BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
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IN THE MATTER OF ALLEGED VIOLATIONS OF THE RULES AND REGULATIONS OF THE COLORADO OIL AND GAS CONSERVATION COMMISSION BY EXTRACTION OIL & GAS LLC, WELD COUNTY, COLORADO |
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CAUSE NO. 1V
DOCKET NO. 151000482
TYPE: ENFORCEMENT
ORDER NO. 1V-542
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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. Extraction Oil & Gas LLC (“Extraction”) (Operator No. 10459) is the operator of record of the following wells (“Wells”):
a. Kodak 9 (API No. 05-123-37252), Weld County, Colorado;
b. Kodak 10 (API No. 05-123-37257), Weld County, Colorado; and
c. Kodak 13 (API No. 05-123-37257), Weld County, Colorado.
Rule 309 Violations
2. Under Colorado Oil and Gas Conservation Commission, 2 CCR 404-1 (“Rule” or “Rules”) Rule 309, Extraction was required to submit a Form 7, Monthly Report of Operations, 45 days after each month from the month the well was spud to the month after it is reported as abandoned.
3. On December 25, 2014, the Kodak 9 well was spud. Extraction’s first Form 7 on the Kodak 9 well was due on February 15, 2015.
4. On September 16, 2015, Extraction submitted all required Form 7s for the Kodak 9 well.
5. On December 31, 2014, the Kodak 10 well was spud. Extraction’s first Form 7 on the Kodak 10 well was due on February 15, 2015.
6. On July 2, 2015, Extraction submitted all required Form 7s for the Kodak 10 well.
7. On February 5, 2015, the Kodak 13 well was spud. Extraction’s first Form 7 for the Kodak 13 well was due on April 15, 2015.
8. On July 2, 2015, Extraction submitted all required Form 7s for the Kodak 13 well.
9. On June 30, 2015, COGCC Staff issued Notices of Alleged Violation (“NOAV”) Nos. 1772590, 1772588, and 1772589 to Extraction for violations of Rule 309 for failing to timely submit Form 7s at the Kodak 9, Kodak 10, and Kodak 13 wells, respectively.
Rule 316 C Violations
10. Under Rule 316C, Extraction was required to submit a Form 42, Field Operations Notice, notifying the COGCC of a hydraulic fracturing treatment 48 hours prior to the treatment.
11. On May 16, 2015, Extraction performed hydraulic fracturing treatments on the Kodak 9, Kodak 10 and Kodak 13 wells. Extraction failed to submit a Form 42 prior to any of these hydraulic fracturing treatments.
12. On May 18, 2015, Extraction submitted Form 42s for the hydraulic fracturing treatments on the Kodak 9, Kodak 10 and Kodak 13 wells.
13. On June 30, 2015, COGCC Staff issued NOAV Nos. 1772590, 1772588, and 1772589 to Extraction for violations of Rule 316C for failing to timely submit Form 42s at the Kodak 9, Kodak 10, and Kodak 13 wells, respectively.
|
NOAV |
Well |
Rule |
Act |
Base Penalty |
Start Date |
End Date |
Days of Violation |
Total Penalty |
|
1772590 |
Kodak 9 |
309 |
New |
$200 |
2/15/2015 |
9/16/2015 |
213 |
$3,689 |
|
316C |
New |
$2,500 |
5/16/2015 |
5/17/2015 |
1 |
$2,500 |
||
|
1772588 |
Kodak 10 |
309 |
New |
$200 |
2/15/2015 |
7/2/2015 |
137 |
$3,461 |
|
316C |
New |
$2,500 |
5/16/2015 |
5/17/2015 |
1 |
$2,500 |
||
|
1772589 |
Kodak 13 |
309 |
New |
$200 |
4/15/2015 |
7/2/2015 |
78 |
$3,158 |
|
316C |
New |
$2,500 |
5/16/2015 |
5/17/2015 |
1 |
$2,500 |
||
|
TOTAL PENALTY |
$17,808 |
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15. Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings Staff calculated a penalty of $17,808 for these violations. The penalty calculation is based on the following:
a. Violations occurred after the June 6, 2014 effective date of HB 14-1356;
b. Duration matrix applied from January 2015 COGCC Enforcement Guidance and Penalty Policy;
c. No aggravating or mitigating factors; and
d. No pattern of violations or gross negligence/knowing 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 proposes and Extraction Oil & Gas LLC agrees to settle the NOAVs on the following terms and conditions:
III. Extraction will pay the $17,808 penalty within 30 days after the approved AOC is mailed by the Commission.
RECOMMENDED this 25 day of September, 2015.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By
Kyle W. Davenport, Assistant Attorney General
AGREED TO AND ACCEPTED this ______day of September, 2015.
EXTRACTION OIL & GAS LLC
By
Signature of Authorized Company Representative
Print Signatory Name and Title
ORDER
HAVING CONSIDERED the Agreement between the Director and Extraction Oil & Gas LLC to resolve the NOAV, the COMMISSION ORDERS:
1. Extraction is found in violation of Rules 309 and 316C at the Kodak 9, Kodak 10 and Kodak 13 wells, as described above.
2. Extraction is assessed a penalty of $17,808.
3. Extraction will pay the $17,808 penalty within 30 days after the approved Order is mailed by the Commission.
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. For all other purposes, this Order is effective as of the date it is approved by the Commission.
5. 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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ENTERED this _____ day of October, 2015 as of the 26th day of October, 2015.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Julie Murphy, Secretary