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 OVERLAND RESOURCES LLC, ARAPAHOE COUNTY, COLORADO

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CAUSE NO. 1V DOCKET NO. 150700185 ORDER NO. 1V-521 TYPE: ENFORCEMENT

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)

I. FINDINGS

1. On June 17, 1997, Overland Resources LLC. (Operator No. 19035) (“Overland”) registered with the Colorado Oil and Gas Conservation Commission (“Commission” or “COGCC”)  to conduct oil and gas operations.

2. On November 2, 2014, Overland informed Commission Staff via email that it had changed its mailing address.

3. Rule 302.a. of the Rules and Regulations of the Commission, 2 CCR 404-1 (“Rule” or “Rules”) provides that all changes of address must be immediately reported to the Commission by submitting a new Form 1.

4. Commission Staff repeatedly notified Overland that it must file a Form 1 reporting its change in address.

5. On December 31, 2014 Commission Staff issued a Notice of Alleged Violation (“NOAV”) (No. 2558800) to Overland for the failure to file a Form 1 as described above. The NOAV cited a violation of Rule 302.a.

6. On June 19, 2015, Overland filed a Form 1 showing its change in address.

7. Following a factual investigation and legal review of the violations alleged in the NOAVs referenced above, COGCC Staff now asserts Overland committed the following violations:

Rule Violation	Penalty Act and Class/Impact	Base Penalty	Start Date	End Date	Days of Violation	Penalty per Violation
302.a.	New Class 2/Minor	$2,500	11/3/2014	6/19/2015	228	$53,900
TOTAL PENALTY						$53,900

8. Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings Staff calculated a penalty of $53,900 for this violation. The penalty calculation is based on the following:

a. The Rule violation occurred after the effective date of HB 14-1356 but prior to the effective date of the recently revised Rules 522 and 523 (March 2, 2015).  Therefore, the penalty for these violations have been calculated pursuant to § 34-60-121, C.R.S., with reference to the revised Rules 522 and 523 for guidance only;

b. The violation began on November 3, 2014, the date the Form 1 reporting a change in address was due. The violation ended on June 19, 2015, the date Overland filed the complete Form 1;

c. The following aggravating factors:

ii. Overland failed to timely respond to Commission Staff’s multiple requests for a Form 1 showing the change in address;

iii. Overland’s Form 1 was 228 days overdue;

d. The following mitigating factors:

ii. Overland notified Commission Staff of its change in address by email;

iii. Overland filed its Form 1 on June 19, 2015;

e. No pattern of violation; and

f. No gross negligence or knowing and willful misconduct.

II. AGREEMENT

      NOW, THEREFORE, based on the Findings and pursuant to Rule 522 and the Commission’s Enforcement and Penalty Policy, the Director proposes and Overland agrees to settle the NOAV on the following terms and conditions:

1. Overland violated Rule 302.a. as described above.

2. Overland is assessed a penalty of $53,900 with $3,734 due within 30 days of approval of this Administrative Order by Consent (“AOC”) by the Commission, and $50,166 suspended provided Overland remains in compliance with Rule 302.a. for two years after the approval of this Order. If the requirements of this AOC are satisfied, the suspended portion of the penalty will be vacated. If the requirements are not satisfied, the suspended penalty will become due upon demand by the Director without further action by the Commission.

III. Overland will pay the penalty within 30 days after the approved AOC is mailed by the Commission. 

RECOMMENDED this 2 day of July, 2015.

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

By

Kyle W. Davenport, Assistant Attorney General

AGREED TO AND ACCEPTED this 2 day of July, 2015.

                                                                                                                                                                                                OVERLAND RESOURCES LLC

                        By

                        Signature of Authorized Company Representative

Print Signatory Name

                                    Title

III. ORDER

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

1. Overland violated Rule 302.a. as described above.

2. Overland is assessed a penalty of $53,900 with $3,734 due within 30 days of approval of this AOC by the Commission, and $50,166 suspended provided Overland remains in compliance with Rule 302.a. for two years after the approval of this Order.

3. Failure to pay the penalty by the deadline is an independent violation that may be subject to additional penalties.

4. Entry of this Order constitutes final agency action for purposes of judicial review 30 days after the date this Order is mailed by the Commission.

5. The provisions contained in this Order are effective on the date this matter is heard and approved 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. 

===================================================================ENTERED this _____ day of July, 2015 as of the 20th day of July, 2015.      

                                                            OIL AND GAS CONSERVATION COMMISSION

            OF THE STATE OF COLORADO

            By 

                                                                        Julie Murphy, Secretary