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 ALFRED WARD & SON, LOGAN COUNTY, COLORADO |
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CAUSE NO. 1V DOCKET NO. 170100012 TYPE: ENFORCEMENT ORDER NO: 1V-621 |
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. Alfred Ward & Son (“Ward & Son”) (Operator No. 94300) is the operator of the Michaels 2 Well (API No. 05-075-09361) in Logan County, Colorado (“Well”).
2. On September 14, 2016, Ward & Son submitted a Form 4, Sundry Notice, for work performed to recomplete the Well to the D Sand formation on July 15, 2016 (Doc. No. 401108923).
3. Ward & Son did not submit a Form 2, Application for Recomplete (“Form 2”) for prior approval of the recompletion of the Well.
4. Ward & Son also did not submit a Form 5A, Completed Interval Report (“Form 5A”) within 30 days after the recompletion, as required by Rule 308B.
5. On October 12, 2016, Ward & Son submitted a Form 2 requesting retroactive approval of the recompletion of the Well, satisfying the corrective action requirements for the Rule 303 violation in the NOAV (Doc. No. 401129232).
6. On November 3, 2016, COGCC Staff issued Notice of Alleged Violation No. 401141974 (“NOAV”) to Ward & Son for violations of the following of the COGCC Rules of Practice and Procedure, 2 C.C.R. 404-1 (“Rule” or “Rules”):
a. Rule 303 (Requirements for Form 2, Application for Permit-to-Drill, Deepen, Re-enter, or Recomplete and Operate) for the failure to obtain prior approval of a Form 2 before recompleting the Well; and
b. Rule 308B (COGCC Form 5A, Completed Interval Report) for the failure to submit a Form 5A within 30 days of recompleting the Well.
7. On November 11, 2016, Ward & Son submitted a Form 5A for the recompletion of the Well, satisfying the corrective action requirements for the Rule 308B violation in the NOAV (Doc. No. 401146499).
8. Pursuant to Rule 523 and the Commission’s Enforcement Guidance and Penalty Policy, Hearings staff calculated a penalty of $9,516 based on the following:
|
Rule |
Class, Impact |
Daily Penalty |
Start Date |
End Date |
Days |
Total Penalty |
|
303 |
Class 2, Minor |
$2,500 |
7/15/2016 |
7/16/2016 |
1 |
$2,500 |
|
308B |
Class 2, Minor |
$500 |
8/15/2016 |
11/9/2016 |
86 |
$9,020 |
|
TOTAL PENALTY |
$11,520 |
|||||
|
Settlement Inducement (-17.4%) |
$2,004 |
|||||
|
FINAL PENALTY |
$9,516 |
|||||
a. Application of the Duration Matrix of the COGCC Enforcement Guidance and Penalty Policy;
b. For the Rule 303 violation, start date of performance of the work without prior approval and end date of the performance of the performance of the work without prior approval;
c. For the Rule 308B violation, start date of the overdue Form 5A and end date of the submission of the Form 5A;
d. For the Rule 308B violation, adjusted daily penalty to make the penalty appropriate to the nature of the violation;
e. Settlement inducement;
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) and the Commission’s Enforcement Guidance and Penalty Policy, the Director and Ward & Son agree to request that the Commission enter the Order set forth below.
RECOMMENDED this 11th day of January, 2017.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By 
Britta Beckstead, Asst. Attorney General
AGREED TO AND ACCEPTED this ____ day of January, 2017.
ALFRED WARD & SON
By
Signature of Authorized Company Representative
Print Signatory Name and Title
ORDER
HAVING CONSIDERED the Findings and the Agreement between the Director and Ward & Son to resolve the NOAV, the COMMISSION ORDERS:
1. Ward & Son is found in violation of Rules 303 and 308B, as described above.
2. Ward & Son is assessed a penalty of $9,516 for these violations.
3. Ward & Son will pay $9,516, by certified check, within 30 days after this Order is mailed by the Commission.
4. Failure to pay the penalty by the above deadline is an independent violation that may be subject to additional penalties. The deadline to pay the penalty may only be extended by the Director for good cause.
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 Order.
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ENTERED this _____ day of February, 2017 as of the ___ day of January, 2017.
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 Order 1V-621 was mailed by certified mail, return receipt requested to the following address:
Alfred Ward & Son
Attn: Randall L. Ward
P.O. Box 737
Ogallala, NE 69513
____________________________________
Margaret Humecki