IN THE MATTER OF ALLEGED VIOLATIONS OF THE RULES
CAUSE NO. 1
AND REGULATIONS OF THE COLORADO OIL AND GAS
CONSERVATION COMMISSION BY DENVER EAST MACHINERY ORDER NO.
1V-121
COMPANY, WELD COUNTY, COLORADO
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on April 21, 1997, 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 Denver East
Machinery Company is not in violation of Rule Nos. 307 and 319.a.1., 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. Denver East Machinery Company 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 November 21, 1996, COGCC staff issued a Notice of Alleged Violation (NOAV)
to Denver East Machinery Company for the Heinze No. 2 Well located in the SW¼SE¼
of Section 20, Township 1 North, Range 67 West, 6th P.M. The NOAV cited
violations of Rule 307., COGCC Form 4, subsequent report of plugging procedures,
not conforming with the cement verification job log, indicated that the well was
not plugged according to approved procedures, and Rule 319.a.1, failure to plug
the well in such a manner as to confine oil, gas, or water to the reservoir in
which it originally occurred. The NOAV had an abatement date of December 31,
1996. Per return receipt, the NOAV was accepted on November 22, 1996.
5. An Administrative Order by Consent (AOC) was sent to Denver East Machinery
Company on February 18, 1997. The AOC specified a fine for the above-listed
violations.
6. On February 26, 1997, Denver East Machinery Company representatives met with
COGCC staff to discuss the alleged violations.
7. On March 6, 1997, Denver East Machinery Company representatives met with
COGCC staff and provided documentation that a cast iron bridge plug had been
correctly set over the perforations as required by Commission plugging
instructions for the Heinze No. 2 Well. COGCC staff was satisfied that this
documentation eliminated the alleged violation of Rule 319.a.1.
8. An order of the Commission should be entered finding Denver East Machinery
Company in violation of Rule No. 307., COGCC Form 4, subsequent report of
plugging procedures, not conforming with third party cement verification report
and not submitted within thirty (30) days of abandonment operations, and
assessing a fine of Five Hundred Dollars ($500) payable within thirty (30) days
from the date the order is issued.
O R D E R
NOW, THEREFORE, IT IS ORDERED, that Denver East Machinery Company shall be found
in violation of Rule No. 307., COGCC Form 4, subsequent report of plugging
procedures, not conforming with third party cement verification report and not
submitted within thirty (30) days of abandonment operations for the Heinze No. 2
Well located in the SW¼SE¼ of Section 20, Township 1 North, Range 67 West, 6th
P.M.
IT IS FURTHER ORDERED, that Denver East Machinery Company shall be assessed a
fine of Five Hundred Dollars ($500) payable 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 28th this day of April, 1997, as of April 21, 1997.
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 April 28, 1997
(1V#121)