REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on August 18, 1986 at 9:00 am in Room 110, State Centennial Building, 1313 Sherman Street, Denver, Colorado after giving Notice of Hearing, as required by law, on the verified application of Joe Mechalke, aka Joe D. Mechalke, for an order releasing him of the obligation to maintain a plugging bond for well No. 1 Graefe, located in the NW1/4 NE1/4 Section 26, Township 9 North, Range 62 West, 6th P.M. and that such obligation be obtained from the new operator of the well, Noram Mines, Inc. to appear to the charge of non-compliance of Order No. 447-1.

FINDINGS

The Commission finds as follows:

1. Joe Mechalke, as applicant herein, 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. By Decree of the District Court of Weld County, Noram Mines, Inc. became the new operator of well No. 1 Graefe, located in the NW1/4 NE1/4, Section 26, Township 9 North, Range 62 West, 6th PM. However, there are other matters before the Court that have not yet been finalized and are not considered to be relevant to the Commission in making a determination in this matter.

5. Joe Mechalke should be relieved of the obligation to maintain a plugging bond for said well and Noram Mines, Inc., as new operator, be obligated to furnish a bond in accordance with the provisions of Rule 304 of the Rules and Regulations of the Commission.

6. Said bond should be filed with the Commission by Noram Mines, Inc. within thirty (30) days from receipt of this order.

O R D E R

NOW THEREFORE IT IS ORDERED that Noram Mines, Inc. shall furnish to the Commission a plugging bond in accordance with Rule 304 of the Rules and Regulations of the Commission for well No. 1 Graefe, located in the NW1/4 NE1/4, Section 26, Township 9 North, Range 62 West, 6th PM. Weld County, Colorado.

IT IS FURTHER ORDERED that said bond shall be filed with the Commission within thirty (30) days of receipt by Noram mines, Inc. of this order.

ENTERED this 10th day of September, 1986, as of August 18, 1986.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary