REPORT OF THE COMMISSION

This matter came on for hearing before the Commission on February 21, 1995 at 8:30 a.m. in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, on the application of Gerrity Oil and Gas Corporation to waive the requirement to cement the Parkman Formation for the Roth A No. 30-8 Well located in the SE1/4 NE1/4 of Section 30, Township 6 North, Range 64 West, 6th P.M., and the Hungenberg Watson E No. 21-11 Well located in the NE1/4 SW1/4 of Section 21, Township 6 North, Range 65 West, 6th P.M.

FINDINGS

The Commission finds as follows:

1. Gerrity Oil and Gas Corporation, as applicant herein, 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 January 19, 1990, the Commission issued order No. 464-3 establishing field rules to govern operations for the Parkman Formation. Order No. 464-3, Rule 4 provides "wells drilled to formations below the Parkman Formation shall be assumed to have encountered a productive interval and completion procedures shall include protecting the Parkman Sandstone interval with cement as required by Rule 317.f. (now Rule 315.f.) of the Rules and Regulations of t he Commission. Upon application and a showing that the Parkman Sandstone Formation is not productive, this requirement may be waived on an individual basis."

5. A request to waive the requirement was previously requested of the Commission staff by Gerrity Oil & Gas Corporation on November 22, 1994. On November 28, 1994, staff denied the request. Staff responded that Parkman producing wells are located from 1/4 to 1/2 mile from the locations of the Roth A No. 30-8 Well and the Hungenberg Watson E No. 21-11 Well. Staff informed Gerrity Oil & Gas Corporation that it would be prudent practice to cover formati ons which are producing in nearby wellbores and required the Parkman Formation to be cemented.

6. After geologic and engineering testimony presented at the hearing by Gerrity Oil & Gas Corporation, and after Commission staff presented its testimony, the Commission found that the staff's requirement to cement the Parkman Formation in the Roth A No. 30-8 Well should be upheld.

7. An order of the Commission should be entered denying the application of Gerrity Oil and Gas Corporation to waive the requirement to cement the Parkman Formation.

ORDER

NOW, THEREFORE IT IS ORDERED, that the Commission shall deny the application of Gerrity Oil and Gas Corporation to waive the requirement to cement the Parkman Formation for the Roth A No. 30-8 Well located in the SE1/4 NE1/4 of Section 30, Township 6 North, Range 64 West, 6th P.M., and the Hungenberg Watson E No. 21-11 Well located in the NE1/4 SW1/4 of Section 21, Township 6 North, Range 65 West, 6th P.M.

IT IS FURTHER ORDERED, the Gerrity Oil & Gas Corporation shall be subject to the cementing requirements approved by the Commission staff for the Roth A No. 30-8 Well and the Hungenberg Watson E No. 21-11 Well, as described above.

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 February 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 March 30, 1995 ??