REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 17, 1973, at 9 A.M., in the Auditorium, Social Services Building, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of CER Geonuclear Corporation for an order approving the re-entry and testing of the Rio Blanco Unit Well No. RB-E-01.

FINDINGS

The Commission finds as follows:

1. That due notice of the time, place, and purpose of the hearing has been given 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 the Commission by its Order No. 264-1, which authorized the implantation and detonation of nuclear stimulation devices in the Unit Well No. RB-E-01, further ordered that the Commission be notified no less than 60-days prior to the date of the intention to re-enter and test said well and that the Commission be furnished with the plan and other information at an additional hearing for consideration of the proposed plan of re-entry and testing.

4. That re-entry and testing is required to evaluate the results of the nuclear stimulation.

5. That the plan of re-entry into the Well No. RB-E-01 as proposed and set forth on OGCC Form 4 attached to the application, is reasonable and in accordance with good engineering practices; however, should alternate plan 2 be used, in which it will be necessary to drill a new well into the chimney, sufficient 10 3/4 inch casing should be run and cemented through the aquifers that underlie the area and are known as the "A" and "B" ground water subsystems.

6. That the testing program as proposed in the application and the release of gas thereunder is reasonably necessary and does not constitute waste as defined in 100-6-3 CRS 1963, as amended.

7. That approval of the re-entry and testing of the Well No. RB-E-01 as proposed, is in the public interest in that it complies with the purpose of the Oil and Gas Conservation Act in fostering, encouraging and promoting the development, produc-tion and utilization of gas in the State of Colorado as provided in 100-6-22 CRS 1963, as amended.

(over)

ORDER

NOW, THEREFORE, IT IS ORDERED, that CER Geonuclear Corporation is hereby authorized to re-enter and test the well No. RB-E-01, located in the NW/4 NW/4 Section 14, Township S South, Range 98 West 6th P.M., Rio Blanco County, Colorado. Such re-entry and testing shall be in compliance with good engineering practices and methods as proposed in the application and described on the Oil and Gas Conservation Commission Form 4; provided, however, that if it shall be necessary to drill a new well for re-entry into the chimney, sufficient 10 3/4 inch casing shah be run and cemented in said well to a depth through the aquifers that underlie the area and are known as the "A" and "B" ground water subsystems.

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any part or all of the above order.

ORDERED this 17th day of July 1973.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO By Frank J. Piro, Secretary

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(#264-2)