BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
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IN THE MATTER OF VIOLATIONS OF THE RULES AND REGULATIONS OF THE OIL AND GAS CONSERVATION COMMISSION BY GREAT WESTERN OPERATING COMPANY, LLC, WELD COUNTY, COLORADO |
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CAUSE NO. 1C
ORDER NO. 1C-11 |
CEASE AND DESIST ORDER
This Cease and Desist Order (“Cease and Desist”) is issued by the Director of the Colorado Oil and Gas Conservation Commission (“COGCC” or “Commission”) pursuant to §34-60-121(5), C.R.S., and COGCC Rule 522.g. of the Rules and Regulations of the Colorado Oil and Gas Conservation Commission, 2 CCR 404-1(“Rule” or “Rules”).
FINDINGS
1. Great Western Operating Company, LLC (Operator No. 10110) (“Great Western”) is the registered Operator of the Dittmer KE Pad/29-032HN (Location ID 447013) (“Dittmer Location”).
2. On September 20, 2017, a separator fire occurred at the Dittmer Location. (Accident Report No. 401411356)
3. COGCC Staff inspected the Dittmer Location after the fire on September 28, 2017, and observed five horizontal heated separators impacted by the fire and out of service on the south side of the location. (Inspection No. 690100132) In this Corrective Action Field Inspection Report, Staff required that no later than November 17, 2017, Great Western submit a detailed root cause analysis; a description of all equipment changes, repairs, and replacements as a result of the fire; and a list of all measures being taken to prevent the problem from reoccurring.
4. The information and actions required by Staff are necessary for Great Western to demonstrate its compliance with COGCC Rules and Regulations, 2 C.C.R. 404-1, (“Rule” or “Rules”) 605.d. (Mechanical Conditions), which requires that operators maintain all valves, pipes, and fittings securely fastened and in good mechanical condition and Rule 1102.a.(2) (Maintenance), which requires that operators correct any condition that could adversely affect the safe and proper operation of pipelines on the Dittmer Location.
5. Upon information and belief, between September 20, 2017 and October 12, 2017, Great Western returned the wells on the Dittmer Location to production.
6. On October 12, 2017, a second separator fire occurred on the Dittmer Location.
7. To date, Great Western has not submitted the reports required under Corrective Action Field Inspection Report No. 690100132.
8. Upon information and belief, Great Western seeks to return the wells on the Dittmer Location to production immediately.
9. In light of the circumstances described above, the Director has determined that Great Western’s continued production of wells on the Dittmer Location without demonstrating full compliance with Rules 605.d. and 1002.a.(2) constitute an emergency situation posing a significant threat of harm to public health, safety, and welfare, including the environment and wildlife resources.
ORDER
In accordance with §34-60-121(5), C.R.S., and COGCC Rule 522.g., the DIRECTOR ORDERS that, Great Western Operating Company, LLC, and their agents immediately cease production of all oil and gas wells on the Dittmer Location.
This Cease and Desist Order will remain in effect until such time as Great Western demonstrates to the Director’s satisfaction its ability to safely produce the wells on the Dittmer Location in compliance with COGCC Rules 605.d. and 1102.a.(2).
Great Western, and their Officers, Agents, and Representatives shall preserve all documents and communications pertaining to all activities at the Dittmer Location.
The provisions contained in the above order shall become effective immediately.
The Director expressly reserves his right, after notice and hearing, to alter, amend, or repeal any and/or all of the above orders.
EXECUTED this 16th day of October, 2017
IN THE NAME OF THE STATE OF COLORADO
OIL AND GAS CONSERVATION COMMISSION
By
Matthew J. Lepore, Director
CERTIFICATE OF SERVICE
On October 16th, 2017, a true and accurate copy of Cease and Desist Order 1C-11 was personally served to:
Great Western Operating Company, LLC
C/O Jeremy Conger
____________________________________
Matthew J. Lepore