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 P&M PETROLEUM MANAGEMENT LLC, BACA, DENVER, MESA, WASHINGTON, AND WELD COUNTIES, COLORADO |
) ) ) ) ) ) ) |
CAUSE NO. 1V
ORDER NO. 1V-520
DOCKET NO. 150700162
TYPE: ENFORCEMENT |
ADMINISTRATIVE ORDER BY CONSENT
(Pursuant to Rule 522.e of the Rules and Regulations of the
Colorado Oil and Gas Conservation Commission, 2 CCR 404-1)
FINDINGS
A. Background
1. The Commission has jurisdiction to hear this matter.
2. On October 1, 2012, the Commission entered Order No. 1V-396 against P&M Petroleum Management LLC (“P&M”) (Operator No. 66565), imposing a penalty of $10,000 for P&M’s failure to comply with Rule 706, which requires an operator to post financial assurance with the Commission. The Order found that P&M acted intentionally or recklessly and that the violation involved recalcitrance or recidivism upon the part of P&M. The penalty imposed by this order has not been paid.
3. Between 2012 and 2015, Staff made numerous attempts to communicate various compliance issues with P&M, with limited success. Correspondence, NOAVs, and Notices of Hearing were sent via certified mail, U.S. mail, email, and attempted personal service to P&M’s registered address on file with the Commission pursuant to Rule 302; the address P&M had on file with the Colorado Secretary of State; and Mr. Neibauer’s (P&M’s Managing Member) home address. Despite these efforts by Staff, P&M failed to respond to or correct the identified compliance issues.
4. The Notices of Alleged Violations in this matter were served as required by the applicable statutes and regulations.
5. A Notice and Application for Hearing in this matter was served as required by the applicable statutes and regulations on or about June 1, 2015.
6. On June 10, 2015, a Prehearing Conference was held in this case. The Hearing Officer, James Rouse, entered a Scheduling Order setting forth filing deadlines, including a June 24, 2015, deadline for parties to submit prehearing statements and exhibits. The Order stated that the “parties will be limited to those legal and factual claims asserted in their prehearing statement for presentation at the hearing.”
7. On June 24, 2015, Staff filed its prehearing statement and exhibits. P&M did not file a prehearing statement or exhibits.
B. Axsom 430 Well
8. Rules 210.b and d. (Signs and Markers) require operators to mark wells with the well name, legal location, name of the operator, phone number at which the operator can be reached at all times, and a phone number for local emergency services. Operators are additionally required to label tanks with their contents, capacity, and a National Fire Protection Association (NFPA) diamond label. This information is crucial to protect public health, safety, and welfare by enabling the public, first responders, or Commission staff to contact the operator if an emergency occurs at the well and to know what materials are stored on location.
9. Rule 603.f (Equipment, weeds, waste, and trash requirements) requires all locations, including wells and surface production facilities, to be kept free of equipment, vehicles, and supplies not necessary for use on the lease; and free of weeds, rubbish, and other waste material. This requirement mirrors Rule 210 in that it promotes public health, safety, and welfare by ensuring that oil and gas locations do not become overrun with weeds or unauthorized storage yards of junk equipment.
10. P&M is the operator of record of the Axsom 430 Well (API No. 05-121-10528) in Washington County.
11. On September 13, 2011, Commission Environmental Protection Specialist (now East Environmental Supervisor) John Axelson inspected the Well (Document No. 200321080). Mr. Axelson documented that the lease road was not properly maintained and that weeds in the area were not controlled. Additionally, he noted a localized area of oil-stained soil at the separator that needed to be treated or disposed of in accordance with Rule 907.e. of COGCC Rules of Practice and Procedure, 2 CCR 404-1 (“Rule” or “Rules”). Mr. Axelson gave P&M a corrective action deadline of October 31, 2011. The inspection report was received by P&M on or about September 13, 2011.
12. On September 22, 2014, Commission Field Inspector Susan Sherman re-inspected the well (Document No. 673706458). Ms. Sherman documented that P&M had not performed the corrective actions required by Mr. Axelson in 2011 and noted additional violations. The separator lacked proper signage and National Fire Protection Association (NFPA) diamond labels. Additionally, road access was limited due to windblown sand and poor weed control, and no stormwater Best Management Practices (“BMPs”) were installed to prevent site and road degradation. Ms. Sherman gave P&M a corrective action deadline of October 31, 2014, and required P&M to submit a Form 42 when corrective actions were completed. The report was received by P&M on or about September 22, 2014.
