BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF A REQUEST BY PLENERGY                       )           CAUSE NO. 1

DEVELOPMENT LTD. TO AMEND ORDER NOS.                        )

1V-192, 1V-193 AND 1V-194 ISSUED BY THE                             )           ORDER NO. 1-92

COLORADO OIL AND GAS CONSERVATION                              )

COMMISSION, ADAMS COUNTY, COLORADO                           )

REPORT OF THE COMMISSION

                        This cause came on before the Commission at 8:30 a.m. on December 4, 2000, in Suite 801, the Chancery Building, 1120 Lincoln Street, Denver, Colorado, on the application of Plenergy Development Ltd. for an order seeking to amend Order Nos. 1V-192, 1V-193 and 1V-194 to reduce or eliminate the fines assessed in those orders.

FINDINGS

                        The Commission finds as follows:

                        1.  Plenergy Development Ltd., (“Plenergy”) 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 February 15, 2000 the Commission issued Order Nos. 1V-192, 1V-193 and 1V-194, finding Plenergy in continuing violation of Rule 319.b.(3), failure to obtain Director approval for continuing shut-in status and Rule 326.b., failure to perform a mechanical integrity test within thirty (30) days of removing the surface production equipment for the Ehler #7 Well located in the SE¼ SW¼ of Section 15, Township 1 South, Range 67 West, 6^th P.M., the Ehler #12 Well located in the NW¼ SW¼ of Section 10, Township 1 South, Range 67 West, 6^th P.M. and the Ehler #18 Well located in the SE¼ NE¼ of Section 15, Township 1 South, Range 67 West, 6^th P.M.  In addition, a fine of Four Thousand Dollars ($4,000) per well for a total fine of Twelve Thousand Dollars ($12,000) was assessed for the violations, payable within thirty (30) days from the date the orders were entered.

                        5.  On April 10, 2000 Mr. Bobby Baker of Plenergy filed with the Commission an application for an order to amend Order Nos. 1V-192, 1V-193 and 1V-194 to eliminate the Twelve Thousand dollar ($12,000) fine assessed for the delayed plugging and abandonment of the three Ehler wells.

                        6.  Testimony presented on behalf of Plenergy at the December 4, 2000 hearing described the delay in plugging and abandoning the Ehler #7, #12 and #18 Wells was due to ongoing lawsuits and a defaulted sale of the wells.  The wells were plugged and abandoned as soon as the legal situation was resolved.

7. Based upon the fact that the three (3) Ehler Wells have been plugged and abandoned, and that Plenergy does not intend to conduct oil and gas operations in Colorado, the Commission approved amending Order Nos. 1V-192, 1V-193 and 1V-194 to reduce the original fine assessed to Two Thousand Dollars ($2,000) per well for a total fine of Six Thousand Dollars ($6,000).

ORDER

NOW, THEREFORE IT IS ORDERED that Order Nos. 1V-192, 1V-193 and 1V-194 are hereby amended to reduce the total fine assessed to Six Thousand Dollars ($6,000) for violation of Rule 319.b.(3), failure to obtain Director approval for continuing shut-in status and Rule 326.b., failure to perform a mechanical integrity test within thirty (30) days of removing the surface production equipment for the Ehler #7 Well located in the SE¼ SW¼ of Section 15, Township 1 South, Range 67 West, 6^th P.M., the Ehler #12 Well located in the NW¼ SW¼ of Section 10, Township 1 South, Range 67 West, 6^th P.M. and the Ehler #18 Well located in the SE¼ NE¼ of Section 15, Township 1 South, Range 67 West, 6^th P.M., payable within thirty (30) days of the date the order is entered.

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 December, as of December 4, 2000.

                                    OIL AND GAS CONSERVATION COMMISSION

                                        OF THE STATE OF COLORADO

By______________________________________________

Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

December 18, 2000