BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF ALLEGED VIOLATIONS OF THE RULES ) CAUSE NO. 1V

AND REGULATIONS OF THE COLORADO OIL AND GAS )

CONSERVATION COMMISSION BY PETROLEUM DEVELOPMENT ) DOCKET NO. 0407-OV-23

CORPORATION, WELD COUNTY, COLORADO )

NOTICE OF ADMINISTRATIVE ORDER BY CONSENT

TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:

On September 3, 2002, a Colorado Oil and Gas Conservation Commission (“COGCC”) Application for Permit-to-Drill (“APD”), Form 2 was approved for Petroleum Development Corporation (“PDC”) to drill the Wells Ranch #14-2 Well located in the SW¼ SW¼ of Section 2, Township 5 North, Range 63 West, 6^th P.M. The APD for the Wells Ranch #14-2 Well specified the objective formation as the “J” Sand. The APD was approved by the COGCC Director for only this formation. On May 12, 2004, PDC contacted COGCC staff by telephone and reported that the Codell Formation had been completed in the Wells Ranch #14-2 Well without proper APD approval.

On May 14, 2004, COGCC staff issued an Administrative Order by Consent (“AOC”) to Petroleum Development Corporation for the violation of COGCC Rules 303.b., 301., and Section 34-60-117.(1) of the Oil and Gas Conservation Act for failure to have an approved APD or Application for Permit to Recomplete to the Codell Formation, not providing written notice of intention to do work and failure to protect correlative rights of all owners in every field or pool. On May 21, 2004, Petroleum Development Corporation agreed to and accepted the AOC, including a fine of Five Thousand Dollars ($5,000).

NOTICE IS HEREBY GIVEN, that the Oil and Gas Conservation Commission of the State of Colorado, pursuant to the above, has scheduled the above-entitled matter for hearing on:

Date: Monday, July 12, 2004

Time: 9:00 a.m.

Place: Suite 801, The Chancery Building

1120 Lincoln Street

Denver, CO 80203

In accordance with the Americans with Disabilities Act, if any party requires special accommodations for this hearing as a result of a disability, please contact Audra Serlet at (303) 894-2100, extension 114, prior to the hearing and arrangements will be made.

Pursuant to said hearing in the above-entitled matter at the time and place aforesaid, or at any adjourned meeting, the Commission will enter such orders as it deems appropriate and necessary to protect public health, safety and welfare and to prevent the waste of oil and gas, either or both, in the operations of said field, and carry out the purposes of the statute.

In accordance with Rule 509., any interested party desiring to protest or to intervene should file with the Commission a written protest or a notice to intervene no later than June 28, 2004 briefly stating the basis of the protest or intervention. Such interested party shall, at the same time, serve a copy of the protest or notice to intervene to the person filing the application. An original and nine (9) copies shall be filed with the Commission. Anyone who files a protest or intervention must be able to participate in a prehearing conference during the week of June 28, 2004.

IN THE NAME OF THE STATE OF COLORADO

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

June 3, 2004