REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 22, 2003 at 10:00 a.m. in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado on the application of Burlington Resources Oil and Gas Company LP for an order to vacate Order No. 325-1 and place the lands under the Rules and Regulations of the Commission.

FINDINGS

The Commission finds as follows:

1. Burlington Resources Oil and Gas Company LP ("Burlington"), as applicant herein, is an interested party in the subject matter of the above-referenced 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. On May 26, 1977, the Commission issued Order No. 325-1 which approved the project for the storage of natural gas in an underground reservoir in the Dakota Formation underlying the lands described below in the Barker Dome Field:

Township 32 North, Range 131/2 West, N.M.P.M. Portions of Sections 1-4, 12, 13 and 24 Sections 9-11: All Sections 14-16: All Section2 21-23: All

Township 32 North, Range 14 West, N.M.P.M Portions of Sections 1, 12, 13, 23, and 24

5. On August 1, 2003, Burlington, successor-in-interest to El Paso Natural Gas Company ("El Paso"), by its attorney filed with the Commission a verified Application for an order to vacate Order No. 325-1. Burlington requested to vacate Order No. 325-1 because the lands and acreage covered under the Order were never developed as an underground storage area for the storage of natural gas.

6. Testimony and exhibits presented at the administrative hearing showed that research had been done on the El Paso/Burlington records and no indication was found that the natural gas storage project was ever initiated. Additional testimony showed that thirty-eight (38) gas wells have been drilled on or near the application lands but no injection wells have been drilled on the lands. Further testimony showed that Burlington had contacted a former El Paso attorney who was assigned to natural gas storage projects in the western United States who contacted a landman who had worked the area previously and neither were aware of any natural gas storage project in the application lands.

7. Testimony and exhibits presented at the administrative hearing indicated that employees of Burlington and others who have worked in the application lands do not believe there was ever a storage project on the application lands. Additional testimony showed that wells were drilled to the Dakota Formation in the application lands and plugged and abandoned. Further testimony showed that the pipelines in the area are not able to take gas for inject ion and that there are no facilities in the area for injection.

8. Testimony presented at the administrative hearing indicated a telephone call was received by Burlington from a representative from the Ute Mountain Ute Tribe who verified that no storage project was ever attempted on the application lands. Additional testimony indicated that the approval of the application would remove the lands from an unnecessary Order, allowing wells to be drilled for production of gas from the Dakota Formation in the application lands. 9. That Burlington Resources Oil and Gas Company LP agreed to be bound by oral order of the Commission.

10. Based on the facts stated in the verified application, having received no protests and having been heard by the Hearing Officer who recommended approval, the Commission should enter an order to vacate Order No. 325-1 and place the lands under the Rules and Regulations of the Commission.

ORDER

NOW, THEREFORE IT IS ORDERED, that Order No. 325-1 is hereby vacated and that the lands are hereby placed under the provisions of the Rules and Regulations of the Commission.

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 September, as of September 22, 2003.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Patricia C. Beaver, Secretary

Dated at Suite 801 1120 Lincoln Street Denver, Colorado 80203 September 26, 2003

1 (325#2)

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