BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
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IN THE MATTER OF ALLEGED VIOLATIONS OF
THE RULES AND REGULATIONS OF THE COLORADO OIL AND GAS CONSERVATION COMMISSION BY
A.G. ANDRIKOPOULOS RESOURCES, MOFFAT COUNTY, COLORADO |
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CAUSE NO. 1V
DOCKET NO. 1307-OV-18
ORDER NO. 1V-418 |
ADMINISTRATIVE ORDER BY CONSENT
(Pursuant to Rule 522.b(3) of the Rules and Regulations of the
Colorado Oil and Gas Conservation Commission, 2 CCR 404-1)
FINDINGS
1.
On April 30, 1989, Washington Energy Exploration spud the James Et Al #1 Well
(API No. 05-081-06400), located in SE¼, NE¼,
of Section 7, Township 4 North, Range 98 West, 6th P.M.
Andrikopoulos Resources (“Andrikopoulos”) (Operator No. 3085) became the
operator of the well on October 1, 1998.
2.
On April 2, 2001,
Cabot Oil & Gas Corporation spud the Elk Springs Unit # 14-32 Well (API No.
05-081-06759), located in SW¼, SW¼, of Section 32, Township 5 North, Range 98
West, 6th P.M. Andrikopoulos became the operator of the well on
October 1, 1998.
3.
On January 10, 2013, the COGCC issued notices of alleged violation
(“NOAV’s”) No. 200372814 for the James Et Al #1 Well and No. 200372813 for the
Elk Springs Unit # 14-32 Well, citing alleged violations of Rule 319.b and Rule
326.b.(1).
4.
Rule 319.b(1) (Temporarily Abandoned Well Sundry Notice) requires
operators to file a Sundry Notice requesting continued temporarily abandoned
status for wells temporarily abandoned longer than six months. Approval of the initial Sundry Notice
grants temporarily abandoned status for six months. Rule 319.b.(3) (Temporarily
Abandoned Well Application) requires that wells which have ceased production or
are incapable of production or injection be abandoned within six months
thereafter unless the time is extended by the Director upon application by the
owner.
5.
Rule 326.b.(1) (Shut-in Wells) requires that idle wells pass a mechanical
integrity test (“MIT”) within two years of being shut-in or within 30 days of
being temporarily abandoned.
Subsequent MITs are required at five year intervals from the date of an initial
MIT.
6.
The NOAV’s required one of the following abatement or corrective actions to be
taken by Andrikopoulos: 1) plug and abandon the wells; 2) MIT the wells; or 3)
produce the wells. These actions
were required to have been completed by February 11, 2013.
7.
On June 26, 2013, Andrikopoulos submitted Form 6’s (Subsequent Report of
Abandonment), reporting that the James Et Al #1 Well was plugged on September 8,
2011, and that the Elk Springs Unit # 14 Well was plugged on September 13, 2011.
Rule 311 requires the Subsequent Report of Abandonment be filed within 30 days
of abandonment. The late submittals of Subsequent Report of Abandonment
constitute violations of Rule 311.
8.
Rule 523.c specifies a base fine of $1000 for each day of violation of
Rule 311, 319 and Rule 326. Rule
523.a.(3) specifies that the maximum penalty for any single violation shall not
exceed $10,000 regardless of the number of days of such violation, unless the
violation results in significant waste of oil and gas resources, damage to
correlative rights, or a significant adverse impact on public health, safety or
welfare or the environment. Staff does not allege these factors.
9.
Pursuant to Commission Rule 522.b.(3), the Director proposes and
Andrikopoulos agrees to settle the NOAV’s on the following terms:
a.
Alleged violations of Rules 319.b and 326.b(1) are dismissed in exchange
for an admission to a violation of Rule 311 for late submittals of Subsequent
Report of Abandonment for each well.
b.
Andrikopoulos shall pay a penalty of $20,000 for the two Rule 311
violations, payable no later than 30 days from the date this AOC is mailed by
the Commission.
10.
Andrikopoulos agrees to the findings of this AOC only for the purpose of
expeditiously resolving the matter without a contested hearing. Pursuant to Rule 522.b.(3), entering
into this AOC by Andrikopoulos shall not be construed as an admission of the
alleged violations for purposes other than entering this AOC. Andrikopoulos
fully reserves its right to contest the same in any future action or proceeding
other than a proceeding to enforce this AOC.
ORDER
NOW, THEREFORE, THE COMMISSION ORDERS:
1.
Andrikopoulos is in violation of Rule 311 at the James Et Al #1 Well, and
the Elk Springs Unit # 14-32 Well.
2.
Andrikopoulos shall pay a total fine of $20,000 for the two Rule violations
described above, payable no later than 30 days from the date this AOC is mailed
by the Commission.
3.
Failure to perform the requirements of this Order may result in
additional enforcement action and additional penalties.
4.
Entry of this Order constitutes final agency action for purposes of
judicial review 30 days after the date this order is mailed by the Commission.
5.
This Order is effective immediately.
6.
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 18th
day of July, 2013.
OIL AND GAS
CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Peter J. Gowen, Enforcement Officer
AGREED TO AND ACCEPTED this
day of July, 2013.
A.G. ANDRIKOPOLOUS RESOURCES
By:
_________________________________________________________
Signature of Authorized A.G. Andrikopolous Resources Representative
___________________________________________
Print Signatory Name
___________________________________________
Title of Signatory
===================================================================
The Commission heard and approved this matter on the 29th day
of July, 2013.
ENTERED this _____ day of August 2013, as of the
29th day of July, 2013.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Robert J. Frick, Secretary