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 BURLINGTON RESOURCES OIL & GAS COMPANY LP, ARAPAHOE COUNTY, COLORADO |
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CAUSE NO. 1V
DOCKET NO. 151000470
TYPE: ENFORCEMENT
ORDER NO. 1V-540 |
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
1. Burlington Resources Oil & Gas Company LP (“Burlington”) (Operator No. 26580) is the operator of the Property Reserve 4-65 3-4 #1H Well (API No. 05-005-07226) (“Well”) in Arapahoe County.
2. On April 30, 2015, COGCC Staff observed Burlington flaring the Well. According to COGCC records, Burlington had not filed a Form 4, Sundry Notice, or obtained prior approval from the Director for these operations.
3. On May 8, 2015, COGCC Staff issued a Notice of Alleged Violation (“NOAV”) (No. 200431886) to Burlington citing violation of Rule 912.b. (Venting or Flaring Natural Gas) of the COGCC Rules of Practice and Procedure, 2 CCR 404-1 (“Rule” or “Rules”) for failure to submit a Form 4, Sundry Notice, and obtain approval prior to flaring the Well.
4. On May 23, 2015, Burlington shut-in the Well.
|
Rule |
Class |
Impact |
Daily Penalty |
Start Date |
End Date |
Days |
Total Penalty |
|
912.b. |
Class 2 |
Minor |
$2,500 |
4/30/2015 |
5/23/2015 |
23 |
$31,500 |
a. Violations beginning after the effective date of HB 14-1356 (June 6, 2014) and revised Rules 522/523 (March 2, 2015);
b. The Enforcement Guidance and Penalty Policy classifies Rule 912 as a Class 3 Rule. Staff has reclassified Rule 912.b. as a Class 2 Rule for the purposes of this penalty calculation. This Rule was reclassified because the violation of this subpart did not have the same potential impacts as a violation of the other subparts under these circumstances. This reclassification does not create or impact any substantive or procedural rights;
c. Application of the COGCC Enforcement Guidance and Penalty Policy’s Duration Matrix;
d. Start date of the violation, Staff’s first observation, will not be extended to future similar violations;
e. No aggravating or mitigating factors; and
f. No pattern of violation, or gross negligence or knowing and willful misconduct.
AGREEMENT
NOW, THEREFORE, based on the Findings and pursuant to Rule 522.e.(1) and the Commission’s Enforcement and Penalty Policy, the Director and Burlington agree to settle the NOAV on the following terms and conditions:
II. Burlington will be assessed a penalty of $31,500 this violation, $16,500 of which will be due within 30 days after the approved AOC is mailed by the Commission. The remaining $15,000 penalty will be suspended pending Burlington’s compliance with Rules 912.b. and 805.b.(3) at all wells it operates for two years from the date this AOC is approved by the Commission.
III. If Burlington fails to comply with Rules 912.b. and 805.b.(3) at any wells it operates within two years of the date this AOC is approved by the Commission, the suspended penalty will be revoked. Upon revocation, the suspended portion of the penalty will be due within 30 days after notification from the Director, without any further action from the Commission.
IV. Payment of the penalty pursuant to this AOC does not relieve the operator from its obligations to complete corrective actions set forth in the NOAVs, as may be amended or modified by COGCC Staff.
V. Burlington agrees to the findings of this AOC only for the purpose of expeditiously resolving this matter without a contested hearing. However, Burlington concedes that the COGCC is free to consider this matter if Burlington violates Rules 912.b. and 805.b.(3) again in the future, even beyond the two years contemplated by this AOC.
RECOMMENDED this 22nd day of September, 2015.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By
Britta Beckstead, Asst. Attorney General
AGREED TO AND ACCEPTED this ____ day of September, 2015.
BURLINGTON RESOURCES OIL & GAS
COMPANY LP
By
Signature of Authorized Company Representative of BROG GP LLC, its General Partner
Print Signatory Name and Title
ORDER
HAVING CONSIDERED the Agreement between the Director and Burlington to resolve the NOAV, the COMMISSION ORDERS:
1. Burlington is found in violation Rule 912.b. as described above.
2. Burlington is assessed a penalty of $31,500 this violation, $16,500 of which is due within 30 days after the approved AOC is mailed by the Commission. The remaining $15,000 penalty will be suspended pending Burlington’s compliance with Rules 912.b. and 805.b.(3) at all wells it operates for two years from the date this Order is approved by the Commission.
3. If Burlington fails to comply with Rules 912.b. and 805.b.(3) at any wells it operates within two years of the date this Order is approved by the Commission, the suspended penalty will be revoked. Upon revocation, the suspended portion of the penalty will be due within 30 days after notification from the Director, without any further action from the Commission.
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 14 days prior to the pertinent compliance deadline or as soon as possible if 14 days prior notice is not feasible.
5. Failure to pay the penalty or perform the corrective action by the above deadlines is an independent violation that may be subject to additional penalties.
6. 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. 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 Order.
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OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Julie Murphy, Secretary