IN THE MATTER OF RULES AND REGULATIONS OF THE OIL AND GAS CONSERVATION COMMISSION CONCERNING WELLS LOCATED IN YUMA COUNTY, COLORADO UNDER THE NATURAL GAS POLICY ACT OF 1978 Cause No. NG-1 Order No. NG-1-2

REPORT OF THE COMMISSION

This cause came on for hearing before the Oil And Gas Conservation Commission of the State of Colorado (Commission) on April 21F 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 request of Northwest Central Pipeline Corporation (Northwest Central) for a determination by the Commission on the issue of standing of Northwest Central as a purchaser to file for well category determinations under the Natural Gas Policy Act (NGPA).

FINDINGS

The Commission finds as follows:

1 . Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

2 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.

3. On February 4, 1986 Northwest Central submitted to the Commission a total of 114 separate applications requesting classification of wells located in Yuma County, Colorado with respect to well category determinations under the NGPA.

4. Northwest Central is solely a purchaser of gas from the wells and owns no economic interest in the wells as to working interest, royalty interest, or overriding interest.

5. The Federal Energy Regulatory Commission (FERC) delegated to the States the authority to determine who may file for well category determinations. At a public hearing held on February 27, 1979, the Commission approved rules and regulations and application forms concerning filing procedures and requirements. Pursuant to FERC's delegation and as a result of the determinations made at that hearing, the Commission accepts applications only from the operat or or a working interest owner with notification of such filing to the purchaser.

6. In view of the above, the Commission should deny the request of Northwest Central for standing to file applications for well category determinations under the NGPA.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the request by Northwest Central Pipeline Corporation for standing to file with the Oil And Gas Conservation Commission of the State of Colorado applications for well category determinations under the Natural Gas Policy Act is hereby denied.

Entered this 12th day of May, 1986, as of April, 1986.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary