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