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 J-W OPERATING COMPANY, MOFFAT COUNTY, COLORADO |
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CAUSE NO. 1V
DOCKET NO. 1310-OV-30
ORDER NO. 1V-433 |
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. J-W Operating Company (“J-W Operating”) was the operator of the Bighole-Fed Land Bank #13-1 Well (“Well”) (API # 05-081-06242) at times relevant to this action.
2. J-W Operating experienced a release of produced water and condensate from an improperly abandoned pipeline at the Well location.
3. On August 8, 2012 Commission staff inspected the Well location (Document No. 669300128) and observed violations of Commission Rules.
4. On September 28, 2012, Commission Staff issued a Notice of Alleged Violation (“NOAV”) (No. 200358331) to J-W Operating for violations related to the release described above. The NOAV cited violations of the following COGCC Rules of Practice and Procedure, 2 CCR 404-1 (“Rule” or “Rules”).
a. Rule 324A (General Pollution – Water);
b. Rule 906 (Spill Reporting);
c. Rule 907 (E&P Waste Management);
d. Rule 909 (Site Investigation, Remediation & Closure);
e. Rule 910 (Sampling & Concentration Standards);
f. Rule 1002 (Site Preparation & Stabilization); and
g. Rule 1103 (Interim Reclamation).
a. One violation of Rule 324A because J-W Operating did not take adequate precautions to protect the environment when produced water and condensate was released to an unnamed tributary to Big Hole Gulch and associated wetlands.
b. One violation of Rule 906.b(3) for one day because J-W Operating did not report an unauthorized discharge of produced water and condensate to the Commission within 24 hours as required.
c. One violation of Rule 906.b(5) for one day because J-W Operating did not submit a required Form 19 within 10 days of discovery of the spill.
d. One violation of Rule 907 because J-W Operating did not ensure that E&P waste was properly managed to prevent adverse environmental impacts and to ensure compliance with the concentration levels in Table 910-1.
e. One combined violation of Rule 909 and Rule 910 because J-W Operating attempted to remediate the subject location without prior Director approval of a Site Investigation and Remediation Work Plan (Form 27) and did not collect and analyze environmental samples for the contaminants listed in COGCC Table 910-1.
f. One violation of Rule 1002 because J-W Operating did not implement and maintain Best Management Practices (BMPs) to control storm water runoff in a manner that would minimize transport of sediment from a stockpile of material excavated from the release site.
g. One violation of Rule 1103 because J-W Operating did not abandon a pipeline in compliance with COGCC requirements resulting in a release of produced water and condensate.
6. J-W Operating has substantially performed the corrective actions required by the NOAV.
7. Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings staff calculated a penalty of $52,000 for these violations. Staff has applied the following mitigating factors in consolidating the allegations and calculating the penalty:
a. The violator cooperated with the Commission, or other agencies with respect to the violation.
b. The violator responded promptly upon discovery of the spill and release.
c. The cost of correcting the violation reduced or eliminated any economic benefit to the violator.
AGREEMENT
NOW, THEREFORE, based on the Findings and pursuant to Rule 522.b.(3) and the Commission’s Enforcement and Penalty Policy, the Director proposes and J-W Operating agrees to settle the NOAV on the following terms and conditions:
I. J-W Operating will be assessed a penalty of $ 52,000.
II. J-W Operating will pay the penalty within 30 days the approved AOC is mailed by the Commission.
III. Payment of the penalty pursuant to this AOC does not relieve J-W Operating from its obligations to complete corrective actions set forth in the NOAVs, as may be amended or modified by COGCC Staff.
IV. J-W Operating agrees to the findings of this AOC only for the purpose of expeditiously resolving the matter without a contested hearing.
RECOMMENDED this 8th day of October, 2013.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By
Peter J. Gowen, Enforcement Officer
AGREED TO AND ACCEPTED this ______day of October, 2013.
J-W OPERATING COMPANY
By
Signature of Authorized Company Representative
Print Signatory Name
Title
ORDER
HAVING CONSIDERED the Agreement between the Director and J-W Operating to resolve the NOAV, the COMMISSION ORDERS:
1. J-W Operating is found in violation of Rules as described above.
2. J-W Operating will be assessed a total penalty of $52,000 for the Rule violations described above.
3. J-W Operating will pay the penalty within 30 days the approved AOC is mailed by the Commission.
4. This AOC does not relieve J-W Operating from undertaking and completing abatement or corrective actions that may be required by the Notice of Alleged Violation described in Finding No. 4, above, or any amendments or modifications thereto specified by the COGCC Staff.
5. 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.
6. The provisions contained in the above order are effective on the date this matter is heard and approved by the Commission.
7. The Commission expressly reserves its right after notice and hearing, to alter, amend, or repeal any and/or all of the above orders.
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The Commission heard and approved this matter on the 16th day of December, 2013.
ENTERED this the 16th day of December, 2013.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Robert J. Frick, Secretary