REPORT OF THE COMMISSION

This cause came on for hearing before the Colorado Oil and Gas Conservation Commission on September 23, 2002 at 10:00 a.m. in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving notice of hearing as required by law on why Monument Gas Marketing, Inc. is in violation of Rule 319.a.(1) for the Bucklen #2-34 Well.

FINDINGS

1. On May 17, 2001, a drilling permit was issued to Monument Gas Marketing, Inc ("Monument") to drill the Bucklen #2-34 Well located in the SW1/4 NW1/4 of Section 34, Township 17 South, Range 46 West, 6th P.M. The permit required Monument to comply with conditions of approval described on the back of the permit.

2. On June 7, 2001, Jack Hickey of Monument called Colorado Oil and Gas Conservation Commission ("COGCC") staff to ask for plugging instructions for the Bucklen #2-34 Well. Mr. Hickey stated his faxed copy of the drilling permit had no conditions of approval on the back page. COGCC staff informed Mr. Hickey that, among other things, cement plugs should be set below the Cheyenne Formation, between the Dakota and Cheyenne Formations and above the Dakota Formation.

3. On April 8, 2002, COGCC staff received a Drilling and Completion Report, Form 5, from Monument reporting the location of cement plugs in the Bucklen #2-34 Well. The Form 5 indicated that the top of the Cheyenne Formation was incorrectly picked and that cement plugs were not properly placed to protect the Cheyenne Aquifer.

4. On April 18, 2002, COGCC staff issued a Notice of Alleged Violation ("NOAV") to Monument alleging violations of Rule 308A., requiring the submittal of a mud log, and Rule 319.a.(1), requiring wells be plugged to confine fluids to the original formations. The NOAV required Monument to submit a copy of the mud log and to re-enter the well and place plugs at a depth sufficient to protect the Cheyenne and Dakota Formations.

5. Per return receipt, Monument accepted the NOAV.

6. On April 30, 2002, COGCC staff received a copy of the mud log for the Bucklen #2-34 Well. On August 9, 2002, COGCC staff received a letter from Mr. Hickey stating that the cement plugs in the Bucklen #2-34 Well were located correctly and that the well did not need to be re-entered.

7. At the time of the hearing, COGCC staff presented testimony and exhibits regarding their position that the cement plugs were incorrectly placed in the Bucklen #2-34 Well.

8. Monument presented testimony and exhibits at the hearing regarding their position that the Cheyenne Aquifer had been adequately protected by cement plugs placed in the Bucklen #23-4 Well

9. After deliberation, the Commission finds that Monument is in violation of Rule 308A. and Rule 319.a.(1), that Monument should re-enter the well and set cement plugs as required by the COGCC no later than February 1, 2003 and that no fine should be assessed against Monument.

ORDER

NOW, THEREFORE IT IS ORDERED, that Monument Gas Marketing, Inc. shall be found in violation of Rule 319.a.(1) for failure to properly plug and abandon the Bucklen #2-34 Well located in the SW1/4 NW1/4 of Section 34, Township 17 South, Range 46 West, 6th P.M.

IT IS FURTHER ORDERED, that Monument Gas Marketing, Inc. shall re-enter the Bucklen #2-34 Well and properly plug the well as required by COGCC no later than February 1, 2003.

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 October 2002, as of September 23, 2002.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Patricia C. Beaver, Secretary

Dated at Suite 801 1120 Lincoln St. Denver, Colorado 80203 October 7, 2002

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