BEFORE THE OIL AND GAS CONSERVATION COMMISSION

                                                                  OF THE STATE OF COLORADO

IN THE MATTER OF THE ORDER TO                                                        )                     CAUSE NO. 1

SHOW CAUSE BY CMO RESOURCES, INC.,                                            )

BY THE COLORADO OIL AND GAS CONSERVATION                               )                     ORDER NO. 1V-91

COMMISSION FOR FORFEITURE OF A CERTAIN BOND                           )                                 (was 1-217)

RELATING TO WELLS IN MESA COUNTY, COLORADO                            )

                                                                  REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission on November 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, why an order revoking the CMO Resources, Inc. bond should not be issued or collected.

                                                                                   FINDINGS

                        The Commission finds as follows:

                        1.  CMO Resources, 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 August 21, 1995, after testimony was presented by Mitchell Energy Corporation, the Commission issued Order No. 1-209, requiring CMO Resources, Inc. to appear before the Commission at its October hearing to show cause as to why an order revoking their $30,000 bond should not be issued.

                        5.  On October 10, 1995, The Dominion of Canada, f/k/a The Canadian Indemnity Company by its attorney, filed with the Commission a response to Order No. 1-209 to show cause.

                        6.  On October 11, 1995, a joint request was filed by the Dominion of Canada and Mitchell Energy Corporation requesting a continuance in this matter to the November hearing.

                        7.  On October 16, 1995, CMO Resources Inc. filed with the Commission a protest to Order No. 1-209.

                        8.  At the time of the hearing on November 21, 1995, testimony was presented by The Dominion of Canada and by Mitchell Energy Corporation.  After deliberation, the Commission determined that The Dominion of Canada had failed to show cause as to why the bond should not be forfeited.

                        9.  The Commission should issue an Order requiring CMO Resources, Inc. to forfeit Bond No. 1S24121 for the amount of thirty thousand dollars ($30,000) within thirty (30) days of the date the order is issued.

                                                                                  O R D E R

                        NOW, THEREFORE, IT IS ORDERED, that Bond No. 1S24121 for the amount of thirty thousand dollars ($30,000) held by CMO Resources, Inc., is hereby revoked and shall be forfeited to the 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                             , 1995, as of November 21, 1995.

                        IN THE NAME OF THE STATE OF COLORADO

                                                                        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

December 12, 1995