BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION AND                  )      CAUSE NO. 1

ESTABLISHMENT OF FIELD RULES TO GOVERN              )

OPERATIONS IN THE IGNACIO-BLANCO FIELD,                  )      ORDER NO. 1‑29 (1-134)

LA PLATA COUNTY, COLORADO                                            )

 

REPORT OF THE COMMISSION

 

             This cause came on for hearing before the Commission on September 21, 1992, at 8:30 a.m., in Room 101, Education Building, 201 East Colfax, Denver, Colorado, after giving Notice of Hearing as required by law, on the verified application of Billy Ray and Louise Clary for an order to determine the amount of production proceeds due the Clarys from the Clary No. 1 Well located in the SW1/4 of Section 19, Township 34 North, Range 9 West, N.M.P.M., for the production of gas and associated hydrocarbons from the Fruitland coal seams.

 

 FINDINGS

 

             The Commission finds as follows:

 

             1.  Billy Ray and Louise Clary as applicant herein, is an interested party in the subject matter of the above‑referenced matter.

 

             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 July, 1, 1990, through C.R.S. 34‑60‑118.5, the Colorado Oil & Gas Conservation Commission was given exclusive jurisdiction to determine several matters concerning the payment of proceeds derived from the sale of oil, gas or associated products from a well in Colorado including the following:

 

a)  The date on which payment of proceeds is due a payee under section (2) of the section;

 

(b)  The existence or nonexistence of an occurrence pursuant to subsection (3) of this section which would justifiably cause a delay in payment; and

 

(c)  The amount of the proceeds plus interest, if any due a payee or payor.

 

             5.  Based on the facts stated in the verified application and the testimony presented at the time of hearing by the applicant and the protestant, the Commission should deny the request to determine the amount of production proceeds due the Clarys from P & M Petroleum Company, Kimbark Oil & Gas, Rincon Operating Company on the Clary No. 1 Well.

 

O R D E R

 

             NOW, THEREFORE IT IS ORDERED, that an order to determine the amount of production proceeds due Billy Ray and Louise Clary from P & M Petroleum Company, Kimbark Oil & Gas, Rincon Operating Company on the Clary No. 1 Well located in the SW1/4 of Section 19, Township 34 North, Range 9 West, N.M.P.M., for the production from the Fruitland coal seams, is hereby denied.

 

             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 rights, after notice and hearing to alter, amend or repeal any and/or all of the above orders.

 

             Entered this                     day of                 , 1992 as of September 21, 1992.

 

 

                             OIL AND GAS CONSERVATION COMMISSION

                                   OF THE STATE OF COLORADO

 

 

                             By                                 

                                  Patricia C. Beaver, Secretary

 

Dated at Suite 380

1580 Logan Street

Denver, Colorado  80203

October 20, 1992