BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
IN THE MATTER OF THE PAYMENT OF PRO-CEEDS FROM THE PRODUCTION OF OIL AND GAS, AS ESTABLISHED BY C.R.S. 34-60-118.5, MASTERS FIELD, MORGAN COUNTY, COLORADO	) ) ) ) ) )	CAUSE NO. 1 ORDER NO. 1-32 (Formerly 1-138)

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on December 21, 1992 at 8:30 a.m., in Room 101, State Education Building, 201 East Colfax Avenue, Denver, Colorado, after giving Notice of Hearing as required by law, for an order to direct Anconian Oil Company and D & S Oilfield Services to pay royalty payments on production from the Goodloe No. 1-29 Well located in the NE¼ SW¼ of Section 29, Township 5 North, Range 60 West, 6^th P.M. to Maude J. Goodloe.

FINDINGS

The Commission finds as follows:

            1.      Maude J. Goodloe 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.      On July 1, 1990, through C.R.S. 34-60-118.5, the Colorado Oil and Gas Conservation Commission was given exclusive jurisdiction to determine several matters concerning the payment of proceeds derived from the sale of oil, gas or associated products from a well in Colorado including the following:

                     (a)     The date on which payment of proceeds is due a payee under section (2) of the section;

                     (b)     The existence or nonexistence of an occurrence pursuant to subsection (3) of this section which would justifiably cause a delay in payment; and

                     (c)     The amount of the proceeds plus interest, if any, due a payee or payor.

            5.      On October 19, 1992, at the time of the hearing, the Commission continued the matter to the November 1992 hearing, due to the lack of appearance from Anconian Oil Company and D & S Oilfield Services.  The Commission ordered Anconian Oil Company and D & S Oilfield Services to produce monthly production records on the Goodloe No.1-29 Well and records showing payment made to Ms. Goodloe on her proportionate share in the Goodloe No. 1-29 Well.  Further, the Commission ordered Ms. Goodloe to produce receipts of payment received from both Anconian Oil Company and D & S Oilfield Services and a Bill of Costs incurred to pursue this payment of proceeds matter.  At the time of hearing on November 16, 1992, the Commission continued the matter to the December 1992 hearing and requested that the parties attempt to resolve the exact amount of proceeds due Ms. Goodloe prior to the December hearing.

            6.      Testimony presented at the hearing on December 21, 1992, described the offer made by Anconian Oil Company to Ms. Goodloe to settle the payment of proceeds matter, her response to the offer and an amount of proceeds on which Anconian Oil Company is unable to confirm payment was made and Ms. Goodloe is unable to confirm receipt of payment.

            7.      Roger Pape appeared on behalf of Anconian Oil Company and D & S Oilfield Services to describe the offer he made to Ms. Goodloe to settle the payment of proceeds matter and Robert L. Vaclavik appeared on her behalf of Ms. Goodloe to indicate that Ms. Goodloe did not accept the offer.

            8.      A payment in the amount of one hundred seventy-three ($173) dollars should be made by Anconian Oil Company and D & S Oilfield Services to Ms. Goodloe for failure to pay royalties on the Goodloe No. 1-29 Well.  A payment in the amount of seven hundred seventy-seven ($777) dollars should be assessed to Anconian Oil Company and D & S Oilfield Services for interest due on the one hundred seventy-three ($173) dollars and for costs incurred by Ms. Goodloe to pursue the payment of proceeds on said well.

ORDER

NOW, THEREFORE, IT IS ORDERED that Anconian Oil Company and D & S Oilfield Services is in violation of C.R.S. 34-60-118.5 and that a payment in the amount of one hundred seventy-three ($173) dollars shall be assessed in accordance with the provisions of C.R.S. 34-60-118.5, as amended.

IT IS FURTHER ORDERED, that Anconian Oil Company and D & S Oilfield Services is assessed seven hundred seventy-seven ($777) dollars in accordance with the provisions of C.R.S. 34-60-118.5(5)(c) and C.R.S. 34-60-118.5(6), for interest on the overdue payment of proceeds of one hundred seventy-three ($173) dollars and for costs incurred by Ms. Goodloe to pursue the payment of proceeds on the Goodloe No. 1-29 Well.

IT IS FURTHER ORDERED, that Anconian Oil Company is ordered to pay to Maude J. Goodloe, a grand total payment in the amount of nine hundred and fifty dollars ($950) in accordance with the provisions of C.R.S. 34-60-118.5, as amended, and that payment shall be made within thirty (30) days of the receipt of this order.

IT IS FURTHER ORDERED, that Anconian Oil Company shall provide Ms. Goodloe with a statement of production activity on a monthly basis for the Goodloe No. 1-29 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 12^th day of January, 1993, as of December 21, 1992.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
	By Patricia C. Beaver, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado  80203

January 4, 1993