13. On October 15, 2014, Commission Staff issued Notice of Alleged Violation (“NOAV”) No. 200413930 to P&M for violations of the following Rules:
a. Rule 210. (Signs and Markers); and
b. Rule 603.f (Equipment, weeds, waste, and trash requirements).
14. On March 25, 2015, Ms. Sherman performed a follow-up inspection of the well (Document No. 673709990). Ms. Sherman documented that P&M had not completed the required corrective actions from the 2014 inspection and NOAV. The inspection report was received by P&M on or about March 25, 2015.
15. As of July 20, 2015, the compliance issues at this well have not been corrected.
16. P&M has violated Rule 210 at the Axsom 430 Well for 301 days.
17. P&M has violated Rule 603 at the Axsom 430 Well for 1406 days.
C. Lousberg 1 Well
18. Rule 906.a. (Spills and Releases) requires operators to control and contain all spills/releases of E&P waste to protect the environment, public health, safety, and welfare, and wildlife resources, as well as clean up and investigate spills/releases “as soon as practicable.” A “release” is defined in the 100-Series Rules as “any unauthorized discharge of E&P waste to the environment over time.” If this Rule is not complied with, E&P waste will remain on location until the E&P waste naturally degrades on its own, which may be over many years. Over these years, E&P waste can seep further into soil or be carried by stormwater off-site.
19. Rules 1004.a and b (Final Reclamation) require the timely final reclamation of well sites and associated facilities, including pits. In exchange for the right to drill or operate an oil and gas facility, the land must be returned to “pre-disturbance” condition when those operations have ceased. Otherwise, as here, the impacts of oil and gas operations will linger far longer than necessary for responsible development.
20. P&M is the operator of record of the Lousberg 1 Well (API No. 05-123-07914) in Weld County. The Lousberg 1 Well was plugged and abandoned on February 14, 2002.
21. On June 11, 2013, Commission Field Inspector Kym Schure performed a pit closure and site reclamation inspection at the Lousberg 1 Well (Document No. 664001042). Mr. Schure documented that P&M had not performed the required pit closure and site reclamation. Risers and bottle separators for the gas line had not been removed from the premises. Produced water pits remained open on location and had released produced water and salt in an easterly direction into a nearby natural drainage approximately 125 feet in length by 50 feet in width. Additionally, P&M did not complete surface reclamation and allowed the lease roads to become overgrown with weeds. Mr. Schure set a corrective action deadline of June 11, 2013, for these violations, and set a second corrective action deadline of June 30, 2013, for repairing and maintaining fences. P&M was required to submit a current Form 27 and close the pits. The inspection report was received by P&M on or about June 11, 2013.
22. On July 8, 2013, Commission Staff issued NOAV No. 200382861 to P&M for violations of the following Rules at the Lousberg 1 Well:
a. Rule 906 (Spills and Releases);
b. Rule 1004.a (Well sites and associated production facilities); and
c. Rule 1004.b (Production and special purpose pit closure).
23. On June 17, 2015, Commission Reclamation Specialist Ryan Costa performed a follow-up inspection of the well (Document No. 673502464). Mr. Costa documented that P&M had not completed the required corrective actions from the 2013 inspection and NOAV. The inspection report was received by P&M on or about June 17, 2015.
24. As of July 20, 2015, the compliance issues at this well have not been corrected.
25. P&M has violated Rule 906 at the Lousberg 1 Well for 769 days.
26. P&M has violated Rule 1004.a. at the Lousberg 1 Well for 769 days.
27. P&M has violated Rule 1004.b. at the Lousberg 1 Well for 769 days.
D. Hunt 1 Well
28. Rule 309 (Form 7, Operator’s Monthly Report of Operations) requires operators to file monthly reports of operations within 45 days after the end of each month. An operator’s failure to comply with Rule 309 leaves Staff without the information necessary to properly regulate and supervise the industry.
29. Rule 326.b.(1) (Mechanical Integrity Testing, Shut-in Wells) requires a mechanical integrity test (“MIT”) be performed within two years of shutting-in a well. MITs ensure that wells do not negatively impact the environment as they sit idle. Absent regular MITs, a compromised well can act as a pathway for environmental contamination, including contamination of underground drinking water.
