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, CITY AND COUNTY OF DENVER, COLORADO

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CAUSE NO. 1V

 

DOCKET NO. 151000188

 

TYPE:   ENFORCEMENT

 

ORDER NO. 1V-544

 

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 registered to conduct oil and gas operations in the State of Colorado.

 

2.         On January 9, 2015, Commission Staff discovered that J-W failed to submit a Form 1A, Designation of Agent, to report changes of the email addresses and phone numbers of its designated agents, as required by Rule 302.b.

 

3.         On January 12, 2015, Commission Staff issued a Notice of Alleged Violation (“NOAV”) (No. 2558823) to J-W citing a violation of Rule 302.b. (Form 1A, Designation of Agent) of the COGCC Rules of Practice and Procedure, 2 CCR 404-1 (“Rule” or “Rules”).

 

4.         Following a factual investigation and legal review of the violation alleged in the NOAV, the Hearings Staff now asserts J-W has committed one 290-day violation of Rule 302.b. (Form 1A, Designation of Agent) because J-W failed to submit a Form 1A notifying the Commission of changes in designated agent contact information.

 

5.         On September 23, 2015, J-W submitted a Form 1A updating the requisite contact information. (Doc. No. 02559447)

 

6.         Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings staff calculated a base penalty of $55,350 for this violation. The penalty calculation is based on the following:

 

a.    Current versions of § 34-60-121, C.R.S., and Rules 522 and 523;

b.    Application of the Duration Matrix from the COGCC Enforcement Guidance and Penalty Policy January 2015 (corrected 4/8/2015);

c.    Start date of January 9, 2015 and end date of September 23, 2015;

d.    Class 2 violation;

e.    Minor impact;

f.     Daily base penalty of $2,500;

g.    No aggravating factors;

h.    No mitigating factors;

i.      No pattern of violation; and

j.      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 302.b.

 

II.         J-W will be assessed a penalty of $55,350.

           

a.      J-W will pay $3,821 within 30 days after this AOC is mailed by the Commission.

b.      The remaining $51,529 will be suspended pending J-W’s compliance with Rule 302.b. for one year. Should J-W fail to comply with Rule 302.b. during this one-year period, the $51,529 will come due immediately and new daily penalties will begin to accrue.

 

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 September, 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 Rule 302.b. as described above.

 

2.         J-W will be assessed a penalty of $55,350.

           

a.            J-W will pay $3,821 within 30 days after this AOC is mailed by the Commission.

 

b.            The remaining $51,529 will be suspended pending J-W’s compliance with Rule 302.b. for one year. Should J-W fail to comply with Rule 302.b. during this one-year period, the $51,529 will come due immediately and new daily penalties will begin to accrue.

 

3.         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.

 

4.         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.

 

5.         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