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 J-W OPERATING COMPANY, LOGAN COUNTY, COLORADO |
) ) ) ) ) ) ) |
CAUSE NO. 1V
DOCKET NO. 151000661
TYPE: ENFORCEMENT
ORDER NO. 1V-543 |
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. J-W Operating Company (“J-W”) (Operator No. 44350) is the operator of the Luft 1 Well (API No. 05-075-07464) (“Well”) in Logan County, Colorado.
2. On November 23, 2011, COGCC Staff conducted a Field Inspection and determined that J-W had temporarily abandoned the Well. (Doc. No. 664000167)
3. J-W failed to file the requisite Form 4 (Sundry Notice) needed to obtain Director approval to temporarily abandon this Well, as required by Rule 319.b.
4. On August 20, 2015, Commission Staff issued a Notice of Alleged Violation (“NOAV”) (No. 2618170) to J-W citing violation of the following COGCC Rules of Practice and Procedure, 2 CCR 404-1 (“Rule” or “Rules”):
a. Rule 319.b. (Temporary Abandonment)
5. J-W has made the decision to plug the Well and on September 22, 2015, J-W contacted Engineering Staff and took steps towards the final plugging and abandonment of this Well. Staff has determined this to be the commencement of corrective actions.
6. Following factual investigation and legal review of the violations alleged in the NOAV, Hearing Staff now asserts J-W has committed the following violation(s):
a. One 398-day violation of Rule 319.b. (Temporary Abandonment) for failing to obtain Director’s approval to abandon the Luft 1 Well.
7. Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings Staff calculated a penalty of $4,185 for this violation. The penalty calculation is based on the following:
Rule No. |
Days of Violation |
Start Date |
End Date |
Statute |
Class |
Impact |
Daily Base Penalty |
Total Penalty |
319.b. |
398 |
8/20/2014 |
9/22/2015 |
New |
1 |
Minor |
$200 |
$4,185 |
|
TOTAL |
$4,185 |
a. Current versions of § 34-60-121 C.R.S. and Rule 523;
b. Application of the Duration Matrix from the COGCC Enforcement Guidance and Penalty Policy January 2015 (corrected 4/8/2015);
c. Violation end date of September 22, 2015, being the commencement of corrective action;
d. Calculated days of violation limited by one-year statute of limitations (§34-60-115, C.R.S.);
e. Class 1 violation;
f. Minor impact;
g. Daily base penalty of $200;
h. No aggravating factors;
i. No mitigating factors;
j. No pattern of violation; and
k. No gross negligence or knowing and willful misconduct.
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 J-W agrees, to settle the NOAV on the following terms and conditions:
I. J-W is found in violation of Rule 319.b.
II. J-W will be assessed a penalty of $4,185.
III. J-W will pay $4,185 within 30 days after this AOC is mailed by the Commission.
RECOMMENDED this 29th day of September, 2015.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By
David A. Beckstrom, Enforcement Officer
AGREED TO AND ACCEPTED this day of _______, 2015.
J-W OPERATING COMPANY
By
Signature of Authorized Company Representative
Print Signatory Name
Title
ORDER
HAVING CONSIDERED the Agreement between the Director and J-W Operating Company to resolve the NOAV, the COMMISSION ORDERS:
1. J-W is found in violation of Rules 319.b.
2. J-W will be assessed a penalty of $4,185.
3. J-W will pay $4,185 within 30 days after this approved AOC is mailed by 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 35 days prior to the pertinent compliance deadline or as soon as possible if 35 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.
5. 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 approval 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.
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ENTERED this day of , 2015 as of the 26th day of October, 2015.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Julie Murphy, Secretary