BEFORE THE OIL AND GAS CONSERVATION COMMISSION

                         OF THE STATE OF COLORADO

IN THE MATTER OF THE VIOLATION OF THE     )      CAUSE NO. 1

RULES AND REGULATIONS OF THE OIL AND GAS  )

CONSERVATION COMMISSION BY THE MEYER OIL  )      ORDER NO. 1V-56

COMPANY, INC., JACKSON COUNTY, COLORADO   )            (1-132)

REPORT OF THE COMMISSION

             This cause came on for hearing before the Commission on July 20, 1992 at 8:30 a.m., in Room 101, State Education Building, 201 East Colfax Avenue, Denver, Colorado, after giving Notice of Hearing as required by law, on why The Meyer Oil Company, Inc. was not in violation of the Rules and Regulations of the Commission, particularly Rules 329., 604.(d.), 323, 328 and 307 and why it should not be subject to the provisions of 34-60-121, C.R.S., as amended, calling for penalties.

FINDINGS

             The Commission finds as follows:

             1.  The Meyer Oil Company, Inc. as applicant herein, 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 June 11, 1992, staff engineers encountered an oil spill at North Park Coal No. 1 Well, operated by the Meyer Oil Company, Inc. and located in the NW1/4 SW1/4, Section 18, Township 9 North, Range 78 West, 6th P.M., Jackson County.  The spill had not been reported at the time of its occurrence.  On July 20, 1992, the Commission directed the staff to place this matter on the August docket for hearing.  On July 27, 1992, notice was given to the Meyer Oil Company, Inc. of the alleged violation of the Rules and Regulations of the Colorado Oil and Gas Conservation Commission.

             5. On July 29, 1992, staff engineers, the Assistant Attorney General and Douglas Meyer of the Meyer Oil Company, Inc. met to discuss the oil spill and other concerns at the site.  On August 5, 1992, Mr. Meyer was sent by certified mail a letter describing violations and recommending penalties for the operation at the well site.

             6. Testimony presented at the hearing on August 17, 1992 detailed the occurrence of the oil spill, its subsequent clean up and the affected Commission rules governing the operation.  Failure to take precautions to prevent a well from blowing uncontrolled, failure to inspect valves, pipes, and fittings and maintain in good mechanical condition, open pit storage of hydrocarbons, venting of over fifty (50) MCF per day without approval and failure to report production for five (5) months are violations of the Rules and Regulation of the Commission.

             7. A penalty in the amount of five hundred ($500) dollars should be assessed for the violation of Rules 329, failure to take all reasonable precautions to prevent the well from blowing uncontrolled or "wild".  A penalty in the amount of five hundred ($500) dollars should be assessed for the violation of Rule 604.(d.), failure to inspect valves, pipes and fittings at regular intervals and maintain them in good mechanical condition.  A penalty in the amount of five hundred ($500) dollars should be assessed for the violation of Rules 323, open pit storage of hydrocarbons.

             8. Penalties for the violations of 328, venting of over fifty (50) MCF per day without approval and Rule 307, failure to report production for five (5) months should be waived on the condition that The Meyer Oil Company, Inc. provides the Commission results from a well test showing the produced gas volume per day within ninety (90) days of the receipt of an order.

ORDER

             NOW THEREFORE, IT IS ORDERED, that The Meyer Oil Company, Inc. is in violation of Rule 325 and that a penalty in the amount of five hundred ($500) dollars shall be assessed in accordance with the provisions of 34-60-121, C.R.S. as amended.

             IT IS FURTHER ORDERED, that The Meyer Oil Company, Inc. is in violation of Rule 604. (d.) and that a penalty in the amount of five hundred ($500) dollars shall be assessed in accordance with the provisions of 34-60-121, C.R.S. as amended.

             IT IS FURTHER ORDERED, that Meyer Oil Company, Inc. is in violation of Rule 323 and that a penalty in the amount of five hundred ($500) dollars shall be assessed in accordance with the provisions of 34-60-121 C.R.S. as amended.

             IT IS FURTHER ORDERED, that The Meyer Oil Company Inc. is assessed a grand total penalty  in the amount of one thousand five hundred dollars ($1,500) in accordance with the provisions of  34-60-121, C.R.S. as amended and that payment shall be made within thirty (30) days of the receipt of this order.

             IT IS FURTHER ORDER, that the Meyer Oil Company, Inc. shall provide the Commission a well test showing the produced gas volume per day within ninety (90) days of the receipt of this order.

             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 ____________________, 1992, as of July 20, 1992.

                                 OIL AND GAS CONSERVATION COMMISSION

                                       OF THE STATE OF COLORADO

                                 BY __________________________________

                                    Patricia C. Beaver, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado  80203

August 24, 1992