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 AUS-TEX EXPLORATION INC., FREMONT COUNTY, COLORADO |
) ) ) ) ) ) |
CAUSE NO. 1V DOCKET NO. 161200479 TYPE: ENFORCEMENT ORDER NO. 1V-611 |
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. Aus-Tex Exploration Inc. (“Aus-Tex”) (Operator No. 10412) is the operator of the Magellan #1 well (“Well”) (API 05-043-06229) in Fremont County, Colorado.
2. Aus-Tex spud the Well on April 16, 2016, without first conducting groundwater baseline sampling or submitting a Form 4, Sundry Notice, to the COGCC requesting exceptions under Rule 609 if the required samples could not be obtained.
3. On August 5, 2016, COGCC Staff issued NOAV No. 401089534 to Aus-Tex for violations of the following Rule of the COGCC Rules of Practice and Procedure, 2 C.C.R. 404-1 (“Rule” or “Rules”)
a. Rule 609 (Statewide Groundwater Baseline Sampling and Monitoring) for the failure to conduct groundwater baseline sampling and monitoring and failing to submit a Form 4, Sundry Notice, to the COGCC requesting exceptions under Rule 609 if the required samples could not be obtained.
4. On September 1, 2016, Aus-Tex took groundwater samples from the only accessible water well within a one-half mile radius of the Well in response to NOAV No. 401089534.
5. On September 27, 2016, Aus-Tex submitted, and Staff approved, a Form 4, Sundry Notice, evidencing Aus-Tex’s sampling and describing other wells within a half-mile radius from which samples could not be obtained. (Doc. No. 401118946) Aus-Tex has completed the Corrective Actions set forth in NOAV No. 401089534 and is currently compliant with Rule 609 at the Well.
6. Following factual investigation and legal review of the violations alleged in the NOAV, Hearing Staff now asserts Aus-Tex has committed a one-day violation of Rule 609.
7. Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings Staff calculated a penalty of $2,500 for this violation. The penalty calculation is based on the following:
a. One day of violation starting on April 15, 2016 being the last day that Aus-Tex could have conducted baseline groundwater sampling before spudding the Well, and ending on April 16, 2016, being the day the Well was spud;
b. Class 2;
c. Minor impact;
d. Daily base penalty of $2,500; and
e. No aggravating factors, mitigating factors, gross negligence or knowing and willful misconduct, or pattern of violation.
AGREEMENT
NOW, THEREFORE, based on the Findings and pursuant to Rule 522.e.(1) and the Commission’s Enforcement and Penalty Policy, the Director and Aus-Tex request that the Commission approve the Order set forth below.
RECOMMENDED this 28th day of November, 2016.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By
David A. Beckstrom, Enforcement Officer
AGREED TO AND ACCEPTED this day of , 2016.
AUS-TEX EXPLORATION INC.
By
Signature of Authorized Company Representative
Print Signatory Name
Title
ORDER
HAVING CONSIDERED the Agreement between the Director and Aus-Tex Exploration Inc. to resolve the NOAV, the COMMISSION ORDERS:
1. Aus-Tex is found in violation of Rule 609.
2. Aus-Tex is assessed a penalty of $2,500.
3. Aus-Tex will pay $2,500 within 30 days after this approved AOC is mailed by the Commission.
4. 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 35 days prior to the pertinent compliance deadline or as soon as possible if 35 days prior notice is not feasible. Failure to receive an extension prior to the compliance deadline or the failure to meet a compliance deadline may constitute a new violation subject to additional penalties.
5. This Order is effective as of the date it is mailed by the Commission. It constitutes final agency action for purposes of judicial review.
6. The Commission expressly reserves its right after notice and hearing, to alter, amend, or repeal any and/or all of the above orders.
==================================================================
ENTERED this day of , 2016 as of the 12th day of December, 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 Commission Order 1V- 611 was mailed by certified mail return receipt requested to the following:
Aus-Tex Exploration Inc.
Attn: Guy Goudy
113 N Santa Fe
Florence, CO 81226
Tim Hart
Aus-Tex Exploration Inc.
____________________________________
Margaret Humecki