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 JULANDER ENERGY COMPANY, MOFFAT COUNTY, COLORADO |
) ) ) ) ) |
CAUSE NO. 1V
ORDER
NO. 1V-480 |
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. Julander Energy Company (“Julander”) (Operator No. 44204) is the operator of the Coffeepot Springs 24-34 Well (API No. 05-081-07219) (“Coffeepot Well”) and Yellow Cat 32-4 Well (API No. 05-081-07398) (“Yellow Cat Well”) in Moffat County.
2. Based on a review of COGCC records, the Coffeepot Well is Shut-In. This Well has not produced from January 2005 until the end of its production records in January 2014. A Mechanical Integrity Test (“MIT”) has never been performed on this Well.
3. Based on a review of COGCC records, the Yellow Cat Well is either Shut-in or Temporarily Abandoned. This Well has not produced from December 2007 until the end of its production records in January 2014. A MIT has never been performed on this Well.
4. On April 10, 2014, Commission Staff issued a Notice of Alleged Violation (“NOAV’s”) Nos. 200401389 and 200401393 to Julander citing violations 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”).
5. Following factual investigation and legal review of the violations alleged in the NOAV, Hearings Staff now asserts Julander has committed the following violation:
Two 10-day violations of Rule 326.b.1 (Mechanical Integrity Testing Shut-In Wells) for the failure to perform a Mechanical Integrity Test on the Wells within two years of the Wells becoming Shut-In.
6. On July 11, 2014, Julander submitted a corrective action plan to COGCC staff stipulating that a MIT will be performed on both of the Wells the week of September 8, 2014.
7. Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings Staff calculated a penalty of $15,000 for these violations. This penalty amount reflects adjustments based on the following mitigating factors set forth in Rule 523.d.: (2) prudent and effective response; (3) cooperation with the Commission and other agencies; and (7) a 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 Julander agrees to settle the NOAV on the following terms and conditions:
II. Julander will pay this penalty in five installments of $3,000 over seven months. The first $3,000 will be due within 60 days after this AOC is mailed by the Commission. The second penalty payment will be due within 120 days after this AOC is mailed by the Commission. The remaining three payments will be due at 150, 180, and 210 days, respectively, after this AOC is mailed by the Commission.
III. Julander will perform an MIT on both of the Wells by September 15, 2014. Julander must also notify COGCC staff 10 days prior to conducting the MIT’s on a Form 42 and submit a Form 21 within 30 days after the MIT’s if they are not witnessed by staff.
IV. Payment of the penalty pursuant to this AOC does not relieve Julander from its obligations to complete corrective actions set forth in the NOAV, as may be amended or modified by COGCC Staff.
V. Julander 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
Britta Beckstead, Enforcement Officer
AGREED TO AND ACCEPTED this ______ day of August, 2014.
JULANDER ENERGY COMPANY
By
Signature of Authorized Company Representative
Print Signatory Name
Title
ORDER
HAVING CONSIDERED the Agreement between the Director and Julander to resolve the NOAV, the COMMISSION ORDERS:
1. Julander is found in violation of Rule 326.b.(1) as described above.
2. Julander is assessed a total penalty of $15,000 for the rule violations described above.
3. Julander will pay this penalty in five installments of $3,000 over seven months. The first $3,000 will be due within 60 days after this AOC is mailed by the Commission. The second penalty payment will be due within 120 days after this AOC is mailed by the Commission. The remaining three payments will be due at 150, 180, and 210 days, respectively, after this AOC is mailed by the Commission.
4. Julander will perform an MIT on both of the Wells by September 15, 2014. Julander must also notify COGCC staff 10 days prior to conducting the MIT’s on a Form 42 and submit a Form 21 within 30 days after the MIT’s if they are not witnessed by staff.
5. Failure to pay this penalty by the deadline may result in a separate violation with additional penalties.
6. Compliance dates specified in this Order may be extended only for good cause, as determined at the Director’s sole discretion. A request for extension must be made, in writing, at least 35 days prior to the pertinent compliance deadline. Failure to receive an extension prior to the compliance deadline or the failure to meet a compliance deadline may constitute a new violation subject to additional penalties.
7. Payment of the penalty pursuant to this AOC does not relieve Julander from its obligations to complete corrective actions set forth in the NOAV, as may be amended or modified by COGCC Staff.
8. 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.
9. The Commission expressly reserves its right after notice and hearing, to alter, amend, or repeal any and/or all of the above orders.
==================================================================
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Robert J. Frick, Secretary