BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF CHANGES TO THE RULES AND                                               )             CAUSE NO. 1

REGULATIONS OF THE OIL AND GAS CONSERVATION                                          )

COMMISSION OF THE STATE OF COLORADO                                                        )             ORDER NO. 1R-97

                        Pursuant to a hearing before the Oil and Gas Conservation Commission on September 7, 2005 at the Chancery Building, 1120 Lincoln Street, Suite 801, Denver, Colorado, the Oil and Gas Conservation Commission promulgated amendments to its Rules and Regulations as described below:

215. GLOBAL POSITIONING SYSTEMS

            Global Positioning Systems (GPS) may be used to locate facilities used in oil and gas operations provided they meet the following minimum standards of the Commission:

Within thirty (30) days of the setting of production casing, the plugging of a dry hole, the deepening or sidetracking of a well, or any time the wellbore configuration is changed, the operator shall transmit to the Director the Drilling Completion Report, Form 5, and two (2) copies of all logs run, be they mechanical, mud, or other, submitted as one (1) paper copy and, as available, one (1) digital LAS (log ASCII) formatted copy, or a format approved by the Director. Additionally, if drill stem tests, core analyses, or directional surveys are run, they shall be submitted at the same time and together with this completion report. All Sections 1 - 22 (if applicable) and the attachment checklist shall be completely filled out. The latitude and longitude coordinates in decimal degrees to an accuracy and precision of five (5) decimals of a degree using the North American Datum (NAD) of 1983 (e.g.; latitude 37.12345 N, longitude 104.45632 W), Position Dilution of Precision (PDOP) reading, instrument operator’s name and the date of the measurement of the "as drilled" well location shall be reported on the Form 5. If GPS technology is utilized to determine the latitude and longitude, all GPS data shall meet the requirements set forth in Rule 215. a. through h.

Within thirty (30) days of the suspension of commenced drilling activities prior to reaching total depth, the operator shall file a Drilling Completion Report, Form 5, notifying the Director of the date of such suspension of drilling activity stating the reason for suspension and the anticipated date and method of resumption of drilling, showing the details of all work performed to date. In cases of an uncompleted well, the initial Drilling Completion Report, Form 5, shall state "preliminary" at the top of the form. A supplementary Form 5 shall be submitted within thirty (30) days of reaching total depth.

333. SEISMIC OPERATIONS

                        Attached, as Exhibit A, is a statement giving the basis and purpose of the revisions and such statements are incorporated herein by reference.

                        DONE AND PERFORMED by the Oil and Gas Conservation Commission of the State of Colorado this _____ day of September, 2005.

                                                                                                                                    IN THE NAME OF THE COLORADO

                                                                                                                                    OIL AND GAS CONSERVATION COMMISSION

                                                                                                                                    OF THE STATE OF COLORADO

                                                                                                                                    By 9; _______________________________________

                                                                                                                                                    Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

September 15, 2005

Exhibit A

200 Series

The 200 Series of the Rules and Regulations of the Oil and Gas Conservation Commission pertain to general rules and regulations of the Commission.

The Statutory Authority for the promulgation of this rule is found in:

§34-60-105 (1), C.R.S., provides that "The commission has jurisdiction over all persons and property, public and private, necessary to enforce the provisions of this article, and has the power to make and enforce rules, regulations, and orders pursuant to this article, and to do

§34-60-106 (1)(b), C.R.S., provides that "The making and filing with the commission of copies of well logs, directional surveys, and reports on well location, drilling, and production;. . . ."

The 300 Series of the Rules and Regulations of the Oil and Gas Conservation Commission pertain to Drilling, Development, Producing and Abandonment for oil, gas and disposal operations.

The Statutory Authority for the promulgation of these rules is found in:

§34-60-105 (1), C.R.S., provides that "The commission has jurisdiction over all persons and property, public and private, necessary to enforce the provisions of this article, and has the power to make and enforce rules, regulations, and orders pursuant to this article, and to do whatever may reasonably be necessary to carry out the provisions of this article. …"

§34-60-106 (1)(b), C.R.S., provides that "The making and filing with the commission of copies of well logs, directional surveys, and reports on well location, drilling, and production;. . . ."

§34-60-106 (2)(a), C.R.S., provides that the commission has the authority to regulate "[t]he drilling, producing and plugging of wells and all other operations for the production of oil or gas; . ."

§34-60-106 (2)(d), C.R.S., gives the commission authority to regulate "[o]il and gas operations so as to prevent and mitigate significant adverse environmental impacts on any air, water, soil or biological resource to the extent necessary to protect public health, safety, and welfare, in consideration of cost-effectiveness and technical feasibility."

§34-60-106 (11), C.R.S., mandates the commission to "promulgate rules and regulations to protect the health, safety and welfare of the general public in the conduct of oil and gas operations."