BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE PROPOSED FORECLOSURE OF THE FINANCIAL ASSURANCE POSTED BY PINE RIDGE OIL & GAS LLC, FREMONT, LINCOLN AND ROUTT COUNTIES, COLORADO |
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CAUSE NO. 1V DOCKET NO. 170100014 TYPE: ENFORCEMENT ORDER NO. 1V-622 |
ORDER FORECLOSING FINANCIAL ASSURANCE
FINDINGS
1. Pine Ridge Oil & Gas LLC (“Pine Ridge”) (Operator No. 10276) is the operator of record for the following Locations (“Subject Locations”);
Location Name |
ID No. |
County |
Hully Gully 13-54-1-13 |
433053 |
Lincoln |
Frog Pond 13-54-12-1 |
430683 |
Lincoln |
Busygully 13-54-12-3 |
430828 |
Lincoln |
Redband-619S69W 28NENE |
382573 |
Fremont |
Croaker 11-10 |
419495 |
Fremont |
Coal View Unit-66N86W 18SWSE |
316792 |
Routt |
2. The Subject Locations are the only Locations operated by Pine Ridge in Colorado. They have not passed final reclamation.
3. Pine Ridge has the following financial assurance posted with the Commission (collectively, “Pine Ridge Financial Assurance”):
Surety ID |
Bond Type |
Amount |
Coverage |
Instrument |
Inst.# |
2008-0134 |
PLUGGING |
$60,000.00 |
BLANKET |
INSURANCE |
RLB0012181 |
2008-0135 |
SURFACE |
$25,000.00 |
BLANKET |
INSURANCE |
RLB0012182 |
The financial assurance is underwritten by RLI Insurance Company (Financial Assurance Provider Number: 70613).
4. Pine Ridge has conducted final reclamation of the Subject Locations over the past four years. It has removed all equipment and debris, backfilled the pits, contoured the land, returned the top soil, and reseeded and fertilized the areas multiple times. Nevertheless, the Subject Locations do not yet satisfy the 80% revegetation standard that is required to pass final reclamation.
5. Pine Ridge has now ceased operating in Colorado, except for achieving final reclamation of the Subject Locations and arranging for the release or other disposition of the Pine Ridge Financial Assurance. Pine Ridge seeks to resolve these remaining matters promptly and consensually so that it can exit the state. For this purpose, Pine Ridge has requested that the Commission foreclose the Pine Ridge Financial Assurance and utilize the proceeds to complete the final reclamation of the Subject Locations.
RECOMMENDED this 17th day of January, 2017.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By
Peter J. Gowen, Enforcement Supervisor
AGREED TO AND ACCEPTED this 17th day of January, 2017.
PINE RIDGE OIL & GAS LLC
By
Signature of Authorized Company Representative
Print Signatory Name and Title
ORDER
HAVING CONSIDERED the Agreement between the Director and Pine Ridge, the COMMISSION ORDERS:
1. Staff is authorized to foreclose the Pine Ridge Financial Assurance.
2. The proceeds from the Pine Ridge Financial Assurance are to be utilized to complete final reclamation at the Subject Locations.
3. Pine Ridge’s Registration for Oil and Gas Operations – Form 1 and Certificate of Clearance – Form 10 will be suspended upon foreclosure of the Pine Ridge Financial Assurance pursuant to Rule 709. They may not be reinstated until Pine Ridge has filed satisfactory financial assurance under the 700 Series Rules.
4. Foreclosure of the Pine Ridge Financial Assurance will fulfill the remaining obligations of Pine Ridge, including its owners, officers, and persons authorized to act on its behalf, regarding final reclamation of the Subject Locations, conditioned on Commission receipt of the full $85,000 of the Pine Ridge Financial Assurance.
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.
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OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Julie Murphy, Secretary
CERTIFICATE OF MAILING
On February 2, 2017, a true and accurate copy of Commission Order 1V-622 was mailed by first-class mail return receipt requested to the following:
Pine Ridge Oil & Gas LLC
Attn:
Andy Lydyard
1153 Bergen Parkway Suite I-185
Evergreen, CO 80439
RLI Insurance Company
Jason T. Kilpatrick
2925 Richmond Avenue, Suite 1600
Houston, Texas 77098
Margaret Humecki