BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF ALLEGED VIOLATIONS OF THE RULES AND REGULATIONS OF THE COLORADO OIL AND GAS CONSERVATION COMMISSION BY LARAMIE ENERGY II, LLC, MESA COUNTY, COLORADO

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CAUSE NO. 1V

 

DOCKET NO. 1310-OV-33

 

ORDER NO. 1V-423

 

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 15, 2012 Laramie Energy II, LLC (“Laramie”) hydraulically fractured the Jenson 17-13B Well (“Well”) (API# 05-077-10188) in the NE ¼  NE ¼ , Section 19, Township 9 South, Range 93 West, 6th P.M., Mesa County.

 

2.         Rule 205A. requires that for hydraulic fracturing treatments performed on or after April 1, 2012, that the hydraulic fracturing chemical disclosure registry form is completed within 60 days following the conclusion of a hydraulic fracturing and in no case later than 120 days after the commencement of such hydraulic fracturing treatment. This well did not meet the requirements of such disclosure.  

 

            3.         On June 20, 2013 Commission staff released a Notice To Operators – 205A. Hydraulic Fracturing Chemical Disclosure (“NTO”). The NTO states failure to meet the requirements of the Rule within the specified timeframes will be considered a violation of the Rule. Rule violations will be enforced pursuant to Rule 522, and penalties will be assessed pursuant to Rule 523.

 

            4.         On August 31, 2013 Commission staff issued Laramie a Notice of Alleged Violation No. 1772466 ("NOAV").

 

5.         Rule 523 (Procedure for Assessing Fines) specifies a maximum base fine of $1,000 for each day of violation of § 34-60-121(1) C.R.S. and 205A.  Rule 523.a.(3) specifies 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.

 

AGREEMENT

 

NOW, THEREFORE, pursuant to Rule 522.b.(3), COGCC Rules of Practice and Procedure, 2 CCR 404-1 (“COGCC Rule(s)”), the Director proposes and Laramie agrees to settle the NOAV on the following terms and conditions:

 

(1)          Pursuant to § 34-60-121, C.R.S., and COGCC Rule 523, Laramie shall pay a penalty of $1,000. The fine will be due 30 days from receipt of the Order and invoice.

 

(2)          Operator shall submit all delinquent reports within fifteen days of receipt of of this order.

 

 

ORDER

 

HAVING CONSIDERED the Agreement between the Director and Laramie to resolve the NOAV, the COMMISSION ORDERS:

 

A.            Laramie is found in violation of § 34-60-121(1), C.R.S., for failing to complete the chemical disclosure registry form and post the form on the chemical disclosure registry within the specified timeframe. 

 

B.           Pursuant to § 34-60-121, C.R.S., and Rule 523, COGCC Rules of Practice and Procedure, 2 CCR 404-1, Laramie shall pay a penalty of $1,000 not later than 30 days from receipt of the Order and invoice

 

C.            Laramie shall promptly file all delinquent disclosures and implement procedures to assure timely filing of future disclosures by October 13, 2013.

 

D.           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.

 

E.           This Order is effective immediately.

 

    

RECOMMENDED this 31st day of August, 2013.

 

OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

 

                                                             By                                                                       

Matthew J. Lepore

Director

 

 

 

AGREED TO AND ACCEPTED this 12th day of September, 2013.

                                                                                                                                               

                                    LARAMIE ENERGY II, LLC

                             

 

                                    By __________________________________________

                                                Signature of Authorized Company Representative

 

                                    ____________________________________________                                                Print Signatory Name

                      

                                    ____________________________________________

                                                Title

 

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The Commission heard and approved this matter on the 28th day of October, 2013.

 

ENTERED this _____ day of                     , 2013 as of the       day of                          , 2013.      

 

                                                                        OIL AND GAS CONSERVATION COMMISSION

                        OF THE STATE OF COLORADO

 

 

                        By____________________________________

 

                                                                                    Robert J. Frick, Secretary