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 EDWARD MIKE                )

DAVIS D/B/A TIGER OIL COMPANY                                              )                    ORDER NO. 1V-71

PONCHO FIELD, ARAPAHOE COUNTY, COLORADO              )                                (1-181)

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission on June 20, 1994 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 Edward Mike Davis d/b/a Tiger Oil Company was not in violation of Rule No. 208. of the Rules and Regulations of the Oil and Gas Conservation Commission, and Section 34-60-125 of the Oil and Gas Conservation Act, 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.  Edward Mike Davis d/b/a Tiger Oil Company 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 September 7, 1993, Commission staff conducted a field inspection of the Cronk No. 2-4 Well located in the SW1/4 SE1/4 of Section 4, Township 59 West, 6th P.M., and the UPRR-Price No. 3-3 Well located in the SE1/4 NW1/4 of Section 3, Township 4 South, Range 59 West, 6th P.M. and discovered that the wells were leaking formation fluids to the surface.  On April 4, 1994, Commission staff sent a certified letter to Edward Mike Davis directing him to re-enter both wells and undertake corrective action by May 4, 1994.  As of May 9, 1994, the wells had not been reentered nor had corrective action been initiated.

                        5.  Testimony presented at the hearing on June 20, 1994 indicated that Edward Mike Davis d/b/a Tiger Oil Company was in violation of Rule 208, failure to take corrective action for forty-seven (47) days from May 5, 1994 through June 20, 1994, for the UPRR Price No. 3-3 Well and the Cronk No. 2-4 Well.

                        6.  Commission staff presented testimony recommending that the UPRR Price No. 3-3 and Cronk No. 2-4 wells be re-entered and properly plugged and abandoned, including the site restoration no later than October 15, 1994.

                        7.  Further testimony presented by the staff recommended that a penalty of ninety-four thousand ($94,000) dollars be assessed.  The penalty was calculated using the twice economic benefit policy, where the cost to reenter and properly plug and restore the wellsite would be fifty-two thousand ($52,000) dollars per well, for a total cost of one hundred thousand four ($104,000) dollars.  This amount exceeds the statutory cap of one thousand dollars per day per well and the penalty is therefore recommended to be assessed at the statutory cap of ninety-four thousand ($94,000) dollars.

                        6.  The Commission should suspend a penalty in the amount of ninety-four thousand ($94,000) dollars for violation of Rule 208, failure to take corrective action, unless the two wells are not plugged and abandoned and the sites restored by October 15, 1994.  This penalty should be payable within thirty (30) days of the October 15, 1994 date, should the work not be completed.

O R D E R

                        NOW, THEREFORE, IT IS ORDERED, that Edward Mike Davis d/b/a Tiger Oil Company is hereby ordered to reenter the UPRR Price No. 3-3 Well to properly plug and abandon the well, including site restoration, no later than October 15, 1994.

                        IT IS FURTHER ORDERED, that Edward Mike Davis d/b/a Tiger Oil Company is hereby ordered to reenter the Cronk No. 2-4 Well to properly plug and abandon the well, including site restoration no later than October 15, 1994.

                        IT IS FURTHER ORDERED, that a penalty in the amount of ninety-four thousand ($94,000) dollars shall be suspended unless the above-described work is not performed by October 15, 1994.  The penalty, if assessed, shall be payable within thirty (30) days of the October 15, 1994 date, should the work not be completed.

                        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 June 20, 1994.

                                                                        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

July 9, 1994