146-1

BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF THE APPLICATION OF THE PUBLIC SERVICE COMPANY OF COLORADO FOR AN ORDER APPROVING THE STORAGE OF NATURAL GAS IN THE LEYDEN STORAGE RESERVOIR IN JEFFERSON COUNTY, COLORADO

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CAUSE NO. 146

ORDER NO. 146-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 30, 1960, at 10:00 a.m., in Room 720, State Services Building, Denver, Colorado, after service and publication of Notice of Hearing as required by law, on the application of the Public Service Company of Colorado, a Colorado corporation, having its principal place of business in Denver, Colorado, such application being pursuant to the provisions of Chapter 100, Article 9, of the Colorado Revised Statutes. The application requested an order from the Commission approving a proposed storage project for the storage of natural gas in an Underground reservoir situated in the Laramie formations located in what is commonly known as the Leyden Coal Mine, Jefferson County, Colorado.

At the hearing, evidence was introduced in support of the application; no protests to the granting of the application were made, and no protests to the granting of the application have been received by this Commission.

The Commission recognizes that the order requested by the applicant is a prerequisite to petitioning a District Court for permission to exercise the right of eminent domain for the purpose of acquiring property for the underground storage of natural gas.

FINDINGS

The Commission finds as follows:

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

2. That 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 applicant, the Public Service Company of Colorado, is a Colorado corporation, and is a natural gas public utility as required by the provisions of Chapter 100, Article 9, Colorado Revised Statutes, 1953.

4. That the Public Service Company of Colorado is engaged in the distribution, transportation and storage of natural gas, which gas, in major part, is intended for ultimate distribution to the public.

5. That substantial evidence adduced by the applicant and introduced at the hearing shows that the proposed natural gas storage project is in the public interest and welfare, and that the storage reservoir is suitable and practicable; and that the formation or formations sought to be condemned and which are the subject matter of the application are non-productive of oil or gas in commercial quantities under either primary or secondary recovery methods.

6. That the areal extent of the reservoir for the underground storage of natural gas is indicated by a heavy black line on the Henry Exhibit No. 1 of this cause, dated June 3, 1960, which by reference is made a part hereof; and that a buffer zone for the reservoir is indicated by a dotted line which circumvents the heavy black line on said exhibit; and that the reservoir and buffer areas are included within a brown line, as shown on said exhibit, which brown line is described in this Order,

ORDER

NOW, THEREFORE, IT IS ORDERED, that the project for the storage of natural gas in an underground reservoir situated in the Laramie formations in what is commonly known as the Leyden Coal Mine, Jefferson County, Colorado, as proposed by the Public Service Company of Colorado, is hereby approved. The areal extent of said underground storage reservoir is located within the area, enclosed by a brown line, as shown on the Henry Exhibit No, 1 of this cause, dated June 3, 1960, a reduced copy of which is attached hereto and by reference made a part hereof, which brown line and lands are described as follows:

Township 2 South, Range 70 West, 6th P.M.

Jefferson County, Colorado

Beginning at the NW corner of Section 26, Township 2 South, Range 70 West; thence easterly along the North line of Section 26 to its intersection with the southwesterly right-of-way line of the Denver and Rio Grande Western Railroad; thence southeasterly along the said southwesterly right-of-way line to the East line of Section 26; thence south along the said East line of Section 26 to the center line of the Leyden Highway; thence northwesterly along said center line to an intersection with the West line of the Leyden Townsite projected northerly; thence south along the West line of the Leyden Townsite, and its projection southerly, to an intersection with the North line of Section 35; thence west to the North 1/4 corner of Section 35; thence south to the East 1/4 corner of the NE¼ NW¼ of Section 35; thence west to the East 1/4 corner of the NE¼ NE¼ of Section 34; thence north to the NE corner of Section 34; thence west to the North 1/4 corner of Section 34; thence south to the East 1/4 corner of the SE¼ SW¼ of Section 34; thence west to the center of the SW¼ SE¼ of Section 33, thence north to the South 1/4 corner of the SW¼ SE¼ of Section 21; thence east to the South 1/4 corner of the SE¼ SE¼ of Section 21; thence north to the center of the SE¼ SE¼ of Section 21; thence east to the West 1/4 corner of the SW¼ SW¼ of Section 22; thence north to the West 1/4 corner of the SW¼ of Section 22; thence east to the center of the SE¼ of Section 22; thence south to the North ¼ corner of the NE¼ of Section 27; thence east to the Northwest corner of Section 26, the place of beginning. All sections being in Township 2 South, Range 70 West.

ORDERED this 30th day of September 1960.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

D.V. Rogers, Secretary