IN THE MATTER OF ALLEGED VIOLATIONS                 CAUSE NO. 1
OF THE RULES AND REGULATIONS OF THE 
COLORADO OIL AND GAS CONSERVATION                ORDER NO. 1V-212
COMMISSION BY CAPRICE OIL AND GAS 
COMPANY, LA PLATA COUNTY, COLORADO

REPORT OF THE COMMISSION

This cause came on for hearing before the Colorado Oil and Gas Conservation Commission on May 31, 2001 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 Caprice Oil and Gas Company is not in violation of Commission rules for a well in La Plata County.

FINDINGS

1. The Suzanne Jumbo #1 Well is located in the SE¼ NW¼ of Section 27, Township 33 North, Range 12 West, N.M.P.M. The well was drilled by Caprice Oil and Gas Company (“Caprice”) in August of 1981. The well was produced for an unknown period of time. No production reports were filed by Caprice.

2. The well was inspected by Colorado Oil and Gas Conservation Commission (“COGCC”) staff Mark Weems on February 3, 2000 and was found to be temporarily abandoned.

3. On January 1, 2001, Caprice was issued a Notice of Alleged Violation (“NOAV”) stating it was in violation of COGCC Rule 302.a., failure to submit an accurate Registration for Oil and Gas Operations, Form 1 for the Suzanne Jumbo #1 Well. The violation was to be corrected immediately.

4. The NOAV was sent by registered mail to Caprice’s last known address. The letter was unclaimed.

ORDER

NOW, THEREFORE IT IS ORDERED, that Caprice Oil and Gas Company shall be found in violation of Rule 302.a., failure to submit an accurate Registration for Oil and Gas Operation, Form 1.

IT IS FURTHER ORDERED, that Caprice Oil and Gas Company shall be assessed a total fine of Five Hundred dollars ($500) for the violation of the above rule, payable within thirty (30) days of the date the order is issued.

IT IS FURTHER ORDERED, that the COGCC staff shall be authorized to commence a claim on the Five Thousand dollar ($5,000) Certificate of Deposit posted by Caprice Oil and Gas Company in order to plug, abandon and reclaim the well described above.

IT IS FURTHER ORDERED, that any person or company shall become the operator of the Suzanne Jumbo #1 Well if they provide a Change of Operator, Form 10 and post financial assurance in the amount of Five Thousand dollars ($5000) prior to the time COGCC staff is prepared to plug, abandon and reclaim the well.

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 18th day of June, 2001, as of May 31, 2001.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dated at Suite 801 Morris Bell, Hearing Officer 1120 Lincoln Street Denver, Colorado 80203 June 18, 2001.

(1V#212)