REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 16, 1994 at 8:30 a.m., in Room 318, State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the application of Amoco Production Company for an order approving an enhanced recovery nitrogen injection project to improve recovery of methane from the Raton and Vermejo Coals.

FINDINGS

The Commission finds as follows:

1. Amoco Production 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 administrative hearing indicated that nitrogen will be injected into the Raton and Vermejo Coal seams over the gross interval of approximately 600 to 2200 feet below ground level at an anticipated injection rate of 2.25 MMCFD of nitrogen per well, at a maximum injection pressure of 700 psi. Further testimony indicated that all wells will be cased and cemented to preclude any movement of fluids and maintain injection within the coal interval.

5. Further testimony presented indicated that the applicant wishes to convert the Homer No. 1 Well and the Homer No. 2-A Well, both located in the SW1/4 NE1/4 of Section 33, Township 32 South, Range 66 West, 6th P.M., and wishes to drill a new injection well in Section 28, Township 32 South, Range 66 West, 6th P.M.

6. Based on the facts stated in the verified application, and having been heard by the Hearing Officers who recommended approval, the Commission should enter an order approving an enhanced recovery nitrogen injection project to improve recovery of methane from the Raton and Vermejo Coals, by establishing two 640-acre units consisting of Sections 28 and 33, Township 32 South, Range 66 West, 6th P.M.

O R D E R

NOW, THEREFORE IT IS ORDERED, that, an order approving an enhanced recovery nitrogen injection project to improve recovery of methane from the Raton and Vermejo Coals, by establishing two 640-acre units consisting of Sections 28 and 33, Township 32 South, Range 66 West, 6th P.M. is hereby approved.

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

IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.

ENTERED this day of , 1994, as of May 16, 1994.

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 June 13, 1994 ??