REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 21, 1983 at 9:00 A.M., in the Old Supreme Court Chambers of the State Capitol Building, Denver, Colorado, on the Motion of Patricia A. Becker O'Conner, Joseph D. Becker, Russell M. Becker and Janet L. Burbank (hereinafter referred to as the "O'Conner Group") for a Stay, or in the Alternative, Rehearing, with respect to Order Nos. 403-2, 403-3, 403-4 and 403-5, and upon the Brief in Opposition to the Motion filed by High Country Exploration Group (hereinafter referred to as "High Country").

FINDINGS

The Commission finds as follows:

1. The O'Connor Group has filed suit to determine the exact amount of minerals owned by it in the SW/4 of Section 9, Township 4 North, Range 67 West, Weld County, Colorado, and that amount is now in question.

2. Said pooling orders should be amended to provide that all costs and other financial obligations paid and to be paid with respect to the drilling, completing and operating of the wells to be drilled thereunder shall be adjusted on a well-by-well basis as necessary so that such costs are borne in accordance with the mineral ownership as determined by any court of law having jurisdiction to determine such ownership as to the lands affected by the orders. Further, the pooling orders should be amended to provide that any repayments or reimbursements required as a result of such adjustments shall be made within 30 days from the date on which said court determination becomes final.

3. Each of the pooling orders in question should be further amended to provide that the designated operator for purposes of the pooling orders is Trailblazer Oil and Gas, Inc.

4. Except as set forth above, the O'Conner Group's Motion should be denied.

ORDER

NOW, THEREFORE, IT IS ORDERED, That Order Nos. 403-2, 403-3, 403-4 and 403-5 promulgated by the Oil and Gas Conservation Commission of the State of Colorado are hereby amended as follows:

1. All costs and other financial obligations paid and to be paid with respect to the drilling, completing and operating of the wells to be drilled under each of the above-referenced pooling orders shall be adjusted on a well-by-well basis as necessary so that such costs are borne in accordance with the mineral ownership as determined by any court of law having jurisdiction to determine such ownership as to the lands affected by such pooling orders.

2. Any repayments or reimbursements required as a result of the adjustments referred to in paragraph 1 shall be made within 30 days from the date on which said court determination becomes final.

3. The designated operator for purposes of said pooling orders is Trailblazer Oil and Gas, Inc.

IT IS FURTHER ORDERED, that except as set forth herein, the Motion filed by the O'Connor Group is denied.

IT IS FURTHER ORDERED, that the provisions contained in this 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 or all of the above orders.

ENTERED this 21st day of December, 1983, as of November 21, 1983.

THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary