BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
in the matter to govern operations in the leyden gas storage field, jefferson county, colorado	) ) ) )	CAUSE NO.    1    ORDER NO.   1-62

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission on October 15, 1996, at 8:30 a.m. in Suite 801, the Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing, as required by law on the complaint/application of Richard Loesby for a hearing to:  1) determine whether the Oil and Gas Conservation Commission has jurisdiction over underground gas storage and whether the Oil and Gas Conservation Commission has authority to pursue legal remedies against Public Service Company of Colorado, and 2) to prevent further damage to private property of all landowners near Public Service Company gas storage and enforce the Colorado Oil and Gas Conservation Commission Order of 1960 against Public Service Company to enjoin and restrain them from continuing violations of the Order.

FINDINGS

                        The Commission finds as follows:

                        1.  Richard Loesby as an 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.  On September 16, 1996, Public Service Company of Colorado filed with the Commission a response to the application, indicating among other things that the Commission does not have jurisdiction over this matter.  On October 8, 1996, Public Service Company of Colorado filed with the Commission a supplement to the original response indicating that the Public Utilities Commission has jurisdiction over this matter and requesting that the complaint/application therefore be dismissed.

                        4.  On October 8, 1996, Colorado Interstate Gas Company filed with the Commission a Notice of Intervention in this matter, requesting that the issue of jurisdiction over gas storage be limited to the Leyden Gas Storage Field.

                        5.  At the time of the hearing the applicant presented testimony and exhibits indicating the belief that gas from the storage field has been leaking and therefore the field is not being operated properly.

                        6.  After discussion by the Commission, approval was unanimous that the Commission has jurisdiction to investigate the complaint and the matter was remanded to the Director to follow the procedure set forth in Rule 522 to investigate, determine what, if any, violations of the Act, rules, regulations, or orders have occurred, and respond by either issuing a Notice of Alleged Violation or indicating that no violation has been found.

ORDER

                        NOW, THEREFORE, IT IS ORDERED, that the Colorado Oil and Gas Conservation Commission shall have jurisdiction to investigate the complaint alleged by Richard Loesby in accordance with the procedure set forth in Rule 522 of the Rules and Regulations of the Oil and Gas Conservation Commission.

                        IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective on the date the order is entered.

                        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 November, 1996, as of October 15, 1996.

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

November 4, 1996