BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER TO GOVERN OPERATIONS ) CAUSE NO. 1

IN THE BLUE GRAVEL FIELD, MOFFAT )

COUNTY, COLORADO ) ORDER NO. 1-38 (Formerly 1-149)

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on June 18, 1993, in Room 318, State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing, as required by law on the application of Reid M. Waltman for an order to be issued to determine and award proceeds due the applicant pursuant to his overriding royalty interest, interest due on such sum, and an award of costs and reasonable attorneys' fees for eleven wells on certain lands in Township 9 North, Range 91 West, 6th P.M., Moffat County, Colorado.

FINDINGS

The Commission finds as follows:

1. Reid M. Waltman 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 & 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

5. On May 10, 1993, Reid M. Waltman, by his attorney, filed with the Commission an application for an order to be issued to determine and award the proceeds due the applicant pursuant to his overriding royalty interest, interest due on such sum, and an award of costs and reasonable attorneys' fees for the below-listed wells in Township 9 North, Range 91 West, 6th P.M., Moffat County, Colorado:

Well Name Legal Description

Federal No. 1-23 SE¼ NE¼ Section 23, Township 9 North, Range 91 West, 6th P.M.

Federal No. 4-24 SW¼ SW¼ Section 24, Township 9 North, Range 91 West, 6th P.M.

Federal No. 5-24 NW¼ SW¼ Section 24, Township 9 North, Range 91 West, 6th P.M.

Federal No. 6-24 SE¼ SW¼ Section 24, Township 9 North, Range 91 West, 6th P.M.

Federal No. 2-25 NW¼ SE¼ Section 25, Township 9 North, Range 91 West, 6th P.M.

Federal No. 5-25 NW¼ SW¼ Section 25, Township 9 North, Range 91 West, 6th P.M.

Federal No. 6-25 NE¼ SW¼ Section 25, Township 9 North, Range 91 West, 6th P.M.

Federal No. 1-26 NW¼ NE¼ Section 26, Township 9 North, Range 91 West, 6th P.M.

Federal No. 2-26 SE¼ NE¼ Section 26, Township 9 North, Range 91 West, 6th P.M.

Federal No. 1-35 NW¼ SE¼ Section 35, Township 9 North, Range 91 West, 6th P.M.

Federal No. 3-35 SE¼ SE¼ Section 35, Township 9 North, Range 91 West, 6th P.M.

6. On June 3, 1993, Jack J. Grynberg, by his attorney, filed with the Commission a protest to the above-described application requesting a dismissal or a 120-day continuance of the matter. Contemporaneously, Jack J. Grynberg, by his attorney, filed with the Commission a Motion for Protective Order so that the depositions scheduled by the applicant would not take place until a determination was made on the request to dismiss the application.

7. On June 14, 1993, the applicant and the protestant filed with the Commission a joint motion to continue the matter to a date to be determined by the Commission.

8. After testimony presented by the applicant and the protestant at the June 18, 1993 hearing, the Commission should dismiss the application on the grounds that there is a title dispute on the wells described in Finding 5.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the application of Reid M. Waltman Commission an application for an order to determine and award the proceeds due pursuant to his overriding royalty interest, interest due on such sum, and an award of costs and reasonable attorneys' fees for the above-described wells listed in Finding 5 in Township 9 North, Range 91 West, 6th P.M., Moffat County, Colorado is hereby dismissed.

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective on the date the order is entered.

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 , 1993, as of , 1993.

OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

Patricia C. Beaver, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado 80203

June 24, 1993