IN THE MATTER OF GENERAL RULES AND REGULATIONS WITH RESPECT TO THE CONSERVATION OF OIL AND GAS IN THE STATE OF COLORADO, AND RULES OF PRACTICE AND PROCEDURE PERTAINING THERETO AND IN PARTICULAR WITH REFERENCE TO RULE 323

BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF THE DESIGNATION OF THE MESAVERDE-POINT LOOKOUT FORMATIONS AS AN EXEMPT AQUIFER IN LA PLATA COUNTY, COLORADO

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CAUSE NO. 1

ORDER NO. 1-14 (Formerly 1-108)

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on August 20, 1990 at 8:30 a.m., in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, after Amoco Production Company filed with the Commission as application to inject water produced from the Fruitland formation into the Mesaverde-Point Lookout formation in the Wallace Gulch Disposal Well located 2,180 feet FNL and 1550 feet FWL, Section 26, Township 35 North, Range 7 West, N.M.P.M., La Plata County, Colorado. The Mesaverde-Point Lookout formation water contains 2552 milligrams per liter total dissolved solids and should be designated an exempt aquifer as required by Rule 324 B of the Rules and Regulations of the Commission. The Commission determined there was a significant degree of public interest in the proposed exemption and that a hearing should be held at which time a final determination concerning the designation would be made.

FINDINGS

The Commission finds as follows:

1. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

2. 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 data supplied and testimony given show all the requirements of Rule 324 B of the Rules and Regulations of the Commission have been correctly met.

4. That a final determination should be made to exempt the Mesaverde-Point Lookout formation as an aquifer.

5. That the recommendation for a yearly analysis of the blended disposal water stream be made a requirement of the operational approval of the well.

ORDER

NOW, THEREFORE, IT IS ORDERED that the Mesaverde-Point Lookout formation is an exempt aquifer under Rule 324 B of the Rules and Regulations of the Commission for the Wallace Gulch Disposal Well No. 1 located in the NW¼ Section 26, Township 35 North, Range 7 West, N.M.P.M. La Plata County, Colorado.

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

ENTERED this 22nd day of August, 1990, as of August 20, 1990.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dennis R. Bicknell, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado 80203