IN THE MATTER OF VIOLATION OF THE RULES AND REGULATIONS OF THE OIL AND GAS CONSERVATION COMMISSION BY COWAN OIL COMPANY IN ADAMS. BOULDER AND WASHINGTON COUNTIES, COLORADO

Cause No. 1V, 1 Order No. 1V-19 (FORMERLY 1-60)

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 21, 1988 at 9:00 a.m. in Room 110, State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing, as required by law, on the Commission's own motion concerning the failure to post proper Bonding as required by Rule 304 of the Rules and Regulations of the Commission by Cowan Oil Company.

FINDINGS

The Commission finds as follows:

l. Due Notice of the time, place and purpose of the hearing has been given in all respects as required by law.

2. The Commission has jurisdiction over the subject matte embraced in said notice and of the parties interested therein, an jurisdiction to promulgate the hereinafter prescribed order.

3. Cowan Oil Company field with the Commission various documents indicating Cowan Oil Company was the operator of the wells listed in the Notice of Hearing. The Commission made several requests that the appropriate bonding requirements be fulfilled.

4. At all times, the wells were under the bond of the prior operator.

5. Cowan Oil Company has obtained proper security, but had not posted the security with the Commission.

7. Cowan Oil Company has not filed a Designation of Agent with the Commission.

8 . A penalty in the amount of Two Hundred Fifty Dollars $250.00 should be assessed.

9 . The matter should be continued pending receipt of the Designation of Agent Form, and acceptance of the security.

O R D E R

NOW THEREFORE IT IS ORDERED, in accordance with 34-60-12 C.R.S., as amended, Cowan Oil Company is hereby assessed a penalty in the amount of Two Hundred Fifty Dollars ($250.00) which shall be remitted to the Oil and Gas Conservation Commission, State of Colorado, and that this matter be continued until the proper security is posted with the Commission and the Designation of Agent is received.

Entered this Fifth day of April, 1988 as of March 21 1988.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

Dennis R. Bicknell, Secretary