IN THE MATTER OF RECONSIDERATION OF ORDER
CAUSE NO. 1
NO. 1V-135 ISSUED BY THE COLORADO OIL AND GAS
CONSERVATION COMMISSION REQUESTED BY
ORDER NO. 1V-154
JAYARE EXPLORATION, INC., LOGAN COUNTY, COLORADO
This cause came on for hearing before the Commission at 8:30 a.m., on July 9,
1998, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver,
Colorado, after giving Notice of Hearing as required by law, on the request by
Jayare Exploration, Inc. to reconsider Order No. 1V-135.
FINDINGS
The Commission finds as follows:
1. Jayare Exploration, Inc. 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 February 9, 1998, the Commission issued Order No. 1V-135, which, among
other things found Jayare Exploration, Inc. in continuing violation of Rule
326.b., failure to perform a mechanical integrity test within two (2) years of
initial shut-in date for the Coe Trust #2 Well located in the SW¼ NW¼ of Section
18, Township 16 South, Range 45 West, 6th P.M. Jayare Exploration, Inc. was
required to either: 1) perform a successful mechanical integrity test; or 2)
properly plug and abandon; or 3) put on production the Coe Trust #2 Well within
thirty (30) days of the date the order was issued. Jayare Exploration, Inc. was
also assessed a fine of Two Thousand Dollars ($2,000), payable within thirty
(30) days from the date the Order was issued, and if compliance was not
achieved, COGCC staff were authorized to commence claim on the Five Thousand
Dollar ($5,000) plugging bond.
5. On March 18, 1998, Jayare Exploration, Inc. filed with the Commission a
request to reconsider Order No. 1V-135, stating that they never received notice
of the hearing because the company's president was out of the country at the
time and they wished to have an opportunity to defend themselves against the
alleged violations. The matter was scheduled for the April 27, 1998 hearing.
6. At the time of the April 27, 1998 hearing, the Commission determined that
pursuant to Rule No. 517.a., Mr. Jack Hickey was unable to represent Jayare
Exploration, Inc., a corporation. Therefore, the matter was continued to the
July hearing so that Mr. Hickey could obtain counsel.
7. Testimony presented by Mr. Hickey at the July 9, 1998 hearing indicated that
he had been out of the country for a nine (9) month period during which
correspondence sent to Jayare Exploration, Inc. by COGCC staff was sent to his
home address where no one was checking his mail.
8. Mr. Hickey testified that he had responded to two (2) of the three (3)
corrective actions prescribed on the Notice of Alleged Violation (NOAV) issued
March 25, 1997, by filing a Change of Operator, Form 10 and submitting a Five
Thousand Dollar ($5,000) plugging bond. He further testified that because he
intended to plug and abandon the Coe Trust #2 Well, he did not believe he had to
perform a Mechanical Integrity Test (MIT) on the well.
9. After hearing testimony from Jayare Exploration, Inc., the Commission amended
the provisions of Order No. 1V-135 and reduced the original assessed fine of Two
Thousand Dollars ($2,000) to One Thousand Dollars ($1,000), provided that the
Coe Trust #2 Well is plugged and abandoned within thirty (30) days from the date
the order issued.
ORDER
NOW THEREFORE, IT IS ORDERED, that Order No. 1V-135 is hereby amended to reduce
the fine assessed to Jayare Exploration, Inc. from Two Thousand Dollars ($2,000)
to One Thousand Dollars ($1,000), provided that Jayare Exploration Inc. properly
plug and abandon the Coe Trust #2 Well located in the SW¼ NW¼ of Section 18,
Township 16 South, Range 45 West, 6th P.M., within thirty (30) days from the
date the order is issued.
IT IS FURTHER ORDERED, that the One Thousand Dollar ($1,000) fine shall be
payable within thirty (30) days from the date the order is issued.
IT IS FURTHER ORDERED, that if Jayare Exploration, Inc. does not comply with
this order, COGCC staff shall be authorized to commence claim on the Five
Thousand Dollar ($5,000) plugging bond. If plugging and reclamation costs exceed
the bond amount COGCC staff shall confiscate available equipment and tubulars
for salvage per §34-60-124.(6).(c). C.R.S.
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 14th day of July, 1998, as of July 9, 1998.
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 14, 1998
(1V#154)