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 WIEPKING-FULLERTON ENERGY LLC, LINCOLN COUNTY, COLORADO

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CAUSE NO. 1V

 

ORDER NO. 1V-474

DOCKET NO. 1407-OV-58

 

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.         Wiepking-Fullerton Energy LLC (“Wiepking”) (Operator No. 96340) operates the Aloha Mula #1 Well (API No. 05-073-06371) (“Well”) located in Lincoln County (Location ID 309663).

 

2.         On March 10, 2014 Wiepking reported a fire to the Colorado Oil and Gas Conservation Commission (“Staff”) (Accident Report No. 400573954).

 

3.          On March 10, 2014 Staff inspected the site (Document No.  673701517) in

response to the reported fire at the Location.  Staff observed that the fire spread from the heater-treater areas to the storage tank area which destroyed two water tanks, catwalk and damaged oil storage tanks.

 

4.            On May 5, 2014, staff issued a Notice of Alleged Violation (No. 200403658) (“NOAV”) to Wiepking. The NOAV cited alleged violations related to the reported fire. The NOAV cited violations of the following COGCC Rules of Practice and Procedure, 2 CCR 404-1 (“Rule” or “Rules”):

                       

a.          Rule 324A.a.,(Pollution – General)

 

            5.         Following a factual investigation and legal review of the violations alleged in the NOAV, the Staff now asserts Wiepking has committed the following violation:

 

A one-day violation of Rule 324 A.a. by failing to take precautions to protect public health, safety, and welfare by allowing contractor to excavate a trench near a flow line and a gas line under unsafe conditions resulting in an explosion and fire; and

 

6.         Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Staff calculated a penalty of $1,000 for these violations. Staff does not recommend 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 Wiepking agrees to settle the NOAV on the following terms and conditions:

 

I.          Wiepking will be assessed a penalty of $1,000.

 

II.         Wiepking will pay $1,000, within 35 days after this AOC is mailed by the Commission.

 

III.        Payment of the penalty pursuant to this AOC does not relieve the operator from its obligations to complete corrective actions set forth in the NOAVs, as may be amended or modified by COGCC Staff.

 

IV.       Wiepking agrees to the findings of this AOC only for the purpose of expeditiously resolving the matter without a contested hearing. Pursuant to Rule 522.c.(3), entering into this AOC by Weipking shall not be construed as an admission of the alleged violations, or any associated factual or legal matters for purposes other than entering this AOC. Weipking fully reserves its right to contest the same in any future action or proceeding other than a proceeding to enforce this AOC.

 

RECOMMENDED this 3rd   day of July, 2014.

 

 

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By                                                                       

                                                                    Peter Gowen, Enforcement Officer

 

 

AGREED TO AND ACCEPTED this ______day of _____, 2014.

                                                                                                                                                                                WIEPKING ENERGY  INC.

 

      

                        By                                                                                          

                        Signature of Authorized Company Representative

 

                                                                                                                       

                       Print Signatory Name

                     

                                                                                                                                                            Title

 

ORDER

 

HAVING CONSIDERED the Agreement between the Director and Wiepking Energy Inc. to resolve the NOAV, the COMMISSION ORDERS:

 

            1.         Wiepking is found in violation of Rule 342.A.a as described above.

 

2.         Wiepking will be assessed $1,000 for the Rule violation described above.

 

            3.         Wiepking will pay the penalties within 35 days after this AOC is approved by the Commission.

 

4.         This AOC does not relieve Wiepking from undertaking and completing abatement or corrective actions that may be required by the NOAV described in Finding No. 4, above, or any amendments or modifications thereto specified by the 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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ENTERED this _____ day of ____, 2014 as of the 28th day of July, 2014.
           

                                                            OIL AND GAS CONSERVATION COMMISSION

            OF THE STATE OF COLORADO

 

 

            By                                                                                          

                                                                        Robert J. Frick, Secretary