IN THE MATTER OF THE CONTINUING VIOLATION OF
CAUSE NO. 1
THE RULES AND REGULATIONS OF THE OIL AND
GAS CONSERVATION COMMISSION OF THE
ORDER NO. 1V-125
STATE OF COLORADO BY TIPPS OIL COMPANY,
WASHINGTON COUNTY, COLORADO
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on July 1, 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 and in accordance
with §34-60-105, 34-60-121(6) and 34-60-122(6), C.R.S., allowing the COGCC
Director to confiscate all equipment and any associated hydrocarbons located at
wellsites operated by Tipps Oil Company.
FINDINGS
The Commission finds as follows:
1. Tipps Oil 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 or about December 19, 1995, after notice and hearing required by law, the
COGCC entered Order No. 1-219 (now Order No. 1V-93) finding Tipps Oil Company (“Tipps”)
in violation of COGCC Rules No. 604.a.4., inadequate berms around production
tanks; 902.e., accumulation of oil on pits for more than twenty-four (24) hours
after discovery and Rule 902.f., inadequate netting for seven (7) wells located
in Washington County, Colorado (the “Tipps Wells”). The Commission ordered Tipps
to close all pits or bring sites into compliance by May 15, 1996. The Commission
also ordered an increase in Tipps’ plugging bond and assessed a sixty thousand
dollar ($60,000) fine associated with these violations, with thirty thousand
dollars ($30,000) of the fine suspended if the Tipps Wells were brought into
compliance on or before May 15, 1996. The following wells were subject to this
order:
Well Name Location
Scheetz No. 1 NW¼ NW¼ Sec. 14-3S-52W
Jefferson No. 1 SW¼ SW¼ Sec 11-3S-52W
Hickert Lease SE¼ SE¼ Sec 10-3S-52W
Anderson Lease NW¼ SW¼ Sec 20-3S-52W
Friend No. 1 SW¼ NE¼ Sec 20-3S-50W
Kejr Lease SW¼ NW¼ Sec 11-2S-56W
Marick A-1 SW¼ NW¼ Sec 10-3S-52W
5. Tipps has failed to conduct any of the work required to bring the wells into
compliance, has failed to increase its plugging bond as ordered by the
Commission and has failed to pay all or any portion of the fine assessed for the
existing violations.
6. The Director’s recommendation to confiscate the equipment and any associated
hydrocarbons is based on Tipps’ continued failure to comply with the Rules and
Regulations of the Oil and Gas Conservation Commission, Tipps’ failure to comply
with the Terms of Order No. 1-219 (now Order No. 1V-93) and the Commission’s
prior finding that Tipps’ failure to comply with the terms of the Commission’s
September 5, 1995 Cease and Desist Order can be construed as a violation of
§34-60-106(2)(d), C.R.S. (an adverse environmental impact) and a violation of
§34-60-117(1), C.R.S. (waste of a natural resource).
7. An order of the Commission should be entered allowing the Director to
confiscate all equipment and any associated hydrocarbons located at the
above-described wellsites operated by Tipps Oil. The Commission should also
authorize COGCC staff to conduct such further operations as COGCC staff deems
necessary in accordance with §34-60-124, C.R.S. and the Rules and Regulations of
the Commission to bring the above-described wells and wellsites into compliance.
ORDER
NOW, THEREFORE, IT IS ORDERED, that the Director is hereby allowed to confiscate
all equipment and any associated hydrocarbons located at the following wellsites
operated by Tipps Oil Company. The Commission shall also authorize COGCC staff
to conduct such further operations as COGCC staff deems necessary in accordance
with §34-60-124, C.R.S. and the Rules and Regulations of the Commission to bring
the below-described wells and wellsites into compliance.
Well Name Location
Scheetz No. 1 NW¼ NW¼ Sec. 14-3S-52W
Jefferson No. 1 SW¼ SW¼ Sec 11-3S-52W
Hickert Lease SE¼ SE¼ Sec 10-3S-52W
Anderson Lease NW¼ SW¼ Sec 20-3S-52W
Friend No. 1 SW¼ NE¼ Sec 20-3S-50W
Kejr Lease SW¼ NW¼ Sec 11-2S-56W
Marick A-1 SW¼ NW¼ Sec 10-3S-52W
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 18th day of July, 1997, as of July 1, 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 July 18, 1997
(1V#125)