30. P&M is the operator of record of the Hunt 1 Well (API No. 05-009-06247) in Baca County.
31. On October 6, 2014, Commission Staff issued NOAV No. 2465111 to P&M for violations of the following Rules at the Hunt 1 Well:
a. Rule 309 (Form 7, Operator’s Monthly Report of Operations);and
b. Rule 326.b.(1) (Mechanical Integrity Testing, Shut-in Wells).
32. The Hunt 1 Well has not produced since July of 2012.
33. As of June 11, 2015, P&M had not submitted Form 7, Operator’s Monthly Reports of Operations, for the Hunt 1 Well since December 2013. P&M’s accountant admitted the delinquency and filed the reports on June 12, 2015.
34. As of July 20, 2015, P&M has failed to perform an MIT at this well.
35. P&M has violated Rule 309 at the Hunt 1 Well for 731 days.
36. P&M has violated Rule 326 at the Hunt 1 Well for 353 days.
E. Newlin 1 Well
37. P&M is the operator of record of the Newlin 1 Well (API No. 05-009-06275) in Baca County.
38. On October 6, 2014, Commission Staff issued NOAV No. 2465110 to P&M for violations of the following Rules at the Newlin 1 Well:
a. Rule 309 (Form 7, Operator’s Monthly Report of Operations); and
b. Rule 326.b.(1) (Mechanical Integrity Testing, Shut-in Wells).
39. The Newlin 1 Well has not produced since August 2012.
40. As of June 11, 2015, P&M had not submitted Form 7, Operator’s Monthly Reports of Operations, for the Newlin 1 Well since December 2013. P&M’s accountant admitted the delinquency and filed the reports on June 12, 2015.
41. As of July 20, 2015, P&M has failed to perform an MIT at this well.
42. P&M has violated Rule 309 at the Newlin 1 Well for 731 days.
43. P&M has violated Rule 326 at the Newlin 1 Well for 322 days.
F. Silvey Flats 1-8 Well
44. P&M is the operator of record of the Silvey Flats 1-8 Well (API No. 05-077-08335) in Mesa County.
45. The Silvey Flats 1-8 Well has not produced since at least 1999.
46. On October 25, 2012, Commission Staff issued NOAV No. 200360269 to P&M for violations of Rule 326.b.(1) (Mechanical Integrity Testing, Shut-in Wells) at the Silvey Flats 1-8 Well.
47. As of July 20, 2015, P&M has failed to perform an MIT at this well.
48. P&M has violated Rule 326 at the Silvey Flats 1-8 Well for 1334 days.
G. Rule 302
49. Rule 302 (Registration for Oil and Gas Operations) requires operators to register with the Commission prior to commencing oil and gas operations, through the filing of a Form 1, and to keep their contact information current by immediately reporting changes by filing a revised Form 1. This Rule ensures that Staff, the public, first responders, and others have accurate contact information for oil and gas operators in Colorado.
50. After unsuccessfully attempting to contact P&M by phone, on May 5, 2014, Martha Ramos, COGCC Financial Assurance Supervisor, issued a Warning Letter to P&M (Document No. 2540575) asking P&M to update its contact information with the Commission. Despite the fact that the letter was sent to P&M’s address on file with the Commission pursuant to Rule 302 the letter was returned.
51. Apart from the instance described above, compliance-related correspondence, NOAVs, and Notices of Hearing were also sent via certified mail, U.S. mail, email and attempted personal service to P&M’s registered address on file with the Commission pursuant to Rule 302; the address P&M had on file with the Colorado Secretary of State; and Mr. Neibauer’s (P&M’s Managing Member) home address. P&M’s refusal to respond to the numerous communications highlighted above and P&M’s refusal to maintain a current mailing address or telephone number indicate an unwillingness or inability to comply with even the most basic requirements of being a good oil and gas operator in Colorado.
52. On August 14, 2014, Commission Staff issued NOAV No. 400629229 to P&M for a violation of Rule 302 (Form 1, Registration for Oil and Gas Operations).
53. P&M submitted an updated Form 1 on June 10, 2015, during a prehearing conference at the Commission offices.
54. P&M has violated Rule 302 for 401 days.
A. Additional Relief
Multiple compliance problems have existed and languished for years at numerous locations operated by P&M. Staff’s many attempts to obtain compliance have been unsuccessful. As described above, P&M has repeatedly ignored its obligations to comply with the Rules. Therefore, it is appropriate for this Commission to enter an order finding P&M in violation of multiple Rules, imposing a substantial penalty, and providing Staff with a mechanism to clean-up and close-down P&M’s operations if P&M fails to return to compliance and pay the penalty. Because P&M’s compliance issues are extensive, longstanding, and present a serious risk to the environment, the possible foreclosure of P&M’s financial assurance and rescission of P&M’s right to conduct oil and gas operations in the State of Colorado are appropriate – and necessary – actions.
