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 R.L. Hrbek requesting a waiver of the penalty of five thousand dollars ($5,000) originally assessed in Order No. 1-214.

FINDINGS

The Commission finds as follows:

1. R.L. Hrbek 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 October 17, 1995, the Commission issued Order No. 1-214, entered October 30, 1995, finding R.L. Hrbek in violation of Rule 317.a.(8), failure to properly reclaim an abandoned well location, for the Nelson No. 1 Well, located in the SE1/4 SE1/4 of Section 9, Township 10 North, Range 54 West; the Elwood No. 2 Well, located in the NE1/4 NW1/4 of Section 15, Township 10 North, Range 54 West; and the Propst SWD No. 2 Well located in the SE1/4 SE1/4 of Section 15, Township 10 North, Range 54 West, 6th P.M. A total fine of five thousand dollars ($5,000) was assessed and due no later than November 30, 1995.

5. On November 16, 1995, R.L. Hrbek, through his attorney, filed with the Commission a Motion to Reconsider Issuance of Penalty, on the following grounds: 1) the alleged violations were abated prior to the hearing; 2) Mr. Hrbek had contracted with H&R Well Services to complete all restoration, and H&R Well Services had delayed in completing the restoration; 3) that no waste of oil and gas resources occurred; 4) that no damage to correlative rights occur red; 5) that no adverse impact on the public health, safety, or welfare occurred; 6) that the fine is excessive; and 7) Mr. Hrbek is unable to pay the five thousand dollar ($5,000) fine.

6. At the December 20, 1995 hearing, after hearing testimony on the Motion to Reconsider Issuance of Penalty, the Commission should deny the request to waive the original penalty assessed.

O R D E R

NOW, THEREFORE, IT IS ORDERED, that the application of R.L. Hrbek for a Motion to Reconsider Issuance of Penalty, is hereby denied and Order No. 1-214 shall remain in effect with the fine of five thousand dollars ($5,000) originally assessed.

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 , 1996, as of December 20, 1995.

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 January 15, 1996 ??