BEFORE THE OIL AND GAS CONSERVATION COMMISSION

                                                              OF THE STATE OF COLORADO

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

AND REGULATIONS OF THE OIL AND GAS                                 )

CONSERVATION COMMISSION BY GERRITY OIL                      )                    ORDER NO. 1V-63

AND GAS CORPORATION,                                                               )                                (1-167)

ADAMS COUNTY, COLORADO                                                       )

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission on December 20, 1993 at 8:30 a.m., in the Boettcher Auditorium, Colorado History Museum, 1300 Broadway, Denver, Colorado, after giving Notice of Hearing as required by law, on why Gerrity Oil and Gas Corporation was not in violation of the Rules and Regulations of the Oil and Gas Conservation Commission, including, but not limited to, Rule Nos. 303., 315., and 603., 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.  Gerrity Oil and Gas Corporation 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 November 9, 1993, the Commission staff made site inspections at the Brozovich MA No. 8-11, the Brozovich MA No. 8-12, and the Brozovich MA No. 8-13 Wells located in the NE1/4 SW1/4, NW1/4 SW1/4, and SW1/4 SW1/4 of Section 8, Township 1 South, Range 68 West, 6th P.M., Adams County.  It was found that the setting depth of surface casing was improper to protect the health, safety, and welfare of rig crews, the public, property, and the Fox Hills aquifer, and that the casing was not set in accordance with the amount specified and approved on the Applications for Permit-to-Drill for the three wells.

                        5.  Testimony presented at the hearing on December 20, 1993 indicated that for the Brozovich MA No. 8-11 Well, Gerrity Oil and Gas Corporation was in violation of Rule 303.f., failure to submit a revised Form 2, for six (6) days, for Rule 315.e., failure to post a copy of the APD in a conspicuous place, for two (2) days, and Rule 315.h., failure to set surface casing and cement to surface at a depth sufficient to protect all fresh water for four (4) days, for a total violation of twelve (12) days, beginning November 8, 1993 and ending November 7, 1993.

                        6.  Additional testimony presented indicated that for the Brozovich MA No. 8-12 Well, Gerrity Oil and Gas Corporation was in violation of Rule 303.f., failure to submit a revised Form 2, for fourteen (14) days for, Rule 315.e., failure to post a copy of the APD in a conspicuous place, for eight (8) days, and Rule 315.h., failure to set surface casing and cement to surface at a depth sufficient to protect all fresh water for four (4) days, for a total violation of twenty-six (26) days, beginning November 1, 1993 and ending November 7, 1993.

                        7.  Further testimony presented indicated that for the Brozovich MA No. 8-13 Well, Gerrity Oil and Gas Corporation was in violation of Rule 303.f., failure to submit a revised Form 2, for twelve (12) days, and Rule 315.h., failure to set surface casing and cement to surface at a depth sufficient to protect all fresh water for four (4) days, for a total violation of sixteen (16) days, beginning October 16, 1993 and ending October 31, 1993.

                        8.  The Commission should assess a penalty in the amount of fifty-four thousand ($54,000) dollars for the fifty-four total days of violations.  The penalty amount is calculated by assessing a maximum of one thousand ($1,000) dollars per day per violation as provided under C.R.S. 34-60-121.  This penalty should be payable within thirty (30) days of the date the order is entered.

O R D E R

                        NOW, THEREFORE, IT IS ORDERED, that Gerrity Oil and Gas Corporation shall be assessed a penalty in the amount of fifty-four thousand ($54,000) dollars shall be assessed.  The penalty shall be payable within thirty (30) days of the date the order is entered.

                        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 , 1994, as of December 20, 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

January 15, 1994