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 SANDRA K. WOODARD, RIO BLANCO COUNTY, COLORADO

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CAUSE NO. 1V

 

DOCKET NO. 161000386

 

TYPE:  ENFORCEMENT

 

ORDER NO. 1V-598

 

ADMINISTRATIVE ORDER BY CONSENT

(Pursuant to Rule 522.e. of the Rules and Regulations of the

Colorado Oil and Gas Conservation Commission, 2 CCR 404-1)

 

FINDINGS

 

1.            Sandra K. Woodard (“Woodard”) (Operator No. 10342) is the operator of the Stagner 2 Well (API No. 05-103-07101), Stagner 6 Well (API No. 05-103-07362), and Stagner Rector 7 Well (API No. 05-103-07280) (“Wells”) in Rio Blanco County, Colorado.

2.            Ms. Woodard inherited these Wells in 2009.

3.            On February 4, 2016, COGCC Staff issued Warning Letter No. 2193204, requiring Woodard to submit past due Form 7s, Operator’s Monthly Report of Operations (“overdue reports”) for the Wells by March 5, 2016. Woodard did not submit the overdue reports by this deadline.

4.            On April 4, 2016, Woodard submitted the overdue reports for 2013 to 2015, but did not submit the overdue reports for 2016.

5.            On August 4, 2016, COGCC Staff issued NOAV Nos. 401082021, 401082126, and 401082150 to Woodard for violations of Rule 309 (Form 7, Operator’s Monthly Report of Operations) for the failure to submit Form 7, Operator’s Monthly Report of Operations, for the Wells for 2016.

6.            On August 30, 2016, Woodard submitted the overdue reports for January 2016 to July 2016.

7.            Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings staff calculated a penalty of $8,192. The penalty calculation is based on the following:

 

 

 

NOAV No.

Well Name

Rule

Class, Impact

Daily Penalty

Start Date

End Date

Days

Total Penalty

401082021

Stagner 2

309

Class 1, Minor

$200

2/16/2016

8/31/2016

197

$3,641

401082126

Stagner 6

309

Class 1, Minor

$200

2/16/2016

8/31/2016

197

$3,641

401082150

Stagner Rector 7

309

Class 1, Minor

$200

2/16/2016

8/30/2016

197

$3,641

BASE PENALTY

$10,923

Settlement Inducement (25%)

$2,731

FINAL PENALTY

$8,192

 

a.    Start date of the first overdue report (for January 2016);

b.    End date of the submission of the overdue reports;

c.    Application of the Duration Matrix  of the COGCC Enforcement Guidance and Penalty Policy;

d.    Settlement inducement;

e.    Inability to pay based on Woodard’s submission of COGCC Application for Consideration of Inability to Pay, including three years of financial statements, Woodard’s 2013-2015 income tax returns, and a financial summary;

f.     No aggravating or mitigating factors; and

g.    No pattern of violation, or gross negligence or knowing and willful misconduct.

 

AGREEMENT

 

      NOW, THEREFORE, based on the Findings and pursuant to Rule 522.e.(1), the Director and Woodard agree to settle the NOAVs on the following terms and conditions:

 

  1. Woodard is found in violation of Rule 309, as described above.

 

    II.        Woodard will be assessed a penalty of $8,192 for these violations.

 

   III.        Woodard will pay $819 by certified check, within 30 days after the approved AOC is mailed by the Commission.

 

  IV.        The remaining $7,373 of the penalty will be suspended pending Woodard’s payment of the $819 penalty according to Paragraph III and compliance with Rule 309 for two years from the date of the Commission’s approval of this AOC.

   V.        If Woodard fails to timely pay the penalty in Paragraph III or fails to comply with Rule 309 for two years from the date of the Commission’s approval of this AOC, the Director may require Woodard to pay the total penalty remaining (including any overdue or suspended penalties). Woodard will pay any penalty demanded by the Director by certified check within 30 days after service of the Director’s demand for payment pursuant to Rule 521, without further action from the Commission.

RECOMMENDED this 27th day of September, 2016.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By                                     ___________________

                                                             Britta Beckstead, Asst. Attorney General

 

AGREED TO AND ACCEPTED this ____ day of September, 2016.

                                                 

SANDRA K. WOODARD                             

 

 

                        By                                                                                          

Signature of Authorized Company Representative

                       

 

                                                                                                                                                           

Print Signatory Name and Title                  

 

ORDER

HAVING CONSIDERED the Agreement between the Director and Woodard to resolve the NOAV, the COMMISSION ORDERS:

 

1.            Woodard is found in violation of Rule 309, as described above.

2.            Woodard is assessed a penalty of $8,192 for these violations.

3.            Woodard will pay $819 by certified check, within 30 days after this Order is mailed by the Commission.

4.            The remaining $7,373 of the penalty is suspended pending Woodard’s payment of the $819 penalty according to Paragraph 3 and compliance with Rule 309 for two years from the date of the Commission’s entry of this Order.

5.            If Woodard fails to timely pay the penalty in Paragraph 3 or fails to comply with Rule 309 for two years from the date of the Commission’s entry of this Order, the Director may require Woodard to pay the total penalty remaining (including any overdue or suspended penalties). Woodard will pay any penalty demanded by the Director by certified check within 30 days after service of the Director’s demand for payment pursuant to Rule 521, without further action from the Commission.

6.            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 14 days prior to the pertinent compliance deadline or as soon as possible if 14 days prior notice is not feasible.

7.            Failure to pay the penalty or perform the corrective action by the above deadlines is an independent violation that may be subject to additional penalties. 

8.            This Order is effective as of the date it is mailed by the Commission.  It constitutes final agency action for purposes of judicial review.

9.            The Commission expressly reserves its right after notice and hearing, to alter, amend, or repeal any and/or all of the above Order. 

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ENTERED this _____ day of October, 2016 as of the ___ day of October, 2016.

 

                                                            OIL AND GAS CONSERVATION COMMISSION

                                                            OF THE STATE OF COLORADO

 

 

                                                            By                                                                              

                                                                        Julie Murphy, Secretary

 

 

 

 

CERTIFICATE OF MAILING

 

On ___________, 2016, a true and accurate copy of Order 1V-598 was mailed by first-class mail, return receipt requested to the following address on file with the Commission pursuant to Rule 302:

 

Sandra K. Woodard

602 Ouray Avenue

Grand Junction, CO 81501

                                                           

 

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