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 R.L. HRBEK, ) ORDER NO. 1V-90
LOGAN COUNTY, COLORADO ) (1-214)
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on October 17, 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 R.L. Hrbek was not in violation of Rule No. 317 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. R.L. Hrbek 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. Numerous attempts have been made to correct violations for the Nelson No. 1 Well, located in the SE¼ SE¼ of Section 9, Township 10 North, Range 54 West; the Elwood No. 1 Well located in the NW¼ NW¼ of Section 15, Township 10 North, Range 54 West; the Elwood No. 2 Well, located in the NE¼ NW¼ of Section 15, Township 10 North, Range 54 West; and the Propst SWD No. 2 Well located in the SE¼ SE¼ of Section 15, Township 10 North, Range 54 West, 6th P.M., operated by Mr. R.L. Hrbek, were plugged between August, 1988 and January, 1994, but field inspections made by Commission staff on April 7th and 25th, 1995 showed pits remained open and production equipment was still present at the locations. NOAVs were issued to Mr. Hrbek April 27, 1995 with corrective action to be completed by May 24, 1995. Commission records indicated that Three States Well Service was the operator of record for the Elwood No. 15-1 Well, although upon field inspection, the operator appeared to be Mr. Hrbek. Telephone conversations occurred during the months of May and June, 1995 between Mr. Hrbek and Ed Binkley in which Mr. Hrbek repeatedly promised that restoration work would be done. The locations were reinspected September 20, 1995 and showed no restoration work had been done.
5. At the time of the hearing, staff presented testimony that since the time the notice of hearing was issued, R.L. Hrbek has properly restored the Nelson and Elwood leases and that the Propst SWD No. 2 Well has not be restored as of October 11, 1995. Staff recommended that R.L. Hrbek be found in violation of Rule 317.a.(8) for four (4) wells and in violation of Rule 310 for one well, and that Mr. Hrbek complete all restoration work immediately and file proper forms. Staff further recommended that a fine of two thousand dollars ($2,000) per well be assessed, for the four (4) wells, for a total fine of eight thousand dollars ($8,000), with a fifty-percent (50%) reduction in fine since restoration has been completed on three (3) wellsites. Staff therefore recommended a total fine of five thousand dollars ($5,000) to be assessed.
6. Testimony presented by Mr. Hrbek at the hearing indicated that the Elwood No. 1 Well was plugged and abandoned by a previous operator, prior to purchase by Mr. Hrbek.
7. Dave Rebol of H&R Well Services, the company hired by Mr. Hrbek to complete restoration, testified that the company is extremely busy and has been unable to finalize all work contracted by Mr. Hrbek.
8. After discussion among the Commissioners, the staff withdrew its recommendation to find R.L. Hrbek in violation of Rule 310 for the Elwood No. 1 Well.
9. The Commission should find R.L. Hrbek in violation of Rule No. 317.a.(8) of the Rules and Regulations of the Oil and Gas Conservation Commission, failure to properly reclaim abandoned well location, for the Nelson No. 1 Well, located in the SE¼ SE¼ of Section 9, Township 10 North, Range 54 West; the Elwood No. 2 Well, located in the NE¼ NW¼ of Section 15, Township 10 North, Range 54 West; and the Propst SWD No. 2 Well located in the SE¼ SE¼ of Section 15, Township 10 North, Range 54 West, 6th P.M., and assess a fine of five thousand dollars ($5,000) for said violations.
10. The Commission should order R.L. Hrbek to immediately complete all restoration work on the Propst SWD No. 2 Well and file proper forms with the Commission.
O R D E R
NOW, THEREFORE, IT IS ORDERED, that R.L. Hrbek is hereby found in violation of Rule No. 317.a.(8) of the Rules and Regulations of the Oil and Gas Conservation Commission for the Nelson No. 1 Well, located in the SE¼ SE¼ of Section 9, Township 10 North, Range 54 West; the Elwood No. 2 Well, located in the NE¼ NW¼ of Section 15, Township 10 North, Range 54 West; and the Propst SWD No. 2 Well located in the SE¼ SE¼ of Section 15, Township 10 North, Range 54 West, 6th P.M.
IT IS FURTHER ORDERED, that a fine of five thousand dollars ($5,000) shall be assessed, payable within thirty (30) days after issuance of the order.
IT IS FURTHER ORDERED, that R.L. Hrbek shall immediately complete all restoration work on the Propst SWD No. 2 Well and file proper forms with the Commission.
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 October 17, 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
October 30, 1995