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-210
DUNCAN OIL, INC., WELD COUNTY, COLORADO
ADMINISTRATIVE ORDER BY CONSENT
FINDINGS
1. Duncan Oil, Inc. is an interested party in the subject matter of the above
referenced administrative order.
2. The Commission has jurisdiction of the subject matter, and of the parties
interested therein, and jurisdiction to promulgate the hereinafter prescribed
order.
3. The Maddy 1-31 Well was drilled and abandoned on October 11, 2000. The
plugging procedure for the Maddy 1-31 Well was specified in the conditions of
approval attached to the Application for Permit-to-Drill, Form 2 approved on
September 27, 2000. The approved plugging procedure required that a 40 sack
cement plug be set at a depth of 800 feet to cover an aquifer used in the
immediate area. Based on the Well Abandonment Report, Form 6 submitted January
16, 2001, the required plug at 800 ft was not set. All other plugs were set as
required.
4. On February 23, 2001, COGCC staff issued a Notice of Alleged Violation (“NOAV”)
to Duncan Oil, Inc. The NOAV cited a violation of Rule 301., failure to receive
approval to change previously approved work plans. The corrective action
required that a written response be submitted to explain Duncan Oil’s actions
when plugging the Maddy 1-31 Well. The abatement date of this NOAV was March 3,
2001.
5. A written response was received March 2, 2001, explaining that the Maddy 1-31
Well was plugged using the same procedure as the State 1-22 Well which had been
plugged 2.5 to 3 miles to the east of this location. The conditions of approval
on the approved Application for Permit-to-Drill, Form 2 were not used or
consulted to determine the plugging procedure that was followed at the Maddy
1-31 Well.
6. A monetary penalty of One Thousand dollars ($1,000.00) should be assessed
against Duncan Oil, Inc., in accordance with Rule 523.a. and Rule 523.d., for
violation of Rule 301.
ORDER
NOW, THEREFORE, IT IS ORDERED, that Duncan Oil, Inc. shall be found in violation
of Rule 301., failure to receive approval to change previously approved work
plans as substantiated by Well Abandonment Report submitted for the Maddy 1-31
Well. The Maddy 1-31 Well is located in the SE¼ SE¼ of Section 31, Township 10
North, Range 57 West, 6th P.M.
IT IS FURTHER ORDERED, that Duncan Oil, Inc. shall be assessed a total fine of
One Thousand dollars ($1,000.00) for the violation listed above, payable 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 and/or all of the above
orders.
RECOMMENDED this 16th day of March, 2001.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By Morris Bell, Hearing Officer
Dated at Suite 801, 1120 Lincoln Street Denver, Colorado 80203 March 14, 2001
(1V#210)