REPORT OF THE COMMISSION

Pursuant to a hearing before the Oil and Gas Conservation Commission of the State of Colorado on August 17, 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 sentence "The Commission may require the successor operator of a well to replace the previous operator's security within thirty (30) days after taking over oper ations" to Rule 304 a. Thereupon Rule 304 a. shall hence forth read as follows:

304. OGCC Form 3 BONDING REQUIREMENTS a. Except where a bond in satisfactory form has been filed by the owner in accordance with Federal or Indian Lease requirements, and evidence has been furnished to the Director that such bond has been filed with, and approved by the ;appropriate agency, the Commission, prior to commencement of operations, shall require from the owner a good and sufficient bond, or other security approved by the Director in the sum of not less than $5,000, payable to the S tate of Colorado, conditioned that the well upon abandonment shall be plugged in accordance with the rules and regulations of the Commission, all pits filled and all surface debris removed. Said bond shall remain in force and effect until the plugging of said well is approved by the Director, a new bond is filed by a successor in interest, or the bond is released by the Director. The Commission may require the successor operator of a well to replace the previous operator's security within thirty (30) days after taking over operations. It is provided, however, that any owner in lieu of such bond may file with the Director a good and sufficient blanket bond in the principal, sum of not less than $30,000, covering all wells drilled or to be drilled in the State of Colorado by the principal in said bond, and upon acceptance and approval by the Director of such blanket bond, said bond shall be considered as compliance with the forgoing provisions requiring an individual well bond and,

DONE AND PREPARED by the Oil and Gas Conservation Commission of the State of Colorado this 17th day of August 1987.

IN THE NAME OF THE STATE OF COLORADO.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary

Dated at Denver-, Colorado August 21, 1987