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 WPX ENERGY ROCKY MOUNTAIN LLC, GARFIELD COUNTY, COLORADO |
) ) ) ) ) |
CAUSE NO. 1V
ORDER
NO. 1V-468 |
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. WPX Energy Rocky Mountain LLC (“WPX”) (Operator No. 96850) is the operator of the following Wells in Garfield County:
Table 1
|
Well Name |
API Number |
Doc. No. of APD |
NOAV Number |
|
Federal RU 22-5 |
05-045-21794 |
400322325 |
200402150 |
|
Federal RU 322-5 |
05-045-21767 |
400322300 |
200402148 |
|
Federal RU 43-5 |
05-045-21770 |
400322084 |
200402151 |
|
Federal RU 332-5 |
05-045-21772 |
400358907 |
200402143 |
2. All of these four Wells are located in the area subject to the Notice to Operators Drilling Mesaverde Group or Deeper Wells in the Mamm Creek Field Area in Garfield County Well Cementing Procedure and Reporting Requirements, July 23, 2004 and revised February 9, 2007 (“NTO”).
3. Prior to the completion of the Well, the NTO requires operators to submit bradenhead pressure records, cement bond logs, temperature survey logs, and the record of the mud (or fluid) volume needed to keep the hole full to the COGCC on a Sundry Notice, Form 4. Operators must receive prior approval for completion from the COGCC.
4. This NTO was incorporated by reference as a condition of approval on the Wells’ Applications for Permit-to-Drill, Form 2 (“APD’s”), listed above in Table 1.
5. For each of the four Wells, WPX did not submit the required Sundry Notice, Form 4, prior to commencing completion operations on the Wells on November 1, 2013, in violation of the APDs’ conditions of approval.
6. On April 16, 2014, Commission Staff issued Notices of Alleged Violation (“NOAV’s”) listed in Table 1 above to WPX citing violations of the Colorado Oil and Gas Conservation Act, § 34-60-121(1), C.R.S. (Violation of a Permit Condition).
7. On May 2, 2014, WPX completed the corrective action required by the NOAV by providing a written statement explaining why WPX did not comply with the conditions of approval and describing how the conditions of approval will be followed in the future for areas subject to the NTO. WPX has complied with the conditions of approval on other wells drilled in the area after notification of their violation.
8. Following factual investigation and legal review of the violations alleged in the NOAV, Hearings Staff now asserts WPX has committed the following violation:
Four 10-day violations of § 34-60-121(1), C.R.S. (Violation of a Permit Condition) for the failure to submit a Sundry Notice, Form 4 prior to commencing completion operations in violation of the APDs’ conditions of approval.
9. Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings Staff calculated a penalty of $30,000 for these violations. This penalty amount reflects adjustments based on the following mitigating factors in Rule 523.d.: (2) prompt, effective response to the violation; (3) cooperation with the Commission; and (7) history of compliance.
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 WPX agrees to settle the NOAV on the following terms and conditions:
II. WPX will pay $30,000 within 30 days after this AOC is mailed by the Commission.
III. Payment of the penalty pursuant to this AOC does not relieve WPX from its obligations to complete corrective actions set forth in the NOAV, as may be amended or modified by COGCC Staff.
IV. WPX agrees to the findings of this AOC only for the purpose of expeditiously resolving the matter without a contested hearing.
RECOMMENDED this 29th day of May, 2014.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By
Peter J. Gowen, Enforcement Officer
AGREED TO AND ACCEPTED this ______day of May, 2014.
WPX ENERGY ROCKY MOUNTAIN LLC
By
Signature of Authorized Company Representative
Print Signatory Name
Title
ORDER
HAVING CONSIDERED the Agreement between the Director and WPX to resolve the NOAV, the COMMISSION ORDERS:
1. WPX is found in violation of Rule 326.b.1 as described above.
2. WPX is assessed a total penalty of $30,000 for the rule violations described above.
3. WPX will pay $30,000 within 30 days after this AOC is mailed by the Commission.
4. Payment of the penalty pursuant to this AOC does not relieve WPX from its obligations to complete corrective actions set forth in the NOAV, as may be amended or modified by COGCC Staff.
5. 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.
6. 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