IN THE MATTER TO GOVERN SURFACE IMPACT ISSUES                   )                    CAUSE NO. 1

IN THE STATE OF COLORADO                                                             )                    ORDER NO. 1-74




                        This cause came on for hearing before the Commission at 3:00 p.m. on December 10, 1997, in Suite 801, the Chancery Building, 1120 Lincoln Street, Denver, Colorado, pursuant to the need to discuss the formation of the workgroup to address surface impacts; consideration of legislative changes to 34-60-118.5, C.R.S.; CCI/CML letter to the COGCC regarding local government jurisdiction; and other related issues.




                        The Commission finds as follows:


                        1.  Concerns have been raised by Representative Russell George on the exclusion of Grand Valley Citizens' Alliance to participate in a rulemaking stakeholder group to address surface impacts on applications for increased well density.


                        2.  Statements were presented by several industry representatives and industry trade organizations.


                        3.  Director Griebling presented a timeline to follow for tentative surface impact rulemaking:  Prepare notice for distribution to any interested person requesting proposed rule drafts by December 19, 1997 with a due date to submit to the COGCC by January 12, 1998; by January 16, 1998 prepare notice for distribution to interested persons of the three (3) public meetings to be held the week of February 16, 1998.  The Commissioners will meet on February 26, 1998 to discuss results of public meetings and decide whether to docket rulemaking for the March 31, 1998 hearing.


                        4.  It was proposed that the public meetings be held in three (3) locations to allow for the widest input from concerned citizens.  The meetings will be held in Greeley, Rifle and Durango and a court reporter would be present to transcribe the meetings.


                        5.  Vice-Chair Matheson made a motion to evaluate surface impacts from spacing applications requesting increased density by encouraging the submittal of drafts of proposed rulemaking language from concerned parties to be considered and commented on at three (3) public meetings to be held in Greeley, Durango and Rifle.  The motion was seconded by Commissioner Sonnenberg and approved unanimously.


                        6.  Chair Heinle directed staff to prepare an order to create an official record of Commission actions taken to address surface impacts.



                        NOW, THEREFORE, IT IS ORDERED, that the Colorado Oil and Gas Conservation Commission shall commence a process to address surface impacts from spacing applications submitted for hearing requesting increased well density.


                        IT IS FURTHER ORDERED, that drafts of proposed rules addressing surface impacts shall be requested from any interested person for consideration at three (3) public meetings.


                        IT IS FURTHER ORDERED, that public meetings shall be held in Greeley, Rifle and Durango the week of February 16, 1998, to be chaired by a Commissioner to hear comments on any proposed surface impact rules.


                        IT IS FURTHER ORDERED that the provisions contained in the above order shall become effective on the date the order is entered.


                        IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.


                        ENTERED this                  day of December 1997.


                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                             OF THE STATE OF COLORADO





                                                                                 Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado  80203

December 19, 1997