SECURITIES AND EXCHANGE COMMISSION

                         Washington, D.C. 20549

                                Form 8-K

                             CURRENT REPORT

  Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

    Date of Report (Date of earliest event reported) December 15, 2006

                           Commerce Group Corp.
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          (Exact name of registrant as specified in its charter)

           Wisconsin                   1-7375              39-6050862
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 (State or other jurisdiction  (Commission File Number)   (IRS Employer
     of incorporation)                                  Identification No.)

        6001 North 91st Street, Milwaukee, Wisconsin  53225-1795
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       (Address of principal executive offices)       (Zip Code)


Registrant's telephone number, including area code:  (414) 462-5310
                                               fax:  (414) 462-5312


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ITEM 8.  OTHER EVENTS

COMMERCE FILES CLAIMS AGAINST THE EL SALVADOR MINISTRY OF ENVIRONMENT AND
NATURAL RESOURCES WITH THE EL SALVADOR SUPREME COURT ADMINISTRATIVE
DIVISION

Commerce Group Corp.'s (Commerce) El Salvadoran legal counsel filed a
complaint with the El Salvadoran Supreme Court Administrative Division
claiming that the Office of the Ministry of Environment and Natural
Resources (MARN) revoked two of its El Salvadoran environmental permits
for mining exploitation without any prior notice, without a right to a
hearing and due process, based on misguided assertions, and contrary to
the El Salvadoran law.  MARN implies that Commerce is producing gold
whereas the facts by MARN's own audit, which involved an actual physical
inspection of Commerce's mining facilities on June 23, 2006, state that
Commerce is not in production and that it passed the test of the audit.

In the Republic of El Salvador it is mandatory to obtain from the Office
of the Ministry of Economy two types of mining concessions:  an
exploration concession to explore the property, and if sufficient
evidence is acquired that a mine can commercially produce gold and
silver, then an exploitation concession is acquired.  Commerce presently
has one exploitation concession identified as the Renewed San Sebastian
Gold Mine Exploitation Concession/License (Renewed SSGM).  It was issued
under El Salvador Agreement Number 591 dated May 20, 2004 and consists of
an area of approximately 304 acres located in the Department of La Union,
El Salvador, Central America.  This concession provides Commerce with the
right to process and sell gold and silver.

Commerce has two exploration concessions.  One exploration concession is
identified as the New San Sebastian Gold Mine Exploration
Concession/License (New SSGM).  It was issued under El Salvador
Resolution Number 27 and consists of approximately 10,070 acres located
in the Department of La Union and Morazan, El Salvador.  The second
exploration concession is identified as the Nueva Esparta Exploration
Concession/License (Nueva Esparta).  It was issued under El Salvador
Resolution Number  271, consists of 11,115 acres, and is located in the
Departments of La Union and Morazan.

In addition to the exploration and exploitation concessions, the Company
is required by El Salvadoran law to obtain from the Ministry of
Environment and Natural Resources (MARN) an environmental permit for the
exploitation and processing of minerals.  On October 15, 2002, MARN
issued an environmental permit for mining exploitation under Resolution
474-2002 for the San Cristobal Mill and Plant; this permit was recently
revoked.  On October 20, 2002 MARN issued an environmental permit for
mining exploitation under Resolution 493-2002 for the Renewed SSGM; this
permit was also recently revoked.  On March 15, 2006 the bond issued by
Seguros del Pacifico was renewed for a three-year period.  In compliance
with recent requirements invoked by MARN, Commerce submitted an
application with MARN for its two exploration concessions.

Commerce has the option of continuing its lawsuit against MARN and to let
the Court decide.  It also will continue its political process as it
firmly believes that the revocation was political and not permitted by El
Salvadoran law.  It further believes that it has the right to reapply for
the two environmental permits for mining exploitation that were revoked.

For over 38 years Commerce has had the continuous support from the
communities within its concession areas.  It has maintained a serious
policy of environmental responsibility since its involvement began in
October 1968 and it plans to continue this policy in the future.

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                              SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed  on its behalf by the
undersigned hereunto duly authorized.

                              COMMERCE GROUP CORP.
                              (Registrant)

                              /s/ Edward L. Machulak
Date:  December 15, 2006      __________________________________________
                              By:  Edward L. Machulak, President



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