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 SUNCOR ENERGY (U.S.A.), INC, CITY AND COUNTY OF DENVER, COLORADO

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CAUSE NO. 1V

DOCKET NO. 150700171

ORDER NO. 1V-522

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. Suncor Energy (U.S.A.) Inc. (Operator No. 83720) (“Suncor”) is registered with the Colorado Oil and Gas Conservation Commission (“Commission” or “COGCC”) to conduct oil and gas operations pursuant to Rule 302.a. of the Rules and Regulations of the Commission, 2 CCR 404-1 (“Rule” or “Rules”). Suncor is a downstream refiner of oil and gas.

2. On or about December 16, 2013, Commission Staff was informed that Suncor’s address had changed.

3. Suncor failed to file its Form 1 updating its contact information until November 7, 2014.

4. On June 19, 2014 Commission Staff issued a Notice of Alleged Violation (“NOAV”) (No. 400629488) to Suncor for the failure to file a Form 1 as described above. The NOAV cited a violation of Rule 302.a.

5. Following a factual investigation and legal review of the violations alleged in the NOAV referenced above, Hearings Staff now asserts Suncor 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.	Old	$1,000	12/17/2013	12/27/2013	10	$10,000
TOTAL PENALTY						$10,000

6. The Rule 302.a. alleged violation occurred before the effective date of HB 14-1356. The violation began on December 17, 2013, the date the Form 1 should have been submitted. The penalty for this alleged violation will be calculated pursuant to the version of Rule 523 in effect at the time of the violation.

7. Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings staff calculated a penalty of $10,000 for this violation. The penalty calculation is based on the following:

a. The violations occurred prior to the effective date of HB 14-1356;

b. Daily starting base penalty of $1,000 per day per violation;

c. Statutory limit of not more than 10 days of violation because there was no significant waste of oil and gas resources, damage to correlative rights, or significant adverse impact on public health, safety or welfare, including the environment or wildlife resources;

d. No aggravating factors;

e. The following mitigating factors:

i. Operator reached compliance before the Commission hearing in this matter;

f. No pattern of violation; and

g. No gross negligence or knowing and willful misconduct.

II. AGREEMENT

NOW, THEREFORE, based on the Findings and pursuant to Rule 522.e.(1)A. and the Commission’s Enforcement and Penalty Policy, the Director proposes and Suncor agrees to settle the NOAV on the following terms and conditions:

Suncor violated Rule 302.a. as described above.

Suncor is assessed a penalty of $10,000 with $1,000 due within 30 days of approval of this Administrative Order by Consent (“AOC”) by the Commission, and $9,000 suspended provided Suncor 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. Suncor 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

Kyle W. Davenport, Assistant Attorney General

AGREED TO AND ACCEPTED this ______day of July, 2015.

SUNCOR ENERGY (U.S.A.) INC.

Signature of Authorized Company Representative

Print Signatory Name

Title

III. ORDER

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

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

Suncor is assessed a penalty of $10,000 with $1,000 due within 30 days of approval of this AOC by the Commission, and $9,000 suspended provided Suncor 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

Julie Murphy, Secretary