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 RENEGADE OIL & GAS COMPANY, LLC ARAPAHOE COUNTY, COLORADO |
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CAUSE NO. 1V
DOCKET NO. 160300096
TYPE: ENFORCEMENT
ORDER NO. 1V-568 CORRECTED |
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. Renegade Oil & Gas Company, LLC (“Renegade”) (Operator No. 74165) is the operator of the Carraway-McCallan 1 well (“Well” or “Well Site”) (API 05-005-06834) in Arapahoe County, Colorado.
2. On January 18, 2015, Renegade discovered a spill of condensate and produced water at a tank battery on the Well Site. Renegade reported the spill to the Colorado Oil and Gas Conservation Commission (“COGCC” or “Commission”) on January 20, 2015 (Spill/Release Report No. 400775600).
3. On January 18, 2015, Renegade stopped the release and removed recoverable fluid (Spill/Release Report No. 400775600).
4. On January 19, 2015, Renegade removed some of the impacted soil and stockpiled it at the Well Site. The remaining impacted soils were also isolated (Spill/Release Report No. 400775600).
5. Pursuant to the 100-Series Definitions of the COGCC Rules of Practice and Procedure, 2 CCR 404-1 (“Rule”), the spilled condensate, produced water, and impacted soils are all Exploration and Production Waste (“E&P Waste”).
6. On April 1, 2015, Renegade’s contractor moved the E&P Waste from the Well Site to private property that was adjacent to the Well Site at the request of the owner of the adjacent private property.
7. On April 7, 2015, the Arapahoe County Local Government Designee (“LGD”) submitted a complaint to the COGCC alleging that the E&P Waste was improperly handled (COGCC Document No. 200429074).
8. On April 10, 2015, COGCC Staff conducted an inspection of the Well Site (Document No. 666900254). COGCC Staff requested that, by April 13, 2015, Renegade:
a. Provide documentation showing the method of final soils disposal for the E&P Waste; and
b. Provide analytical samples of the soil in the areas where the E&P Waste was stored.
9. On April 10, 2015, COGCC Staff also notified Renegade of the Complaint and required that Renegade properly dispose of the E&P Waste.
10. On April 14, 2015, Renegade caused the E&P Waste to be moved from the adjacent private property to the property of Renegade’s contractor. The E&P Waste was stored at the property of Renegade’s contractor until August 17, 2015.
11. On April 30, 2015, Renegade took soil samples at the adjacent private property where the E&P Waste was stored. Renegade provided the analysis of the soil samples to the COGCC on May 14, 2015.
12. On August 17, 2015, the E&P Waste was hauled to a disposal facility for final disposal.
13. On August 19, 2015, Renegade submitted a Form 19, Spill/Release Report (Document No. 400884456) detailing its compliance with the corrective actions requested by COGCC Staff. The Form 19 was approved on August 31, 2015.
14. On July 23, 2015, COGCC Staff issued a Notice of Alleged Violation (“NOAV”) (No. 200436071) to Renegade for violations related to its failure to properly handle, store, and dispose of E&P Waste and its failure to timely provide documentation to the COGCC. The NOAV cited violations of Rules 205.f., 907.a.(1) and 907.b.(2).
a. One 126-day violation of Rule 205.f. for the failure to properly provide documentation to the COGCC within 3 business days of a request; and
b. One 13-day violation of Rule 907.a.(1) for the failure to properly store, handle and dispose of E&P Waste.
16. Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings staff calculated a penalty of $29,928 for this violation. The penalty calculation is based on the following:
|
Rule |
Days of Violation |
Start Date |
End Date |
Daily Penalty |
Total Penalty |
|
205.f. |
126 |
4/15/2015 |
8/19/2015 |
$200 |
$3,428 |
|
907.a.(1) |
13 |
4/1/2015 |
4/14/2015 |
$2,500 |
$26,500 |
|
Total Penalty |
$29,928 |
||||
|
Settlement Inducement (-25%) |
-$7,482 |
||||
|
FINAL PENALTY |
$22,446 |
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· Current versions of § 34-60-121, C.R.S. and Rule 523;
· Class 1 Minor violation under Rule 205.f. for the failure to timely respond to the COGCC’s request for information;
· Days of violation for the violation of Rule 205.f. calculated from 3 business days after the COGCC requested information from Renegade to the date Renegade provided the requested information;
· Class 2 Minor violation under Rule 907.a.(1) for the failure to properly handle, store and dispose of E&P Waste;
· Days of violation for the violation of Rule 907.a.(1) calculated from the date the E&P Waste was placed in the adjacent private property to the date it was removed from the adjacent private property;
· Duration matrix applied;
· 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 Renegade agrees to settle the NOAV on the following terms and conditions:
I. Renegade is found in violation of Rules 205.f. and 907.a.(1) as described above.
II. Renegade will be assessed a total penalty of $22,446 of which $11,223 will be suspended pending Renegade’s compliance with Rule 907 at the Well Site until March 7, 2018. If the requirements of this AOC are satisfied, the suspended portion of the penalty will be vacated.
III. Renegade will pay the remaining $11,223 in installments as follows:
a. Renegade will pay $2,244 within 30 days after this approved AOC is mailed by the Commission;
b. $2,244 due on July 15, 2016;
c. $2,245 due on October 15, 2016;
d. $2,245 due on January 15, 2017; and
e. $2,245 due on March 7, 2017.
IV. In the event Renegade defaults under this agreement, the total penalty remaining, including any suspended portion ($22,446 less any payments already made), will be due, and received by the Commission, no later than 60 business days after a written demand for payment by the Director, which will be served pursuant to Rule 521 at Renegade’s address of record, on file with the COGCC pursuant to Rule 302.
RECOMMENDED this 23 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 23 day of February, 2016.
RENEGADE OIL & GAS COMPANY, LLC
By
Signature of Authorized Company Representative
Print Signatory Name
Title
ORDER
HAVING CONSIDERED the Agreement between the Director and Renegade to resolve the NOAV, the COMMISSION ORDERS:
1. Renegade is found in violation of Rules 205.f. and 907.a.(1) as described above.
2. Renegade will be assessed a total penalty of $22,446 of which $11,223 will be suspended pending Renegade’s compliance with Rule 907 at the Well Site until March 7, 2018. If the requirements of this AOC are satisfied, the suspended portion of the penalty will be vacated.
3. Renegade will pay the remaining $11,223 in installments as follows:
a. Renegade will pay $2,244 within 30 days after this approved AOC is mailed by the Commission;
b. $2,244 due on July 15, 2016;
c. $2,245 due on October 15, 2016;
d. $2,245 due on January 15, 2017; and
e. $2,245 due on March 7, 2017.
4. In the event Renegade defaults under this agreement, the total penalty remaining, including any suspended portion ($22,446 less any payments already made), will be due, and received by the Commission, no later than 60 business days after a written demand for payment by the Director, which will be served pursuant to Rule 521 at Renegade’s address of record, on file with the COGCC pursuant to Rule 302.
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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Corrected this __ day of _______, 2016 effective as of the 7th of March, 2016.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Julie Murphy, Secretary