REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on December 20, 1995 at 8:30 a.m., in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing as required by law, on why Snyder Oil Corporation, was not in violation of Rule Nos. 209, 305, 315.j. and conditions of permit approval, of the Oil and Gas Conservation Commission, and why it should not invoke the provisions of 34-60-121 C.R.S., as amended, prov iding for penalties for violations 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 September 14, 1994, Snyder Oil Corporation submitted an application to recomplete the Sussex Formation in the Lower Latham 35-15B Well located in the SW1/4 SE1/4 of Section 35, Township 5 North, Range 65 West, 6th P.M. A cement bond log from the subject well indicated inadequate cement coverage for the Sussex Formation recompletion. Snyder Oil Corporation stated on the recompletion application that a remedial cement squeeze would be performed pr ior to the Sussex Formation recompletion. On September 16, 1994, the Commission approved the permit with the condition to submit evidence of cementing the Sussex Formation prior to the recompletion operation. No additional cement work was performed and the Sussex Formation was recompleted on September 25, 1994. On October 19, 1995, a Notice of Alleged Violation (NOAV) was issued to Snyder Oil Corporation for violations of Rule 209, 305, 315.j. and cond itions of permit approval. Corrective actions were stipulated on the NOAV.

5. On December 12, 1995, an Administrative Order by Consent was issued by Commission staff with the agreement of Snyder Oil Corporation stating conditions of the permit and NOAV issued on October 19, 1995 were not satisfied.

6. The Hearing Officer recommends that Snyder Oil Corporation be found in violation of Rule No. 209, failure to protect water-bearing formations; Rule 305, failure to submit correct information on Sundry, Form 4; Rule 315.j., failure to cement production string as required; and conditions of permit approval. Further, the Hearing Officer recommends that a fine of five thousand dollars ($5,000) be assessed. This fine should be payable within thirty (30) days of the date the order is entered. O R D E R

NOW, THEREFORE, IT IS ORDERED, that Snyder Oil Corporation shall be found in violation of Rule 209, failure to protect water-bearing formations; Rule 305, failure to submit correct information on Sundry, Form 4; Rule 315.j., failure to cement production string as required; and conditions of permit approval.

IT IS FURTHER ORDERED, that Snyder Oil Corporation shall be assessed a total fine of Five Thousand Dollars ($5,000) payable 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 , 1996, as of December 20, 1995.

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 January 15, 1996 ??