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 TOP OPERATING COMPANY, WELD COUNTY, COLORADO |
) ) ) ) ) |
CAUSE NO. 1V
DOCKET NO. 1410-OV-57
ORDER NO. 1V-487 |
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. TOP Operating Company (“TOP”) (Operator No. 39560) is the operator of the following Wells in Weld County:
Table 1
|
Well Name |
Well API Nos. |
NOAV Nos. |
1/22/2014 Inspection Doc. Nos. |
3/19/2014 Inspection Doc. Nos. |
5/9/2014 Inspection Doc. Nos. |
|
Counter Ben F. 1 |
05-123-07371 |
200403550 200410693 |
671100758 |
671101098 |
671101393 |
|
Counter 2 |
05-123-08035 |
200403358 1772518 |
671100759 |
671101096 |
671101391 |
|
Counter 3 |
05-123-10297 |
200403377 1772519 |
671100760 |
671101097 |
671101392 |
2. During inspections on January 22, 2014 and March 19, 2014 at the Counter Ben F. 1 Well, COGCC staff observed stained soil inside the separator house and a battery berm containing a production tank in poor condition.
3. On January 22, 2014, COGCC staff observed stained soil around the wellhead and pumping unit base and firewalls that required rebuilding at the Counter 2 Well. On March 19, 2014, COGCC staff observed unused equipment around the location, stained soil around the wellhead and pumping unit base, and an open thief hatch on the south production tank at the Well.
4. During inspections on January 22, 2014 and March 19, 2014 at the Counter 3 Well, COGCC staff observed unused equipment adjacent to the pumping unit and trash on the well site.
5. On May 1, 2014, Commission Staff issued three Notices of Alleged Violation (“NOAVs”) Nos. 200403550, 200410693, and 200403377 to TOP citing violations of the following COGCC Rules of Practice and Procedure, 2 CCR 404-1 (“Rule” or “Rules”):
a. Rule 603.f. (Statewide equipment, weeds, waste, and trash requirements).
b. Rule 605.a.(9) (Crude Oil and Condensate Tanks, Gauge Hatches).
c. Rule 906.a. (Spills and Releases, General).
6. According to COGCC records, TOP has not submitted Form 7, Monthly Report of Operations, within 45 days after the month in which production occurs for the months of April, May, and June 2014 for the Counter Ben. F. 1, Counter 2, or Counter 3 Wells.
7. On August 19, 2014, Commission Staff issued three Notices of Alleged Violation (“NOAV’s”) Nos. 200410693, 1772518, and 1772519 to TOP citing violations of Rule 309 (Form 7, Monthly Report of Operations) at the three Wells.
8. Following factual investigation and legal review of the violations alleged in the NOAVs, Hearings Staff now asserts TOP has committed the following violations at the Wells identified in Table 2 below:
Table 2
|
Well Name |
Rule 309 |
Rule 603.f. |
Rule 605.a.(9) |
Rule 906.a. |
|
Counter Ben F. 1 |
X |
|
|
X |
|
Counter 2 |
X |
X |
X |
X |
|
Counter 3 |
X |
X |
|
|
|
Total Violations |
3 |
3 |
1 |
2 |
9. The days of violation and reasoning are set forth below:
a. Three 3-day violations of Rule 309 (Form 7, Monthly Report of Operations) for failing to submit production reports for three months at each of the three Wells.
b. Two 10-day violations of Rule 603.f. (Statewide equipment, weeds, waste, and trash requirements) for having trash and unused equipment on the site at the Counter 2 and Counter 3 Wells.
c. One 10-day violation of Rule 605.a.(9) (Crude Oil and Condensate Tanks) for failing to keep gauge hatches on crude oil tanks closed at all times when not in use at the Counter 2 Well.
d. Two 10-day violations of Rule 906.a. (Spills and Releases, General) for failing to remove or remediate stained soils on the site at the Counter Ben F. 1 and Counter 2 Wells.
9. On May 9, 2014, COGCC staff inspected the Counter Ben F. 1, Counter 2, and Counter 3 Wells and confirmed that TOP had completed the corrective actions required on the previous inspections.
10. TOP has submitted the delinquent Form 7s, Monthly Report of Operations, for all three Wells.
11. Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings Staff calculated a penalty of $33,000 for these violations. This penalty calculation applied the following mitigating factors: (2) prompt, effective, and prudent response, (3) cooperation, (4) causes of the violation outside of the operator’s reasonable control, and (6) the cost of the cleanup reduced or eliminated any economic benefit to the violator.
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 TOP agrees to settle the NOAV on the following terms and conditions:
II. TOP will pay $33,000 within 30 days after this AOC is mailed by the Commission.
III. Payment of the penalty pursuant to this AOC does not relieve TOP from its obligations to complete corrective actions set forth in the NOAV, as may be amended or modified by COGCC Staff.
IV. TOP agrees to the findings of this AOC only for the purpose of expeditiously resolving the matter without a contested hearing.
RECOMMENDED this day of September, 2014.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By
Britta Beckstead, Enforcement Officer
AGREED TO AND ACCEPTED this ______day of September, 2014.
TOP OPERATING COMPANY
By
Signature of Authorized Company Representative
Print Signatory Name
Title
ORDER
HAVING CONSIDERED the Agreement between the Director and TOP to resolve the NOAV, the COMMISSION ORDERS:
1. TOP is found in violation of Rules 309, 603.f., 605.a.(9), and 906.a. as described above.
2. TOP is assessed a total penalty of $33,000 for the rule violations described above.
3. TOP will pay $33,000 within 30 days after this AOC is mailed by the Commission. Failure to pay this penalty by the deadline may result in a separate violation with additional penalties.
4. This AOC does not relieve TOP from undertaking and completing abatement or corrective actions as required by COGCC Staff.
5. 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.
6. 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.
7. 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