OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

IN THE MATTER OF ALLEGED VIOLATIONS OF THE RULES AND REGULATIONS OF THE OIL AND GAS CONSERVATION COMMISSION BY BLACK GOLD ENERGY RESOURCES IN WELD COUNTY, COLORADO

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Cause No. 1V Order No. 1V-6 (was 1-38)

REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on April 21, 1986 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 violations by Black Gold Energy Resources, Inc. of Rule Nos. 324(a), 325 and 326.

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 matter embraced in said Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.

3. On February 14, 1986 a member of the staff of the Weld County Department of Health observed the dumping of liquid into a pit in the vicinity of 28885 Weld County Road 46 in the NE1/4 Section 14, Township 4 North, Range 66 West, 6th P.M., from a truck operated by Black Gold Energy Resources Inc. A sample of the liquid was analyzed and was determined to contain 16,300 milligrams per liter total dissolved solids of which 6720 milligrams per liter were Chlorides. Additional spills of liquids were noted on February 15 and 16, 1986.

4. Black Gold admitted to dumping liquid waste into a cement pit that was found to have cracks which may have caused the liquid to leak into the ground. The matter was soon corrected therefore no penalty should be imposed; however, the operator should be reprimanded.

O R D E R

NOW, THEREFORE, IT IS ORDERED, that no penalty shall be imposed on Black Gold Energy Resources Inc. However Black Gold is hereby reprimanded for the occurrence.

IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

ENTERED this 16th day of May, 1986, as of April 21, 1986.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By Frank J. Piro, Secretary