BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
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IN THE MATTER OF ALLEGED VIOLATIONS OF THE
RULES AND REGULATIONS OF THE COLORADO OIL AND GAS CONSERVATION COMMISSION BY
ALAMOSA DRILLING, INC., ARCHULETA COUNTY, COLORADO |
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CAUSE NO. 1V
Docket No. 1301-OV-02
ORDER NO. 1V-403 |
ADMINISTRATIVE ORDER BY CONSENT
(Pursuant to Rule 522.b.(3) of the Rules and Regulations of the
Colorado Oil and Gas Conservation
Commission, 2 CCR 404-1)
FINDINGS
1.
On June 9, 2010 Alamosa Drilling, Inc. (“Alamosa”) spud the Janke #3 Well
(API No. 05-007-06280) located on the below-listed lands (“Affected Lands”):
Township 32 North, Range 1 East 6th N.M.P.M.
Section 18: SE¼ NW¼
2.
On October 1, 2010, Commission staff issued a NOAV (#200312584) to
Alamosa for violation of Rule 603.a.(2) (Statewide Setbacks), which states a
well shall be a minimum distance of one hundred fifty (150) feet from a surface
property line. An exception may be granted by the Director if it is not feasible
for the operator to meet this minimum distance requirement and a waiver is
obtained from the offset surface owner(s).
3.
On February 8, 2012, the Colorado Oil and Gas Conservation Commission
(“COGCC”), by notice of hearing, set a hearing to consider a request by Alamosa
under Rule 502.b.(1) for a variance to Rule 603.a.(2).
4.
Dr. Maude E. Nielsen is the adjacent surface owner impacted by the
subject well. She objected to the waiver request and granting of the variance.
5.
The Commission denied Alamosa’s request for a variance to Rule 603.a.(2).
6.
On December 6, 2012 this matter was noticed for Commission hearing,
scheduled January 7, 2013.
7.
Commission staff has reached a negotiated settlement of the NOAV,
acceptable to Alamosa, Dr. Nielsen, and staff. The substantive provisions of the
settlement are as follows:
a.
Alamosa agrees to remove all surface equipment associated with the Janke
#3 site within 4 weeks of approval of the AOC. This deadline may be extended for
good cause at the discretion of the Director, should circumstances beyond
Alamosa’s control prevent completion of this work within the deadline.
b.
Alamosa shall plug and abandon the Janke #3 Well in accordance with
applicable Commission rules by July 1, 2013.
c.
Alamosa shall be assessed a fine of $10,000 for the violation of Rule
603.a.(2). However, the $10,000 fine shall be suspended as long as Alamosa is in
compliance with the requirements of subparts a. and b. of this paragraph. If Alamosa fails to perform the
requirements of this paragraph on time, the $10,000 fine shall due 30 days from
notice by staff without further action of the Commission. If Alamosa completes
the requirements of this paragraph on time, the terms of this AOC shall be
deemed fulfilled and Alamosa will no longer be subject to the $10,000 fine or
any other liabilities or obligations with respect to Docket No. 1301-OV-02
and/or ORDER NO. 1V-403.
ORDER
NOW, THEREFORE IT IS
ORDERED, that:
1. Alamosa is found in violation
of Rule 603.a.(2) drilling the Janke #3 Well at an unauthorized surface location
not consistent with surface property line setback requirements of Rule
603.a.(2).
2.
Alamosa shall remove all surface equipment associated with the Janke #3
site within 4 weeks of approval of this Order. This deadline may be extended for
good cause at the discretion of the Director, should circumstances beyond
Alamosa’s control prevent completion of this work within the deadline.
3.
Alamosa shall plug and abandon the Janke #3 Well in accordance with
applicable Commission rules by July 1, 2013.
4.
Alamosa is assessed a fine of $10,000 for the violation of Rule
603.a.(2). However, the $10,000 fine shall be suspended as long as Alamosa is in
compliance with the requirements of the preceding two paragraphs. If Alamosa fails to perform these
requirements on time, the $10,000 fine shall due 30 days from notice by staff,
without further action of the Commission. If Alamosa completes the requirements
of this paragraph on time, the terms of this AOC shall be deemed fulfilled and
Alamosa will no longer be subject to the $10,000 fine or any other liabilities
or obligations with respect to Docket No. 1301-OV-02 and/or ORDER NO. 1V-403.
5. Pursuant to Rule 522.c.(3),
Alamosa agrees to the findings of this AOC for the purpose of expeditiously
resolving the matter without a contested hearing, and agreement to this AOC
shall not constitute an admission of the alleged violation for any other
purpose.
6. 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.
7. An application for
reconsideration by the Commission of this order is not required prior to the
filing for judicial review.
8. The provisions contained in
the above order shall become effective immediately.
9.
The Commission expressly reserves its right after notice and hearing, to
alter, amend, or repeal any and/or all of the above orders.
RECOMMENDED this day
of December, 2012.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Peter J. Gowen, Enforcement Officer
AGREED TO AND ACCEPTED this_____day of December, 2012.
ALAMOSA DRILLING, INC.
By__________________________________________
Signature of Authorized Company Representative
____________________________________________
Print Signatory
Name
____________________________________________
Title
AGREED TO AND ACCEPTED this_____day of December, 2012.
Maude E. Nielsen
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This matter was heard and approved by the Commission at a duly
convened meeting on January 7, 2013.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORAD
By____________________________________
Robert J. Frick, Secretary