REPORT OF THE COMMISSION

        TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:

        Pursuant to a hearing before the Oil and Gas Conservation Commission on February 13, 1987 at 9:00 a.m. in Room 110, State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing, as required by law, the Commission finds it necessary to add a phrase "or a party to a surface damage agreement" to Rule 304 be Bonding Requirements which clarifies the requirement of the leasee. Thereupon, the first paragraph of Rule 304 be shall henceforth read as follows:

        b. Prior to entering the site with heavy equipment, the operator shall negotiate with the surface owner for the payment of any damages which may be caused by the drilling operation. In the absence of such agreement, except where a bond in satisfactory form has been filed by the owner in accordance with State, Federal or Indian lease requirements, and evidence has been furnished to the Director that such bond had been filed with and approved by the appropriate agency, the Commission, prior to commencement of operations, in instances in which the owner of the surface is not a party to the oil and gas lease, or a party to a surface damage agreement, shall require from the lessee a good and sufficient bond payable to the State of Colorado, conditioned that:

        DONE AND PREPARED by the Oil and Gas Conservation Commission this 13th day of February 1987.

                                                                                    OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

                                                                                    By Frank J. Piro, Secretary

Dated at Denver, Colorado February 18, 1987