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 MISAHAR                           )                    ORDER NO. 1V-77

4H OPERATING COMPANY                                                            )                                (1-192)

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission on February 21, 1995 at 8:30 a.m., in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing as required by law, on why Misahar/4H Operating Company was not in violation of Rule Nos. 305, 307, 308 and 703 of the Rules and Regulations of the Oil and Gas Conservation 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.  Misahar/4H Operating 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.  In July 1993, Commission staff attempted to contact Misahar/4H Operating Company regarding delinquent Form 7's not received for the last quarter of 1992 for 5 wells.  Contact was attempted several times to inform Misahar/4H Operating of delinquencies for submission of Form 7 as well as delinquencies for submission of Form 8 and 8A for 14 wells and delinquencies for submission of Form 4 for 3 wells.  No response was received from Misahar/4H Operating.

                        5.  Notices of Violation were issued on January 24, 1995 to Misahar/4H Operating Company regarding the alleged violations for the below-listed wells, and in mid-February 1995, Misahar/4H Operating submitted the required paperwork to satisfy the delinquencies, along with payment for past-due Conservation Levy and Environmental Response Fund.  The check submitted for payment was subsequently returned by the State Treasurer's office for insufficient funds.

Lease Number & Well Name Location Rule violated

56372 Bashor No. 8-8                      Section 8-T10N-R61W        Rules 305, 307, 308, 703

56376 Bashor No. 8-17                   Section 17-T10N-R61W      Rules 305, 307, 308, 703

56360 Josey No. 12-8                      Section 8-T10N-R61W        Rules 307, 308, 703

56365 Susie No. 1                            Section 9-T10N-R61W        Rules 307, 308, 703

56357 Anderson No. 22-4   Section 4-T10N-R61W        Rules 305, 307, 308, 703

10462 Dutch No. 1                           Section 15-T2N-R69W        Rules 308, 703

10596 Dutch No. 2                           Section 15-T2N-R69W        Rules 308, 703

55424 Fritzler No. 1-17                    Section 17-T6N-R66W        Rules 308, 703

55429 Carlson No. 33-18                Section 18-T6N-R66W        Rules 308, 703

55443 English No. 42-20                 Section 20-T6N-R66W        Rules 308, 703

56359 J State No. 33-16                  Section 16-T10N-R61W      Rules 308, 703

56368 Bashor No. 1             Section 8-T10N-R61W        Rules 308, 703

68972 Kowitz No. 27-5                    Section 27-T5N-R65W        Rules 308, 703

68975 Mokray/Thorn No. 27-4        Section 27-T5N-R65W        Rules 308, 703

                        6.  The Commission should assess a penalty in the amount of one thousand two hundred three dollars ($1,203).  Further, the Commission should require the payment of four hundred eighty seven dollars and eighty two cents ($487.82) for past due Conservation Levy and Environmental Response Fund, to be resubmitted, payable either by Cashiers' check or cash.

O R D E R

                        NOW, THEREFORE, IT IS ORDERED, the Commission shall assess a penalty in the amount of one thousand two hundred three dollars ($1,203) payable within thirty (30) days of the date the order is entered.  Further, the Commission shall require the payment of four hundred eighty seven dollars and eighty two cents ($487.82) for past due Conservation Levy and Environmental Response Fund, to be resubmitted, payable either by Cashiers' check or cash.

                        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 , 1995, as of February 21, 1995.

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                               OF THE STATE OF COLORADO

                                                                        By

                                                                             Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado  80203

March 15, 1995