BEFORE THE OIL AND GAS CONSERVATION COMMISSION

                                                                  OF THE STATE OF COLORADO

 

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

AND REGULATIONS OF THE COLORADO OIL AND GAS                          )

CONSERVATION COMMISSION BY ANTELOPE ENERGY CO.,                  )                     DOCKET NO. 0308-OV-06

WELD COUNTY, COLORADO                                                                   )                    

                                                                                                                                                           

                                                   NOTICE OF ADMINISTRATIVE ORDER BY CONSENT

 

TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:

 

            On October 15, 2001, an Application for Permit to Re-enter, Form 2, was approved for Antelope Energy Company, LLC (“Antelope”) to re-enter the Maddy #1 Well located in the SE¼ SW¼ of Section 31, Township 10 North, Range 57 West, 6th P.M.  Because no information was submitted by Antelope regarding the re-entry, Colorado Oil and Gas Conservation Commission (“COGCC”) staff contacted Antelope by telephone on April 2, 2003 to inquire as the status of the Application for Permit to Re-Enter.  As a follow-up to that conversation, on April 8, 2003, Antelope submitted Sundry Notice, Form 4, summarizing the operations performed on the well and stating that due to complications during the re-entry and the possibility that Antelope would continue to work on the well, the well bore was left open.

 

On April 11, 2003 COGCC staff conducted a field inspection on the Maddy #1 Well. The COGCC inspector determined that the well had been re-entered and was left in an unsecured manner with an unwelded steel plate on top of the surface casing and the reserve drilling pits were left open. On April 12, 2003, COGCC staff contacted Antelope. Antelope indicated that they had attempted to re-enter the well on December 3, 2001, but were unsuccessful due to wellbore problems encountered while drilling out the previously placed cement plug at 647 feet in depth. Antelope did not set any new plugs and the rig was released on December 11, 2001.  

 

On April 14, 2003, staff issued a Notice of Alleged Violation (“NOAV”) for violations of Rule 308A., failure to submit a Drilling Completion Report, Form 5 within thirty (30) days of the suspension of commenced drilling activities prior to reaching total depth; Rule 301., failure to provide written notice of intention to change plans previously approved; Rule 319.b.(1), failure to obtain approval of the Director for temporarily abandoning the well and failure to close the well to the atmosphere prior to the temporary abandonment; and Rule 1003.b., failure to reclaim the location within twelve (12) months after drilling operations. The NOAV specified abatement of plugging and abandoning the well and reclaiming the site by May 15, 2003. The NOAV also directed Antelope to submit by May 15, 2003, a written response explaining their temporary abandonment of the well.  On May 6 and 7, 2003, Antelope plugged and abandoned the Maddy #1 Well.  By letter dated May 9, 2003, Antelope submitted the written response required in the NOAV. The letter stated that Antelope had overlooked the Maddy #1 Well until contacted by the COGCC.

 

On July 8, 2003, COGCC staff issued an Administrative Order by Consent (“AOC”) to Antelope Energy Co. for the violation of COGCC Rules 308A., 301., 319.b.(1), and 1003.b.  On July 16, 2003, Antelope Energy Co. agreed to and accepted the AOC, including the fine of One Thousand Dollars ($1,000).

 

NOTICE IS HEREBY GIVEN, that the Oil and Gas Conservation Commission of the State of Colorado, pursuant to the above, has scheduled the above-entitled matter for hearing on:

                 

Date:                            Monday, August 18, 2003

                                   

Time:                            10:00 a.m.

 

Place:                           Petroleum Hall, Green Center, Colorado School of Mines

                                    1500 Illinois Street

                                    Golden, CO 80401

                       

            In accordance with the Americans with Disabilities Act, if any party requires special accommodations for this hearing as a result of a disability, please contact Audra Serlet at (303) 894-2100, extension 114, prior to the hearing and arrangements will be made.

 

Pursuant to said hearing in the above-entitled matter at the time and place aforesaid, or at any adjourned meeting, the Commission will enter such orders as it deems appropriate and necessary to protect public health, safety and welfare and to prevent the waste of oil and gas, either or both, in the operations of said field, and carry out the purposes of the statute.

 

In accordance with Rule 509., any interested party desiring to protest or to intervene should file with the Commission a written protest or a notice to intervene no later than August 4, 2003 briefly stating the basis of the protest or intervention.  Such interested party shall, at the same time, serve a copy of the protest or notice to intervene to the person filing the application.  An original and nine (9) copies shall be filed with the Commission.

 

      IN THE NAME OF THE STATE OF COLORADO

 

                                                                  OIL AND GAS CONSERVATION COMMISSION

                               OF THE STATE OF COLORADO

 

 

 

                        By_________________________________

Dated at Suite 801                                                                Patricia C. Beaver, Secretary

1120 Lincoln Street

Denver, Colorado, 80203

July 21, 2003