REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on February 18, 1983 at 9:00 a.m. in Room 110, State Centennial Building, Denver, Colorado, upon the application of Beartooth Oil & Gas Co., for an order recommending the addition of certain lands in Rio Blanco County, to the area in which the Mancos "B" has been designated as a "Tight Formation," by the FERC (Colorado-27, order No. 268). Beartooth, having appeared in support of its application, 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 interim rules in Docket No. RM 79-76 of the Federal Energy Regulatory Commission, and has jurisdiction over the subject matter of Beartooth's application.

3. on February 19, 1983, the Oil and Gas Conservation Commission issued Order No. NG-31-1 which recommended the Mancos "B" formation underlying certain lands in Rio Blanco County as a "Tight Formation" pursuant to Section 107 (b) of the Natural Gas Policy Act and Docket No. RM 79-76 of the FERC. The designation of said Mancos "B" formation as a "Tight Formation" was approved by the FERC on November 22, 1982 (Colo-27, Order No. 268).

4. Testimony presented at the hearing indicates that the Mancos "B" formation underlying lands consisting of the N1/2 Section 8 and the N1/2 and SE1/4 of Section 9, Township 2 South, Range 102 West, 6th P.M., meets the guidelines contained in 271.703 (c)(2) as recommended to the Federal Energy Regulatory Commission by the Colorado Commission's Order No. NG-31-1 and reaffirmed at the hearing.

5. Evidence presented at the hearing indicates that the area described in Finding 4 herein cannot be further developed without the incentive price as provided for in 271.703 (a) ; therefore, it should be included in the area in which the Mancos "B" formation, has been designated a "Tight Formation" by the FERC, Order No. 268, Docket No. RM 79-76 (Colorado-27).

O R D E R

NOW, THEREFORE, IT IS ORDERED, that the Colorado and Gas Conservation Commission recommends that the following described lands in Rio Blanco County, Colorado, be included in the "Tight Formation" designation for the Mancos "B" formation as approved by the FERC, Order No. 268, Docket No. RM 79-76 (Colorado-27), issued November 11, 1982:

Township 2 South, Range 102 West, 6th P.M. Section 8:N1/2 Section 9: N1/2, SE1/4

ENTERED this 18th day of March, 1982, as of February 18, 1982.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary