BEFORE THE OIL AND GAS CONSERVATION COMMISSION

                                                             OF THE STATE OF COLORADO

IN THE MATTER OF OPERATIONS IN THE                                 )                    CAUSE NO. 1

FRUITLAND COAL SEAMS IN THE IGNACIO-BLANCO           )

FIELD, LA PLATA COUNTY, COLORADO                                   )                    ORDER NO. 1‑47

                                                                                                                                    (Formerly 1-163)

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission at 8:30 a.m. on November 15, 1993 in Room 318, State Centennial Building, 1313 Sherman Street, Denver, Colorado, and at 2:00 p.m. on November 22, 1993 in Room 318, Logan Tower, 1580 Logan Street, Denver Colorado, on the Commission staff proposal for Amoco Production Company to shut-in ten wells located in Sections 15, 16, 22, 23, 24, 25, and 26 of Township 35 North, Range 7 West, N.M.P.M.

FINDINGS

                        The Commission finds as follows:

                        1.  Amoco Production Company is an interested party in the subject matter of the above‑referenced hearing.

                        2.  Notice of hearing was given to Amoco Production Company more than ten days prior to the hearing.

                        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.  At the hearing on November 15, 1993, Ken Salazar, Executive Director of the Department of Natural Resources, read a statement into the record concerning methane gas seeps in La Plata County.

                        5.  Richard Griebling, Director of the Colorado Oil and Gas Conservation Commission, gave an overview of the situation concerning methane gas seeps near the Pine River study area.  He further described the composition and the mission of the Investigation Team organized to study the situation.

                        6.  Amoco Production Company presented an exhibit booklet containing a map of and cross section near the Fruitland Coal outcrop, a list of possible causes for methane in the water wells and at the outcrop, and a six-part action plan to address the situation.

                        7.  La Plata County Commissioners Baty and Joswick spoke on behalf of their primary statutory responsibility to the citizens of the county and their concerns about additional areas that may have methane gas seepage.  The Commissioners requested that the county be immediately notified of all issues relating to health, safety, and welfare, that a basin-wide study of methane gas seepage be conducted, and that an Environmental Impact Study be performed in La Plata County.

                        8.   The Commission directed Amoco Production Company to proceed with the first three steps of their action plan, while the Investigation Team reviewed the remainder of their proposed plan, and continued the matter to a special hearing on November 22, 1993.

                        9.  After additional testimony from the Director and Amoco Production Company at the November 22, 1993 hearing, the Commission ordered the Gurr Federal Gas Unit No. 1 Well located in the SE1/4 SE1/4 of Section 15, Township 35 North, Range 7 West, N.M.P.M., to be shut-in at a date to be determined by the Director, after the drilling of monitor wells by Amoco Production Company.

O R D E R

                        NOW, THEREFORE, IT IS ORDERED, that the Gurr Federal Gas Unit No. 1 Well shall be shut-in at a date to be determined by the Director, after the drilling of monitor wells by Amoco Production Company.

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

                        Entered this  day of , 1993, as of November 22, 1993.

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                            OF THE STATE OF COLORADO

                                                                        By

                                                                                         Patricia C. Beaver, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado  80203

December 12, 1993