The points were deducted when the results of five matches were reversed after it was discovered that 18-year-old Australian Dale Tormey had bowled more than seven successive overs in those games, contrary to ECB regulations.
A Knaresborough spokes
man described the punishment as harsh and added: "We are considering a series of options."
He pointed out that Tormey was not a main strike bowler having taken just 24 wickets this season, adding: "Dale was brought here as a batsman, but like most overseas players in the league he can also turn his arm over.
"He is a fit young Australian who is used to playing high level of cricket over there where he regularly bowls more than seven overs in a row.
"He has also shown that he is a powerful young man with five centuries and 1202 runs this season."
With all the other Division Two matches rained off, Knaresborough would have been in with a chance of still grabbing second place if they could have beaten Olicanian but the game was abandoned at tea time after Tormey (42) had top scored in their 123-7.
The result means Olicanian return to Division Three after just one season. Steeton, Calverley and Follifoot now have a chance of joining Silsden in promotion at the weekend.
The battles at both ends of Division One will go to Saturday's final matches with three teams in with the chance of taking the title and three still in danger of filling the two relegation places.
Guiseley, whose game at Pool was rained off, were the only one of the top three to pick up a point, leaders Kirkstall losing at home to Green Lane and North Leeds going down to Otley.
Paul Wilkinson's 36 not out was the key innings as Otley set a modest 101-7 in their 47 overs, but then Richard Halloran took charge and his 6-30 saw North Leeds dismissed for 81 despite the efforts of Ishmael Darwood (32).
Steve Hargreaves (82) top- scored in Green Lane's 194-6 but Kirkstall started their reply well, opener Robert Sutton hitting 48 as they reached 84-3. But with Neil Allitt producing figures of
7-22, the leaders collapsed, their last seven wickets going down for just 26.
Kirkstall have just a two-point cushion as they take on Rawdon in the final game, Guiseley meet Bilton, and North Leeds, who are three points further back, meet Burley.
That clash with Guiseley is just as important to Bilton who are one of three clubs covered by three points at the bottom.
They picked up two points in a draw against Burley when stubborn knocks of 33 from Miles Corish and 37 from Shane Murdoch helped them to 129-7 in reply to the visitors' 153-3. Nick Brook (67) was Burley's top scorer with Shane Etherington taking 4-67.
Collingham had the opportunity to pull themselves clear of trouble and made a good start when Shoaib Hashmi (47) and Toby Jacklin (35) helped them to 135-6 in 24 overs. They then had Beckwithshaw at 66-3, half of which were scored by Steve Walmsley, when rain stopped play.
Collingham (40pts) now face Pool, whose abandoned match took them to 37 points, level with Bilton.
Illingworth and Thackley are both promoted from Division Three and meet in the final game to decide the championship, while Alwoodley and Addingham must apply for re-election.
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