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 GERRITY OIL &                        )                    ORDER NO. 1V-78

GAS CORPORATION, BOULDER COUNTY, COLORADO                )                                (1-193)

REPORT OF THE COMMISSION

                        This cause came on for hearing before the Commission on December 19, 1994, at 8:30 a.m., in Suite 318, State Centennial Building, 1313 Sherman Street, Denver, Colorado, and on February 21, 1995 at 8:30 a.m., in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing as required by law, on why Gerrity Oil & Gas Corporation was not in violation of Rule Nos. 604.a.(4) and 604.c. 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.  Gerrity Oil & Gas Corporation 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 October 24, 1994, Norman C. Lyster and Elizabeth C. Eckles, as Personal Representatives of the Estate of Norman H. Lyster, and Lyster Family Farms, by their attorney, filed with the Commission an application to issue an order against Gerrity Oil & Gas Corporation (Gerrity) for relief from alleged violations of Rules 604.a.(4) and 604.c.  The Applicants are owners of the Lyster #8-26 Salt Water Disposal Well located in the SW¼ SE¼ of Section 26, Township 6 North, Range 65 West, 6th P.M. Weld County.  Gerrity is operator of record of the above-described well.  The Applicants allege that, according to Rule 604.a.(4), Gerrity has failed and neglected to maintain or repair adequate berms surrounding tanks used in salt water disposal operations.  The Applicants also allege that, in accordance with Rule 604.c., sufficient berms surrounding other storage tanks are necessary to protect both the environment and public safety.

                        5.  On December 9, 1994, Gerrity Oil & Gas Corporation filed a protest to the application and asked that the matter be summarily dismissed.

                        6.  On December 19, 1994, at the time of the hearing, the Commission heard arguments from both the Applicant and the protestant, and comments from the Commission staff regarding the subject of the application.  The Commission directed the staff to review berm containment calculation to be provided by both parties and report back to the Commission at its January hearing.  In addition, the Commission directed the Applicant and protestant to file briefs with the Assistant Attorney General on the issue of jurisdiction, no less than ten (10) days prior to the January hearing and the matter was rescheduled to the January hearing.

                        7.  On January 6, 1995, the Applicant's attorney submitted in writing a motion for continuance stating that the Applicant was out of the country, unavailable to his counsel, and thus requested that the matter be continued to the February hearing.

                        8.  On February 3, 1995 and on February 13, 1995, the Applicant and the protestant, respectively, filed briefs on the issue of the Commission's jurisdiction over the application.

                        9.  On February 21, 1995, at the time of the hearing, the attorney for the Applicant stated that

that the relief sought in the original application for the Commission issue a cease and desist order was no longer appropriate, as the berms had been reconstructed to ensure containment.  The Applicant requested that the Commission approve an amendment to the application to find Gerrity in past violation of Rule 604.a.(4) and 604.c.  Said amendment was approved by the Commission.  The Applicant further requested that the Commission strike the briefs filed from the record.  This request was denied by the Commission.

                        10.  After additional discussion between the Applicant, protestant, staff, Commission, and Assistant Attorney General, the Commission voted to dismiss the application and directed the Applicant to file a written complaint with the staff for investigation of alleged past violation of Rules 604.a.(4) and 604.c..

O R D E R

                        NOW, THEREFORE, IT IS ORDERED, that the application filed by Norman C. Lyster and Elizabeth C. Eckles, as Personal Representatives of the Estate of Norman H. Lyster, and Lyster Family Farms, be dismissed.

                        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 , 1995, as of February 21, 1995.

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                               OF THE STATE OF COLORADO

                                                                        By

                                                                             Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado  80203

March 24, 1995