BEFORE THE OIL AND GAS CONSERVATION
COMMISSION
OF THE STATE OF
IN THE MATTER OF ALLEGED VIOLATIONS OF THE ) CAUSE NO. 1
RULES AND
REGULATIONS OF THE
AND GAS CONSERVATION COMMISSION BY
GOPHER ) ORDER NO. 1C-3
DRILLING COMPANY,
This cause
came before the Commission on August 19, 1999 at 8:30 a.m., in Suite 801, The
Chancery Building, 1120 Lincoln Street, Denver, Colorado, to consider the
issuance of a final cease and desist order to Gopher Drilling Company pursuant
to §34-60-121 (5)(a) for the Doug & Robin Rezelman #1 Well located in the
SW¼ SE¼ of Section 18, Township 1 North, Range 42 West, 6th P.M.
The
Commission finds as follows:
1. Gopher Drilling Company (“Gopher”) 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 and of the parties interested therein, and jurisdiction to
promulgate the hereinafter prescribed order.
4. On September 27, 1996 the Colorado Oil and
Gas Conservation Commission (“COGCC”) issued Order No. 1V-114 which among other
things, assessed a fine and found that no Applications for Permits-to-Drill
shall be issued to Mr. Jim Snyder or to any company in which Mr. Snyder is a
principal until Mr. Snyder complies with Order No. 1V-114. As of this date Mr. Snyder has not paid the
fine assessed in Order No. 1V-114, and Gopher Drilling Company (“Gopher”) has
violated the provisions of said Order as set forth herein.
5. On May 26, 1998 an Application for
Permit-to-Drill was approved and issued to Gopher to drill the Doug & Robin
Renzelman #1 Well located in the SW¼ SE¼ of Section 18, Township 1 North, Range
42 West, 6th P.M.
6. Subsequent to the issuance of the Application
for Permit-to-Drill it came to COGCC staff’s attention and was confirmed with
the Colorado Secretary of State that Mr. Snyder is a Director of Gopher.
7. On December 14, 1998 the Director issued a
Cease and Desist Order to Gopher for the Doug & Robin Renzelman #1 Well.
8. On March 26, 1999 the Director sent a letter
notifying Gopher that by June 30, 1999 the well must 1) be taken over by a
properly bonded operator in which Mr. Snyder is not a principal, 2) Mr. Snyder
must comply with Order No. 1V-114 by paying the fine assessed, or 3) the well
must be properly plugged and abandoned.
9. On June 28, 1999, Mr. Snyder responded by
letter informing the Director that Gopher would not comply with the Cease and
Desist order dated December 14, 1998 or with the Director’s letter of March 26,
1999.
10. Gopher is the operator of the Doug &
Robin Renzelman #1 Well.
11. Mr. Snyder has not paid the fine assessed by
Order No. 1V-114.
12. Gopher has not plugged and abandoned the Doug
& Robin Renzelman #1 Well.
13. Mr. Snyder attended the hearing and did not
contest the allegations listed above.
14. The Director requests that in accordance with
Rule 522.d.(2),
the Commission issue a final Cease and Desist order to Gopher Drilling Company to
address the emergency situation created by Gopher’s non-compliance with the
December 14, 1998 Cease and Desist Order.
ORDER
NOW,
THEREFORE, IT IS ORDERED that the Colorado Oil and Gas Conservation Commission
hereby approves the Cease and Desist Order issued to Gopher Drilling Company as a final order.
IT IS FURTHER ORDERED that within thirty (30) days of the date the order is entered one of the following actions occurs to bring the Doug & Robin Renzelman #1 Well into compliance:
1. A properly bonded operator, of which Mr. Jim Snyder is not a principal, shall submit a COGCC Form 10, a Change of Operator, for the Doug & Robin Renzelman #1 Well, or,
2. The civil penalties assessed by Order No. 1V-114 against Mr. Snyder, plus the interest accrued to June 30, 1999, a total of Eleven Thousand ninety-three dollars and eleven cents ($11,093.11) shall be paid, or,
3. The Doug & Robin Renzelman #1 Well shall be properly plugged and abandoned and the site reclaimed.
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 September, 1999, as of August 19, 1999.
OIL
AND GAS CONSERVATION COMMISSION
By
Patricia
C. Beaver, Secretary
Dated at
September 3, 1999