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 UNIT PETROLEUM COMPANY, LINCOLN COUNTY, COLORADO

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CAUSE NO. 1V

 

DOCKET NO. 150300135

 

TYPE: ENFORCEMENT

 

ORDER NO. 1V-493

 

 

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.            Unit Petroleum Company (“Unit”) (Operator No. 10259) is the operator of the Hubbard 1H Well (API No. 05-073-06412), located in Lincoln County.

 

2.            The Hubbard 1H Well was completed in July, 2010.  Based on a review of COGCC records, the Hubbard 1H Well has been shut-in since August, 2011.  A Mechanical Integrity Test (“MIT”) has never been performed on this well.  

 

3.            On November 17, 2014, Commission Staff issued Notice of Alleged Violation (“NOAV”) No. 200417241 to Unit citing violation 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”).

 

4.            Unit plugged and abandoned the Hubbard 1H Well on January 26, 2015.

 

5.            Following factual investigation and legal review of the violations alleged in the NOAV, Hearings Staff now asserts Unit has committed one, 10-day violation of Rule 326.b.1 (Mechanical Integrity Testing Shut-In Wells) for the failure to perform a Mechanical Integrity Test on the well within two years of the Well becoming Shut-In.

 

6.            Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings staff calculated a penalty of $10,000 for this violation.  Staff does not recommend any 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 Unit agrees to settle the NOAV on the following terms and conditions:

 

  1. Unit will pay a penalty of $8,000.

 

    II.        Unit will pay $8,000 within 35 days after the approved AOC is mailed by the Commission.

 

 

            RECOMMENDED this _____ day of February,  2015.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

 

By                                                                       

Jennifer Bock, Enforcement Officer 

 

 

            AGREED TO AND ACCEPTED this ______day of February, 2015.

                                                                                                                                   

                        UNIT PETROLEUM COMPANY

                             

 

                        By                                                                                          

                        Signature of Authorized Company Representative

                       

                                                                                                                                                           

Print Signatory Name

                      

                                                                                                                                                            Title

 

 

 

 

ORDER

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

 

1.    Unit is found in violation Rule 326.b.(1), as described above.

 

2.    Unit will be assessed a total penalty of $8,000 for the rule violation described above.

 

3.    Unit will pay $8,000 within 35 days after the Commission mails this Order. Failure to pay this penalty by the deadline may result in a separate violation with additional daily penalties.

 

4.    Payment of the penalty pursuant to this AOC does not relieve Unit of its obligations to complete corrective actions set forth in the NOAV, as may be amended or modified 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 or as soon as possible if 35 days prior notice is not feasible. 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. 

 

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ENTERED this _____ day of March, 2015 as of the 2nd day of March, 2015.
           

                                                            OIL AND GAS CONSERVATION COMMISSION

            OF THE STATE OF COLORADO

 

 

            By                                                                                          

                                                                        Jill Dorancy, Acting Secretary