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 WHITING OIL & GAS CORPORATION., WELD COUNTY, COLORADO |
) ) ) ) ) |
CAUSE NO. 1V DOCKET NO. 170100007 TYPE: ENFORCEMENT ORDER NO. 1V-617
|
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. Whiting Oil & Gas Corporation (“Whiting”) (Operator No. 96155) is the operator of record for the following wells in Weld County (“Subject Wells”):
Table 1
|
Well Name |
API No. |
NOAV No. |
|
Horsetail 07F-0608 |
05-123-41770 |
401137225 |
|
Horsetail 07H-1816 |
05-123-41840 |
401137427 |
|
Horsetail 07G-1812 |
05-123-42121 |
401137435 |
|
Horsetail 08D-1734 |
05-123-41445 |
401137436 |
|
Horsetail 08C-1708 |
05-123-42850 |
401137440 |
2. Whiting was required by Rule 317.p. to run a minimum of a resistivity log with gamma-ray or other petrophysical log(s) approved by the Director that adequately describe the stratigraphy of each wellbore, and submit the log with the Drilling Completion
Report – Form 5 for each well. This requirement was modified in the approved Form 2 to require one open hole resistivity log with gamma-ray from total depth to the surface casing for one of the first wells drilled on each pad.
3. Whiting failed to perform the open hole resistivity log on any well for any of the pads on which the Subject Wells were drilled, violating Rule 317.p, (also violating section 34-60-121(1) C.R.S. by violating terms of a permit).
4. On October 27, 2016, Commission Staff issued NOAVs to Whiting for the violations described above, as identified in Table 1. The five NOAVs cited violation of Rule 317.p (Requirement to Log Well) of the COGCC Rules of Practice and Procedure, 2 CCR 404-1 (“Rule”).
5. Each of the NOAVs required Whiting as a corrective action to submit a Form 4 Sundry Notice to detail internal procedures that will ensure that the requirement for running an open hole resistivity log with gamma ray on a minimum of one well per pad and submitting that log on the Form 5 for each well is met in the future.
6. On November 7, 2016, Whiting submitted the required Form 4 Sundry Notice for each well cited in the NOAVs. COGCC Staff approved the Form 4s the same day. These submittals satisfy the corrective action requirement for each of the NOAVs.
7. Following a factual investigation and legal review of the violations alleged in the NOAV, the Hearings Staff now asserts Whiting has committed the following violations:
Five, one-day violations of Rule 317.p for failure to perform and report open hole resistivity logs on any well for any of the pads on which the Subject Wells were drilled.
8. Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings staff calculated a penalty of $12,500 for these violations. The penalty calculation is based on the following:
|
NOAV No. |
Well |
Rule No. |
Class/ Impact |
Daily Penalty |
Days of Violation |
Penalty |
|
401137225 |
Horsetail 07F-0608 |
317.p |
2/ Minor |
$2,500 |
1 |
$2,500 |
|
401137427 |
Horsetail 07H-1816 |
317.p |
2/ Minor |
$2,500 |
1 |
$2,500 |
|
401137435 |
Horsetail 07G-1812 |
317.p |
2/ Minor |
$2,500 |
1 |
$2,500 |
|
401137436 |
Horsetail 08D-1734 |
317.p |
2/ Minor |
$2,500 |
1 |
$2,500 |
|
401137440 |
Horsetail 08C-1708 |
317.p |
2/ Minor |
$2,500 |
1 |
$2,500 |
|
Total |
$12,500 |
· Class 2 Violation;
· Minor Impact;
· Daily Penalty $2,500;
· One-day violation for each well;
· Violation date is the date casing was set (Cannot perform open hole log once casing is set);
· 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 Whiting agrees to settle the NOAVs on the following terms and conditions:
I. Whiting is found in violation of five violations Rule 317.p. as described above.
II. Whiting will be assessed a penalty of $12,500.
III. Whiting will pay the penalty 30 days after the approved AOC is mailed by the Commission.
IV. Future Whiting violations of Rule 317.p will result in a penalty calculation commensurate with the costs of conduction and reporting required logs.
RECOMMENDED this 27th day of December, 2016.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By
Peter J. Gowen, Enforcement Supervisor
AGREED TO AND ACCEPTED this ______day of December, 2016.
WHITING OIL & GAS CORPORATION
By
Signature of Authorized Company Representative
Print Signatory Name
Title
ORDER
HAVING CONSIDERED the Agreement between the Director and Whiting to resolve the NOAV, the COMMISSION ORDERS:
1. Whiting is found in violation of five violations of Rule 317.p as described above.
2 Whiting is assessed a penalty of $12,500, which will be due within 30 days after the approved AOC is mailed by the Commission.
3. This Order is effective as of the date it is mailed by the Commission. It constitutes final agency action for purposes of judicial review
4. The Commission expressly reserves its right after notice and hearing, to alter, amend, or repeal any and/or all of the above orders.
===================================================================
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Julie Murphy, Secretary
CERTIFICATE OF MAILING
On ____________, 2017 a true and accurate copy of Commission Order 1V-617 was mailed by first-class mail return receipt requested to the following:
Whiting Oil & Gas Corporation
Attn: Scott Webb
1700 Broadway, Suite 2300
Denver, CO 80290
Margaret Humecki