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 JACK J. GRYNBERG, D/B/A GRYNBERG PETROLEUM CO., MONTEZUMA COUNTY, COLORADO |
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CAUSE NO. 1V
DOCKET NO. 160300091
TYPE: ENFORCEMENT
ORDER NO. 1V-565 |
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. Jack. J. Grynberg, d/b/a Grynberg Petroleum Co. (“Grynberg”) (Operator No. 36200) is the operator of the Mary Akin Unit 2 well (“Well”) (API 05-083-06378) in Montezuma County, Colorado.
2. On April 27, 1983, the Well was spud.
3. On January 1, 2011, Grynberg became the operator of the Well. When Grynberg became the operator of the Well, it was in possession of a gas analysis that indicated the presence of hydrogen sulfide at the Well of over 100 ppm.
4. On August 8, 2013, Grynberg performed a mechanical integrity test (“MIT”) on the Well. The Well passed the MIT.
5. On June 11, 2015, Colorado Oil and Gas Conservation Commission (“COGCC” or “Commission”) Staff instructed Grynberg to review COGCC Rule of Practice and Procedure, 2 CCR 404-1 (“Rule”) 607 and the COGCC policy on hydrogen sulfide as it related to the Well.
6. On June 29, 2015, COGCC Staff performed an inspection at the Well. In the “Comments” section of the inspection, Staff stated that gas analysis indicating the presence of hydrogen sulfide gas must be reported to the local governmental designee (“LGD”) (Document No. 667700655).
7. On June 30, 2015, Grynberg submitted a laboratory analysis to the COGCC that showed the Well contained 269 ppm hydrogen sulfide in the gas stream.
8. On August 24, 2015, COGCC Staff issued a Notice of Alleged Violation (“NOAV”) (No. 200436876) to Grynberg for violations of Rule 607.a. and 607.c. (Hydrogen Sulfide Gas) at the Well. Grynberg received the NOAV via certified mail on August 31, 2015.
9. On August 31, 2015, Grynberg submitted a gas analysis indicating the presence of hydrogen sulfide at the Well to the Montezuma County LGD.
10. On September 15, 2015, Grynberg submitted a hydrogen sulfide drilling operations plan to the COGCC. The plan was approved, with Conditions of Approval, on February 8, 2016.
12. Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings Staff calculated a penalty of $3,500 for this violation. The penalty calculation is based on the following:
|
Rule |
Days of Violation |
Start Date |
End Date |
Daily Penalty |
Total Penalty |
|
607 |
369 |
8/29/2014 |
8/31/2015 |
$200 |
$4,150 |
|
Settlement discount (-15.6%) |
-$650 |
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|
FINAL PENALTY |
$3,500 |
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· Current versions of § 34-60-121, C.R.S. and Rule 523;
· Class 1 Minor violation under Rule 607 for the failure to submit a hydrogen sulfide operations plan to the COGCC and for the failure to report a gas analysis indicating the presence of hydrogen sulfide to the Montezuma County LGD.
· Days of violation for the violation of Rule 607 calculated from one year prior to service of the NOAV until the date Grynberg began corrective actions;
· Duration matrix applied;
· Settlement discount of approximately 15.6%;
· No aggravating factors;
· No mitigating factors;
· No pattern of violation; and
· No 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 proposes and Grynberg agrees to settle the NOAV on the following terms and conditions:
I. Grynberg is found in violation of Rule 607 as described above.
II. Grynberg will be assessed a penalty of $3,500.
III. Grynberg will pay $3,500 within 30 days after the approved AOC is mailed by the Commission.
RECOMMENDED this 18 day of February, 2016.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By
Kyle W. Davenport
Assistant Attorney General
AGREED TO AND ACCEPTED this ______day of February, 2016.
JACK J. GRYNBERG, D/B/A GRYNBERG PETROLEUM CO.
By
Signature of Authorized Company Representative
Print Signatory Name
Title
ORDER
HAVING CONSIDERED the Agreement between the Director and Grynberg to resolve the NOAV, the COMMISSION ORDERS:
1. Grynberg is found in violation of Rule 607 as described above.
2. Grynberg will be assessed a penalty of $3,500.
3. Grynberg will pay $3,500 within 30 days after the approved AOC is mailed by the Commission.
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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OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Julie Murphy, Secretary