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 S&S OIL & GAS OPERATING, BACA COUNTY, COLORADO

 

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CAUSE NO. 1V

 

ORDER NO. 1V-384

 

ORDER FINDING VIOLATION

 

The Commission heard this matter on September 19, 2011, in the Commission Room of the City & County of Broomfield, City & County Building, One DesCombes Drive, Broomfield, Colorado, for an order finding violation hearing against S&S Oil & Gas Operating requesting a finding of a pattern of violation against the operator and its principal, J.R. Sorrels.

 

FINDINGS

 

1.     On August 8, 2011, the Commission issued Order No. 1V-379 finding that S&S Oil & Gas Operating (“S&S”) (Operator #10114) had committed numerous rule violations at certain wells and for its general operations and imposed fines for those violations as compiled below:

 

Well Name/Number

Rule Violations

Fines Imposed

TSRU #203

309., 319.b.(3), 319.b.(4), 326.b.(1), and 603.j.

$50,000

Tanner SECU #401

309., 319.b.(3) and 326.b.(1)

$30,000

Tanner SECU #901

309., 319.b.(3) and 326.b.(1)

$30,000

TSRU #801

309., 319.b.(3) and 326.b.(1)

$30,000

Tanner SEC REC Unit #501

210.b.(1), 309., 319.b.(3), 326.b.(1), 906.a., and 906.e.(1)

$60,000

TSRU #206W

309., 319.b.(3) and 405.b.

$30,000

TSRU #204W

309., 319.b.(3), 326.d., and 405.b.

$40,000

TSRU #1001W

309., 319.b.(3) and 405.b.

$30,000

TSRU #601W

309., 319.b.(3) and 405.b.

$30,000

TSRU #701W

309., 319.b.(3) and 405.b.

$30,000

General operations

706. and 707.

$20,000

 

Total Imposed Fines

$380,000

 

2.     Rule 525.b. provides that whenever the Commission or the Director has evidence that an operator is responsible for a pattern of violation of any provision of the Oil and Gas Conservation Act (§34-60-101, et seq.) (the “Act”), or of any rule, permit or order of the Commission, the Director shall issue a notice to the operator to appear for a hearing before the Commission.  If the Commission finds after such hearing, that a knowing and willful pattern of violation exists, it may issue an order which shall prohibit the issuance of any new permits to the operator.

3.     A knowing and willful pattern of violation exists because S&S has failed, for more than one year, to perform the abatement and corrective actions required by various Notices of Alleged Violation (“NOAVs”).  Until the fine assessed under Order No. 1V-379 is paid in full and all required abatement and corrective actions are performed by S&S, the Director should not approve any application for permit-to-drill, any Certificate of Clearance and/or Change of Operator, Form 10, or other permit for conducting oil and gas operations for S&S or any entity of which J.R. Sorrels is a principal, majority owner, operational or general manager, or in which Mr. Sorrels otherwise exercises control.

 

4.     S&S and Mr. Sorrels have failed to attend today’s hearing to defend against the allegations contained in the Notice for Order Finding Violation Hearing.

 

                                                                                   ORDER

 

NOW, THEREFORE, IT IS ORDERED, that a knowing and willful pattern of violation exists because S&S has failed, for more than one year, to perform the abatement and corrective actions required by the NOAVs.  Until any fine assessed under Order No. 1V-379 is paid in full and all required abatement and corrective actions are performed by S&S under said order, the Director shall not approve any application for permit-to-drill, any Certificate of Clearance and/or Change of Operator, Form 10, or other permit for conducting oil and gas operations for S&S or any entity of which J.R. Sorrels is a principal, majority owner, operational or general manager, or in which Mr. Sorrels otherwise exercises control.

 

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.

 

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

                       

IT IS FURTHER ORDERED, that 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    23rd   day of September, 2011, as of September 19, 2011.

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                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                        OF THE STATE OF COLORADO

 

                                                                                                                                                By                                                                            ____ 

                                                                                    Peter J. Gowen, Acting Secretary

 

Dated at Suite 801

1120 Lincoln St.

Denver, Colorado 80203