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                                   )

ALFRED WARD & SON OPERATING COMPANY,                           )

WASHINGTON COUNTY, COLORADO                                              )                    ORDER NO. 1V-

 

                                                                                                              

                                                        ADMINISTRATIVE ORDER BY CONSENT

 

                                                                                  FINDINGS

 

                        1. On August 15, 2001, Colorado Oil and Gas Conservation Commission (“COGCC”) staff conducted an inspection of the State #1 and #2 tank battery operated by Alfred Ward & Son Operating Company (“Ward & Son”) located in the NE¼ SE¼ of Section 36, Township 3 South, Range 54 West, 6th P.M.  Oil was observed covering the first produced water pit.  The Field Inspection Report required removal of the oil from the pit by August 22, 2001.

 

                        2.  On August 29, 2001, COGCC environmental staff conducted an inspection of the State #1 and #2 tank battery.  Oil was still present on the first produced water pit.

 

                        3.  On August 31, 2001, COGCC environmental staff issued a Notice of Alleged Violation (“NOAV”) to Ward & Son for failure to remove the oil from the pit.  The NOAV cited violation of Rule 902.d., failure to remove the oil accumulation by the required deadline and Rule 907.a.(1), failure to ensure that Exploration & Production (“E&P”) waste is properly stored, handled, transported, treated, recycled, or disposed to prevent threatened or actual significant adverse environmental impacts to air, water, soil or biological resources.  The NOAV specified an abatement date of September 10, 2001 to remove the oil from the pit.  Corrective action also included removal of discharge piping from the second produced water pit or to submit a status report of any discharge permit from the Water Quality Control Division (“WQCD”) of the Colorado Department of Public Health and Environment ("CDPHE"). 

 

                        4.   Per return receipt, the NOAV was accepted by Ward & Son on September 5, 2001.

 

                        5.  On September 11, 2001, COGCC environmental staff conducted an inspection of the State #1 and #2 tank battery.  The oil had been removed from the first produced water pit.  However, produced water was being discharged through piping from the second produced water pit into adjacent surface waters.  A water sample was collected at the discharge point and submitted for analyses.  Laboratory results of the discharge water indicated non-detectable benzene, toluene, ethylbenzene and xylene (“BTEX”) concentrations.  The COGCC pit permit file for the subject facility contained previous water quality data and indicated a Total Dissolved Solids (“TDS”) concentration at 1,200 mg/l, a sulfate concentration at 36 mg/l, and a chloride concentration at 150 mg/l.

 

6.   On September 12, 2001, Ward & Son was informed by telephone to immediately cease the unauthorized discharge activity.  According to the operator, action was taken within twenty-four (24) hours to stop the discharge.

 

                        7.  On September 18, 2001, COGCC environmental staff conducted an inspection of the State #1 and #2 tank battery.  No unauthorized discharge of produced water was observed.

 

                        8.  On September 21, 2001, COGCC staff issued a Notice of Alleged Violation (“NOAV”) to Ward & Son for the unauthorized discharge of produced water into an unnamed surface drainage.  The NOAV cited violation of: Rule 324A.a., failure to prevent the unauthorized discharge or disposal of E&P waste; Rule 324A.b., performing an act or practice which shall constitute a violation of water quality standards or classifications established by the Water Quality Control Commission (“WQCC”) for waters of the state; Rule 902.a., failure to operate a pit to protect the waters of the state from significant adverse environmental impacts from E&P waste; Rule 907.a.(1), failure to ensure that E&P waste is properly stored, handled, transported, treated, recycled or disposed to prevent threatened or actual significant adverse environmental impacts to water, soil or biological resources or to the extent necessary to ensure compliance with the allowable concentrations and levels in Table 910-1, with consideration to WQCC ground water standards and classifications; Rule 907.a.(2), failure to conduct E&P waste management activities to protect the waters of the state from significant adverse environmental impacts from E&P waste; and Rule 907.c.(2), disposal of produced water by an unacceptable method.  The NOAV specified an abatement date of October 5, 2001 for Ward & Son to submit an explanation for the discharge activity and when the discharge commenced.   

 

                        9.  On October 25, 2001, the required explanation for the unauthorized discharge was received by the COGCC.  The discharge was estimated to have occurred for two to three weeks.

 

10.  On November 14, 2001, COGCC environmental staff conducted an inspection of the State #1 and #2 tank battery.  The discharge piping from the second produced water pit had been removed. 

 

                        11.  A monetary penalty of Six Thousand dollars ($6,000.00) for violation of Rules 324A.a., 324A.b., 902.a., 907.a.(1), 907.a.(2), and 907.c.(2) should be assessed against Ward & Son for these violations in accordance with Rule 523.a. 

 

                                                                                   ORDER

 

                        NOW, THEREFORE IT IS ORDERED, that Alfred Ward & Son Operating Company shall be found in violation of Rules 324A.a., 324A.b., 902.a., 907.a.(1), 907.a.(2), and 907.c.(2), for failure to ensure that E&P waste is properly stored, handled, transported, treated, recycled or disposed and for the unauthorized discharge of produced water into adjacent surface waters at the State #1 and #2 tank battery located in the NE¼ SE¼ of Section 36, Township 3 South, Range 54 West, 6th P.M.

 

                        IT IS FURTHER ORDERED, that Alfred Ward & Son Operating Company shall be assessed a total fine of Six Thousand dollars ($6,000.00) for violation of Rules 324A.a., 324A.b., 902.a., 907.a.(1), 907.a.(2), and 907.c.(2), for failure to ensure that E&P waste is properly stored, handled, transported, treated, recycled or disposed and for the unauthorized and intentional discharge of produced water into adjacent surface waters, payable within thirty (30) days of the date the order is approved by the Commission.

 

                        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.

 

 

                        RECOMMENDED this                  day of January, 2002.

 

                                                                          OIL AND GAS CONSERVATION COMMISSION

                                                                          OF THE STATE OF COLORADO

 

 

                                                                          By                                                                     

                                                                                          Morris Bell, Hearing Officer

 

Dated at Suite 801

1120 Lincoln St.

Denver, Colorado 80203

January 14, 2002       

 

 

Parties Noticed 

      

Mr. Randy Ward

Alfred Ward & Son Operating Company

PO Box 737

Ogallala, NE 69153