Order No. NG-T50-2NG-50-1 which recommended to the FERC the "Tight Formation" designation of the Upper Lewis Sand (Blue Gravel Member), pursuant to Section 107 (b) of the Natural Gas Policy Act of 1978 (15 U.S.C. 3317) and the regulations thereunder, for the following described lands in Moffat County, Colorado:

IN THE MATTER OF DETERMINATION OF THE UPPER LEWIS SAND (BLUE GRAVEL MEMBER) FORMATION, UNDERLYING CERTAIN LANDS IN MOFFAT COUNTY, COLORADO AS A "TIGHT FORMATION", PURSUANT TO REGULATIONS OF THE FEDERAL ENERGY REGULATORY COMMISSION REPORT OF THE COMMISSION This cause came on for hearing before the Commission on December 21, 1992 at 8:30 a.m., in Room 101, State Education Building, 201 East Colfax Avenue, Denver, Colorado, after giving Notice of Hearing as required by law, on the petition of Rocky Mountain Natural Gas Company for an order rescinding Order No. NG-50-1 which recommended to FERC that the Upper Lewis Sand (Blue Gravel Member), underlying certain lands in Moffat County, Colorado as a "Tight Forma tion", pursuant to Section 107 (b) of the Natural Gas Policy Act of 1978 (15 U.S.C. 3317) and the regulations thereunder. The Applicant, having appeared in support of the petition, and Grynberg Petroleum Company having appeared in opposition, and the Commission having heard the testimony and evidence presented; The Commission finds as follows: 1. 2. 3. 4

Cause No. NG-50 Order No. NG-T50-2NG-50-1 which recommended to the FERC the "Tight Formation" designation of the Upper Lewis Sand (Blue Gravel Member), pursuant to Section 107 (b) of the Natural Gas Policy Act of 1978 (15 U.S.C. 3317) and the regulations thereunder, for the following described lands in Moffat County, Colorado:

Township 9 North, Range 90 West, 6th P.M. Section 31: W1/2

Township 9 North, Range 90 West, 6th P.M. Section 23: E1/2 Section 24: W1/2 Section 25: All Section 26: NE1/4 Section 35: El/2 Section 36: All

5. On September 23, 1992, Rocky Mountain Natural Gas Company filed with the Commission a request to reopen the determination in Cause No. NG-50 and a petition to intervene and protest. At the October 19, 1992 hearing, the Commission voted to reopen the matter to hear testimony only on the issue of in-situ permeability. Initial testimony was presented at the November 16, 1992 hearing and due to time constraints, the matter was continued to the December h earing.

6. At the time of the December hearing, after testimony was presented by Rocky Mountain Natural Gas Company and Grynberg Petroleum Company, the Commission determined that the petition of Rocky Mountain Natural Gas Company be denied and that Order No. NG-50-1, recommending "Tight Formation" designation for the Upper Lewis Sand (Blue Gravel Member) stand.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the Colorado Oil and Gas Conservation commission denies the petition of Rocky Mountain Natural Gas Company and determines that Order No. NG-50-1, recommending "Tight Formation" designation for the Upper Lewis Sand (Blue Gravel Member) stand and the lands included in Order No. NG-50-1 be incorporated in the list of "Tight Formations" as described pursuant to Rule 271.706 of the Federal Energy Regulatory Commission.

ENTERED this 12th day of January, 1993, as of December 21, 1992.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Patricia C. Beaver, Secretary

Dated at Suite 380 1580 Logan Street Denver, Colorado 80203 January 4, 1993