BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER TO GOVERN ) CAUSE NO. 1

OPERATIONS IN THE KEOTA FIELD, ) ORDER NO. 1-37 (Formerly 1-148)

WELD COUNTY, COLORADO )

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 Charles A. Underwood for an order to award payment of proceeds for oil produced, interest due, and an award of costs and reasonable attorneys' fees for the Dunbar-McKinley No. 1 Well in the SW1/4 SE1/4 of Section 9, Township 9 North, Range 91 West, 6th P.M., Weld County, Colorado.

FINDINGS

The Commission finds as follows:

1. Charles A. Underwood 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 4, 1993, Charles A. Underwood filed with the Commission an application for an order to be issued to award the proceeds due the applicant for oil produced in 1988 and taken from the lease by Bountiful Oil and Gas/Border Fuel Supply Corporation, interest due on such sum, and an award of costs and reasonable attorneys' fee for the Dunbar-McKinley No. 1 Well in the SW1/4 SE1/4 of Section 9, Township 9 North, Range 91 West, 6th P.M., Weld County, Colorado.

6. On June 14, 1993, Robert McCormick, d/b/a McCormick Oil and Gas Company filed with the Commission a protest to the above-described application.

7. After testimony presented by the applicant, the protestant, and Border Fuel Supply Corporation at the June 18, 1993 hearing, the Commission dismissed the application due to lack of jurisdiction granted under C.R.S. 34-60-118.5 to try title for the above-described mineral estate.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the application of Charles A. Underwood for an order to award the proceeds due the applicant for oil produced in 1988 and taken from the lease by Bountiful Oil and Gas/Border Fuel Supply Corporation, interest due on such sum, and an award of costs and reasonable attorneys' fee for the Dunbar-McKinley No. 1 Well in the SW1/4 SE1/4 of Section 9, Township 9 North, Range 91 West, 6th P.M., Weld County, Colorado is hereby dismissed.

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 day of , 1993, as of June 18, 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