BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF A REQUEST BY GARY PAHL ) CAUSE NO. 1
TO AMEND ORDER NO. 1V-118 ISSUED BY THE )
COLORADO OIL AND GAS CONSERVATION ) ORDER NO. 1-86
COMMISSION, LINCOLN COUNTY, COLORADO )
This cause came on for hearing before the Commission at 8:30 a.m. on December 2, 1999, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado on the application of Gary Pahl for an order to amend Order No. 1V-118 to remove the prohibition against issuance of any Application for Permits-to-Drill to any company in which Gary Pahl is a principal.
FINDINGS
The Commission finds as follows:
1. Gary Pahl, as applicant herein, is an interested party in 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 March 17,1997 the Commission issued Order No. 1V-118, finding V.T.L., Inc. in violation of Rule 319.b., failure to obtain Director approval for continuing shut-in status, and Rule 326.b., failure to perform a mechanical integrity test within two (2) years of initial shut-in date for the State #1 Well, located in the SW¼ SE¼ of Section 36, Township 17 South, Range 53 West, 6th P.M. It was further ordered that V.T.L., Inc. be assessed a total fine of Four Thousand dollars ($4,000) for the violations, payable within thirty (30) days of the date Order No. 1V-118 was issued. In addition, it was ordered that V.T.L., Inc. be required to either: 1) perform a successful mechanical integrity test; 2) properly plug and abandon; or 3) put on production the State #1 Well, within thirty (30) days of the date Order No. 1V-118 was issued. Further, it was ordered that if V.T.L., Inc. did not comply with the above order the Commission shall make a claim on the individual plugging bond and plug the State #1 Well. If plugging costs exceed the bond amount, the Commission shall confiscate available equipment and tubulars for salvage pursuant to §34-60-124(6)(c), C.R.S. Finally, it was ordered that the Commission shall not issue any permits to drill to V.T.L., Inc. or any company of which Mr. Gary Pahl is a principal, until V.T.L., Inc. complies with Order No. 1V-118.
5. On July 14, 1998, COGCC staff plugged, abandoned and reclaimed the State #1 Well using V.T.L., Inc.’s Five Thousand dollar ($5,000) plugging bond and monies from value obtained for the equipment salvaged at the wellsite, and monies from the COGCC Environmental Response Fund.
6. On October 29, 1999 Mr. Gary Pahl filed with the Commission an application for an order to amend Order No. 1V-118 to allow Mr. Pahl to obtain a permit to drill based on his claim that at the time Order No. 1V-118 was issued by the Commission, he was no longer a principal of V.T.L., Inc.
7. At the time of the hearing, Mr. Pahl testified that he did not attend the March 1997 hearing that resulted in Order No. 1V-118 because he was unaware such a hearing was held. He further testified that although he received mail addressed to V.T.L., Inc. from the COGCC as indicated by his signature on the certified mailing card, he did not open this mail but rather forwarded it to Mr. Hap Russell in Utah.
8. Mr. Pahl testified that he verbally resigned from V.T.L., Inc. in May 1996. He further testified that he submitted a letter to the Board of Directors dated August 23, 1996 in which he assigned all right title and interest of his shares and resigned from the Board of Directors as President of Ixion Energy, formerly called V.T.L., Inc.
9. Mr. Kevin Alfson testified on Mr. Pahl’s behalf that he was present in the spring of 1996 at a meeting between Gary Pahl, Hap Russell and Frank Weinstock at which Mr. Pahl signed his V.T.L., Inc. stock certificates over to Mr. Russell, thus removing himself from V.T.L., Inc.
10. Mr. David Shelton, COGCC staff engineer, testified at the hearing that no paperwork was filed with the COGCC indicating that Mr. Pahl was no longer involved with V.T.L., Inc.
11. Mr. Shelton testified that Mr. Pahl had contacted the COGCC by letter dated November 18, 1997 in an attempt to explore available options concerning the State #1 Well located in the SW¼ SE¼ of Section 36, Township 17 South, Range 53 West, 6th P.M.
12. Mr. Shelton testified that because V.T.L., Inc. did not perform the work prescribed in Order No. 1V-118, COGCC staff contracted to have the State #1 Well plugged, abandoned and reclaimed at a total cost of nineteen thousand three hundred ninety-six dollars and thirty-five cents ($19,396.35). He further testified that the cost was covered by V.T.L., Inc.’s five thousand dollar ($5000) bond, the value of five thousand six hundred thirty-nine dollars ($5639) obtained from the salvage of equipment, and eight thousand seven hundred fifty-seven dollars and thirty-five cents ($8757.35) expended from the COGCC Environmental Response Fund.
13. The Commission finds that Gary Pahl did not demonstrate sufficient cause for the Commission to amend Order No. 1V-118 which was entered after notice and hearing.
NOW, THEREFORE, IT IS ORDERED that the Application to Amend Order No. 1V-118 filed by Gary Pahl is hereby denied.
IT IS FURTHER ORDERED that the provisions of Order No. 1V-118 shall remain in effect.
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 the right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.
ENTERED this day of December, 1999, as of December 2, 1999.
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
July 25, 2019