BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN  OPERATIONS IN THE IGNACIO‑BLANCO FIELD,  LA PLATA, COUNTY, COLORADO	) ) ) )	CAUSE NO.   112 ORDER NO.   112-116

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission on December 20, 1993 at 8:30 a.m., in the Boettcher Auditorium, 1300 Broadway, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Amoco Production Company for an order allowing the Hays No. 1-11U Well to be recompleted at an exception location for the production of coalbed methane gas from the Fruitland coal seams.

FINDINGS

                        The Commission finds as follows:

                        1.  Amoco Production Company, 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 June 15, 1988, the Commission issued Order No. 112-60 which established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Fruitland coal seams, underlying certain lands in the Ignacio-Blanco Field including the E1/2 of Section 11, Township 34 North, Range 7 West, South of the Ute Line, N.M.P.M., which has been established as a drilling and spacing unit.

                        5.  Testimony presented at the administrative hearing showed that production from the Dakota Formation was close to depletion and that the Hays No. 1-11U Well would be plugged and abandoned unless recompletion to the Fruitland coal seams was approved.  Waivers have been sent to all mineral owners of cornering and contiguous units and fifteen out of thirty-nine mineral owners have signed and returned waivers.

                        6.  Based on the facts stated in the verified application, having received no protests, and having been heard by the Hearing Officers who recommended approval, the Commission should enter an order allowing the Hays No. 1-11U Well to be recompleted at an exception location 2450 feet FNL and 2520 feet FEL in the SW1/4 NE1/4 of Section 11, Township 34 North, Range 7 West, South of the Ute Line, N.M.P.M., for the production of coalbed methane gas from the Fruitland coal seams, for the 320-acre drilling and spacing unit consisting of the E1/2 of said Section 11.

O R D E R

                        NOW, THEREFORE IT IS ORDERED, that, the Hays No. 1-11U Well is hereby approved to be recompleted at an exception location 2450 feet FNL and 2520 feet FEL in the SW1/4 NE1/4 of Section 11, Township 34 North, Range 7 West, South of the Ute Line, N.M.P.M., for the production of coalbed methane gas from the Fruitland coal seams, for the 320-acre drilling and spacing unit consisting of the E1/2 of said Section 11.

                        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 , 1994, as of December 20, 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

January 9, 1994