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 SNYDER                                             )                     ORDER NO. 1V-92

OIL CORPORATION, WELD COUNTY, COLORADO                                    )                                 (1-218)

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, on why Snyder Oil Corporation, was not in violation of Rule Nos. 209, 305, 315.j. and conditions of permit approval, issued by 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 the Rules and Regulations of the Commission.

FINDINGS

                        The Commission finds as follows:

                        1.  Snyder Oil 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 17, 1994, the Schwab No. 26-4F Well, located in the NW¼ NW¼ of Section 26, Township 4 North, Range 66 West, 6th P.M., Weld County was recompleted in the Sussex Formation.  As part of the recompletion process, Snyder Oil Corporation submitted an Affidavit of Wellbore and Spacing Information that remedial cement work would be performed prior to recompletion.  In addition, a Form 4 Sundry Notice was submitted detailing the intention to perform remedial cement work across the Sussex Formation prior to recompletion.  The requirement of remedial cement work across the Sussex Formation was also specified as a Condition of Permit Approval by Commission staff.  A Notice of Alleged Violation was prepared and mailed September 18, 1995 stating that Snyder Oil Corporation apparently failed to perform procedures as submitted to the Commission.

                        5.  On November 20, 1995, an Administrative Order by Consent was issued by Commission staff with the agreement of Snyder Oil Corporation stating conditions of the NOAV issued on September 18, 1995 were abated by running a cement bond log under pressure on October 10, 1995.

                        6.  Based on the following mitigating factors: a) the results of the bond log under pressure, b) the negative bradenhead test, and c) the fact that the Sussex Formation was previously acidized and stimulated, the Commission staff reviewed this information and waived additional cementing requirements on the well.

                        7.  The Hearing Officer recommends that Snyder Oil Corporation be found in violation of Rule No. 209, failure to protect water-bearing formations; Rule 305, failure to submit correct information on Sundry, Form 4; Rule 315.j., failure to cement production string as required; and conditions of permit approval.  Further, the Hearing Officer recommends that a fine of five thousand dollars ($5,000) be assessed.  This fine 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 Snyder Oil Corporation shall be found in violation of Rule 209, failure to protect water-bearing formations; Rule 305, failure to submit correct information on Sundry, Form 4; Rule 315.j., failure to cement production string as required; and conditions of permit approval.

                        IT IS FURTHER ORDERED, that Snyder Oil Corporation shall be assessed a total fine of Five Thousand Dollars ($5,000) 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 , 1995, as of November 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

December 6, 1995