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 THE MEYER OIL ) ORDER NO. 1V-75

COMPANY, BOULDER AND JACKSON COUNTY, COLORADO ) (1-186)

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 The Meyer Oil Company was not in violation of Rule No. 317.a.8., failure to properly restore plugged and abandoned sites within six (6) months in Boulder County; violation of Rule 305., failure to submit Form 4's and cement verification for plugged and abandoned sites within thirty (30) days of abandonment in Boulder County; violation of Commission Order No. 1-132, failure to pay $1,500.00 fine; violation of Commission Order No. 1-178, failure to properly fence disposal pit on at the McKenzie No. A1-21 Well; violation of Rule 307., failure to report production within forty-five (45) days; violation of Rule 317.b.3., failure to plug and abandon a temporarily abandoned well within six (6) months; and violation of Rule 308., failure to pay conservation levy for gas production 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. The Meyer 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 16, 1994, The Meyer Oil Company submitted an Application for Permit to Drill the Dowdell No. 7 Well located in the NE1/4 of Section 1, Township 8 North, Range 82 West, 6th P.M., Jackson County. On July 12, 1994, Commission staff submitted a memo to the Director outlining violation of several Commission rules, regulations, and orders by The Meyer Oil Company. At the July 18, 1994 hearing, the Commission directed the staff to schedule The Meyer Oil Company to appear at the August hearing. The Commission's intention was to consider withholding the issuance of the Application for Permit to Drill for the Dowdell No. 7 Well until such time as all violations are brought into compliance.

5. Testimony presented at the hearing on August 23, 1994 indicated that The Meyer Oil Company was in violation of Rule 305., failure to submit Form 4's and cement verification for plugged and abandoned sites within thirty (30) days of abandonment for the following wells in Boulder County, for a total of one thousand two hundred ninety-three (1,293) days: Tabor No. 1 Well in the NW1/4 SW1/4 of Section 16, Charlotte No. 2 Well in the SW1/4 SE1/4 of Section 17, Mary No. 1 Well in the S1/2 SW1/4 of Section 17, Tabor No. 6 Well in the NE1/4 NW1/4 of Section 21, Tabor No. 8 Well in the NW1/4 NE1/4 of Section 21, Becker-Downey G No. 1 Well in the SE1/4 NE1/4 of Section 32, all in Township 2 North, Range 69 West, 6th P.M. Additional testimony presented indicated that for the above-listed wells, The Meyer Oil Company was in violation of Rule 317.a.8., failure to properly restore plugged and abandoned sites within six (6) months, for a total of seven hundred sixty-four (764) days.

6. Additional testimony presented at the hearing indicated that The Meyer Oil Company was in violation of Commission Order No. 1-132, failure to pay a $1,500.00 fine assessed in July 1992; violation of Commission Order No. 1-178, failure to properly fence a disposal pit on at the McKenzie No. A1-21 Well; violation of Rule 307., failure to report production within forty-five (45) days, for a total of four hundred fifty-nine days.

7. Further testimony presented at the hearing indicated that The Meyer Oil Company was in violation of Rule 308., failure to pay conservation levy for gas production for a total of six hundred thirty (630) dayss. The Meyer Oil Company should pay the outstanding levy and interest of two hundred thirty dollars and nine cents ($230.09), along with a seventeen ($17.00) dollar returned check fee, no later than September 30, 1994.

9. The Commission further determined that no Applications for Permits to Drill should be issued to The Meyer Oil Company, that no Change of Operator Form 10's should be approved for The Meyer Oil Company, and that a penalty payment schedule should be developed for payment of the penalties assessed.

O R D E R

NOW, THEREFORE, IT IS ORDERED, that The Meyer Oil Company is hereby assessed a penalty in the amount of eighteen thousand ($18,000) dollars. A penalty payment schedule shall be determined by the Director for The Meyer Oil Company.

IT IS FURTHER ORDERED, that no Applications for Permits to Drill shall be issued to The Meyer Oil Company, that no Change of Operator Form 10's shall be approved for The Meyer Oil Company, until such time as all violations are brought into compliance and penalties are paid in full.

IT IS FURTHER ORDERED, that The Meyer Oil Company shall pay the outstanding levy and interest of two hundred thirty dollars and nine cents ($230.09), along with a seventeen ($17.00) dollar returned check fee, no later than September 30, 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

Patricia C. Beaver, Secretary

Dated at Suite 380

1580 Logan Street

Denver, Colorado 80203

September 21, 1994