BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF ALLEGED VIOLATIONS OF THE                           )                             CAUSE NO. 1V

RULES AND REGULATIONS OF THE COLORADO OIL                        )

AND GAS CONSERVATION COMMISSION BY                                       ; )                             ORDER NO. 1V-295

PETROLEUM DEVELOPMENT CORPORATION,                                ; )

WELD COUNTY, COLORADO                                                                    ; )

                       1.  On November 5, 2002, a Colorado Oil and Gas Conservation Commission ("COGCC"), Application for Permit-to-Drill, Form 2 ("APD") was approved for Petroleum Development Corporation ("PDC") to drill the NHF #44-21 Well located in the SE¼ SE¼ of Section 21, Township 5 North, Range 63 West, 6th P.M.

                        2.  The APD for the NHF #44-21 Well specified the objectives as the Dakota, J-Sand, Codell and Niobrara Formations.  The APD was approved by the COGCC Director for these formations on November 5, 2002. The drilling permit expired on November 4, 2003.

                        3.  On February 10, 2003, the COGCC received from PDC a Completed Interval Report, Form 5A, for the NHF #44-21 Well.  The form stated that the NHF #44-21 Well had been completed in the Dakota Formation and that the Dakota Formation had been tested on January 15, 2003.

                        4.  On May 29, 2003 the COGCC received from PDC a Completed Interval Report, Form 5A, for the NHF #44-21 Well.  The form stated that the NHF #44-21 Well had been recompleted in the "J" Sand Formation and that the "J" Sand Formation had been tested on May 16, 2003.

                        5. On October 11, 2005, PDC submitted an Application for Permit-to -Drill, Form 2 to recomplete the NHF #44-21 Well to the Niobrara and Codell Formations. PDC recompleted the NHF #44-21 Well on October 8, 2005, prior to approval of the permit by the COGCC.                                                  

                        6.  For the unauthorized completion of the Niobrara and Codell Formation in the NHF #44-21 Well, PDC should be found in violation of Rule 303.b., failure to obtain an approved Application for Permit-to-Drill or Application for Permit to Recomplete to the Niobrara and Codell Formations,

                        7.  Rule 523. specifies a base fine of One Thousand dollars ($1,000) per day for each violation of Rule 303.b.

                        8.  A monetary penalty of Ten Thousand dollars ($10,000.00) should be assessed against PDC, in accordance with Rule 523.a. and Rule 523.d., for violation of Rule 303.b.  An aggravating factor in determining the fine recommendation is that under Rule 523.d.(6). Petroleum Development Corporation was fined eleven (11) times for violations of Rule 303. during 2004.

  ORDER

                        NOW, THEREFORE, IT IS ORDERED, that Petroleum Development Corporation shall be found in violation of Rule 303.b., failure to obtain an approved Application for Permit-to-Drill or Application for Permit to Recomplete to the Niobrara and Codell Formations for the NHF #44-21 Well located in the SE¼ SE¼ of Section 21, Township 5 North, Range 63 West, 6th P.M.

                        IT IS FURTHER ORDERED, that Petroleum Development Corporation shall be assessed a fine of Ten Thousand dollars ($10,000.00) payable within thirty (30) days of the date the order is approved by the Commission for violations occurring on the NHF #44-21 Well.

                        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.

                        IT IS FURTHER ORDERED, that under the State Administrative Procedure Act the Commission considers this order to be final agency action for purposes of judicial review within thirty (30) days after the date this order is mailed by the Commission.

                        IT IS FURTHER ORDERED, that an application for reconsideration by the Commission of this order is not required prior to the filing for judicial review.

                        Recommended this               day of December, 2006.

                                                                                 By                                                     ________