BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF CHANGES TO THE RULES AND REGULATIONS OF THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

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CAUSE NO. 1 TYPE: RULEMAKING ORDER NO. 1R-51 (Formerly Order 1-133)

REPORT OF THE COMMISSION

             Pursuant to a hearing before the Oil and Gas Conservation Commission on September 21, 1992, 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, the Oil and Gas Conservation Commission revised its Rules and Regulations to include Rule 303.k.  Said rule should read as attached Exhibit A.

             Attached, as Exhibit B, is the statement giving the basis and purpose of the additional rule the statement is incorporated herein by reference.

             DONE AND PERFORMED by the Oil and Gas Conservation Commission of the State of Colorado this 21st day of September, 1992.

                                 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

September 25, 1992

EXHIBIT A

RULE 303.k.           ANY PERSON HOLDING, OR WHO HAS APPLIED FOR, A PERMIT ISSUED OR TO BE ISSUED UNDER SECTIONS 34-33-101 TO 137, C.R.S., MAY AT ITS ELECTION, NOTIFY THE COMMISSION OF SUCH PERMIT OR APPLICATION.  SUCH NOTICE SHALL INCLUDE THE NAME, MAILING ADDRESS AND FACSIMILE NUMBER OF SUCH PERSON AND DESIGNATE BY LEGAL DESCRIPTION THE LIFE-OF-MINE AREA PERMITTED, OR APPLIED FOR, WITH DESCRIPTION THE LIFE-OF-MINE AREA PERMITTED, OR APPLIED FOR WITH THE DIVISION OF MINERALS AND GEOLOGY.  AS SOON AS PRACTICABLE AFTER RECEIVING SUCH NOTICE AND DESIGNATION, THE COMMISSION SHALL INFORM THE PARTY DESIGNATED THEREIN EACH TIME THAT A FORM 2 IS FILED WITH THE COMMISSION WHICH PERTAINS TO A WELL OR WELLS LOCATED OR TO BE LOCATED WITHIN SAID LIFE-OF-MINE AREA AS DESIGNATED.  THE PROVISIONS OF RULE 303.h. (1) AND (2) WILL NOT BE APPLICABLE TO THIS RULE.

EXHIBIT B

STATEMENT OF BASIS AND PURPOSE

             C.R.S. 34-60-106.(1)(f), as amended, gives the commission authority to require notice of intention to drill and to obtain a permit from the commission prior to drilling operations.

300 SERIES

             The 300 Series of the Rules and Regulations of the Oil and Gas Conservation Commission pertain to Drilling, Development, Producing and Abandonment.  Rule 303.k. is an addition to the current rule.

             Rule 303.k. would be added to establish a procedure to notify mine operators of Applications for Permits to Drill (APD) (Form 2) wells in an area of proposed or current mine activity.  This notification procedure would provide mine operators a seven (7) day period in which to respond to the commission, prior to the issuance of the APD, regarding any conflicts or safety concerns associated with the drilling of wells in a mine area.