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 GREAT WESTERN OPERATING COMPANY, LLC, ADAMS COUNTY, COLORADO |
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CAUSE NO. 1V
ORDER
NO. 1V-452 |
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. Great Western Operating Company, LLC (“Great Western”) (Operator No. 10110) is the operator of the Great Western Front Range #2 Well (API # 05-001-06862) (“Well”) located in Adams County, Colorado.
2. Based on a review of COGCC’s records, the Well is Shut-In. Great Western has not reported production from this Well since at least December of 2010. A Mechanical Integrity Test (“MIT”) has never been performed on this Well.
3. On January 22, 2014, Commission Staff issued a Notice of Alleged Violation (“NOAV”) (No. 200394013) to Great Western citing violations of the following COGCC Rules of Practice and Procedure, 2 CCR 404-1 (“Rule” or “Rules”):
Rule 326.b.1 (Mechanical Integrity Testing Shut-In Wells).
4. Following factual investigation and legal review of the violations alleged in the NOAV, Hearings Staff now asserts Great Western has committed the following violations:
One, 10-day violation of Rule 326.b.1 (Mechanical Integrity Testing Shut-In Wells) for the failure to perform a Mechanical Integrity Test on the Well while Shut-In.
5. Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings Staff is pursuing a penalty of $7,500 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 Great Western agrees to settle the NOAV on the following terms and conditions:
II. Great Western will pay $7,500 within 30 days after the Commission mails the Order approving this AOC.
III. Great Western will provide written confirmation (email is sufficient) that the Well was plugged and abandoned prior to March 17, 2014.
IV. Great Western will file a Form 6-Subsequent 30 days after abandonment of the Well.
V. Payment of the penalty pursuant to this AOC does not relieve Great Western of its obligations to complete corrective actions set forth in the NOAV, as may be amended or modified by COGCC Staff.
VI. Great Western 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.
GREAT WESTERN OPERATING COMPANY, LLC
By
Signature of Authorized Company Representative
Print Signatory Name
Title
ORDER
HAVING CONSIDERED the Agreement between the Director and Great Western and to resolve the NOAV, the COMMISSION ORDERS:
1. Great Western is found in violation of Rules 326.b.1 as described above.
2. Great Western is assessed a total penalty of $7,500 for the rule violations described above.
3. Great Western will pay $7,500 within 30 days after the Commission mails the Order approving this AOC.
4. Great Western will provide written confirmation (email is sufficient) that the Well was plugged and abandoned prior to March 17, 2014.
5. Great Western will file a Form 6-Subsequent 30 days after abandonment of the Well.
6. Payment of the penalty pursuant to this AOC does not relieve Great Western of its obligations to complete corrective actions set forth in the NOAV, 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