IN THE MATTER OF ALLEGED VIOLATIONS OF THE          CAUSE NO. 1
RULES AND REGULATIONS OF THE COLORADO OIL
AND GAS CONSERVATION COMMISSION BY                     ORDER NO. 1V-202
ROBERT ZIEGLER, DELTA COUNTY, COLORADO

REPORT OF THE COMMISSION

This cause came on for hearing before the Colorado Oil and Gas Conservation Commission on October 30, 2000 at 8:30 a.m. at the Chancery Building, 1120 Lincoln Street, Suite 801, Denver Colorado after giving notice of hearing as required by law on why Robert Ziegler is not in violation of certain Commission rules.

FINDINGS

The Commission finds as follows:

1. Robert Ziegler 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 to Robert Ziegler.

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

4. On January 26, 1999 Colorado Oil and Gas Conservation Commission (“COGCC”) staff issued a Notice of Alleged Violation (“NOAV”) to Robert Ziegler for failure to perform a mechanical integrity test (“MIT”), return to production, or plug and abandon the Charlie Childress #1 Well located in the NW¼ NE¼ of Section 7, Township 51 North, Range 6 West, N.M.P.M. The NOAV cited violation of Rule 326.b., which states that shut-in wells must pass a MIT within two (2) years of the shut-in date. No production has been reported since 1990. The actual shut-in date is unknown but the well has been shut-in much longer than two (2) years. The NOAV had an original abatement deadline of March 1, 1999. At Robert Ziegler’s request the deadline was extended to October 1, 1999. To date no MIT has been performed on the well, nor has the well been placed on production or plugged and abandoned. The well is in continuing violation of Rule 326.b.

5. On July 10, 2000 an Administrative Order of Consent (“AOC”) was sent to Robert Ziegler via certified mail. The AOC was accepted by Robert Ziegler on July 20, 2000. To date the AOC has not been executed by Robert Ziegler.

6. The well is in continuing violation of Rule 326.b.

7. A monetary penalty of Two Thousand dollars ($2,000) for violation of Rule 326.b should be assessed against Robert Ziegler for this violation in accordance with Rule 523.a.

8. Mr. Ziegler did not attend the hearing or contact COGCC staff regarding the hearing.

9. At the time of hearing, COGCC staff discovered that Pioneer General Insurance Company (“Pioneer”), who holds the financial assurance on this well, was not provided notice of the hearing. The Commission voted to issue the order pending notice to Pioneer, giving them twenty (20) days from the date of receipt of this order to file a protest or intervention with the Commission.

ORDER

NOW, THEREFORE IT IS ORDERED, that Robert Ziegler shall be found in violation of Rule 326.b. for the Charlie Childress #1 Well located in the NW¼ NE¼ of Section 7, Township 51 North, Range 6 West, N.M.P.M.

IT IS FURTHER ORDERED, that Robert Ziegler shall either perform a mechanical integrity test, place on production or plug and abandon the Charlie Childress #1 Well within thirty (30) days of the date this order entered.

IT IS FURTHER ORDERED, that Robert Ziegler shall be assessed a fine of Two Thousand dollars ($2,000) for the above violation, payable within thirty (30) days of the date this order is approved by the Commission.

IT IS FURTHER ORDERED, that if Robert Ziegler does not comply with the order, COGCC staff shall be authorized to commence a claim on the Five Thousand dollar ($5,000) plugging bond and proceed to plug, abandon and reclaim the well.

IT IS FURTHER ORDERED, that if Pioneer General Insurance Company does not file a protest or intervention within twenty (20) days of receipt of this order, the order shall be final.

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 8th day of November 2000 as of October 30, 2000.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dated at Suite 801 Patricia C. Beaver, Secretary 1120 Lincoln Street Denver, Colorado 80203 October 31, 2000.

(1V#202)