Staff has also lost confidence in the ability of Mr. Neibauer to manage the affairs of an oil and gas company in Colorado but is willing to give him one last opportunity to return to compliance. As described above, P&M’s refusal or inability to comply with Commission Rules begins with the company’s employees and it is clear that Mr. Neibauer, P&M’s only employee, has not been up to the task of operating in the State of Colorado. Similar orders have been entered by this Commission in the past, (see Order No. 1V-470 – Enforcement action against Redwine Resources, Inc., and Gary Redwine in his individual capacity). Therefore, it is appropriate for this Commission to enter an order requiring Mr. Neibauer to notify the Commission and obtain prior approval should he (or an entity he controls) seek to operate in Colorado again if P&M fails to return to compliance and pay the penalty.
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 P&M and Mr. Neibauer agree to settle the NOAVs on the following terms and conditions:
1. P&M has violated Rules 210, 302, 309, 326, 603, 906, and 1004, for the reasons described above.
2. P&M is assessed a total penalty of $256,300, with $156,300 suspended pending successful completion of the compliance requirements outlined below. $100,000 of the total penalty will be due and payable as follows:
a. $40,000 will be due on or before August 9, 2015.
b. The remaining $60,000 will be due in six, monthly payments of $10,000 with the first payment due September 9, 2015.
3. The penalty is calculated as follows:
|
NOAV No. |
Facility |
Rule |
Statute |
Class |
Impact |
Base Penalty |
Start Date |
End Date |
Days |
Raw Penalty |
Total Penalty |
|
2465110 |
Newlin 1 |
309 |
Old |
N/A |
- |
$1,000 |
06/14/2013 |
06/15/2015 |
731 |
10,000 |
$10,000 |
|
|
|
326 |
New |
2 |
Minor |
$2,500 |
09/01/2014 |
07/20/2015 |
322 |
805,000 |
$58,600 |
|
2465111 |
Hunt 1 |
309 |
Old |
N/A |
- |
$1,000 |
06/14/2013 |
06/15/2015 |
731 |
10,000 |
$10,000 |
|
|
|
326 |
New |
2 |
Minor |
$2,500 |
08/01/2014 |
07/20/2015 |
353 |
882,500 |
$60,150 |
|
200360269 |
Silvey Flats 1-8 |
326 |
Old |
N/A |
- |
$1,000 |
11/24/2011 |
07/20/2015 |
1334 |
10,000 |
$10,000 |
|
200382861 |
Lousberg 1 |
906 |
Old |
N/A |
- |
$1,000 |
06/11/2013 |
07/20/2015 |
769 |
10,000 |
$10,000 |
|
|
|
1004a |
Old |
N/A |
- |
$1,000 |
06/11/2013 |
07/20/2015 |
769 |
10,000 |
$10,000 |
|
|
|
1004b |
Old |
N/A |
- |
$1,000 |
06/11/2013 |
07/20/2015 |
769 |
10,000 |
$10,000 |
|
200413930 |
Axsom 430 |
210 |
New |
2 |
Minor |
$2,500 |
09/22/2014 |
07/20/2015 |
301 |
752,500 |
$57,550 |
|
|
|
603 |
Old |
N/A |
- |
$1,000 |
09/13/2011 |
07/20/2015 |
1406 |
10,000 |
$10,000 |
|
400629229 |
Statewide |
302 |
Old |
N/A |
- |
$1,000 |
05/05/2014 |
06/10/2015 |
401 |
10,000 |
$10,000 |
|
|
|
|
|
|
|
|
|
|
Totals |
2,520,000 |
$256,300 |
4. P&M will have until December 31, 2015, to return the Axsom 430, Lousberg 1, Hunt 1, Newlin 1, and Silvey Flats 1-8 Wells to compliance. In the event P&M elects to plug and abandon any of these wells, P&M must pass a final reclamation inspection by June 30, 2016. In the event P&M elects to transfer ownership of these wells, the transfer must be completed and approved by the COGCC by June 30, 2016, and all funds received by P&M as part of any transfer must be spent on returning P&M’s wells to compliance with proof of same provided to the COGCC upon demand.
