BEFORE THE OIL AND GAS CONSERVATION COMMISSION

                                                              OF THE STATE OF COLORADO

IN THE MATTER OF THE VIOLATION OF THE                             )                    CAUSE NO. 1

RULES AND REGULATIONS OF THE OIL AND GAS                    )

CONSERVATION COMMISSION BY MUSTANG                           )                    ORDER NO. 1V-61

SERVICES COMPANY, WELD COUNTY, COLORADO                 )                                (1-158)

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission on October 18, 1993 at 8:30 a.m., in Room 318, State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on why Mustang Services Company, Inc. was not in violation of Order No. 1-129 of the Commission, and why it should not invoke the provisions of 34-60-121 C.R.S., as amended, providing for penalties for violations of orders of the Commission.

FINDINGS

                        The Commission finds as follows:

                        1.  Mustang Services Company, Inc. as applicant herein, 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 July 20, 1992, the Commission issued Order No. 1-129 which found Mustang Services Company, Inc. in violation Rule 325 and assessed a penalty in the amount of one thousand five hundred ($1500) dollars payable as a service-in-kind to the Environmental Response Fund, due not less than one (1) year from the date of issuance of the order.

                        5.  Testimony presented at the hearing on October 18, 1993 indicated that Mustang Services Company, Inc. had not rendered the service-in-kind penalty assessed in Order No. 1-129 within the one-year period and should be required to make a cash payment in the amount of one thousand five hundred ($1500) dollars to the Oil and Gas Conservation Commission.  This penalty should be payable within thirty (30) days of the date the order is issued.

O R D E R

                        NOW, THEREFORE, IT IS ORDERED, that Mustang Services Company, Inc. is in violation of Order No. 1-129 and that the penalty in the amount of one thousand five hundred ($1500) dollars shall be required to be made as a cash payment.  The penalty shall be payable to the Oil and Gas Conservation Commission within thirty (30) days of the date the order is issued.

                        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 , 1993, as of October 18, 1993.

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                               OF THE STATE OF COLORADO

                                                                        By

                                                                                         Patricia C. Beaver, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado  80203

November 2, 1993