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 MERIT ENERGY COMPANY, LLC MOFFAT COUNTY, COLORADO |
) ) ) ) ) ) ) |
CAUSE NO. 1V
DOCKET NO. 161000389
TYPE: ENFORCEMENT
ORDER NO. 1V-602 |
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. Merit Energy Company, LLC (“Merit”) (Operator No. 56565) is the operator of record of the Clark 21-9 well (API No. 05-081-07177) (“Well”) in Moffat County, Colorado.
3. On February 2, 2016, Colorado Oil and Gas Conservation Commission (“COGCC” or “Commission”) Staff issued a warning letter (Doc. No. 2193179) to Merit which required Merit to conduct a mechanical integrity test, or plug and abandon, the Well, and submit all required paperwork, by April 30, 2016.
4. On April 15, 2016, Merit requested an extension until June 30, 2016, to plug and abandon the Well. COGCC Staff granted the extension (Doc. No. 2193306).
5. Between May 16, 2016 and May 19, 2016, Merit plugged and abandoned the Well (Doc. No. 2056231).
6. On August 9, 2016, COGCC Staff issued Notice of Alleged Violation (“NOAV”) No. 401083040 to Merit for an alleged violation of COGCC Rules of Practice and Procedure, 2 CCR 404-1 (“Rule” or “Rules”) Rule 311 (COGCC Form 6. Well Abandonment Report) for Merit’s failure to submit a Form 6, Subsequent Report of Abandonment within 30 days after abandonment.
7. On August 9, 2016, Merit submitted the Form 6, Subsequent Report of Abandonment (Doc. No. 401091258).
8. Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Staff calculated a penalty of $2,198 for these violations. The penalty calculation is based on the following:
|
NOAV |
Rule |
Class, Impact |
Daily Penalty |
Start Date |
End Date |
Days |
Total Penalty |
|
401083040 |
311.b. |
Class 1, Minor |
$200 |
6/18/2016 |
8/9/2016 |
52 |
$2,930 |
|
Settlement Discount (25%) |
-$732 |
||||||
|
TOTAL PENALTY |
$2,198 |
||||||
a. Penalty calculations beginning after the effective date of HB 14-1356 (June 6, 2014);
b. Application of the Duration Matrix in the Enforcement Guidance and Penalty Policy;
c. Days of violation calculated from the date the Form 6, Subsequent Report of Abandonment, was due until the date the Form 6, Subsequent Report of Abandonment, was filed;
d. Settlement discount applied;
e. No aggravating factors;
f. No mitigating factors;
g. No pattern of violation or gross negligence/knowing and willful misconduct.
AGREEMENT
NOW, THEREFORE, based on the Findings and pursuant to Rule 522.e.(1), the Director recommends and Merit agrees to settle the NOAV on the following terms and conditions:
I. Merit violated Rule 311.b., as described above.
II. Merit will be assessed a penalty of $2,198.
RECOMMENDED this 13 day of October, 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 October, 2016.
MERIT ENERGY COMPANY, LLC
By
Signature of Authorized Company Representative
Print Signatory Name and Title
ORDER
HAVING CONSIDERED the Findings and the Agreement between the Director and Merit to resolve the NOAV, the COMMISSION ORDERS:
1. Merit is found in violation of Rule 311.b., as described above.
2. Merit is assessed a penalty of $2,198.
3. Merit will pay $2,198 within 30 days after this Order is mailed by the Commission.
4. Entry of this Order constitutes final agency action. This Order is effective as of the date it is mailed 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 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 October ___, 2016, a true and accurate copy of Commission Order 1V-602 was mailed by first-class mail, return receipt requested to the following:
Merit Energy Company, LLC
Attn: Chad Brister
13727 Noel Road, Suite 1200
Dallas, TX 75240
__________________________________
Margaret Humecki