REPORT OF THE COMMISSION

This cause came on for hearing before the Commission on January 18, 1996, 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.E. Hibbert Oil Properties, was not in violation of Rule No. 902.c., inadequate freeboard on pit berm; Rule No. 902.e., oil on pits for more than twenty-four (24) hours; and Rule No. 603.g., weeds, rubbish and waste materials on lease , 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.E. Hibbert Oil Properties 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 February 2, 1995, COGCC staff inspected the Hibbert No. 1 Wright Well located in the SE1/4 SW1/4 of Section 22, Township 2 South, Range 53 West, 6th P.M., and found violations of Rule No. 902.e., oil on production pit. On September 20, 1995, the site was re-inspected by staff and the same violation was found. A Notice of Alleged Violation (NOAV) was issued to R.E. Hibbert Oil Properties requiring remediation by September 27, 1995. There was no indication from the operator that the violation had been corrected in the required time period. On December 5, 1995, the site was re-inspected and the same violation was found.

5. On September 12, 1995, COGCC staff inspected the Hibbert No. 1-16 State Well located in the SW1/4 SE1/4 of Section 16, Township 3 South, Range 52 West, 6th P.M., and found violations of Rule No. 902.c., inadequate freeboard on pit berm; Rule No. 902.e., oil on pits for more than twenty-four (24) hours; and Rule No. 603.g., weeds, rubbish and waste materials on lease. A NOAV was issued to R.E. Hibbert Oil Properties, requiring remediation by Septemb er 19, 1995. On September 20, 1995, the site was re-inspected by staff and found in violation of Rule No. 902.a., unreported and unremediated release of oil, and Rule No. 902.e., oil on production pit. A NOAV was issued for these violations requiring remediation by September 27, 1995. On September 29, 1995, Hibbert's production supervisor wrote the staff stating that weeds had been mowed, some of the oil was removed from the pits, and the berms would b e built up after weeds have died back. On October 30, 1995, the site was re-inspected by staff and found in violation of Rule No. 902.e., oil on production pit. Oil completely covered the sixty-five (65) foot square pit and the oil on the pit was burned-off later that same day. On December 5, 1995, the site was re-inspected by staff and found in violation of Rule 902.e., oil on production pit and Rule No. 902.a., unreported and unremediated release of oil. There was no indication from the operator that the violation had been corrected in the required time period.

6. On December 22, 1995, two (2) Administrative Orders by Consent (AOC) were proposed by COGCC staff. On January 3, 1996, a meeting was held between R.E. Hibbert Oil Properties and COGCC staff to discuss the proposed AOCs and with the agreement of R.E. Hibbert Oil Properties certain revisions were made. The Hearing Officer recommends that R.E. Hibbert Oil Properties be found in violation of Rule No. 902.e., accumulation of oil in a pit for more than t wenty-four (24) hours after discovery for both wells. Further, the Hearing Officers recommends a fine of Three Thousand Dollars ($3,000) be assessed for the Hibbert No. 1-16 State Well and Two Thousand Two Hundred Fifty Dollars ($2,250) for the Hibbert No. 1 Wright Well, for a total of Five Thousand Two Hundred Fifty Dollars ($5,250) assessed, payable within thirty (30) days from issuance of the Order.

O R D E R

NOW, THEREFORE, IT IS ORDERED, that R.E. Hibbert Oil Properties shall be found in violation of Rule No. 902.e., accumulation of oil in a pit for more than twenty-four (24) hours after discovery for the Hibbert No. 1-16 State Well and the Hibbert No. 1 Wright Well.

IT IS FURTHER ORDERED, that R.E. Hibbert Oil Properties shall be assessed a total fine of Five Thousand Two Hundred Fifty Dollars ($5,250) payable within thirty (30) days of the date the order is entered.

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 , 1996, as of January 18, 1996.

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 January 23, 1996 ??

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