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-179
A. R. BOUCHER, DELTA COUNTY, COLORADO

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on September 17, 1999, at 8:30 a.m., in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing as required by law, on why A. R. Boucher is in violation of Rule 326.b., failure to pass a mechanical integrity test within two (2) years of the initial shut-in date for the Geolfos-Scott #1 Well located in the SE¼ SW¼ of Section 28, Township 15 South, Range 91 West, 6th P.M.

FINDINGS

The Commission finds as follows

1. A. R. Boucher 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 November 17, 1998 Colorado Oil and Gas Conservation Commission (“COGCC”) staff inspected the Geolfos-Scott #1 Well located in the SE¼ SW¼ of Section 28, Township 15 South, Range 91 West, 6th P.M. and found it to be shut-in without a flow line connection. On January 6, 1999 COGCC staff issued a Notice of Alleged Violation (“NOAV”) to the operator of record, Mr. A. R. Boucher. The NOAV cited a violation of Rule 326.b. which states a mechanical integrity test shall be performed on each shut-in well within two (2) years of the initial shut-in date or within thirty (30) days if at any time, surface equipment is removed or the well becomes incapable of production. The well has never produced since its completion on February 28, 1980. The NOAV required that the well either be placed on production, be tested for mechanical integrity or plugged and abandoned with an abatement deadline of March 1, 1999.

5. Mr. A. R. Boucher responded to the NOAV by letter dated February 26, 1999 wherein he stated he was no longer responsible for the well and that the COGCC staff should look to the bonding company for satisfaction. The well is in continuing violation of Rule 326.b. and constitutes a threat of a significant adverse environmental impact.

6. The Commission should authorize COGCC staff to commence a claim of the Five Thousand dollar ($5,000.00) plugging bond to plug and abandon the well and reclaim the site.

ORDER

NOW, THEREFORE IT IS ORDERED, that A. R. Boucher shall be found in violation of Rule 326.b. for failure to pass a mechanical integrity test on the Geolfos-Scott #1 Well located in the SE¼ SW¼ of Section 28, Township 15 South, Range 91 West, 6th P.M.

IT IS FURTHER ORDERED, that COGCC staff shall be authorized to commence a claim on A. R. Boucher’s Five Thousand dollar ($5000.00) plugging bond and that COGCC staff shall have the well plugged and abandoned and the site reclaimed. If plugging and abandonment costs exceed the bond amount, COGCC staff shall be authorized to confiscate available equipment and tubulars for salvage in accordance with §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 30th day of September ,1999 as of September 17, 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 30, 1999.

(1V#179)