTY, COLORADO	) ) ) )	CAUSE NO.   112 ORDER NO.   112-158

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Colorado Oil and Gas Conservation Commission at 8:30 a.m. on December 4, 2000, at the Chancery Building, 1120 Lincoln Street, Suite 801, Denver, Colorado, on the verified application of Amoco Production Company for an order to allow an exception to the permitted location for the Ford Gas Unit F1A located 1080 feet FNL and 550 feet FEL in the NE¼ NE¼ of Section 3, Township 33 North, Range 8 West, N.M.P.M. for production of methane gas from the Fruitland Coal Formation.

FINDINGS

                        The Commission finds as follows:

                        1.  Amoco Production Company (“Amoco”), as applicant herein, is an interested party in the subject matter of the above-referenced matter.

                        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.  Rule 318.c. of the Rules and Regulations of the Colorado Oil and Gas Conservation Commission allows the Director to grant an exception location provided that waivers are obtained from the mineral owners toward whom the well is proposed to be moved.  If a party or parties object to a location and cannot reach an agreement, the operator may apply for a Commission hearing on the exception location.

                        5.  Under Rule 318.c., Amoco applied for waivers from the sixty-six (66) parties owning minerals in the area.  Amoco received twenty-eight (28) waivers and seven (7) objections.  Five (5) waiver requests were returned as undeliverable. 

                        6.  On October 18, 2000, Amoco by its attorney, filed with the Commission a verified application for an order seeking an exception to the permitted location for the Ford Gas Unit F1A located 1080 feet FNL and 550 feet FEL in the NE¼ NE¼ of Section 3, Township 33 North, Range 8 West, N.M.P.M. for production of gas from the Fruitland Coal Formation.

7. Amoco proposed to dually complete the Fruitland Coal Formation with the existing Mesa Verde Formation production.  An exception location is necessary because the existing well bore is located 550 feet from the east boundary of the quarter section.  The proposed exception location will allow Amoco to comply with Order 112-157 to use an existing well bore, therefore minimizing surface disturbance and maximizing use of existing infrastructure.

                        8.  On November 6, 2000, Commission staff mailed Notice of Hearing to all mineral owners in the application area.  No protests or interventions were filed with the Commission by the November 17, 2000 deadline.

                        9.  Based on the facts presented in the verified application, and having received no protests to the application, Amoco requested the application be approved without hearing.  The Commission should approve the request and allow an exception to the permitted location for the Ford Gas Unit F1A located 1080 feet FNL and 550 feet FEL in the NE¼ NE¼ of Section 3, Township 33 North, Range 8 West, N.M.P.M. for production of gas from the Fruitland Coal Formation.

ORDER

                        NOW, THEREFORE, IT IS ORDERED that the Ford Gas Unit F1A is hereby allowed to be completed for production of gas from the Fruitland Coal Formation at an exception location 1080 feet FNL and 550 feet FEL in the NE¼ NE¼ of Section 3, Township 33 North, Range 8 West, N.M.P.M.

                        IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

                        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 December 2000, as of December 4, 2000.

                                                                        GAS AND GAS CONSERVATION COMMISSION

                                                                           OF THE STATE OF COLORADO

                                                                        By____________________________________________

Dated at Suite 801                                                      Patricia C. Beaver, Secretary

1120 Lincoln Street

Denver, Colorado 80203

December 14, 2000