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-129
MR. JACK SQUIRES, LA PLATA COUNTY, COLORADO
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission at 8:30 a.m. on September
16, 1997, in the La Plata County Commissioner Hearing Room, 1060 E. 2nd Avenue,
Durango, Colorado, after giving Notice of Hearing as required by law, on why Mr.
Jack Squires is in violation of certain rules and regulations of the Oil and Gas
Conservation Commission and why the Commission 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. Jack Squires 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. In July of 1955, Hudson Oil and Metals Company drilled and completed the J.
Fred Hill No. 1 Well located in the NEĽ SEĽ of Section 1, Township 32 North,
Range 7 West, N.M.P.M. Surface casing was set at 205’ and cemented to surface.
Intermediate casing was set at 2,292’ and cemented with 125 sacks of cement. The
well was deepened to 2,485’ and a slotted liner was installed to total depth. In
November 1955, the well was deepened to 2,530’. In July 1966, the well was
plugged by setting a 25 sack cement plug across the Fruitland Coal Formation and
a 30 sack cement plug at 1,365’. The intermediate casing was pulled from the
well at 1,365’. After the two cement plugs were set and the casing pulled from
the well, enough gas was produced from the well for the surface owner, Mr. Jack
Squires, to request the continued use of the well for domestic gas usage. The
staff approved this request on April 5, 1966. No financial assurance was
required from the surface owner.
5. On June 10, 1996, gas and water samples were taken from the well and
analyzed. The gas and water analyses indicated the fluids were from the
Fruitland Coal Formation. This indicates the two cement plugs set in 1966 have
not sealed or separated the producing horizon to prevent the intermingling of
their contents. On June 12, 1997, COGCC staff met with Mr. Jack Squires at his
residence to discuss with him the status of his well, explain COGCC Rules and
explain how the J. Fred Hill No. 1 Well was in violation of the COGCC Rules and
Regulations. On June 13, 1997, a Notice of Alleged Violation (NOAV) was sent to
Mr. Jack Squires specifying violations of Rules 209. and 706. of the Rules and
Regulations of the Colorado Oil and Gas Conservation Commission. The abatement
date for compliance was July 14, 1997, to repair the well and provide financial
assurance in the amount of Five Thousand Dollars ($5,000). Rule 209. was cited
for failure to seal or separate Fruitland Coal Formation gas and water and
prevent the intermingling of their contents with other strata. Rule 706. was
cited due to the lack of financial assurance provided by the owner to plug and
abandon the well. On July 17, 1997, COGCC staff contacted Mr. Squires by
telephone and he indicated no action had been taken to gain compliance for the
well. COGCC staff offered to utilize the Environmental Response Fund (ERF) to
properly plug and abandon the well. Mr. Squires refused staff's offer.
6. At the time of the hearing, Commission staff provided testimony and presented
exhibits in support of the proposed order being recommended for adoption by the
Commission.
7. At the time of the hearing, Mr. Jack Squires and witnesses on his behalf
presented historical data regarding the well and its use.
8. After deliberation, the Commission directed the Commission staff to utilize
the ERF to properly plug, abandon and reclaim the J. Fred Hill No. 1 Well
located in the NEĽ SEĽ of Section 1, Township 32 North, Range 7 West, N.M.P.M.
9. The Commission also found the Mr. Jack Squires would not be a responsible
party in this matter.
ORDER
NOW THEREFORE, IT IS ORDERED, that a violation of Rule 209., failure to seal or
separate the Fruitland Coal seam gas and water and prevent the intermingling of
their contents with other strata, exists for the J. Fred Hill No. 1 Well located
in the NEĽ SEĽ of Section 1, Township 32 North, Range 7 West, N.M.P.M.
IT IS FURTHER ORDERED, that Commission staff is authorized to utilize the
Environmental Response Fund to properly plug, abandon and reclaim the
above-described well.
IT IS FURTHER ORDERED, that Mr. Jack Squires shall not be deemed a responsible
party in this matter.
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 9th day of October, 1997, as of September 16, 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 October 9, 1997
(1V#129)