REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on October 20, 1980 at 9:00 a.m. upon the application of Dome Petroleum Corporation (Dome), for the designation of the Rollins, Cozzette and Corcoran formations underlying certain lands in Garfield County, Colorado, each as a "Tight Formation" pursuant to Section 107 (b) of the Natural Gas Policy Act of 1978 (15 U.S. C. 3317) and the regulations thereunder, and Dome, having appeared in support of its ap plication, and no one having appeared in opposition, and the Commission having heard the testimony and evidence presented;

The Commission finds as follows:

1. Notice of the time, place and purpose of the hearing has been given as required.

2. The Commission is the jurisdictional agency pursuant to the rules in Docket No. EM 79-76 of the Federal Energy Regulatory Commission, and has jurisdiction over the subject matter of Dome's application.

3. The area of concern is located in the Piceance Creek Basin, approximately 12 miles southwest of the town of Glenwood Springs in Garfield County, Colorado. Two (2) Federal Units, Baldy Creek and Garfield No. II, are located within the recommended area. The area encompasses 50,886 total acres, of which 84.2% is Federal and 15.8% is fee.

4. The Cozzette and Corcoran Sandstones (referred to for this purpose as formations) are considered to be lower or transitional Mesaverde or upper Mancos of Cretaceous age. The formations consist of fine grained sands deposited in a transitional marine environment. Shoreline fluctuation substantially increased the clay content resulting in pore throat blockage that has reduced the effective porosity and permeability. Significant changes in vertical rel ief occur in the recommended area. The average depth to the top of the Cozzette is 7477 feet; the Corcoran top averages approximately 200 feet lower at 7677 feet.

5. Engineering testimony presented at the hearing indicates that:

a. The average in-situ gas permeability is not expected to exceed 1 millidarcy for either formation.

b. The stabilized production rate, against atmospheric pressure of wells completed for production, without stimulation from the producing interval of the Cozzette and Corcoran formations, is not expected to exceed the maximum allowable production rate defined by depth in Section 271. 705 (b)(ii) for any completion location in said formations.

c. Very little hydrocarbons exist as liquid in said formations reservoir. No well is expected to produce more than five (5) barrels of crude oil per day.

6. Substantial evidence to support a determination that the Rollins formation meets the criteria, as required for "Tight Formation" status, was not available, nor presented at the hearing. Therefore, the Rollins formation should not be recommended at this time for a "Tight Formation"" designation.

7. Typical casing design of wells drilled in the area protects fresh water aquifers in the area as required by the rules and regulations of the Oil and Gas Conservation Commission of the State of Colorado.

8. In view of the above findings, all the criteria required by the Federal Energy Regulatory Commission pursuant to the interim rules in Docket No. RM 79-76 have been met; therefore, a recommendation should be made that the Cozzette and Corcoran formations, underlying the area below described should each be designated a "Tight Formation".

ORDER

NOW, THEREFORE, IT IS ORDERED, that the Colorado Oil and Gas Conservation Commission recommends that the Cozzette and Corcoran formations underlying the following described lands in Garfield County, Colorado, each be designated a "Tight Formation" and be incorporated in the list of "Tight Formations" to be established pursuant to Rule 271.706 of the Federal Energy Regulatory Commission:

Township 7 South, Range 90 West, 6th P.M. Sections 1 thru 36

Township 8 South, Range 90 West, 6th P.M. Sections 1 thru 12

Township 7 South, Range 91 West, 6th P.M. Sections 1 thru 36

ENTERED this 14th day of January 1981, as of October 20, 1980.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary