IN THE MATTER OF THE APPLICATION BY WEXPRO COMPANY FOR A RULE 502.A VARIANCE FROM RULE 419 BRADENHEAD REQUIREMENTS FOR THE H. STEWART #2 WELL, LOCATED IN SECTION 32, TOWNSHIP 12 NORTH, RANGE 97 WEST, 6TH P.M., POWDER WASH FIELD, MOFFAT COUNTY, COLORADO

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Cause No. 1V Order No. 1V-17 (FORMERLY 1-58)

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on March 21, 1988 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 failure to post proper Bonding as required by Rule 304 of the Rules and Regulations of the Commission by Gills Hot Oil Service

FINDINGS

The Commission finds as follows:

1. Due Notice of the time, place and purpose of the hearing has been given in all respects as required by law.

2. The Commission has jurisdiction over the subject matte embraced in said notice and of the parties interested therein, an . jurisdiction to promulgate the hereinafter prescribed order.

3. Rocky Mountain Production Company filed with the Commission OGCC Form 4, Sundry Notice, indicating that Gills Hot Oil Service was the operator of three wells in Adams County in 1986, and several requests have been made by the Commission to have the appropriate bonding requirements fulfilled.

4. At all times, the wells were under the bond of the prior operator.

5. Gills Hot Oil Service had not posted the proper security as of the date of bearing.

6. That Gil's Hot Oil Service was the operator of eight wells in Section 17, Township 3 South, Range 62 West, 6th P.M., Adams County, Colorado.

7. That the production reports for the period of August 1986 thru December 1986 are delinquent.

8. Mr. Gilbert Payne of Gil's Hot Oil Service, at the hearing, presented OGCC Form 10's for all eight wells which, if approved, will make Rosella S. Schneider, a properly bonded operator, the operator of the wells in question.

9. That a penalty should be assessed in the amount of Two Hundred Fifty Dollars ($250.00).

O R D E R

NOW, THEREFORE IT IS ORDERED, that the Form 10's, Transfer of Operator, be accepted and processed; that Gills Hot Oil Service furnish to the Commission the delinquent production information for the period August 1986 thru December 1986, and in accordance with 34-60-121 C.R.S., as amended, Gil's Hot Oil Service is hereby assessed a penalty of Two Hundred Fifty Dollars ($250.00) which shall be remitted to the Oil and Gas Conservation Commission, State of Co lorado, within thirty (30) days upon receipt of this order.

Entered this Fifth day of April 1988 as of March 21 1988.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Dennis R. Bickne1l Secretary