IN THE MATTER OF ALLEGED VIOLATIONS OF THE          CAUSE NO. 1
RULES AND REGULATIONS OF THE COLORADO OIL
AND GAS CONSERVATION COMMISSION BY                     ORDER NO. 1V-222
JOHN BAKOS, MOFFAT COUNTY, COLORADO

REPORT OF THE COMMISSION

This cause came on for hearing before the Colorado Oil and Gas Conservation Commission on March 18, 2002 at 10:00 a.m. in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado on why John Bakos is in violation of Rules 1003.d. and 1004.a. for the Bakos Farm #1 JBS Well, and why the Commission should invoke the provisions of §34-60-122, C.R.S., as amended, providing for penalties for violations of the Rules and Regulations of the Commission.

FINDINGS

The Commission finds as follows:

1. John Bakos 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 the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

4. On October 27, 2000 Colorado Oil and Gas Conservation Commission (“COGCC”) staff issued a Notice of Alleged Violation (“NOAV”) to John Bakos for failure to perform final reclamation on the Bakos Farm #1 JBS Well located in the NW¼ NE¼ of Section 35, Township 5 North, Range 90 West, 6th P.M. The NOAV cited violation of Rules 1003.d. and 1004.a. Rule 1003.d. requires that all drilling pits shall be reclaimed as early and as nearly as practicable to the original contour. The well was plugged and abandoned on October 9, 1991. Rule 1004.a. requires that upon the plugging and abandonment of a well, the location shall be graded and recontoured, as well as all equipment removed. This reclamation should have been completed by October 10, 1992. The NOAV specified an abatement deadline of June 1, 2000. To date, the location has not been reclaimed, and is in continuing violation of Rules 1003.d. and 1004.a.

5. On July 17, 2001 an Administrative Order by Consent (“AOC”) was offered to John Bakos. On August 28, 2001 a letter was received from Mr. Rod Snowden, son-in-law of John Bakos. The letter stated that John Bakos had passed away on June 1, 1982 and that there was no longer any responsible party to perform the required work on the well. The letter stated that the plugging and abandonment bond should be turned over to the COGCC to reclaim the drilling site.

6. John Bakos should be found in violation of Rules 1003.d. and 1004.a.

7. The Commission should authorize the COGCC staff to claim John Bakos’s financial assurance and reclaim the wellsite.

ORDER

NOW, THEREFORE IT IS ORDERED, that John Bakos shall be found in violation of Rules 1003.d. and 1004.a. for the Bakos Farm #1 JBS Well located in the NW¼ NE¼ of Section 35, Township 5 North, Range 90 West, 6th P.M.

IT IS FURTHER ORDERED, that the COGCC staff is hereby authorized to claim John Bakos’s financial assurance and reclaim the wellsite.

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 25th day of March, 2002, as of March 18, 2002.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dated at Suite 801 Patricia C. Beaver, Secretary 1120 Lincoln Street Denver, Colorado 80203 March 25, 2002.

(1V#222)