BEFORE THE OIL AND GAS CONSERVATION COMMISSION

                                                             OF THE STATE OF COLORADO

 

IN THE MATTER TO GOVERN OPERATIONS                            )                    CAUSE NO. 1

IN THE HOLLAND WEST FIELD,                                                   )                   

BOULDER COUNTY, COLORADO                                                )                    ORDER NO. 1-51   

)                    (Formerly 1-183)

)

 

                                                             REPORT OF THE COMMISSION

 

                        This cause came on for hearing before the Commission on July 19, 1994, in Room 610, and on August 23, 1994, in Room 620, State Services Building, 1525 Sherman Street, Denver, Colorado, after giving Notice of Hearing, as required by law on the application of Nancy S. Hindman for an order to award payment of proceeds for oil produced, interest due, and an award of costs and reasonable fees for the Dodd No. 1 Well located in the NW1/4 NE1/4 of Section 25, Township 2 North, Range 70 West, 6th P.M., Boulder County, Colorado.

 

                                                                                 FINDINGS

 

                        The Commission finds as follows:

 

                        1.  Nancy S. Hindman 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 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.  On June 3, 1994, Nancy S. Hindman filed with the Commission an application for an order to be issued to award the proceeds due the applicant pursuant to royalty interest since 1990, interest due on such sum, and an award of costs and reasonable fee for the Dodd No. 1 Well located in the NW1/4 NE1/4 of Section 25, Township 2 North, Range 70 West, 6th P.M., Boulder County, Colorado.

 

                        6.  On July 19, 1994, at the time of hearing, Nancy S. Hindman and The Meyer Oil Company agreed to the dates and amount of production for which the Applicant had not received royalty payments, and to the percentage of interest to be applied.  The parties did not agree on the sales price for gas and therefore the Commission directed The Meyer Oil Company to provide accurate information on gas prices to the Applicant, and to adjust the amount of payment of proceeds the Applicant was owed accordingly.

 

                        7.  At the time of the August hearing, the Applicant and The Meyer Oil Company agreed that the amount owed the Applicant for royalty and interest payments is $668.67, and that the amount owed the Applicant for costs incurred to pursue the payment of proceeds is $1205.09.  Mr. Meyer further testified that he did not have the funds to pay the Applicant.

 

                        8.  Based on the testimony presented by the Applicant and The Meyer Oil Company, the Commission ordered The Meyer Oil Company to pay a total of $1873.76 to Nancy S. Hindman within thirty (30) days from the date the order is issued, under the provisions of C.R.S. 34-60-118.5.

 


                                                                                   ORDER

 

                        NOW, THEREFORE, IT IS ORDERED, that under the provisions of C.R.S. 34-60-118.5, The Meyer Oil Company shall pay a total of $1873.76 to Nancy S. Hindman for royalty payments, interest on said royalty, and costs incurred for the Dodd No. 1 Well located in the NW1/4 NE1/4 of Section 25, Township 2 North, Range 70 West, 6th P.M., Boulder County, Colorado.

 

                        IT IS FURTHER ORDERED, that said payment shall occur within thirty (30) days from the date the order is issued.

 

                        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                        , 1994, as of August 23, 1994.

 

                                                                        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

September 12, 1994