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 MARTIN ) ORDER NO. 1V-89
EXPLORATION MANAGEMENT COMPANY ) (1-212)
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on September 25, 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 Martin Exploration Management Company was not in violation of Rule No. 317.b.(3) 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 the Rules and Regulations of the Commission.
FINDINGS
The Commission finds as follows:
1. Martin Exploration Management 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 July 12, 1994, the Commission notified Martin Exploration Management Company that the Rocky Mountain Fuel No. 1 Well located in the NE¼ SW¼ of Section 24, Township 1 South, Range 70 West, 6th P.M., Boulder County was in violation of Rule 317.b.(3), failure to plug and abandon a well within six (6) months of cessation of production. No response was received or any action taken. On July 5, 1995, staff issued an NOAV requiring submittal of a Form 4 detailing proposed plugging procedures and requiring the well to be properly plugged by August 6, 1995. No action was taken by the operator.
5. At the time of the hearing, staff presented testimony that Martin Exploration Management Company's failure to plug and abandon the non-producing well within six (6) months of the shut-in date had been a violation of Rule 317.b.(3) from December, 1985 to January, 1996, for a total of 3,350 days. Staff recommended that the Commission find Martin Exploration Management Company in violation of Rule 317.b.(3), assess a fine for two thousand dollars ($2,000), and require Martin Exploration Management Company to properly plug and abandon the well, including site restoration, within thirty (30) days of the issuance of the order. Staff further recommended that the Commission reduce the fine to one thousand dollars ($1,000) if compliance occurs within thirty (30) days of the date the order is issued.
6. Mr. John Mayhoffer, representative of the Mayhoffer Trust, surface owner, was in attendance at the September 25, 1995 hearing and presented testimony that the location was in an unacceptable condition and that numerous efforts had been made to have the location cleaned up.
7. After deliberation, the Commission accepted the staff recommendation to find Martin Exploration Management Company in violation of Rule 317.b.(3) and require Martin Exploration Management Company to properly plug and abandon the well, including site restoration, within thirty (30) days of the issuance of the order, but imposed a penalty of ten thousand dollars ($10,000) for said violation, with the penalty to be reduced to one thousand dollars ($1,000) if the plugging and abandonment and site restoration occurs within thirty (30) days of the date the order is issued.
8. The Commission should find Martin Exploration Management Company in violation of Rule No. 317.b.(3) of the Rules and Regulations of the Oil and Gas Conservation Commission, failure to plug and abandon a well within six (6) months of cessation of production, and Martin Exploration Management Company should be required to plug and abandon the well, including site restoration within thirty (30) days, and a fine of ten thousand dollars ($10,000) should be imposed. The assessed fine should be reduced to one thousand dollars ($1,000) if plugging and abandonment and site restoration is completed within thirty (30) days of the date the order issued.
O R D E R
NOW, THEREFORE, IT IS ORDERED, that Martin Exploration Management Company is hereby found in violation of Rule No. 317.b.(3) of the Rules and Regulations of the Oil and Gas Conservation Commission for the Rocky Mountain Fuel No. 1 Well located in the NE¼ SW¼ of Section 24, Township 1 South, Range 70 West, 6th P.M., and is hereby ordered to plug and abandon the well, including site restoration within thirty (30) days of issuance of this order.
IT IS FURTHER ORDERED, that a fine of ten thousand dollars ($10,000) shall be imposed, and if the above-described work is completed within thirty (30) days after the issuance of the order, the imposed fine shall be reduced to one thousand dollars ($1,000).
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 September 25, 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
September 28, 1995