5. P&M will have until June 30, 2016, to pass a final reclamation inspection at all of its wells including, but not limited to, the Hamil Bros 1, Impala Resources Latchstring 1X, Impala Resources Ambrose 3-25, Ambrose Thoma 1-11, Trout Creek Unit 1-A, and State 26 Wells.
6. P&M agrees that on July 31, 2016, or upon default, whichever is earlier, P&M’s Operator Number (No. 66565) and Form 1 (Document No. 737292) will be rescinded, and P&M’s right to conduct oil and gas operations in the state of Colorado will be permanently revoked – the rescission/revocation will occur even where P&M has successfully completed the compliance requirements outlined above.
7. In the event P&M defaults under this agreement, the total penalty remaining, including any suspended portion ($256,300 less any payments already made), will be due, and received by the Commission, no later than 10 business days after a written demand for payment by the Director, which will be served pursuant to Rule 521 at P&M’s address of record, on file with the COGCC pursuant to Rule 302. Mr. Neibauer agrees to waive personal service of a written demand for payment by the Director and to accept service at pmpetroleum4@msn.com.
8. In the event P&M defaults, COGCC Staff is authorized to foreclose P&M’s existing financial assurance and claim both the principal and any accrued, but undisbursed, interest that may exist, supplemented as may be necessary by funds from the Oil and Gas Conservation and Environmental Response Fund, to:
a. Remediate conditions that threaten to cause, or that actually cause, environmental impacts at oil and gas locations operated by P&M;
b. Plug and abandon any wells operated by P&M; and
c. Reclaim all well sites and associated facilities operated by P&M.
9. All equipment and appurtenances related to P&M’s operations, if any, shall become property of the Commission should COGCC Staff initiate any of the activities described in the preceding paragraph and COGCC Staff is authorized to dispose of such equipment and appurtenances as it sees fit, provided that any proceeds from the disposition of the assets will be applied to any work undertaken by COGCC Staff.
10. P&M, or its successors or assigns, shall remain responsible for complying with this Order, including the penalties imposed, in the event P&M is revived or recapitalized or there is a sale of any well sites or associated facilities operated by P&M.
11. P&M, or its successors or assigns, shall be required to repay any funds expended by the Commission from the Oil and Gas Conservation and Environmental Response Fund for any work undertaken by COGCC Staff.
12. Upon default and until the fine assessed under this order is paid in full and all required abatement and corrective actions are performed, Mr. Edward Neibauer, Sr. is required to notify the Commission if: (1) he or any entity of which Mr. Edward Neibauer, Sr. is a principal, majority owner, operational or general manager, or otherwise exercises control of an entity’s oil and gas operations in the state of Colorado (“entity”) applies for a permit or submits a Registration for Oil and Gas Operations (Form 1) or a Certificate of Clearance and/or Change of Operator (Form 10) for the Commission’s approval; or (2) he joins an existing entity and becomes the principal, majority owner, operational or general manager, or otherwise exercises control of the existing entity. If Mr. Edward Neibauer, Sr. or the entity applies for a permit or submits a Certificate of Clearance, the Director may not approve the request. The request must come before the Commission at a hearing, at which it may determine whether to grant the request, require a higher amount of financial assurance before granting the request, or deny the request.
13. In exchange for the settlement terms outlined above, but only in the event P&M defaults under this agreement, Mr. Edward Neibauer, Sr. specifically agrees to the imposition of the terms outlined in the preceding paragraph.
14. Last, P&M and Mr. Neibauer agree that a determination as to whether P&M has defaulted under this agreement is a determination made by the Director, in the Director’s sole discretion. Further, P&M and Mr. Neibauer agree to waive any right to appeal such a determination to the Commission.
RECOMMENDED this day of , 2015.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
Jeremy I. Ferrin, Enforcement Officer
AGREED TO AND ACCEPTED this ______day of , 2015
P&M
PETROLEUM MANAGEMENT LLC, and
EDWARD NEIBAUER, SR.
Edward Neibauer, Sr., personally, and on behalf of P&M Petroleum Management LLC
ORDER
NOW, THEREFORE, the COMMISSION ORDERS:
1. P&M has violated Rules 210, 302, 309, 326, 603, 906, and 1004, for the reasons described above.
2. P&M is assessed a total penalty of $256,300, with $156,300 suspended pending successful completion of the compliance requirements outlined below. $100,000 of the total penalty will be due and payable as follows:
3. $40,000 will be due on or before August 9, 2015.
