REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 21, 1982 at 9:00 a.m. in Room 110, State Centennial Building, Denver, Colorado, after giving Notice of Hearing upon the application of Byron Oil Industries, Inc., for the designation of the Dakota formation underlying certain lands in Adams and Weld 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 th ereunder. The application was amended at the hearing to more accurately define the formation as being the Plainview Sandstone of the Dakota Group, and shall henceforth be referred to as the Plainview formation. Byron Oil Industries, Inc., 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 rules in Docket No. RM 79-76 of the Federal Energy Regulatory Commission, and has jurisdiction over the subject matter of Byron's application.

3. The geographical area is located approximately 10 miles north of the city of Denver and is within the boundaries of the area in which the "J" Sand has been designated a "Tight Formation". The area consists of approximately 48,000 acres, and contains no Federal lands.

4. The Plainview formation is located above the Lakota formation and below the Skull Creek Shale of the Dakota Group. Deposition was in a marginal marine environment during Cretaceous times. The formation consists of fine to medium-grained white sandstone, very well cemented and tight. It is uniform and continuous throughout the geographical area.

5. Engineering testimony presented at the hearing indicates that:

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

b. The stabilized production rate, against atmospheric pressure of wells completed for production, without stimulation from the producing interval of the Plainview formation, 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 formation.

c. Hydrocarbons usually do not exist as liquid in said formation reservoir, and no well is expected to produce more than five (5) barrels of crude oil per day.

6. 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.

7. In view of the above findings, all the criteria required by the Federal Energy Regulatory Commission pursuant to the rules in Docket No. RM 79-76 have been met; therefore, a recommendation should be made that the Plainview formation, as defined, underlying the area below described should be designated a "tight formation".

O R D E R

NOW, THEREFORE, IT IS ORDERED, that the Colorado Oil and Gas Conservation Commission recommends that the Plainview formation, as defined, underlying the following described lands in Adams and Weld Counties, Colorado, be designated a "Tight Formation" and incorporated in the list of "Tight Formations" established pursuant to Rule 271.706 of the Federal Energy Regulatory Commission:

Township 1 North, Range 67 West, 6th P.M. Sections 31 thru 33

Township 1 South, Range 67 West, 6th P.M. All

Township 1 South, Range 68 West, 6th P.M. All

ENTERED this 12th day of October, 1982, as of June 21, 1982. OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary