BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF ALLEGED VIOLATIONS OF THE RULES                   )           CAUSE NO. 1V

AND REGULATIONS OF THE COLORADO OIL AND GAS                         )

CONSERVATION COMMISSION BY BERRY PETROLEUM                      )           ORDER NO. 1V-309

COMPANY, GARFIELD COUNTY, COLORADO                                         )                                                          

 

ADMINISTRATIVE ORDER BY CONSENT

FINDINGS

1.  On October 20, 2005, the Colorado Oil and Gas Conservation Commission ("COGCC") approved an Application for Permit-to-Drill ("APD") for EnCana Oil and Gas (USA) Inc, (“EnCana”), for the N. Parachute EF11B M16 595 Well (the “Well") located in the SW¼ SW¼ of Section 16, Township 5 South, Range 95 West, 6th P.M. The APD for the well had an expiration date of October 19, 2006.

2.  On September 5, 2006, The COGCC received a Sundry Notice, Form 4, from Berry Petroleum Company (“Berry”) requesting approval to move the bottom hole location, change the well operator of record from EnCana to Berry, and change the well name from N. Parachute EF 11B M16 595 to the Long Ridge LR 15B M16 595. The Form 4 was approved on September 6, 2006.

3.  On January 22, 2007, the COGCC received a letter from Berry self-reporting that the Long Ridge 15B M16 595 was spud on December 7, 2006. The letter noted the drilling permit for this well had expired on October 19, 2006. The letter also stated that Berry assumed “with various name and location changes it was our understanding that this would extend the permit. Further review of your rules and regulations show this is not the case.”

4.  On January 22, 2007, the COGCC received a refiled APD from Berry for the Well. The APD was approved by the COGCC on January 30, 2007.

5.  A Notice of Alleged Violation ("NOAV") was issued for the Well on January 29, 2007, for violation of Rule 303., requiring an approved Permit-to-Drill prior to drilling. The NOAV described the alleged violation as "Spud well with out approved permit" and required Berry to "Obtain approved Application to Drill and submit written documentation as to what occurred, why, and procedures that will be taken to prevent future occurrences". The NOAV was completed by Berry and returned to the COGCC on January 31, 2007. The NOAV noted “The APD is submitted – waiting approval – Procedures have been reviewed in house and implemented to prevent further occurrences.

6.  Rule 523.c. specifies a base fine of One Thousand dollars ($1,000) per day for each violation of Rule 303.

7.  A monetary penalty of One Thousand dollars ($1,000.00) should be assessed against Berry, in accordance with Rule 523.d., for violation of Rule 303.a.  Mitigating factors in determining the fine recommendation under Rule 523.d. are: 523.d.(3), Berry self-reported the violation and cooperated with the Commission with respect to the violation.

ORDER

                       NOW, THEREFORE, IT IS ORDERED, that Berry Petroleum Company shall be found in violation of Rule 303.a., failure to have an approved Application for Permit-to-Drill prior to drilling, for the Long Ridge LR 15B M16 595 Well, located in the SW¼ SW¼ of Section 16, Township 5 South, Range 95 West, 6th P.M.

                       IT IS FURTHER ORDERED, that Berry Petroleum Company shall be assessed a fine of One Thousand dollars ($1,000.00) payable within thirty (30) days of the date the order is approved by the Commission for violation of the above-described rule occurring on the Long Ridge LR 15B M16 595 Well.

                       IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

                       IT IS FURTHER ORDERED, that under the State Administrative Procedure Act the Commission considers this order to be final agency action for purposes of judicial review within thirty (30) days after the date this order is mailed by the Commission.

                        

IT IS FURTHER ORDERED, that an application for reconsideration by the Commission of this order is not required prior to the filing for judicial review.

 

                        Recommended this ______ day of February, 2007.

 

                                                                            OIL AND GAS CONSERVATION COMMISSION

                                                                            By: ______________________________________

                                                                                                David Dillon, Hearing Officer

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

February 21, 2007

 

 

                    AGREED TO AND ACCEPTED THIS _________DAY OF February, 2007.

               

BERRY PETROLEUM COMPANY:

                                                                    By: ____________________________________________

                                                                   Title: ___________________________________________

 

 

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                        This cause came on for hearing before the Commission at 9:00 a.m. on May 10, 2007, in Suite 801, The Chancery Building, 1120 Lincoln Street, Denver, Colorado, for the approval of this Administrative Order by Consent.

 

                        ENTERED this__________day of May, 2007, as of May 10, 2007.

                        

                                                            OIL AND GAS CONSERVATION COMMISSION

            OF THE STATE OF COLORADO

 

 

            By____________________________________

Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

May 25, 2007