BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF CHANGES TO THE RULES AND                                                     )             CAUSE NO. 1R

REGULATIONS OF THE OIL AND GAS CONSERVATION                                               )

COMMISSION OF THE STATE OF COLORADO                                                                )             ORDER NO. 1R-99

                        Pursuant to a hearing before the Oil and Gas Conservation Commission on December 6, 2005, in Suite 801, 1120 Lincoln Street, Denver, Colorado, the Oil and Gas Conservation Commission promulgated amendments to its Rules and Regulations as described below:

a. The goal of this rule is to identify noise sources related to oil and gas operations that impact surrounding landowners and to implement cost-effective and technically-feasible mitigation measures to bring oil and gas facilities into compliance with the allowable noise levels identified in subsection c. Operators should be aware that noise control is most effectively addressed at the siting and design phase, especially with respect to centralized compression and other downstream "gas facilities" (see definition in the 100 Series of these rules).

b. Oil and gas operations at any well site, production facility or gas facility, shall comply with the following maximum permissible noise levels. Operations involving pipeline or gas facility installation or maintenance, the use of a drilling rig, completion rig, workover rig, or stimulation is subject to the maximum permissible noise levels for industrial zones. The type of land use of the surrounding area shall be determined by the Commission in consultation with the local governmental designee taking into consideration any applicable zoning or other local land use designation.

c. 9; In the hours between 7:00 a.m. and the next 7:00 p.m. the noise levels permitted below may be increased ten (10) db(A) for a period not to exceed fifteen (15) minutes in any one (1) hour period. The allowable noise level for periodic, impulsive or shrill noises is reduced by five (5) db(A) from the levels shown.

Residential/Agricultural/Rural 55 db(A) 50 db(A)

Construction commencing after January 1, 2007: 50db(A) 45 db(A)

Commercial 60 db(A) 55 db(A)

Light industrial 70 db(A) 65 db(A)

Industrial 80 db(A) 75 db(A)

In remote locations, where there is no reasonably proximate occupied structure or designated outside activity area, the light industrial standard may be applicable.

Pursuant to Commission inspection or upon receiving a complaint from a nearby property owner or local governmental designee regarding noise related to oil and gas operations, the Commission shall conduct an onsite investigation and take sound measurements as prescribed herein.

The following provide guidance for the measurement of sound levels and assignment of points of compliance for oil and gas operations:

                                                        db(A)_{DISTANCE 2} = db(A)_{DISTANCE 1} – 20 x log₁₀(distance 2/distance 1)

Attached, as Exhibit A, is a statement giving the basis and purpose of the revisions and such statements are incorporated herein by reference.

                                                            DONE AND PERFORMED by the Oil and Gas Conservation Commission of the State of Colorado this ________ day of December, 2005.

IN THE NAME OF THE COLORADO

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

December 6, 2005

Exhibit A

This statement sets forth the basis, specific authority, and purpose for the amendments to Rule 802. of the Rules and Regulations promulgated by the Colorado Oil and Gas Conservation Commission. This statement is hereby incorporated by reference in the Rules adopted.

These rules, as amended, are adopted by the Colorado Oil and Gas Conservation Commission under the provision of Title 34, Article 60 of the Colorado Revised Statutes, as amended.

§34-60-102., C.R.S., as amended, declares that it is in the public interest to foster, encourage, and promote the development, production, and utilization of the oil and gas resources in the state of Colorado in a manner consistent with protection of public health, safety, and welfare.

§34-60-103.(6.5), C.R.S. defines "Oil and gas operations" to mean exploration for oil and gas, including the conduct of seismic operations and the drilling of test bores; the siting, drilling, deepening, recompletion, reworking, or abandonment of an oil and gas well, underground injection well, or gas storage well; production operations related to any such well including the installation of flowlines and gathering systems; the generation, transportation, storage, treatment, or disposal of exploration and production wastes; and any construction, site preparation, or reclamation activities associated with such operations.

§34-60-105 (1), C.R.S. provides that "The commission has jurisdiction over all persons and property, public and private, necessary to enforce the provisions of this article, and has the power to make and enforce rules, regulations, and orders pursuant to this article, and to do whatever may reasonably be necessary to carry out the provisions of this article. …"

§34-60-106 (2)(a), C.R.S. provides that the commission has the authority to regulate "[t]he drilling, producing and plugging of wells and all other operations for the production of oil or gas; . ."

§34-60-106 (2)(d), C.R.S. gives the commission authority to regulate "[o]il and gas operations so as to prevent and mitigate significant adverse environmental impacts on any air, water, soil or biological resource to the extent necessary to protect public health, safety, and welfare, in consideration of cost-effectiveness and technical feasibility."

§34-60-106 (11), C.R.S. mandates the commission to "promulgate rules and regulations to protect the health, safety and welfare of the general public in the conduct of oil and gas operations."

The 800 Series of the Rules and Regulations of the Oil and Gas Conservation Commission pertain to aesthetic and noise control regulations during the drilling, completion and operation of oil and gas wells and production facilities.