BEFORE THE OIL AND GAS CONSERVATION COMMISSION

                                                               OF THE STATE OF COLORADO

IN THE MATTER OF ALLEGED VIOLATIONS OF THE                      )                    CAUSE NO. 1

RULES AND REGULATIONS OF THE COLORADO OIL                    )

AND GAS CONSERVATION COMMISSION BY                                 )                    ORDER NO. 1V-114

JIM SNYDER, BENT COUNTY, COLORADO                                     )                    AMENDED

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission on September 4, 1996, at 8:30 a.m., in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing as required by law, on why Mr. Jim Snyder is not in violation of Rule No. 308, failure to submit COGCC Form 5 within 30 days of reaching total depth of the well(s); Rule No. 317.i., failure to isolate fresh water aquifers; and failure to comply with the Conditions of Permit Approval, of the Oil and Gas Conservation Commission, and why it should not invoke the provisions of §34-60-121 C.R.S., as amended, providing for penalties for violations of the Rules and Regulations of the Commission.

FINDINGS

                        The Commission finds as follows:

                        1.  Mr. Jim Snyder 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 June 17, 1996, COGCC staff issued Notices of Alleged Violation (NOAV) for the Elston No. 1 Well, located in the SW¼NW¼ of Section 27, Township 23 South, Range 50 West, 6th P.M. and the Oberlander No. 3 Well, located in the NE¼NW¼ of Section 28, Township 21 South, Range 51 West, 6th P.M., Bent County, operated by Mr. Snyder, citing violations of Rule No. 308, failure to submit COGCC Form 5 within 30 days of reaching total depth of the well(s); Rule No. 317.i., failure to isolate fresh water aquifers; and failure to comply with the Conditions of Permit Approval.  The NOAV specified an abatement date of June 28, 1996.

                        5.   On July 10, 1996 COGCC staff received a certified letter from Mr. Snyder concerning the NOAV.  The letter confirmed that annular cement coverage of the aquifers had not been performed to date and did not propose an exact abatement date for the alleged violations.

                        6.  On July 11, 1996 COGCC staff issued an Administrative Order by Consent (AOC) to Mr. Snyder.  Mr. Snyder was given ten (10) days to execute the AOC.  Per the certified mail return receipt, Mr. Snyder received the AOC on July 15, 1996.  On July 22, 1996 COGCC staff received a certified letter from Mr. Snyder.  The letter gave no indication that Mr. Snyder was willing to either accept the AOC or abate the alleged violations.  Commission staff received no further correspondence from Mr. Snyder.

                        7.  Testimony presented at the hearing indicated that the conditions of permit approval for the Elston No. 1 Well and the Oberlander No. 3 Well were not complied with upon reentry of both wells.  Further, through routine field inspection it was discovered that both wells were recompleted and COGCC Form 5, Completion Report, for both wells, had not been submitted within thirty (30) days of the date total depth was reached.  Additional testimony was presented by both COGCC staff and Mr. Snyder in reference to whether or not certain conditions of permit approval needed to be met.

                        8.  After review of testimony and exhibits presented at the hearing and other deliberations, the Commission found Mr. Jim Snyder in violation of Rule 308, failure to submit COGCC Form 5, Completion Report, within thirty (30) days of reaching total depth; Rule 317.i., failure to isolate fresh water aquifers; and failure to comply with Conditions of Permit Approval, for the Elston No. 1 Well and the Oberlander No. 3 Well, three (3) violations per well, for a total of six (6) violations, and to assess a fine of Ten Thousand Dollars ($10,000), unless, within thirty (30) days from the date of the hearing, Mr. Snyder files a COGCC Form 5, Completion Report, for both wells, and either complies with conditions of permit approval for both wells, or obtains a waiver to the conditions of permit approval by providing sufficient data to the COGCC staff, in which case, the fine should be reduced to Four Thousand Dollars ($4,000).

                        9.  No Applications for Permit to Drill should be issued to Mr. Jim Snyder or to any company where Mr. Jim Snyder is a principal until the conditions of Finding 8 and payment of the assessed fine have been met.

                        10.  Should Mr. Jim Snyder fail to properly protect the aquifers, obtain a waiver to the conditions of permit approval, or properly plug and abandon the above described wells within thirty (30) days, the Commission should make the necessary bond claim(s) in order to plug either of the two wells remaining in violation. 

                        11.  An order of the Commission should be entered finding that Mr. Jim Snyder is in violation of Rule No. 308, failure to submit COGCC Form 5 within 30 days of reaching total depth of the well(s); Rule No. 317.i., failure to isolate fresh water aquifers; and failure to comply with the conditions of permit approval, and assessing a fine of Ten Thousand Dollars ($10,000) unless the compliance or waiver provisions of Finding 8 are met, in which case the fine assessed should be reduced to Four Thousand Dollars ($4,000).

O R D E R

                        NOW, THEREFORE, IT IS ORDERED, that Mr. Jim Snyder is in violation of Rule No. 308, failure to submit COGCC Form 5, Completion Report, within 30 days of reaching total depth of the well(s); Rule No. 317.i., failure to isolate fresh water aquifers; and failure to comply with the Conditions of Permit Approval, for the Elston No. 1 Well, located in the SW¼NW¼ of Section 27, Township 23 South, Range 50 West, 6th P.M., and for Oberlander No. 3 Well, located in the NE¼NW¼ of Section 28, Township 21 South, Range 51 West, 6th P.M., Bent County.

                        IT IS FURTHER ORDERED, that COGCC Form 5, Completion Report, shall be submitted for the Elston No. 1 Well, located in the SW¼NW¼ of Section 27, Township 23 South, Range 50 West, 6th P.M., and for Oberlander No. 3 Well, located in the NE¼NW¼ of Section 28, Township 21 South, Range 51 West, 6th P.M., Bent County, within thirty days from the date the order is issued.

                        IT IS FURTHER ORDERED, that annular cement coverage of the aquifers as detailed by the Conditions of Permit Approval shall be performed, or waivers to the conditions of permit approval shall be obtained by providing sufficient data to COGCC staff within thirty (30) days of the date the order is issued. 

                        IT IS FURTHER ORDERED, that Mr. Jim Snyder shall be assessed a total fine of Ten Thousand Dollars ($10,000), payable within thirty (30) days of the date the order is entered, unless Mr. Jim Snyder complies with the conditions of permit approval or obtains a waiver to the conditions of permit approval by providing sufficient data, in which case, the fine shall be reduced to a total of Four Thousand Dollars ($4,000), payable within thirty (30) of the date the order was entered.

                        IT IS FURTHER ORDERED, that no Applications for Permit to Drill shall be issued to Mr. Jim Snyder or to any company where Mr. Jim Snyder until the conditions of Finding 9 and payment of the assessed fine have been met.

                        IT IS FURTHER ORDERED, that should Mr. Jim Snyder fail to properly protect the aquifers, obtain a waiver to the conditions of permit approval, or properly plug and abandon the above described wells within thirty (30) days, the Commission shall make the necessary bond claim(s) in order to plug either of the two wells remaining in violation. 

                        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 27th day of September, 1996, as of September 4, 1996.

                        AMENDED this  day of November, 1996, as of September 4, 1996.

                                                                        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

December 23, 2022