REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on December 20, 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. 305, 315A.a, Order No. 1-A-3 and conditions of permit approval, of the Oil and Gas Conservation Commission, and why it should not invoke the provisions of 34-60-121 C.R.S., as a mended, 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 July 1, 1992, the Commission approved the drilling permit for the Mayer et al No. 33-9P Well located in the NE1/4 SE1/4 of Section 33, Township 2 North, Range 65 West, 6th P.M., with the permit approved for the setting of nine hundred fifty (950) feet of surface casing. On March 1, 1993, the submitted Well Completion Report reported surface casing set from zero (0) feet to zero (0) feet. This information was not accurate. On July 28, 1995, a No tice of Alleged Violation (NOAV) was issued to Snyder Oil Corporation for violations of Rule 305 and 315A.a with corrective actions also stipulated. All items stipulated in the NOAV were completed thirty-nine (39) days after the abatement date of the NOAV.

5. On December 12, 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 July 28, 1995 were abated by performing a cement squeeze and running a cement bond log under pressure on October 20, 1995.

6. The Hearing Officer recommends that Snyder Oil Corporation be found in violation of Rule No. 315.j., failure to cement production string as required; Order No. A-1-3; and conditions of permit approval. Further, the Hearing Officer recommends that a fine of ten thousand dollars ($10,000) 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 315.j., failure to cement production string as required; Order No. A-1-3; and conditions of permit approval.

IT IS FURTHER ORDERED, that Snyder Oil Corporation shall be assessed a total fine of Ten Thousand Dollars ($10,000) 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 , 1996, as of December 20, 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 January 15, 1996 ??