IN THE MATTER OF ALLEGED VIOLATIONS OF THE
CAUSE NO. 1
RULES AND REGULATIONS OF THE COLORADO OIL
AND GAS CONSERVATION COMMISSION BY ORDER NO. 1V-134
CENTENNIAL PETROLEUM, INC. WELD COUNTY, COLORADO
This cause came on for hearing before the Commission at 8:30 a.m., on February 9, 1998, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, after giving Notice of Hearing as required by law, on why Centennial Petroleum, Inc. is in violation of certain rules and regulations of the Oil and Gas Conservation Commission and why the Commission should not invoke the provisions of §34-60-121 C.R.S., as amended, providing for penalties for violations of the Rules and Regulations of the Commission.
The Commission finds as follows:
1. Centennial Petroleum, Inc. is an interested party in the subject matter of the above referenced hearing.
2. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.
3. The Commission has jurisdiction over the subject matter embraced in said Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.
4. On June 3, 1997, COGCC staff conducted a site inspection on the Barnes No. 2-34 Well located in the NW¼ NE¼ of Section 34, Township 2 North, Range 64 West, 6th P.M. The well had been plugged and abandoned on February 13, 1989. The inspection of the site identified a meter house was still on location and the surface had not been properly reclaimed. On August 8, 1997 COGCC staff contacted Centennial Petroleum, Inc. and requested the meter house be removed and additional site reclamation be done for the Barnes No. 2-34 Well. On August 15, 1997 staff again called the operator and left a message requesting an update on progress of site reclamation. The phone call was not returned. On August 25, 1997, COGCC staff issued a Notice of Alleged Violation (NOAV) to Centennial Petroleum, Inc. for the Barnes No. 2-34 Well. The NOAV cited violation of Rules 1002., 1003., 1004. and 1103., failure to perform site reclamation in accordance to COGCC standards. The specific work required for abatement was the removal of a gas meter run and the removal of gravel from the well location. The abatement date specified in the NOAV was September 25, 1997. On September 20, 1997, the site was inspected. None of the compliance work had been accomplished. Another call was placed to Centennial Petroleum, Inc. on September 23, 1997, with a message being left requesting a return call. On September 24, 1997 Centennial Petroleum, Inc. returned the COGCC staff call. Staff explained the compliance deadline was September 25, 1997 and non-compliance could result in a fine. On October 7, 1997 the COGCC staff inspected the site and the work required for compliance was not completed.
5. At the time of the hearing, Commission staff provided testimony and presented exhibits in support of the proposed order being recommended for adoption by the Commission.
6. Based on the testimony presented, an order of the Commission should be entered finding Centennial Petroleum, Inc. in continuing violation of Rules 1004. and 1103., failure to reclaim the surface after the plugging and abandonment of a well, for the Barnes No. 2-34 Well and assess a total fine of Two Thousand dollars ($2,000). Further, Centennial Petroleum, Inc. should be required to remove the meter run and properly reclaim the location and if Centennial Petroleum, Inc. does not comply with order, COGCC staff should be directed to make a claim on the Thirty Thousand dollar ($30,000) plugging bond and reclaim the site.
NOW THEREFORE, IT IS ORDERED, that Centennial Petroleum, Inc. shall be found in continuing violation of Rules 1004. and 1103., failure to reclaim the surface after the plugging and abandonment of a well, for the Barnes No. 2-34 Well located in the NW¼ NE¼ of Section 34, Township 2 North, Range 64 West, 6th P.M.
IT IS FURTHER ORDERED, that Centennial Petroleum, Inc. shall be assessed a total fine of Two Thousand dollars ($2,000) payable within thirty (30) days from the date the order is issued.
IT IS FURTHER ORDERED, that if Centennial Petroleum, Inc. does not comply with the order, COGCC staff shall be authorized to commence claim on the Thirty Thousand dollar ($30,000) plugging bond.
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.
ENTERED this 10th day of March, 1998, as of February 9, 1998.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By Patricia C. Beaver, Secretary
Dated at Suite 801, 1120 Lincoln Street Denver, Colorado 80203 March 10, 1998