BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF THE PROMULGATION AND                                         )                                             CAUSE NO. 105

ESTABLISHMENT OF FIELD RULES TO GOVERN                                       )

OPERATIONS IN THE MCCLAVE FIELD,                                                     )                                             DOCKET NO. 0501-AW-05

BENT COUNTY, COLORADO                                                                      )

TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:

        On November 19, 1979, the Commission issued Order No. 105-23, which amended Order No. 105-1, which established 640-acre drilling and spacing units for the production of gas from the McClave Sand Formation, to cover additional lands including Section 24, Township 21 South, Range 48 West, 6^th P.M., with the permitted well to be located no closer than 990 feet from the boundaries of the unit.

        On November 22, 2004, Ellora LLC, by its representative, filed with the Commission a verified application for an order to allow an additional well to be drilled within the existing 640-acre drilling and spacing unit consisting of Section 24, Township 21 South, Range 48 West, 6^th P.M., for the production of gas and associated hydrocarbons from the McClave Sand Formation. One producing well has been drilled in the subject spacing unit, the State G #1 Well, located in the NE¼ NE¼ of Section 24, Township 21 South, Range 48 West, 6^th P.M., which was drilled and completed as a well capable of producing gas from the McClave Sand Formation. The Applicant believes that an additional well is necessary to adequately produce all recoverable reserves under said Section 24.

        NOTICE IS HEREBY GIVEN, that the Oil and Gas Conservation Commission of the State of Colorado, pursuant to the above, has scheduled the above-entitled matter for hearing on:

                    Date: Monday, January 10, 2005

                    1120 Lincoln Street

                    Denver, CO 80203

        In accordance with the Americans with Disabilities Act, if any party requires special accommodations as a result of a disability for this hearing, please contact Angie Gipson at (303) 894-2100 ext. 113, prior to the hearing and arrangements will be made.

        Pursuant to said hearing in the above-entitled matter at the time and place aforesaid, or at any adjourned meeting, the Commission will enter such orders as it deems appropriate to protect the health, safety and welfare of the public and to prevent the waste of oil and gas, either or both, in the operations of said field, and to carry out the purposes of the statute.

        In accordance with Rule 509., any interested party desiring to protest the granting of the application or to intervene on the application should file with the Commission a written protest or intervention no later than December 27, 2004, briefly stating the basis of the protest or intervention. Such interested party shall, at the same time, serve a copy of the protest or intervention to the person filing the application. An original and nine (9) copies shall be filed with the Commission (Rule 503.f.). Anyone who files a protest or intervention must be available to participate in a prehearing conference during the week of December 27, 2004. Pursuant to Rule 503.e., if a party who has received notice under Rule 503.b. wishes to receive further pleadings in the above-referenced matter, that party must file a protest or intervention in accordance with these rules. In accordance with the practices of the Commission, should no protests or interventions be filed in this matter by December 27, 2004, the Applicant may request that an administrative hearing be scheduled for the week of December 27, 2004.

                                IN THE NAME OF THE STATE OF COLORADO

                                                                                OIL AND GAS CONSERVATION COMMISSION

                                                            OF THE STATE OF COLORADO

                                                                                By

                                                                                Patricia C. Beaver, Secretary

Dated at Suite 801                                                     Representative for Applicant:

1120 Lincoln Street                                                    Claudia C. Baesler

Denver, Colorado 80203                                              5480 Valmont Road, Suite 350

December 7, 2004                                                     Boulder, CO 80301

                                                                                (303) 444-8881