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. IV-176
MARILYN MESSER, FREMONT COUNTY, COLORADO
REPORT OF THE COMMISSION
This cause came on for hearing on August 19, 1999 in Suite 801, The Chancery
Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing
as required by law, on why Marilyn Messer is in violation of Rule 302.a., for
failure to file a Registration for Oil and Gas Operations, Form 1 with the
Commission; Rule 312.a., for failure to file a Certificate of Clearance, Form 10
with the Commission; and Rule 702., for failure to post financial assurance for
a well located in the S½ of Section 33, Township 19 South, Range 69 West, 6th
P.M.
FINDINGS
The Commission finds as follows:
1. Marilyn Messer (“Ms. Messer”) 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 of the subject matter, and of the parties
interested therein, and jurisdiction to promulgate the hereinafter prescribed
order.
4. Ms. Messer owns property in the S½ of Section 33, Township 19 South, Range 69
West, 6th P.M.
5. As of February 9, 1998, three (3) gas wells existed on this property and two
(2) of these wells were orphaned. The Colorado Oil and Gas Conservation
Commission (“COGCC”) has no information concerning the orphaned wells.
6. On February 9, 1998, Ms. Messer met with COGCC staff. Ms. Messer agreed that
one of the orphaned wells was supplying gas to her home and that she was selling
gas to a third party from the second well. COGCC staff informed her that the
COGCC requires operators of domestic wells to post adequate financial assurance,
and that she could not operate a gas delivery system unless she was registered
with the Public Utilities Commission. This information was also provided to Ms.
Messer in a letter dated February 12, 1998.
7. On March 3, 1998, COGCC staff inspected the two (2) orphaned wells. The
inspection found these wells were equipped as domestic gas wells.
8. Copies of the COGCC field reports were transmitted to Ms. Messer in a letter
dated March 4, 1998.
9. A Notice of Alleged Violation (“NOAV”) was issued to Ms. Messer on April 24,
1998, alleging that she was in violation of Rule 302.a., requiring all operators
to file a Registration for Oil and Gas Operations, Form 1 with the Commission;
Rule 312.a., requiring all operators to file a Certificate of Clearance, Form 10
with the Commission; and Rule 702., requiring all operators to post financial
assurance for the two (2) wells. The NOAV was accompanied by a letter offering
to plug the orphaned wells at the expense of the COGCC.
10. On June 1, 1998, the COGCC received a letter from Ms. Messer stating that
she ceased selling gas to a third party, and was communicating with the City of
Florence concerning donating her gas wells as a gift to the city.
11. On June 28, 1999, an Administrative Order by Consent (“AOC”) was offered to
Ms. Messer. On July 9, 1999 as per return receipt the AOC was received.
12. On July 14, 1999, Ms. Messer met with COGCC staff. Ms. Messer stated that
she had sold a portion of her property on which one of the orphaned wells was
located and she had only one (1) orphan well on her remaining property. She
requested that she be allowed to file a lien against her property in the amount
of Five Thousand dollars ($5000) to be used as a plugging bond. COGCC staff
directed Ms. Messer to write a letter to the Commission requesting a lien to be
used as a plugging bond.
13. As of July 28, 1999, no financial assurance has been posted for these gas
wells, the City of Florence has not assumed operatorship of these wells and no
letter has been received from Ms. Messer.
14. On August 12, 1999, a letter from Ms. Messer was received by the COGCC. The
letter states that Ms. Messer has no interest in the orphaned well located on
the portion of the property that has been sold. She requests that she be allowed
to retain the orphaned well on her property for domestic use and that she be
allowed to post a lien on her property as financial assurance.
15. At the hearing on August 19, 1999, COGCC staff presented testimony and
exhibits documenting the discussions and correspondence with Ms. Messer, and
supported her request to allow a lien against her property to be used as a
plugging bond.
16. Ms. Messer appeared at the hearing and testified that her property was paid
for and that no liens exist on the property.
17. The Commission expressed their concern that the domestic well on Ms.
Messer’s property presented a dangerous situation and advised Ms. Messer that
adding an odorant to the gas might reduce the safety concern. Ms. Messer
testified that she does not want to incur the cost of the odorant and that she
finds the gas to have a detectable odor.
18. Assistant Attorney General Enger should work with Ms. Messer to finalize a
lien agreement for the plugging bond that is in a form and priority acceptable
to the Commission in accordance with §34-60-106 (13)(f).
ORDER
NOW, THEREFORE, IT IS ORDERED, that Marilyn Messer, shall be found in violation
of Rule 302.a., for failure to file a Registration for Oil and Gas Operations,
Form 1 with the Commission; Rule 312.a., for failure to file a Certificate of
Clearance, Form 10 with the Commission; and Rule 702., for failure to post
financial assurance by June 1, 1998 for the one (1) well on her property.
IT IS FURTHER ORDERED, that Ms. Messer shall submit a valid Registration for Oil
and Gas Operations, Form 1; post financial assurance for all wells; and submit a
Certificate of Clearance, Form 10, within thirty (30) days of the date the order
is entered for well she wishes to operate.
IT IS FURTHER ORDERD, that Assistant Attorney General Enger shall work with Ms.
Messer to finalize a lien agreement in the amount of Five Thousand dollars
($5,000) for the plugging bond that is in a form and priority acceptable to the
Commission in accordance with §34-60-106 (13)(f).
IT IS FURTHER ORDERED, that if Ms. Messer does not comply with the order, COGCC
staff shall use COGCC Environmental Response Funds to plug, abandon and reclaim
all orphan wells. Should Ms. Messer not permit COGCC access to the property for
plugging operations, COGCC staff shall obtain a court order to allow access.
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 3rd day of September, 1999, as of August 19, 1999.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By Dated at Suite 801 Patricia C. Beaver, Secretary 1120 Lincoln Street Denver,
Colorado 80203 September 3, 1999.
(1V#176)