| IN THE MATTER OF ALLEGED VIOLATIONS OF THE RULES AND REGULATIONS OF THE COLORADO OIL AND GAS CONSERVATION COMMISSION BY D J PRODUCTION SERVICES, INC., ADAMS COUNTY, COLORADO | Cause No. 1V Order No. 1V-239 |
REPORT OF THE COMMISSION
This cause came on for hearing before the Colorado Oil and Gas Conservation Commission on September 23, 2002 at 10:00 a.m. in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado on why D J Production Services, Inc. is in violation of Rule 309. for the Piland No. 1-6 Well, and why the Commission should invoke the provisions of 34-60-122, C.R.S., as amended, providing for penalties for violations of the Rules and Regulations of th e Commission.
FINDINGS
1. On April 5, 2002, Colorado Oil and Gas Conservation Commission ("COGCC") staff conducted an onsite inspection of the Piland No. 1-6 Well located in the SW1/4 SW1/4 of Section 6, Township 3 South, Range 64 West, 6th P.M. The inspection determined that the well was not producing.
2. On April 26, 2002 COGCC staff issued a Notice of Alleged Violation ("NOAV") to D J Production Services, Inc. ("D J Production") for the Piland No. 1-6 Well. The NOAV cited violations of Rule 309., failure to submit Production Reports, Form 7. There have been no production records submitted to the COGCC since January 1, 2001. The NOAV required that all reports to be submitted to the COGCC by June 10, 2002.
3. Per return receipt, D J Production accepted the NOAV on May 3, 2002.
4. The required reports were not submitted to the COGCC by the abatement date of June 10, 2002.
5. Rule 523. specifies a base fine of five hundred dollars ($500) for each violation of Rule 309.
6. At the time of hearing, COGCC staff presented testimony and exhibits in support of the recommended order. No one from D J Production attended the hearing.
7. After deliberation, the Commission finds that D J Production is found in violation of Rule 309. for the Piland No. 1-6 Well, that a total monetary penalty of Five Hundred dollars ($500) for violation of Rule 309. should be assessed against D J Production for the violation in accordance with Rule 523.a. for the Piland No. 1-6 Well and that D J Production should submit all delinquent Production Reports, Form 7 by November 1, 2002.
8. If D J Production does not submit all delinquent Production Reports, Form 7 for the Piland No. 1-6 Well by November 1, 2002, the Commission should authorize the COGCC staff to claim D J Production's Thirty Thousand dollar ($30,000) blanket bond to plug, abandon, and reclaim the well.
9. The Commission finds that D J Production has demonstrated a pattern of violation through lack of compliance with Order No. 1-97 and with the numerous Orders Finding Violation issued at the September 23, 2002 hearing.
ORDER
NOW, THEREFORE IT IS ORDERED, that D J Production Services, Inc. shall be found in violation of Rule 309., failure to submit required production reports for the Piland No. 1-6 Well located in the SW1/4 SW1/4 of Section 6, Township 3 South, Range 64 West, 6th P.M.
IT IS FURTHER ORDERED, that D J Production Services, Inc. shall be assessed a total fine of Five Hundred dollars ($500) for the above-described rule violation, payable within thirty (30) days of the date the order is entered by the Commission.
IT IS FURTHER ORDERED, that D J Production Services, Inc. shall submit all delinquent Production Reports, Form 7 by November 1, 2002.
IT IS FURTHER ORDERED, that if D J Production Services, Inc. does not submit the reports described above by November 1, 2002, the COGCC staff shall be authorized to make a claim on D J Production Services, Inc.'s bond to plug, abandon and reclaim the Piland No. 1-6 Well.
IT IS FURTHER ORDERED, that if a claim on the bond is made, the Assistant Attorney General is hereby directed to do whatever is reasonably necessary to obtain and execute a judgment decree against the personal property of D J Production Services, Inc. located on or associated with the well site.
IT IS FURTHER ORDERED, that the Certificate of Clearance, Form 10, which authorizes transportation of oil and gas for this well, is hereby revoked.
IT IS FURTHER ORDERED, that no Applications for Permits-to-Drill and no Change of Operator, Form 10, shall be issued to or approved for D J Production Services, Inc., Jay Pape, or any other company of which Mr. Pape is a principal until such time as compliance with all Orders Finding Violation against D J Production Services, Inc. is secured.
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 day of October 2002, as of September 23, 2002.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By Patricia C. Beaver, Secretary
Dated at Suite 801 1120 Lincoln St. Denver, Colorado 80203 October 7, 2002