REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 21, 1986 at 9:00 A.M., in Room 110 State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Texaco, Inc. for approval to use Well No. 1 SWD M.C. Sullivan located 682 feet from the west line and 2167 feet from the south line of Section 24, Township 3 North, Range 90 West 6th P.M. as a water disposal well into the Weber formation the granting of the application were received.

FINDINGS

The Commission finds as follows:

1. Texaco, Inc., as applicant herein, is an interested party in the subject matter of the 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. Evidence presented at the hearing indicates that the data from the well drilled as a proposed water disposal well did not indicate any potential of oil and gas production from the Weber formation underlying the location, and no oil and gas would be moved off the property by disposal of water into the well.

5. The application to use Well No. 1 SWD Sullivan, located 682 feet from the west line and 2167 feet from the south line Section 24, Township 3 North, Range 90 West, 6th P.M. as a water disposal well in the Weber formation should be approved and that operations of this well as a water disposal well should be in accordance with Rule Nos. 326 and 327 of the rules and regulations of the Commission.

ORDER

NOW, THEREFORE, IT IS ORDERED, that approval is hereby granted for Well No. 1 SWD Sullivan, located 682 feet from the west line and 2167 feet from the south line Section 24, Township 3 North, Range 90 West, 6th P.M., Scott Hill Field, Rio Blanco County, Colorado to be used as a water disposal well in the Weber formation.

IT IS FURTHER ORDERED, that all operations of the well as a disposal well shall be in accordance with Rule Nos. 326 and 327 of the rules and regulations of the Commission.

IT IS FURTHER ORDERED, that the provisions contained in the above orders shall become effective forthwith.

ENTERED this 14th day of March 1986, as of February 21, 1986.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO By Frank J. Piro, Secretary