BEFORE THE OIL AND GAS CONSERVATION COMMISSION

                                                                  OF THE STATE OF COLORADO

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

AND REGULATIONS OF THE OIL AND GAS                                            )

CONSERVATION COMMISSION BY WESTERN OIL                                 )                     ORDER NO. 1V-73

COMPANY, BACA COUNTY, COLORADO                                                )                                 (1-184) 

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission on August 23, 1994 at 8:30 a.m., in Room 620, State Services Building, 1525 Sherman Street, Denver, Colorado, after giving Notice of Hearing as required by law, on why Western Oil Company was not in violation of Rule No. 317.a.8. of the Rules and Regulations of the Oil and Gas Conservation Commission, and why it should not invoke the provisions of 34-60-121 C.R.S., as amended, providing for penalties for violations of orders of the Commission.

FINDINGS

                        The Commission finds as follows:

                        1.  Western Oil Company 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 18, 1993, Western Oil Company finalized the plugging of the McEndree No. 1-23 Well located in the  NW¼ NE¼ of Section 27, Township 28 South, Range 48 West, 6th P.M.  On January 24, 1994, Commission staff notified Western Oil Company requiring final location restoration by February 24, 1994.  On February 23, 1994, the Commission received a telephone call from Western Oil Company requesting a sixty (60) day extension which was granted by staff, contingent upon surface owner approval.  On March 3, 1994, the Commission received a copy of the extension request sent to the surface owner by Western Oil Company, however, no approval from the surface owner for an extension was received by the Commission.  On July 4, 1994, Commission staff conducted an inspection of the site and the location had not been restored.  The Commission alleges that Western Oil Company is in violation of, but not limited to, Rule 317.a.8., failure to complete reclamation of surface within six (6) months.

                        5.  Testimony presented at the hearing on August 23, 1994 indicated that Western Oil Company was in violation of Rule 317.a.8, failure to complete reclamation of a surface location within six (6) months, for sixty (60) days from February 24, 1994 through August 22, 1994.

                        6.  The Commission should assess a penalty in the amount of two thousand five hundred ($2,500) dollars for violation of Rule 317.a.8, lack of surface reclamation, and require restoration of the location no later than September 21, 1994.  The penalty amount is calculated by assessing the cost estimated to restore the location.  This penalty should be payable within thirty (30) days of the date the order is entered.

O R D E R

                        NOW, THEREFORE, IT IS ORDERED, that Western Oil Company is hereby assessed a penalty in the amount of two thousand five hundred ($2,500) dollars.  The penalty shall be payable within thirty (30) days of the date the order is entered.

                        IT IS FURTHER ORDERED, that the surface restoration shall take place no later than September 21, 1994.

                        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 , 1994, as of August 23, 1994.

                                                                        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

September 12, 1994