IN THE MATTER OF GENERAL RULES AND REGULATIONS WITH RESPECT TO THE CONSERVATION OF OIL AND GAS IN THE STATE OF COLORADO, AND RULES OF PRACTICE AND PROCEDURE PERTAINING THERETO AND IN PARTICULAR WITH REFERENCE TO RULE 323

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 SULPHUR CREEK FIELD, RIO BLANCO COUNTY, COLORADO

)

CAUSE NO. 348

ORDER NO. 348-1

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 21, 1979 at 9:00 a.m. in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing, as required by law, on the application of Equity Oil Company for an order authorizing the injection of superheated steam into the "leached" zone of the Parachute Creek member of the Green River Shale formation, in an attempt to recover shale oil.

FINDINGS

The Commission finds as follows:

1. Equity Oil 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. Testimony presented at the hearing indicates that the proposed pilot project, known as the BX In-Situ Oil Shale Project, for recovery of shale oil by the injection of superheated steam into the "leached" zone of the Parachute Creek member of the Green River formation, is necessary in order to determine the feasibility of such a program on a larger scale. Said project, as presented, to be located in the S½NE¼SE¼ Section 6, Township 3 South, Range 98 West, 6th P.M., Rio Blanco County, will not affect the correlative rights of any owner in the surrounding area.

5. The cooperative agreement between the U.S. Department of Energy and the Equity Oil Company for the BX In-Situ Oil Shale Project includes an Environmental Research Plan which provides, among other things, for the collection, evaluation and reporting data on the hydrology and water resources of the experimental areas of influence. Under this plan, analyses of water samples from monitoring wells will be submitted to the Department of Energy. Copies of these analyses should be furnished to this Commission and the Water Quality Control Division of the Colorado Department of Health on not less than a quarterly basis.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the BX In-Situ Oil Shale Project, as presented, is hereby approved and Applicant is authorized to inject super-heated steam into the "leached" zone of the Parachute Creek member of the Green River formation for recovery of shale oil in wells located in the S½NE¼SE¼ Section 6, Township 3 South, Range 98 West, 6th P.M., Rio Blanco County, Colorado.

IT IS FURTHER ORDERED, that copies of analyses of water samples from monitoring wells, as required by the Department of Energy, shall be furnished to the Oil and Gas Conservation Commission and the Water Quality Control Division of the Colorado Department of Health, on not less than a quarterly basis.

ORDERED this 21st day of May, 1979.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Frank J. Piro, Secretary