Order No. 448-1

IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE MID-CONTINENT COAL AREA, GUNNISON AND PITKIN COUNTIES, COLORADO

Cause No. 448 Order No. 448-1

REPORT OF THE COMMISSION

TO ALL INTERESTED PERSONS AND TO WHOM IT MAY CONCERN:

This cause came on for hearing before the Commission on November 17, 1986 at 9:00 A.M., in Room 110, State Centennial Building, 1313 Sherman Street, Denver, Colorado, on the application of Energy Ingenuity Company for an order directing Mid-Continent Resources Inc. to cease and desist the alleged wasteful venting of coalbed methane resources being drained from applicant's leasehold acreage via Mid-Continents's system of wellbores, pipelines and vacuum pumps that have been located and installed in violation of the Rules and Regulations of the Commission.

FINDINGS

The Commission finds as follows:

1. Energy Ingenuity 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. Applicant's leasehold acreage in Gunnison and Pitkin Counties is described as follows: Township 10 South, Range 89 West, 6th P.M.

Section 7: W/2, SE/4 Section 17: W/2 NW/4; SW/4 Section 18: All Section 19: All Section 20: W/2, SE/4 Section 29: All Section 30: All Section 31: All Section 32: All

5. Evidence presented at the hearing indicates that there has not been waste as that term is defined by 34-60-116 (11) C.R.S. as amended.

6. There was no showing of drainage nor was it determined as to rights of the coal seam gas from mining operations; therefore there was no abuse of correlative rights.

7. The use of vacuum pumps, pipelines and location of boreholes for mining operations were considered not to be within jurisdiction of the Commission the

8. In view of the above, the application should be denied.

ORDER

NOW, THEREFORE, IT IS ORDERED that the application of Energy Ingenuity Company, requesting relief from the mining operations of Mid-Continent Resources Inc., is hereby denied.

ENTERED this 15th day of December as of November 17, 1986.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

(448-1)