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-133
JOSEPH P. DOYLE, JACKSON COUNTY, COLORADO
REPORT OF THE COMMISSION
This cause came on for hearing before the Commission at 8:30 a.m., on February
9, 1998, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver,
Colorado, after giving Notice of Hearing as required by law, on why Joseph P.
Doyle is in violation of certain rules and regulations of the Oil and Gas
Conservation Commission and why the Commission 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. Joseph P. Doyle 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 April 15, 1996 COGCC staff issued a notice to perform a Mechanical
Integrity Test (MIT) for the South Coalmont #1 Well located in the NE¼ SW¼ of
Section 6, Township 6 North, Range 80 West, 6th P.M. The notice requested that
the test be run within six (6) months in accordance with Rule 324.b. (326.b. as
of June 1, 1996), a mechanical integrity test is required within two (2) years
of initial shut-in. Commission records indicate that the well has been shut-in
since 1984. On November 8, 1996 COGCC staff issued a Notice of Alleged Violation
(NOAV) for the South Coalmont #1 Well. The NOAV cited violation of Rule 326.b.,
failure to perform a mechanical integrity test within two (2) years of initial
shut-in. The NOAV had an abatement date of May 8, 1997. On May 9, 1997 COGCC
staff attempted to telephone Mr. Doyle. The phone number listed for Mr. Doyle
per COGCC records was inactive. On May 12, 1997 COGCC staff sent Mr. Doyle a
certified letter to his last known address requesting he contact the COGCC by
June 1, 1997. The letter was accepted on May 20, 1997. On May 30, 1997 COGCC
staff talked with Mr. Doyle. He informed staff that Delta Petroleum had taken
over the lease two (2) years earlier and a Form 10 (Change of Operator) had been
sent six (6) weeks prior. The COGCC did not receive a Form 10 from Delta
Petroleum. On June 26, 1997 COGCC staff called Mr. Doyle and informed him the
COGCC had not received a Form 10 from Delta Petroleum for the well. On July 9,
1997 Mr. Doyle informed staff that the landowner, Mr. Fuller would operate the
well. COGCC staff informed Mr. Doyle of the bonding and registration
requirements. He said he would inform Mr. Fuller. On July 23, 1997 the COGCC
received a Form 10 from Mr. Fuller. No financial assurance was submitted with
the Form 10. On August 15, 1997 staff notified Mr. Fuller of the bonding
obligations to assume operations of the well. Mr. Fuller indicated to staff he
was not able to comply with the financial assurance obligations of Rule 706. and
would not assume operations of the well. On August 19, 1997 the COGCC received a
letter from Mr. Charles Fuller indicating he was withdrawing the Form 10 he had
submitted on July 23, 1997. As of December 29, 1997 the South Coalmont #1 Well
was not in compliance.
5. At the time of the hearing, Commission staff provided testimony and presented
exhibits in support of the proposed order being recommended for adoption by the
Commission.
6. Based on the testimony presented, an order of the Commission should be
entered finding Joseph P. Doyle in continuing violation of Rule 326.b., failure
to perform a mechanical integrity test within two (2) years of initial shut-in
date for the South Coalmont #1 Well, and a total fine of Two Thousand dollars
($2,000) should be assessed. Further, Joseph P. Doyle should required to either:
1) perform a successful mechanical integrity test; or 2) properly plug and
abandon; or 3) put on production the South Coalmont #1 Well within thirty (30)
days of the date the order is issued. Joseph P. Doyle should not be issued any
additional drilling permits until compliance with this order is reached in
accordance with §34-60-121(7) C.R.S., and if Joseph P. Doyle does not comply
with the above, COGCC staff should be directed to make a claim on the Five
Thousand dollar ($5,000) plugging bond and plug the well. If plugging and
reclamation costs exceed the bond amount COGCC staff should confiscate available
equipment and tubulars for salvage in accordance with §34-60-124.(6).(c). C.R.S.
ORDER
NOW THEREFORE, IT IS ORDERED, that Joseph P. Doyle shall be found in continuing
violation of Rule 326.b., failure to perform a mechanical integrity test within
two (2) years of initial shut-in date for the South Coalmont #1 Well in the NE¼
SW¼ of Section 6, Township 6 North, Range 80 West, 6th P.M.
IT IS FURTHER ORDERED, that Joseph P. Doyle shall be assessed a total fine of
Two Thousand dollars ($2,000) payable within thirty (30) days from the date the
order is issued.
IT IS FURTHER ORDERED, that the Commission shall not issue any drilling permits
to Joseph P. Doyle, or any company in which Joseph P. Doyle is a principal,
until compliance with this order is achieved.
IT IS FURTHER ORDERED, that if Joseph P. Doyle does not comply with the order,
COGCC staff shall be authorized to commence claim on the Five Thousand dollar
($5,000) plugging bond.
IT IS FURTHER ORDERED, that if the Commission makes a claim on the plugging bond
and the plugging and reclamation costs exceed the bond amount, COGCC staff shall
confiscate available equipment and tubulars for salvage in accordance with
§34-60-124.(6)(c), C.R.S.
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 10th day of March, 1998, as of February 9, 1998.
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 March 10, 1998
(1V#133)