BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO

REPORT OF THE COMMISSION

The Commission heard this matter on May 29, 2012, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, upon application for an order approving a Memorandum of Understanding regarding performance of public project in liew of fine related to Order No. 1V-372.

FINDINGS

The Commission finds as follows:

1.         Berry Petroleum Company (“Berry” or “Applicant”), as applicant herein, 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 pursuant to the Oil and Gas Conservation Act.

4.         On June 27, 2011, the Commission entered into an Administrative Order by Consent (AOC), Order No. 1V-372, with Berry Petroleum Company (“Berry”) in resolution of outstanding Rules violations at Berry’s Chevron #12-213D Well (API #05-045-10938), and associated pad located in the SW¼ NW¼ of Section 12, Township 6 South, Range 97 West, 6^th P.M., Garfield County, Colorado. The AOC assessed a fine of $173,000 in the form of a $100,000 cash fine payable within 30 days of entry of the AOC, and a payment of $173,000 to fund a public project in Colorado in accordance with Rule 523.e.

5.         Berry has proposed an appropriate public project in cooperation with the Colorado River Water Conservation District, (“CRWCD”) and the Middle Colorado River Watershed Partnership (“MCRWP”). The public project is generally described in a proposal by the MCRWP as a Riparian Restoration Project, dated December 11, 2011. A memorandum of understanding (MOU) has been prepared by Commission Staff, Berry, CRWCD and the MCRWP which approves the project as consistent with the AOC, further establishing the procedures governing Berry’s payment for the project, CRWCD managing the project, and MCRWP implementing the project. The Berry funds will be the local match for a grant from the U.S. Environmental Protection Agency grant pursuant to Section 319 (h) of the Clean Water Act.

6.         On May 29, 2012, the Commission heard this matter and considered the proposed MOU and the proposed Riparian Restoration Project. The Commission strongly supports this project and MOU.

ORDER

NOW, THEREFORE IT IS ORDERED, that the memorandum of understanding between the COGCC, Berry Petroleum, and the Colorado River Water Conservation District is hereby approved as presented and attached to this Order.

IT IS FURTHER ORDERED, that this order shall become effective immediately.

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 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.

ENTERED this   30^th  day of May, 2012, as of May 29, 2012.

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                        OF THE STATE OF COLORADO

                                                                        By____________________________________    

                                                                                    Peter J. Gowen, Acting Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

May 30, 2012