IN THE MATTER OF ALLEGED VIOLATIONS OF THE
CAUSE NO. 1
RULES AND REGULATIONS OF THE COLORADO OIL
AND GAS CONSERVATION COMMISSION BY
ORDER NO. 1V-123
PLANET ASSOCIATES, INC., KIOWA COUNTY, COLORADO
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission on May 20, 1997, at 9:00
a.m., in the Morgan County Administration Building, 231 Ensign Street, Fort
Morgan, Colorado, after giving Notice of Hearing as required by law, on why
Planet Associates, Inc. is not in violation Rule 319.b., failure to obtain
Director approval for continued shut-in status and Rule 326.b., failure to
perform a mechanical integrity test within two years of initial shut-in date, 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 for certain wells.
FINDINGS
The Commission finds as follows:
1. Planet Associates, Inc. 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 5, 1996 COGCC staff issued a Notice of Alleged Violation (NOAV)
for the State-Abrams No. 42-14 Well located in the SEžNEž of Section 14,
Township 20 South, Range 49 West, Kiowa County, Colorado. The NOAV cited
violation of Rule 317.b. (319.b. as of June 1, 1996), failure to obtain Director
approval for continuing shut-in status, and Rule 324.b. (326.b. as of June 1,
1996), failure to perform a mechanical integrity test within two years of
initial shut-in date. Commission records indicate that the well has been shut-in
since April 1985. The NOAV specified an abatement date of August 5, 1996.
5. On February 5, 1996 COGCC staff issued a NOAV for the Planet-Venture No. 33-5
Well located in the NWžSEž of Section 5, Township 20 South, Range 48 West, Kiowa
County, Colorado. The NOAV cited violation of Rule 317.b. (319.b. as of June 1,
1996), failure to obtain Director approval for continuing shut-in status, and
Rule 324.b. (326.b. as of June 1, 1996), failure to perform a mechanical
integrity test within two years of initial shut-in date. Commission records
indicate that the well has been shut-in since October 1975. The NOAV specified
an abatement date of August 5, 1996. Per return receipt, the NOAVs were accepted
on February 8, 1996 by Mr. Hugh Matthews.
6. On October 9, 1996 COGCC staff issued an Administrative Order By Consent to
Planet Associates, Inc. The Commission received an unsigned return receipt on
October 18, 1996.
7. On November 27, 1996 Mr. Hugh Matthews contacted COGCC staff by telephone.
Mr. Matthews indicated that Planet Associates, Inc. was no longer in existence
and no money was available to pay any Commission fines. As of May 16, 1997, the
Commission has received no indication that the alleged violations have been
remediated.
8. At the time of hearing on May 20, 1997, COGCC staff presented testimony and
requested that an order of the Commission be entered finding Planet Associates,
Inc. in violation of Rule 319.b., failure to obtain Director approval for
continued shut-in status and Rule 326.b., failure to perform a mechanical
integrity test within two years of initial shut-in date, assessing a fine of
Four Thousand Dollars ($4,000) payable within thirty (30) days from the date the
order is issued and authorizing COGCC staff to make a claim on the two (2) Five
Thousand Dollar ($5,000) individual plugging bonds, in order to plug and abandon
and reclaim the aforementioned wells.
ORDER
NOW, THEREFORE, IT IS ORDERED, that Planet Associates, Inc. shall be found in
violation of Rule 319.b., failure to obtain Director approval for continued
shut-in status and Rule 326.b., failure to perform a mechanical integrity test
within two years of initial shut-in date, for the State-Abrams No. 42-14 Well
located in the SEžNEž of Section 14, Township 20 South, Range 49 West, 6th P.M.,
and the Planet-Venture No. 33-5 Well, located in the NWžSEž of Section 5,
Township 20 South, Range 48 West, 6th P.M.
IT IS FURTHER ORDERED, that Planet Associates, Inc. shall be assessed a fine of
Four Thousand Dollars ($4,000) payable within thirty (30) days from the date the
order is issued
IT IS FURTHER ORDERED, that the Commission shall make a claim on the two (2)
Five Thousand Dollar ($5,000) individual plugging bonds in order to plug and
abandon and reclaim 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.
ENTERED this 30th day of May, 1997, as of May 20, 1997.
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 May 30, 1997
(1V#123)