BEFORE THE OIL AND GAS CONSERVATION COMMISSION

                                                               OF THE STATE OF COLORADO

 

IN THE MATTER OF ALLEGED VIOLATIONS OF THE                       )                    CAUSE NO. 1V

RULES AND REGULATIONS OF THE COLORADO OIL                   )

AND GAS CONSERVATION COMMISSION BY                                   )                    ORDER NO. IV-271

SWIFT BEEF COMPANY, WELD COUNTY, COLORADO               )

 

 

FINDINGS

 

                       1.  On October 20, 2003, Colorado Oil and Gas Conservation Commission (“COGCC”) staff sent an e-mail to Swift Beef Company (“Swift”) requesting an Operator’s Monthly Report of Operations, Form 7, for the following eleven (11) wells (the “Wells”) operated by Swift:

 

                        Monfort Gilcrest #1, NWSE Section 8, Township 4N, Range 66W

                        Monfort Gilcrest #2, SENE Section 8, Township 4N, Range 66W

                        Monfort Gilcrest #3, SESW Section 8, Township 4N, Range 66W

                        Monfort Gilcrest #6, SESE Section 8, Township 4N, Range 66W

                        Monfort Gilcrest #7, NESE Section 8, Township 4N, Range 66W

                        Monfort Gilcrest #9, SWSE Section 8, Township 4N, Range 66W

                        Monfort Gilcrest #5, SWSW Section 9, Township 4N, Range 66W

                        Monfort Gilcrest #4, NENE Section 16, Township 4N, Range 66W

                        Monfort Gilcrest #8, SENE Section 16, Township 4N, Range 66W

                        Monfort Kuner #26-1, SWNE Section 26, Township 5N, Range 64W

                        Monfort Kuner #26-2, SENE Section 26, Township 5N, Range 64W

 

Monthly production reports have not been submitted to the COGCC for the above-listed Wells since December 1998.  The COGCC can find no record that Oil and Gas Conservation Levy, Form 8, has been submitted and paid since December 1998 for these Wells.

 

                        2.  On October 21, 2003, COGCC staff sent additional information and instructions about the Form 7 to Swift via facsimile.

 

                        3.  On January 26, 2004 COGCC staff sent a Notice of Alleged Violation (“NOAV”) to Swift detailing that the Wells were in violation of Rule 206., failure to file accurate and complete reports, Rule 309., failure to submit Form 7 within forty-five (45) days after the month in which production occurs, and Rule 310A., failure to submit Form 8 and levy payments.  The NOAV had an abatement date of February 26, 2004.

 

                        4.  Per the return receipt, the NOAV was received by Swift on January 27, 2004.

 

                        5.  As of March 16, 2004 Swift had not complied with the NOAV, nor had Swift contacted COGCC staff concerning the matter.

 

                        6.  On March 17, 2004 COGCC staff sent an Administrative Order By Consent (“AOC”) to Swift for the alleged violations.

 

                        7.  As of April 22, 2004 Swift has not contacted the COGCC concerning the AOC and has not resolved the alleged violations.                      

 

8.  Rule 523. specifies a base fine of Five Hundred dollars ($500) per day for each violation of Rules 206., 309., and 310A.

 

                        9.  A monetary penalty of Two Thousand dollars ($2,000.00) should be assessed against Swift, in accordance with Rule 523.a. and Rule 523.d., for violation of Rules 206., 309., and 310A.  Aggravating factors in determining the fine recommendation is that under Rule 523.d.(6) the violation involved recalcitrance or recidivism upon the part of the violator, and under Rule 523.d.(8) the violation resulted in economic benefit to the violator.

 

                                                                                   ORDER

 

                        NOW, THEREFORE, IT IS ORDERED, that Swift Beef Company shall be found in violation of Rule 206., failure file accurate and complete reports, Rule 309., failure to submit an Operator’s Monthly Report of Operations, Form 7 within forty-five (45) days after the month in which production occurs, and Rule 310A., failure to submit Oil and Gas Conservation Levy, Form 8 and levy payments for the following eleven (11) wells:

 

                        Monfort Gilcrest #1, NWSE Section 8, Township 4N, Range 66W

                        Monfort Gilcrest #2, SENE Section 8, Township 4N, Range 66W

                        Monfort Gilcrest #3, SESW Section 8, Township 4N, Range 66W

                        Monfort Gilcrest #6, SESE Section 8, Township 4N, Range 66W

                        Monfort Gilcrest #7, NESE Section 8, Township 4N, Range 66W

                        Monfort Gilcrest #9, SWSE Section 8, Township 4N, Range 66W

                        Monfort Gilcrest #5, SWSW Section 9, Township 4N, Range 66W

                        Monfort Gilcrest #4, NENE Section 16, Township 4N, Range 66W

                        Monfort Gilcrest #8, SENE Section 16, Township 4N, Range 66W

                        Monfort Kuner #26-1, SWNE Section 26, Township 5N, Range 64W

                        Monfort Kuner #26-2, SENE Section 26, Township 5N, Range 64W

 

                        IT IS FURTHER ORDERED, that Swift Beef Company shall be assessed a fine of Two Thousand dollars ($2,000.00) payable within thirty (30) days of the date the order is approved by the Commission for violations occurring on the Wells.

 

                        IT IS FURTHER ORDERED, that Swift Beef Company shall submit the required reports and pay any outstanding levy payments for the Wells within thirty (30) days of the date the order is approved by the Commission.

 

                        IT IS FURTHER ORDERED, that if Swift Beef Company fails to comply with the provisions of this Order the Commission shall revoke the Certification of Clearance, Form 10 and prevent the transportation of oil and the gathering of gas from the eleven Wells until the violations are resolved.

 

                        IT IS FURTHER ORDERED, that if Swift Beef Company fails to comply with the provisions of this Order the Commission shall claim Swift Beef Company’s the blanket plugging bond and plug the wells.

 

                        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.

 

IT IS FURTHER ORDERED, that under the State Administrative Procedure Act the Commission considers this order to be final agency action for purposes of judicial review within thirty (30) days after the date this order is mailed by the Commission.

 

                        IT IS FURTHER ORDERED, that an application for reconsideration by the Commission of this order is not required prior to the filing for judicial review.

 

 

                        Recommended this               day of May, 2004.

 

 

                                                                        OIL AND GAS CONSERVATION COMMISSION

 

 

 

                                                                        By                                                                   

 

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado  80203

May XX, 2004