BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER TO GOVERN OPERATIONS IN THE WATTENBERG FIELD, WELD COUNTY, COLORADO

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CAUSE NO. 1

ORDER NO. 1-60

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on December 20, 1995, at 8:30 a.m., in Suite 801, the Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing, as required by law on the application of Marie G. Owens for an order to be issued to determine and award proceeds due the Applicant for production attributable to the overriding royalty interest due from the first date of production to present from Snyder Oil Corporation for wells located in Sections 3, 10, 12, 13, 15, 16, 21, 22 and 36 in Township 4 North, Range 64 West, 6th P.M., and in Section 18, Township 4 North, Range 63 West, 6th P.M.

FINDINGS

The Commission finds as follows:

1. Marie G. Owens 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 §34‑60‑118.5, C.R.S., 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 September 18, 1995, Marie G. Owens, through her attorney, filed with the Commission an application for an order to be issued to determine and award proceeds due the Applicant for production attributable to the overriding royalty interest due from the first date of production to present from Snyder Oil Corporation for wells located in Sections 3, 10, 12, 13, 15, 16, 21, 22 and 36 in Township 4 North, Range 64 West, 6th P.M., and in Section 18, Township 4 North, Range 63 West, 6th P.M.

6. On November 13, 1995, Snyder Oil Corporation, by their attorney, filed with the Commission a protest to the above-described application requesting a dismissal on the grounds of reasonable doubt by the Protestant as to the Applicant's clear title to the interests. On November 17, 1995, a written request from the Applicant was received requesting a continuance of this matter stating that a settlement was being negotiated.

7. On December 5, 1995, the Protestant filed with the Commission a Motion to Enforce Settlement Agreement which was tentatively reached November 17, 1995.

8. On December 8, 1995, the Applicant filed with the Commission a Response to Motion to Enforce Settlement Agreement stating the Commission did not have jurisdiction to enforce such an agreement.

9. On December 19, 1995, a prehearing conference was held with the Applicant and Protestant in an attempt to stipulate to certain facts and to narrow the issues to be heard by the Commission.

10. A stipulation signed by both parties was presented to the Commission at its hearing on December 20, 1995. After discussion by the parties and the Commission on the stipulation, 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 Marie G. Owens, an application for an order to determine and award the proceeds due pursuant to her 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 Sections 3, 10, 12, 13, 15, 16, 21, 22 and 36 in Township 4 North, Range 64 West, 6th P.M., and in Section 18, Township 4 North, Range 63 West, 6th P.M. is hereby dismissed due to lack of jurisdiction over the title dispute on said wells.

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 , 1996, as of December 20, 1995.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

January 15, 1996