BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF A REQUEST BY NOCO OIL ) CAUSE NO. 1
COMPANY, LLC TO AMEND ORDER NOS. 1V-122 )
AND 1V-175 ISSUED BY THE COLORADO OIL AND ) ORDER NO. 1-88
GAS CONSERVATION COMMISSION, )
WELD COUNTY, COLORADO )
REPORT OF THE COMMISSION
This cause came on before the Commission at 8:30 a.m. on February 15, 2000, at the Holiday Inn, Trinidad, 3125 Toupal Drive, Trinidad, Colorado on the application of NOCO Oil Company, LLC for an order to amend Order No. 1V-122 and Order No. 1V-175 to allow NOCO Oil Company, LLC to conduct certain operations on three (3) wells previously operated by McCormick Oil & Gas Company.
FINDINGS
The Commission finds as follows:
1. NOCO Oil Company, LLC (“NOCO”) as applicant here in 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 May 20,1997 the Commission issued Order No. 1V-122, among other things, finding McCormick Oil & Gas Company (“McCormick”) in violation of Rule 304.a., failure to provide an adequate bond for plugging and reclamation for certain wells located in Montezuma, Logan and Weld Counties including the Gillette No. 1 Well located in the SW¼ SE¼ of Section 4, Township 9 North, Range 61 West, 6th P.M., Weld County; the Gillette No. 10 Well located in the SW½ SE¼ of Section 9, Township 9 North, Range 61 West, 6th P.M., Weld County; and the Sheetz No. 1 Well located in the NW¼ NE¼ of Section 9, Township 9 North, Range 61 West, 6th P.M., Weld County. Further, McCormick was found in violation of Rule 317.g., failure to protect a fresh water aquifer, for the Gillette No. 1 Well. In addition, a fine of Thirty Thousand Dollars ($30,000.00) was assessed for the violations, payable within thirty (30) days from the date Order No. 1V-122 was issued.
5. On August 19, 1999 the Commission issued Order No. 1V-175, among other things, finding McCormick in continuing violation of Rule 319.b.(3), failure to abandon within six (6) months a well which has ceased production or to obtain Director approval to shut-in a well in excess of six (6) months and Rule 326.b., failure to perform a mechanical integrity test on a well within two (2) years of initial shut in date for the Gillette No. 1 Well, in continuing violation of Rule 206., failure to file accurate and complete reports and Rule 309., failure to file with the Commission within forty-five (45) days after the month in which production occurs, a report on Operator’s Monthly Production Report, Form 7 for the Gillette No. 10 Well, and in continuing violation of Rule 319.b.(3), failure to abandon within six (6) months a well which has ceased production or to obtain Director approval to shut-in a well in excess of six (6) months for the Sheetz No. 1 Well. McCormick was ordered to secure compliance for the wells and if compliance was not secured, COGCC staff was authorized to commence a claim on McCormick’s cash bond to plug, abandon and reclaim all wells operated by McCormick.
6. On December 22, 1999 NOCO Oil Company, LLC (“NOCO”), filed with the Commission a verified application for an order to amend Order Nos. 1V-122 and 1V-175 as they pertain to the three (3) wells listed above in Finding 4.
7. Testimony and exhibits presented at the administrative hearing demonstrated that NOCO has leased all the mineral interests in the Gillette No. 10 Well and the Gillette No. 1 Well. In addition, NOCO has leased all the mineral interests in the Scheetz No. 1 Well except 16.43% of the minerals which were retained by McCormick. Further, NOCO has purchased all assets in these three (3) wells.
8. Testimony and exhibits presented at the administrative hearing showed that NOCO has filed Change of Operator, Form 10 and provided adequate financial assurance for the Gillette No. 10 Well and the Scheetz No. 1 Well. NOCO therefore requests the Commission remove these two (2) wells from the provisions of Order Nos. 1V-122 and 1V-175 to allow NOCO to assume operations for the wells.
9. Testimony and exhibits presented at the administrative hearing indicated that NOCO intends to conduct a geologic evaluation of the Gillette No. 1 and if the results indicate an economic potential, NOCO will file Change of Operator, Form 10 and provide adequate financial assurance for the Gillette No. 1 Well within fourteen (14) days of the date this order is entered. Further testimony and exhibits presented at the administrative hearing indicated that if NOCO submits Change of Operator, Form 10, and financial assurance then NOCO will conduct temporary operations on the Gillette No. 1 Well to assess the productivity of the well without first performing the stage cementing operations to protect fresh water aquifers required by Order No. 1V-122. NOCO proposes to conduct a mechanical integrity test (“MIT”), install tubing and other equipment in the well and place the well on a pump test for a period of one hundred twenty (120) days. No later than thirty (30) days following such production pump test period, NOCO will either conduct the staged cementing operations or plug and abandon the well in accordance with COGCC rules and regulations.
10. Should NOCO fail to file a Change of Operator, Form 10 and provide adequate financial assurance within fourteen (14) days of the date this order is entered, NOCO will have no obligation to the Gillette No. 1 Well and said well will be plugged, abandoned and reclaimed by COGCC staff as provided for in Order No. 1V-175.
11. At the time of the administrative hearing, NOCO agreed to be bound by oral order of the Commission.
12. Based on the facts stated in the verified application, having received no protests to the application and having been heard by Hearing Officers who recommended approval, the Commission should enter an order to remove the Gillette No. 10 Well and the Scheetz No. 1 Well previously operated by McCormick Oil & Gas Company from the provisions of Order No. 1V-122 and Order No. 1V-175. Further, the order should amend Order No 1V-122 and Order No. 1V-175 to allow NOCO Oil Company, LLC to conduct certain operations on the Gillette No. 1 Well.
ORDER
NOW, THEREFORE IT IS ORDERED that the Gillette No. 10 Well located in the SW½ SE¼ of Section 9, Township 9 North, Range 61 West, 6th P.M., Weld County and the Sheetz No. 1 Well located in the NW¼ NE¼ of Section 9, Township 9 North, Range 61 West, 6th P.M., Weld County previously operated by McCormick Oil & Gas Company are hereby removed from the provisions of Order No. 1V-122 and Order No. 1V-175 to allow NOCO Oil Company, LLC to assume operations for these wells.
IT IS FURTHER ORDERED that Order No. 1V-122 and Order No. 1V-175 are hereby amended to allow NOCO Oil Company, LLC to conduct certain operations on the Gillette No. 1 Well located in the SW¼ SE¼ of Section 4, Township 9 North, Range 61 West, 6th P.M., Weld County, provided that a Change of Operator, Form 10 and adequate financial assurance are submitted by NOCO Oil Company, LLC fourteen (14) days of the date this order is entered.
IT IS FURTHER ORDERED that if NOCO Oil Company, LLC fails to file a Change of Operator, Form 10 and provide adequate financial assurance within fourteen (14) days of the date this order is entered, NOCO shall have no obligation to the Gillette No. 1 Well and said well shall be plugged, abandoned and reclaimed by COGCC staff as provided for in Order No. 1V-175.
IT IS FURTHER ORDERED that the previsions 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 March, as of February 15, 2000.
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