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., WELD COUNTY, COLORADO

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CAUSE NO. 1V

 

DOCKET NO. 160300161

 

TYPE:  ENFORCEMENT

 

ORDER NO. 1V-566

 

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 Tigertail Federal 2-3H (“Well”) (API 05-123-40775) in Weld County, Colorado.

 

2.         On August 12, 2015, the Well was spud. Prior to this date, Grynberg failed to either (a) collect groundwater samples in the 12 months prior to setting conductor pipe and submit the laboratory analytical results to the COGCC within three months of sample collection or (b) submit a Form 4 Sundry Notice requesting an exception from the requirements of Rule 318A.f.

 

3.         On September 17, 2015, Grynberg filed a Form 4 - Sundry Notice (Document No. 400901207) requesting an exemption to Ground Water Sampling Requirements in COGCC Rules of Practice and Procedure, 2 CCR 404-1 (“Rule”). Greater Wattenberg Area Rule 318A.f. This Form 4 was approved on September 21, 2015.

 

4.         On September 18, 2015, COGCC Staff issued a Notice of Alleged Violation (“NOAV”) (No. 200437259) to Grynberg for a violation related to its failure to collect baseline groundwater samples or request an exemption. The NOAV cited a violation of Rule 318A.f.

 

            5.         Following a factual investigation and legal review of the violation alleged in the NOAV, the COGCC Hearings Staff now asserts Grynberg has committed the following violation:

 

One 1-day violation of Rule 318A.f. because Grynberg failed to either (a) collect groundwater samples in the 12 months prior to setting conductor pipe and submit the laboratory analytical results to the COGCC within three months of sample collection; or (b) submit a Form 4 Sundry Notice requesting an exception from the requirements of Rule 318A.f.

 

6.         Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings staff calculated a penalty of $1,875 for this violation. The penalty calculation is based on the following:

 

Rule

Days of Violation

Start Date

End Date

Daily Penalty

Total Penalty

318A

1

8/12/2016

8/13/2015

$2,500.00

$2,500

Settlement Inducement (25%)

-$625

FINAL PENALTY

$1,875

 

·         Current versions of § 34-60-121, C.R.S. and Rule 523

·         Class 2 Minor violation for failure to request exemption prior to spud – 1 day;

·         Class 2 daily base penalty of $2,500;

·         Settlement inducement of 25%;

·         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 318A.f. as described above.

 

II.         Grynberg will be assessed a penalty of $1,875.

 

III.        Grynberg will pay $1,875 within 30 days after the approved AOC is mailed by the Commission. 

 

RECOMMENDED this __  day of January, 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 January, 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 318A.f. as described above.

 

2.         Grynberg will be assessed a total penalty of $1,875 for the rule violation described above.

 

3.         Grynberg will pay $1,875 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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ENTERED this _____ day of March, 2016 as of the 7th day of March, 2016.

 

                                                            OIL AND GAS CONSERVATION COMMISSION

            OF THE STATE OF COLORADO

 

 

            By                                                                                          

                                                                        Julie Murphy, Secretary