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 WALTER S. FEES, JR. AND SON OIL & GAS, LLC, MESA COUNTY, COLORADO |
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CAUSE NO. 1V
ORDER NO. 1V-445 DOCKET NO. 1403-OV-13
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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. Walter S. Fees, Jr. and Son Oil & Gas, LLC (“Fees”) (Operator No. 29470) is the operator of record for the wells identified in Table 1 and described below.
Table 1
|
Well Name |
API # |
Completion Date |
Date of Last Production |
|
Federal 5-24-8-101 |
05-077-08832 |
4/29/2005 |
None |
|
Bar-X 32-1 |
05-077-08057 |
10/10/1974 |
May 2001 |
|
Bar-X 28-3 |
05-077-08071 |
1/10/1975 |
Feb 2003 |
2. On November 3, 2010, Commission staff inspected the Wells and found that the Federal 5-24-8-101, Bar X 28-3, and Bar X 32-1 (collectively “Wells”) were shut-in.
3. As of March 26, 2012, the date of last production for each well was as stated in Table 1. The Bar-X 32-1 has since resumed reporting production since September 2013. The Bar-X 28-3 has since resumed reporting production since October 2013.
4. According to Commission records, none of the Wells has ever had a mechanical integrity test (“MIT”) performed on them.
5. On March 26, 2012, Commission Staff issued Notices of Alleged Violation (“NOAV’s”) as identified below:
|
Well Name |
NOAV # |
|
FEDERAL 5-24-8-101 |
200344232 |
|
BAR-X 28-3 |
200344233 |
|
BAR-X 32-1 |
200344234 |
The NOAV’s each cited a single violation of Rule 326.b.(1) (Mechanical Integrity Testing - Shut-In Wells) of the COGCC Rules of Practice and Procedure, 2 CCR 404-1 (“Rule” or “Rules”):
6. Following factual investigation and legal review of the violations alleged in the NOAV, Hearings Staff now asserts Fees has committed the following violations:
Three, 10-day violation of Rule 326.b.1 for failure to perform a Mechanical Integrity Test on each of the Wells as required.
7. Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearing Staff is pursuing a penalty of $25,000 for these violations. Staff does not recommend any adjustments based on aggravating or mitigating factors.
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 Fees Oil & Gas, LLC agrees to settle the NOAV on the following terms and conditions:
I. Fees will be assessed a penalty of $25,000. Payment will be due within 30 days after this AOC is mailed by the Commission.
II. Fees will file with the Commission documentation necessary to prove that the Federal 5-24-8-101 well has been properly plugged and abandoned, including Form 6 and any applicable documentation filed with Bureau of Land Management, within 30 days after this AOC is mailed by the Commission.
III. Fees will continue to file timely Operator’s Monthly Production Reports on Form 7 for the Bar-X 32-1 and Bar-X 28-3 wells.
IV. Payment of the penalty pursuant to this AOC does not relieve Fees from its obligations to complete corrective actions set forth in the NOAVs, as may be amended or modified by COGCC Staff.
V. Fees agrees to the findings of this AOC only for the purpose of expeditiously resolving the matter without a contested hearing
RECOMMENDED this day of , 2014.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By
Jeremy I. Ferrin, Enforcement Officer
AGREED TO AND ACCEPTED this ______day of , 2014.
Walter S. Fees, Jr. and Son Oil & Gas, LLC
By
Signature of Authorized Company Representative
Print Signatory Name
Title
ORDER
HAVING CONSIDERED the Agreement between the Director and Fees to resolve the NOAV, the COMMISSION ORDERS:
1. Fees is found in violation of three violations of Rule 326.b.1. as described above.
2. Fees will be assessed a total penalty of $25,000 for the rule violations described above.
3. Fees will pay $25,000 within 30 days after this AOC is mailed by the Commission.
4. Fees will file with the Commission documentation necessary to prove that the Federal 5-24-8-101 well has been properly plugged and abandoned, including Form 6 and any applicable documentation filed with Bureau of Land Management, within 30 days after this AOC is mailed by the Commission.
5. Fees will continue to file timely Operator’s Monthly Production Reports on Form 7 for the Bar-X 32-1 and Bar-X 28-3 wells.
6. Payment of the penalty pursuant to this AOC does not relieve Fees from its obligations to complete corrective actions set forth in the NOAVs, as may be amended or modified by COGCC Staff.
7. Entry of this Order constitutes final agency action for purposes of judicial review as of the date this order is mailed by the Commission. For all other purposes, this Order is effective as of the date of approval by the Commission.
8. 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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OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Robert J. Frick, Secretary