IN THE MATTER OF RECONSIDERATION OF ORDER NO. 1V-165              CAUSE NO. 1
ISSUED BY THE COLORADO OIL AND GAS CONSERVATION
COMMISSION REQUESTED BY C.H. FLETCHER EXPLORATION                ORDER NO. 1V-166
INC., PROWERS COUNTY, COLORADO

REPORT OF THE COMMISSION

This cause came for consideration before the Commission at the Commission's regularly scheduled hearing on 8:30 a.m. on January 15, 1999, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado. The Commission reviewed C.H. Fletcher Exploration, Inc.'s Motion for Reconsideration of Commission Order No. 1V-165 (the "Order"). The Commission entered the Order after notice its December 15, 1998 hearing.

FINDINGS

The Commission finds as follows:

1. C.H. Fletcher Exploration, Inc. ("Fletcher") is the applicant and 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 and of the parties interested therein, and jurisdiction to enter this order.

4. On December 3, 1998, the Commission issued Order No. 1V-165, in which the Commission found Fletcher in violation of Rule 326.d., all wells shall maintain mechanical integrity, all wells which lack mechanical integrity shall be repaired or plugged and abandoned within six (6) months of failing a mechanical integrity test, for the Bamber #1 Well located in the NW¼ SE¼ of Section 15, Township 26 South, Range 46 West, 6th P.M. In addition, Fletcher was assessed a fine of Two Thousand Dollars ($2,000.00) for the violation, payable within thirty (30) days of the date the Order is issued.

5. On January 13, 1999, Fletcher filed with the Commission a Motion for Reconsideration of Order No. 1V-165 and Stay of Execution of Order (“Motion for Reconsideration”), claiming that the well was plugged and abandoned and asking for relief from the fines assessed.

6. At the January 15, 1999, hearing, the Commission discussed the Motion for Recondsideration filed by Mr. Phillip E. Malouff, Jr. on behalf of Fletcher regarding why the Commission should reopen the December, 1998 proceedings and reconsider the findings and conclusions of Order No. 1V-165.

7. The Commission finds that Fletcher did not demonstrate good cause sufficient for the Commission to reconsider the Order which was entered after a full hearing on the merits at the Commission’s December, 1998 hearing.

8. The Commission finds that Fletcher was properly noticed for the December, 1998, hearing.

9. The Commission finds that Fletcher chose not to attend the December, 1998 hearing after its receipt of notice to contest the alledged violation.

10. The Commission finds that it had jurisdiction to enter the Order after the full hearing on the alledged violation conducted December 3, 1998. The Commission finds that the December, 1998 hearing was noticed and conducted in accordance with the Colorado Oil and Gas Conservation Act §34-60-101 to -124, applicable Commission Rules and Regulations, and applicable portions of the State Administrative Procedures Act § 24-4-101 to -108, C.R.S. (the “APA”).

11. The Commission finds that upon conclusion of the hearing that the Commission mailed a copy of the Order to Fletcher which contained the Commission’s findings and final order assessing a fine.

12. The Commission finds that Fletcher did not seek judicial review of the Order within thirty (30) days after it was entered as required by §24-4-106, C.R.S., of the APA.

13. The Commission finds that the Order remains a final order of the Commission entered effective December 15, 1998, and that the Order is binding.

14. The Commission finds that Fletcher’s Motion for Reconsideration does not extend or otherwise reopen the period to appeal the Commission’s final findings and determination contained in Order No. 1V-165.

ORDER

NOW, THEREFORE, IT IS ORDERED, that the Motion to Reconsider Order No. 1V-165 and Stay of Execution of Order filed by C.H. Fletcher Exploration, Inc. is hereby denied.

IT IS FURTHER ORDERED, that the provisions of Order No. 1V-165 shall remain in effect.

IS FURTHER ORDERED, that the provisions contained in this order related to Fletcher’s Motion to Reconsider Reconsider Order No. 1V-165 and Stay of Execution of 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 21st day of January 19, 1999, as of January 15, 1999.

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 19, 1999

(1V#166)