BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF ALLEGED VIOLATIONS OF THE              )                       CAUSE NO. 1V

RULES AND REGULATIONS OF THE COLORADO OIL           )

AND GAS CONSERVATION COMMISSION BY                          )                       ORDER NO. 1V-

ONEOK RESOURCES COMPANY,                                            )

BACA COUNTY, COLORADO                                                       )

 

ADMINISTRATIVE ORDER BY CONSENT

 

FINDINGS

 

1. On January 29, 2001, Colorado Oil and Gas Conservation Commission (“COGCC”) staff received a letter from Sandlin Oil Corporation (“Sandlin”) stating that Sandlin was no longer the operator of the Bauman A #1-2 Well located in the SW¼ SW¼ of Section 2, Township 33 South, Range 42 West, 6^th P.M. The letter indicted that Oneok Resources Company (“Oneok”) is the current operator.

 

2. On August 6, 2001, COGCC staff by letter requested that Oneok provide financial assurance for plugging and abandonment of the subject well, submit a Registration for Oil and Gas Operations, Form 1, and submit a Certification of Clearance and/or Change of Operator, Form 10.

 

3. On November 11, 2001, COGCC staff issued a Notice of Alleged Violation (“NOAV”) to Oneok. The NOAV cited violations of Rule 302., failure to provide a Registration for Oil and Gas Operations, Form 1, Rule 312, failure to provide a Certification of Clearance and/or Change of Operator, Form 10 and Rule 706., failure to provide financial assurance in accordance with the 700 Series rules prior to assuming the operations of a well. The NOAV specified December 10, 2001 as the abatement date.

 

4. To date, Oneok has not completed the actions required in the NOAV dated described above.

 

5. A review of COGCC records indicates that Oneok has not submitted Operator’s Monthly Report of Operations, Form 7. The last Form 7 for the well was submitted for December of 2000.

 

6. Oneok should be found in violation of Rules 302., 312., and 706. for the Bauman A #1-2 Well.

 

7. A monetary penalty of One Thousand Seven Hundred Fifty dollars ($1,750) for these violations should be assessed against Oneok in accordance with Rule 523.a.

 

8. Oneok should submit a Registration for Oil and Gas Operations, Form 1, a Certification of Clearance and/or Change of Operator, Form 10 and provide financial assurance in accordance with the 700 Series rules.

 

9. Oneok should submit the appropriate Form 7’s to update the COGCC production records.

 

ORDER

 

            NOW, THEREFORE IT IS ORDERED, that Oneok Resources Company shall be found in violation of Rules 302., 312., and 706. for the Bauman A #1-2 Well located in the SW¼ SW¼ of Section 2, Township 33 South, Range 42 West, 6^th P.M.

 

IT IS FURTHER ORDERED, that Oneok Resources Company shall be assessed a fine of One Thousand Seven Hundred Fifty dollars ($1,750), payable within thirty (30) days of the date the order is approved.

 

IT IS FURTHER ORDERED, that Oneok Resources Company shall provide an updated Registration for Oil and Gas Operations, Form 1 within thirty (30) days of the date the order is approved.

 

IT IS FURTHER ORDERED, that Oneok Resources Company shall provide an updated Certification of Clearance and/or Change of Operator, Form 10 within thirty (30) days of the date the order is approved.

 

IT IS FURTHER ORDERED, that Oneok Resources Company shall provide financial assurance in accordance with the 700 Series Rules within thirty (30) days of the date the order is approved.

 

IT IS FURTHER ORDERED, that Oneok Resources Company shall provide updated Operator’s Monthly Report of Operations, Form 7 within thirty (30) days of the date the order is approved.

 

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/or all of the above orders.

 

            RECOMMENDED this _________ day of January 31, 2002.

 

OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

 

By ________________________________

Morris Bell, Hearing Officer

 

Dated at Ste. 801

1120 Lincoln St.

Denver, CO  80203

January 31, 2002

 

 

Parties Noticed

 

Mr. Jim Leonard

Oneok Resources Company

PO Box 871

Tulsa, OK 74102-0871