cBEFORE 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

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CAUSE NO. 1V

 

DOCKET NO. 150500173

 

TYPE:   ENFORCEMENT

 

ORDER NO. 1V-513

 

 

ADMINISTRATIVE ORDER BY CONSENT

 (Pursuant to Rule 522.e.(1) of the Rules and Regulations of the

Colorado Oil and Gas Conservation Commission, 2 CCR 404-1)

 

FINDINGS

 

1.         TOP Operating Company (“TOP”) is the operator of the Haley 10 Well (API No. 05-123-38400) (“Well”) in Weld County.

 

2.         The Haley 10 Well was spud on December 30, 2013.  TOP did not collect groundwater samples prior to drilling the Well, nor did it file a Sundry Notice requesting an exception prior to drilling the Well. 

 

3.         On July 31, 2014, Commission Staff issued a Notice of Alleged Violation (“NOAV”) (No. 200409733) to TOP for a violation related to its failure to collect groundwater samples as described above.  The NOAV cited violation of Rule 318A.e.(4) (now Rule 318A.f.) (Groundwater baseline sampling and monitoring) of the COGCC Rules of Practice and Procedure, 2 CCR 404-1 (“Rule” or “Rules”).

 

            4.         Following a factual investigation and legal review of the violations alleged in the NOAV, the Hearings Staff now asserts TOP is responsible for one 1 day violation of Rule 318A.f., because TOP failed to collect groundwater samples or receive an exception prior to drilling the Well.

 

5.         Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings staff calculated a penalty of $2,500 for these violations. The penalty calculation is based on a one day violation of Rule 318A.f., which is a Class 2 Rule.  According to the Enforcement Policy Penalty Schedule, the violation is minor.

 

6.         Staff does not recommend any adjustments based on aggravating or mitigating factors.  Staff found no evidence of a pattern of violations, gross negligence, or knowing and willful misconduct.

 

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:

 

I.    TOP is found in violation of Rule 318A.f.

 

II.   TOP will be assessed a penalty of $2,000.

 

III.  TOP will pay $2,000 within 30 days after the approved AOC is mailed by the Commission. 

 

IV. TOP will either submit the groundwater sampling data required under Rule 318A.f.(4)B., or file a sundry notice requesting an exception to the Rule if TOP is unable to collect a sample by September 2, 2015.

 

 

RECOMMENDED this 3rd day of June, 2015.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

 

By                                                                       

Jennifer S. Bock, Enforcement Officer 

 

 

AGREED TO AND ACCEPTED this ______day of                   , 2015.

                                                                                                                                               

 

                        TOP OPERATING COMPANY

 

                             

                        By                                                                                          

                        Signature of Authorized Company Representative

 

                                                                                                                       

                                    Print Signatory Name

                      

                                                                                                                                                                        Title

 

 

 

ORDER

 

HAVING CONSIDERED the Agreement between the Director and TOP Operating Company to resolve the NOAV, the COMMISSION ORDERS:

 

            1.         TOP is found in violation of Rule 318A.f. as described above.

 

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

 

3.         TOP will either submit the groundwater sampling data required under Rule 318A.f.(4)B., or file a sundry notice requesting an exception to the Rule if TOP is unable to collect a sample by September 2, 2015.

 

4.         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.

 

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                     , 2015 as of the 20th day of July, 2015.
           

                                                            OIL AND GAS CONSERVATION COMMISSION

            OF THE STATE OF COLORADO

 

 

            By                                                                                          

                                                                        Julie Murphy, Secretary