IN THE MATTER OF GENERAL RULES AND REGULATIONS WITH RESPECT TO THE CONSERVATION OF OIL AND GAS IN THE STATE OF COLORADO, AND RULES OF PRACTICE AND PROCEDURE PERTAINING THERETO AND IN PARTICULAR WITH REFERENCE TO RULE 323

BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF THE EXEMPTION FROM BONDING REQUIREMENTS OF RULE 304 OF THE OIL AND GAS CONSERVATION COMMIS-SION RULES AND REGULATIONS, RIO BLANCO COUNTY, COLORADO

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CAUSE NO. 1

ORDER NO. 1-10 (Formerly 1-120)

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 19, 1990 at 8:30 a.m., in Room 101, State Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, on the request of Sten Johnson to be exempt from the bonding requirements as provided for in Rule 304 for the well Eric Clubine No. 2 located in the NE¼ NE¼ Section 13, Township 3 South, Range 96 West, 6^th P.M., Rio Blanco County, Colorado.

FINDINGS

The Commission finds as follows:

1. Sten Johnson, 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. The gas from said well, of low volume, is to be used for domestic purposes on the Johnson property.

5. Sten Johnson, as owner of said well, should assume full liability relative to the production of gas from said well in addition to the responsibilities to properly plug and abandon the well at such time as production is no longer available.

6. Security in the individual amount of not less than One Thousand Dollars ($1,000) shall be posted with the Oil and Gas Conservation Commission for the well.

7. Sten Johnson should record this Order with the Clerk and Recorder of Rio Blanco County, Colorado.

ORDER

NOW, THEREFORE, IT IS ORDERED that Sten Johnson shall post security with the Oil and Gas Conservation Commission in the amount of not less than One Thousand Dollars ($1,000) for operation of the well Eric Clubine located in the center of the NE¼ NE¼ of Section 13, Township 3 South, Range 96 West, 6th P.M. Rio Blanco County, Colorado.

IT IS FURTHER ORDERED, that Sten Johnson shall assume full liability relating to the production of gas from said well and the responsibility to properly plug and abandon said well at such time as production is no longer available.

IT IS FURTHER ORDERED, that Sten Johnson shall record this Order with the Clerk and Recorder of Rio Blanco County.

ENTERED this 20^th day of March, 1990, as of March 19, 1990.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dennis R. Bicknell, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado 80203