2                                     BEFORE THE OIL AND GAS CONSERVATION COMMISSION

                                                               OF THE STATE OF COLORADO

IN THE MATTER TO GOVERN OPERATIONS IN THE                      )                    CAUSE NO. 1

COMMANCHE CREEK FIELD, ELBERT                                             )

COUNTY, COLORADO                                                                        )                    ORDER NO. 1V-85

                                                                                                                                                (1-207)

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission on August 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 the application of Nova Energy, Inc. requesting a reduction of the penalty of five thousand dollars ($5,000) originally assessed according to Order No. 1-182.

FINDINGS

                        The Commission finds as follows:

                        1.  Nova Energy, Inc. 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 19, 1994, the Commission issued Order No. 1-182 finding Nova Energy, Inc. in violation of Rule 317.a.8. and assessing a fine of $5,000 due no later than August 18, 1994.  As of March 31, 1995, Nova Energy, Inc. had not remitted the fine to the Commission.  Staff contacted Mr. Don Brause of Nova Energy, Inc. regarding this matter and was told that payment of the fine would result in Mr. Brause being put out of business.

                        5.  The Commission should deny the request to reduce the original penalty assessed.  In addition, the Commission should accept the request by Nova Energy, Inc. to establish a payment schedule to remit the penalty.

                        6.  At the time of the hearing, Nova Energy, Inc. submitted a check in the amount of one thousand twenty five dollars ($1,025) as an initial payment toward the five thousand dollar ($5,000) penalty.

O R D E R

                        NOW, THEREFORE, IT IS ORDERED, that the application of Nova Energy, Inc. is hereby denied and Order No. 1-182 shall remain in effect.

                        IT IS FURTHER ORDERED, that the check submitted at the time of hearing for one thousand twenty five dollars ($1,025) shall be applied to the five thousand dollar ($5,000) penalty previously assessed and that Nova Energy, Inc. shall make payments of three hundred thirty one dollars and twenty-five cents ($331.25) per month for a period of twelve (12) months.

                        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 August 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

September 20, 1995