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 CONOCOPHILLIPS, ARAPAHOE COUNTY, COLORADO

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CAUSE NO. 1V

 

ORDER NO. 1V-479

DOCKET NO. 1409-OV-65

 

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.            ConocoPhillips Company (“ConocoPhillips”) (Operator No. 19160) is the operator of record for the Tebo #33 Well (“Well”) (API# 05-005-07205) in Arapahoe County.

 

2.         On April 22, 2014, a fire occurred at the Well.    An unexpected paraffin buildup on a high level float switch prevented the switch from operating properly, causing the emission control device to be overwhelmed. An uncontrolled fire erupted at both the emission control device and the gas flare, which required assistance of local fire departments to extinguish.

 

3.            On June 12, 2014 COGCC staff issued a Notice of Alleged Violation (“NOAV”) (Doc. # 400624186) to ConocoPhillips. The NOAV cited a violation of the following COGCC Rules of Practice and Procedure, 2 CCR 404-1 (“Rule” or “Rules”)

 

a.    Rule 324A.a (Pollution)

b.    Rule 605.d (Mechanical Conditions)

 

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

 

a.    One violation of Rule 324A.a because the operator did not take adequate precautions to prevent significant adverse environmental impacts to the extent necessary to protect public health, resulting in a fire.

 

b.    One violation of Rule 605.d because a valve failure allowed oil to transfer directly to the flare and emission control burner resulting in an uncontrolled fire.

5.            Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Staff calculated a penalty of $2,000 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 ConocoPhillips agrees to settle the NOAV on the following terms and conditions:

 

              I.        ConocoPhillips will be assessed a penalty of $2,000.

 

            II.        ConocoPhillips will pay $2,000, within 35 days after this AOC is mailed by the Commission.

 

           III.        ConocoPhillips agrees to the findings of this AOC only for the purpose of expeditiously resolving the matter without a contested hearing.

 

RECOMMENDED this 19th  day of August, 2014.

 

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By                                                                       

                                                                    Peter Gowen, Enforcement Officer

 

AGREED TO AND ACCEPTED this ______day of August, 2014.

                                                                                                                                                                                  CONOCOPHILLIPS COMPANY

      

 

                        By                                                                                          

                        Signature of Authorized Company Representative

 

 

                                                                                                                                                           

                       Print Signatory Name

                      

                                                                                                                                                            Title

 

 

ORDER

 

HAVING CONSIDERED the Agreement between the Director and ConocoPhillips to resolve the NOAV, the COMMISSION ORDERS:

 

            1.         ConocoPhillips is found in violation of Rule 324A.a and 605.d as described above.

 

2.         ConocoPhillips will be assessed a penalty of $2,000 for the Rule violations described above.

 

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

 

4.         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.  

 

5.         The Commission expressly reserves its right after notice and hearing, to alter, amend, or repeal any and/or all of the above orders. 

 

 

ENTERED this _____ day of September, 2014 as of the 15th day of September, 2014.

 

                                                            OIL AND GAS CONSERVATION COMMISSION

            OF THE STATE OF COLORADO

 

 

            By                                                                                          

                                                                        Robert J. Frick, Secretary