REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on May 19, 1980, at 9:00 a.m. upon the application of Amoco Production Company ("Amoco") for the designation of the "J" Sand, underlying certain lands in Weld, Adams and Boulder Counties, Colorado, 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 Amoco having appeared in support of its application, and no one ha ving 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 interim rules in Docket No. 79-76 of the Federal Energy Regulatory Commission, and has jurisdiction over the subject matter of Amoco's application.

3. The geological testimony presented at the hearing proves that the "J" Sand underlying the area below described consists of well cemented, fine grained sand of low permeability and porosity and is identified by a type log of the area as being from the base of the Huntsman shale formation to the top of the Skull Creek formation. Said "J" Sand is comprised of a large deltaic deposit divided into three zones: a transgressive silt, a deltaic plain zone, an d a delta front. The producing zone is encountered at an average depth of 8,000 feet.

4. Engineering testimony presented at the hearing indicates that:

a. The average in-situ gas permeability throughout the pay section averages .0059 millidarcies and is not expected to exceed .1 millidarcy.

b. The stabilized production rate, against atmospheric pressure, of wells completed for production from said "J" Sand at an average depth of 8,000 feet, without stimulation, is not expected to exceed a maximum allowable production rate of 388 MCF of gas per day.

c. Hydrocarbons usually do not exist as a liquid in said "J" Sand reservoir. No well is expected to produce more than five (5) barrels of crude oil per day.

5. 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.

6. 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 "J" Sand underlying the area below described should be designated a "Tight Formation".

ORDER

NOW, THEREFORE, IT IS ORDERED that the Colorado Oil and Gas Conservation Commission recommends that the "J" Sand, underlying the following described lands in Weld, Adams, and Boulder Counties, Colorado, be designated a "Tight Formation" and incorporated

in the list of "Tight Formations" to be established pursuant to Rule 271.706 of the Federal Energy Regulatory Commission.

WELD COUNTY

T. 5 N., R. 68 W. T. 5 N., R. 66 W. T. 5 N., R. 64 W. All All All

T. 4 N., R. 68 W. T. 4 N., R. 66 W. T. 4 N ., R. 64 W. All All All

T. 3 N., R. 68 W. T. 3 N., R. 66 W. T. 3 N., R. 64 W. All All All

T. 2 N., R. 68 W. T. 2 N., R. 66 W. T. 2 N., R. 64 W. All All All

T. 1 N., R. 68 W. T. 1 N., R. 66 W. T. 1 N., R. 64 W. All All All

T. 5 N., R. 67 W. T. 5 N., R. 65 W. T. 5 N., R . 63 W . All All S1/2

T. 4 N., R. 67 W. T. 4 N., R. 65 W. T. 4 N., R. 63 W. All All All

T. 3 N., R. 67 W. T. 3 N., R. 65 W. T. 3 N., R. 63 W. All All All

T. 2 N., R. 67 W. T. 2 N., R. 65 W. T. 2 N., R. 63 W. All All All

T. 1 N., R. 67 W. T. 1 N., R. 65 W. T. 1 N., R. 63 W. All All All

ADAMS COUNTY

T. 1 S., R. 68 W. T. 1 S., R. 65 W. T. 2 S. $, R. 64 W. All All W1/2

T. 1 S., R. 67 W. T. 1 S., R. 64 W. T. 2 S., R. 65 W. All All N 2/3 (Sec. 1-24)

T. 1 S., R. 66 W. All

BOULDER COUNTY

T. 5 N., R. 69 W. T. 2 N., R. 69 W. T. 1 N., R. 69 W. All All All

ENTERED this 6th day of May, 1980, as of May 19, 1980.

OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

By Frank J. Piro, Secretary