REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on July 29, 1996, at 10:00 a.m., in Rifle Town Hall, Council Chambers, Rifle, Colorado, after giving Notice of Hearing as required by law, on why Snyder Oil Corporation (SOCO) is not in violation of Rule No. 303.a., commencing completion operations prior to permit approval; Rule No. 305, commencing completion activities prior to sundry notice approval; Rule No. 306, failure to submit the Form 5, Well C ompletion Report and a copy of all logs run within thirty (30) days; Rule No. 310, failure to submit the Form 10, Certificate of Clearance within thirty (30) days; and Order Nos. 493-2 and 407-6 Rule 6, failure to obtain approval for the downhole commingling of the Codell, Niobrara and Sussex Formations, of the Oil and Gas Conservation Commission, and why it should not invoke the provisions of 34-60-121 C.R.S., as amended, providing for penalties for vio lations of the Rules and Regulations of the Commission.

FINDINGS

The Commission finds as follows:

1. Snyder Oil Corporation is an interested party in the subject matter of the above-referenced hearing.

2. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.

3. The Commission has jurisdiction over the subject matter embraced in said Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

4. On April 29, 1981 the COGCC approved a Form 2, Application for Permit to Drill, for the Bruntz No. 1 located in the NW1/4 SE1/4 of Section 16, Township 4 North, Range 65 West, 6th P.M., Weld County. In August of 1981, the Codell Formation was completed. In October of 1993, the Niobrara Formation was completed. On November 19, 1993, the Sussex Formation was completed and the Codell, Niobrara and Sussex Formations were commingled.

5. On July 12, 1996, SOCO submitted a Form 2, Application for Permit to Drill, Form 4, Sundry Notice and a letter self-reporting potential violations for the subject well.

6. An order of the Commission should be entered finding that SOCO is in violation of Rule No. 303.a., commencing completion operations prior to permit approval; Rule No. 305, commencing completion activities prior to sundry notice approval; Rule No. 306, failure to submit the Form 5, Well Completion Report and a copy of all logs run within thirty (30) days; Rule No. 310, failure to submit the Form 10, Certificate of Clearance within thirty (30) days; an d Order Nos. 493-2 and 407-6, Rule 6, failure to obtain approval for the downhole commingling of the Codell, Niobrara and Sussex Formations, and should also assess a fine of One Thousand Hundred Dollars ($1,000).

O R D E R

NOW, THEREFORE, IT IS ORDERED, that Snyder Oil Corporation is in violation of Rule No. 303.a., commencing completion operations prior to permit approval; Rule No. 305, commencing completion activities prior to sundry notice approval; Rule No. 306, failure to submit the Form 5, Well Completion Report and a copy of all logs run within thirty (30) days; Rule No. 310, failure to submit the Form 10, Certificate of Clearance within thirty (30) days; and Order Nos. 493-2 and 407-6, Rule 6, failure to obtain approval for the downhole commingling of the Codell, Niobrara and Sussex Formations for the Bruntz No. 1 located in the NW1/4 SE1/4 of Section 16, Township 4 North, Range 65 West, 6th P.M., Weld County.

IT IS FURTHER ORDERED, that SOCO shall be assessed a total fine of One Thousand Dollars ($1,000), payable within thirty (30) days of the date the order is entered.

IT IS FURTHER ORDERED, that SOCO shall submit Form 5, Well Completion Report, and Form 10, Certificate of Clearance, for the Codell, Niobrara and Sussex Formations within thirty (30) days of the date the order is entered.

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

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 August, 1996, as of July 29, 1996.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Patricia C. Beaver, Secretary Dated at Suite 801 1120 Lincoln Street Denver, Colorado 80203 March 25, 1997 ??