4. The remaining $60,000 will be due in six, monthly payments of $10,000 with the first payment due September 9, 2015.
5. P&M will have until December 31, 2015, to return the Axsom 430, Lousberg 1, Hunt 1, Newlin 1, and Silvey Flats 1-8 Wells to compliance. In the event P&M elects to plug and abandon any of these wells, P&M must pass a final reclamation inspection by June 30, 2016. In the event P&M elects to transfer ownership of these wells, the transfer must be completed and approved by the COGCC by June 30, 2016, and all funds received by P&M as part of any transfer must be spent on returning P&M’s wells to compliance with proof of same provided to the COGCC upon demand.
6. P&M will have until June 30, 2016, to pass a final reclamation inspection at all of its wells including, but not limited to, the Hamil Bros 1, Impala Resources Latchstring 1X, Impala Resources Ambrose 3-25, Ambrose Thoma 1-11, Trout Creek Unit 1-A, and State 26 Wells.
7. On July 31, 2016, or upon default, whichever is earlier, P&M’s Operator Number (No. 66565) and Form 1 (Document No. 737292) will be rescinded, and P&M’s right to conduct oil and gas operations in the state of Colorado will be permanently revoked – the rescission/revocation will occur even where P&M has successfully completed the compliance requirements outlined above.
8. In the event P&M defaults under this agreement, the total penalty remaining, including any suspended portion ($256,300 less any payments already made), will be due, and received by the Commission, no later than 10 business days after a written demand for payment by the Director, which will be served pursuant to Rule 521 at P&M’s address of record, on file with the COGCC pursuant to Rule 302. A written demand for payment by the Director will be served on Mr. Neibauer as described above.
9. In the event P&M defaults, COGCC Staff is authorized to foreclose P&M’s existing financial assurance and claim both the principal and any accrued, but undisbursed, interest that may exist, supplemented as may be necessary by funds from the Oil and Gas Conservation and Environmental Response Fund, to:
a. Remediate conditions that threaten to cause, or that actually cause, environmental impacts at oil and gas locations operated by P&M;
b. Plug and abandon any wells operated by P&M; and
c. Reclaim all well sites and associated facilities operated by P&M.
10. All equipment and appurtenances related to P&M’s operations, if any, shall become property of the Commission should COGCC Staff initiate any of the activities described in the preceding paragraph and COGCC Staff is authorized to dispose of such equipment and appurtenances as it sees fit, provided that any proceeds from the disposition of the assets will be applied to any work undertaken by COGCC Staff.
11. P&M, or its successors or assigns, shall remain responsible for complying with this Order, including the penalties imposed, in the event P&M is revived or recapitalized or there is a sale of any well sites or associated facilities operated by P&M.
12. P&M, or its successors or assigns, shall be required to repay any funds expended by the Commission from the Oil and Gas Conservation and Environmental Response Fund for any work undertaken by COGCC Staff.
13. Upon default and until the fine assessed under this order is paid in full and all required abatement and corrective actions are performed, Mr. Edward Neibauer, Sr. is required to notify the Commission if: (1) he or any entity of which Mr. Edward Neibauer, Sr. is a principal, majority owner, operational or general manager, or otherwise exercises control of an entity’s oil and gas operations in the state of Colorado (“entity”) applies for a permit or submits a Registration for Oil and Gas Operations (Form 1) or a Certificate of Clearance and/or Change of Operator (Form 10) for the Commission’s approval; or (2) he joins an existing entity and becomes the principal, majority owner, operational or general manager, or otherwise exercises control of the existing entity. If Mr. Edward Neibauer, Sr. or the entity applies for a permit or submits a Certificate of Clearance, the Director may not approve the request. The request must come before the Commission at a hearing, at which it may determine whether to grant the request, require a higher amount of financial assurance before granting the request, or deny the request.
14. Any determination as to whether P&M has defaulted under this agreement is a determination made by the Director, in the Director’s sole discretion and P&M and Mr. Neibauer have waived any right to appeal such a determination to the Commission.
15. 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 30 days prior to the pertinent compliance deadline or as soon as possible if 30 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.
16. 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 the Commission’s approval.
17. The Commission expressly reserves its right after notice and hearing, to alter, amend, or repeal any and/or all of the above Order.
ENTERED this _____ day of _______, 2015 as of the ___ day of July, 2015.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Julie Murphy, Secretary