IN THE MATTER OF NON- COMPLIANCE WITH THE RULES AND REGULATIONS OF THE OIL AND GAS CONSERVATION COMMISSION BY CAVANAUGH AND CAVANAUGH KIOWA COUNTY, COLORADO

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Cause No. 1V Type: ENFORCEMENT Order No. 1V-14 (FORMERLY 1-55)

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on November 16, 1987 at 9:00 a.m. in Room 110 State Centennial Building, 1313 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on the Commission's own motion concerning the disposal of produced waters from the oil and gas operations of Cavanaugh and Cavanaugh in Kiowa County, Colorado.

FINDINGS

The Commission finds as follows:

1. Due to notice of the time, place and the hearing has been given in all aspects as required by law.

2. 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.

3. At the hearing on October 19, 1987, the Director reported to the Commission that Cavanaugh and Cavanaugh had not complied with his request for a plan to cease and desist from disposing of produced waters from its oil and gas operations in Kiowa County, Colorado into unlined pits which is allegedly polluting the ground water. Mr. James Cavanaugh, at the time of hearing, advised that he had selected a well for injection and disposal of the water, however, additional time was needed to complete the negotiations and application for disposal well permit. The Commission directed that Cavanaugh and Cavanaugh proceed with plans for proper disposal of the produced waters and that a report be made to the Commission at its November 16, 1987, hearing date.

4. The Commission determined that Cavanaugh and Cavanaugh should be given until November 28, 1987 to either commence injection of the produced waters into a disposal. well or dispose of such waters into properly constructed surface pits. Failure to comply should result in the shut down of the oil and gas operations of Cavanaugh and Cavanaugh until such time as the produced waters are disposed of in accordance with Rules and Regulations of the Commission.

O R D E R

NOW THEREFORE IT IS ORDERED that Cavanaugh and Cavanaugh shall, by November 28, 1987, commence injection of produced waters from its oil and gas operations in Kiowa County, Colorado into a disposal well approved by the Commission or dispose of such waters into properly constructed surface pits or other disposal well in accordance with the Rules and Regulations of the Commission.

IT IS FURTHER ORDERED that the oil and gas operations of Cavanaugh and Cavanaugh in Kiowa County, Colorado shall be shut down if the above order is not complied with by November 28, 1987. Such operations shall continue to be shut down until proper disposal the produced waters has commenced.

IT IS FURTHER ORDERED that the above orders shall become effective forthwith.

FURTHER ORDERED that the Commission expressly after notice and hearing, to alter, amend or repeal all or any part of the above order. ENTERED this 10th day of December, 1987, as of November 16, 1987.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary