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 ANTLER ENERGY LLC, MOFFAT COUNTY, COLORADO |
) ) ) ) ) |
CAUSE NO. 1V
ORDER NO. 1V-519 DOCKET NO. 150900335 TYPE: ENFORCEMENT
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ADMINISTRATIVE ORDER BY CONSENT
(Pursuant to Rule 522.e.(1) of the Rules and Regulations of the
Colorado Oil and Gas Conservation Commission, 2 CCR 404-1)
FINDINGS
1. Antler Energy LLC (“Antler Energy”) (Operator No. 10407) is the operator of the following Wells in Moffat County (“Wells”):
|
Well Name |
API No. |
NOAV No. |
|
Pole Gulch 6 |
05-081-06023 |
2618118 |
|
Martin-Government #1(14-8) |
05-081-06278 |
2618124 |
|
Ross-Government-USA 43-7 |
05-081-06298 |
2618126 |
|
Ross-Government-USA 44-7 |
05-081-06320 |
2618127 |
|
Wellins-Government 33-7 |
05-081-06410 |
2618128 |
|
Pole Gulch Unit 2 |
05-081-60067 |
2618129 |
2. According to COGCC records, Antler Energy has not filed Form 7, Operator’s Monthly Report of Operations, for the Pole Gulch Unit 2 Well or Pole Gulch 6 Well since February 2012.
3. According to COGCC records, Antler Energy had not filed Form 7, Operator’s Monthly Report of Operations, for the Martin-Government #1(14-8) Well, Ross-Government-USA 43-7 Well, Ross-Government-USA 44-7 Well, or Wellins-Government 33-7 Well since October 2011.
4. On April 27, 2015, Antler Energy submitted the delinquent Form 7, Operator’s Monthly Report of Operations, for July through October 2011.
5. On May 14, 2015, COGCC Staff issued Notices of Alleged Violation (“NOAVs”) Nos. 2618118, 2618124, 2618126, 2618127, 2618128, and 2618129 to Antler Energy for violations at the Wells of Rule 309 (COGCC Form 7, Operator’s Monthly Report of Operations) of the Rules and Regulations of the Colorado Oil and Gas Conservation Commission, 2 CCR 404-1 (“Rule” or “Rules”) for the failure to file Form 7s, Operator’s Monthly Report of Operations, within 45 days after the end of each month for multiple years at each of the Wells.
6. In June 2015, Antler Energy submitted the delinquent Form 7, Operator’s Monthly Report of Operations, for the Wells up to July 2014. Antler Energy submitted the remaining delinquent reports in July 2015.
7. Following a factual investigation and legal review of the violations alleged in the NOAVs referenced above, COGCC Staff now asserts Antler Energy has committed the following violations:
|
NOAV No. |
Well |
Rule |
Base Penalty |
Start Date |
End Date |
Days |
Total Penalty |
|
2618118 |
Pole Gulch 6 |
309 |
$1,000 |
2012 |
2015 |
10 |
$10,000 |
|
2618124 |
Martin-Government #1(14-8) |
309 |
$1,000 |
2011 |
2015 |
10 |
$10,000 |
|
2618126 |
Ross-Government-USA 43-7 |
309 |
$1,000 |
2011 |
2015 |
10 |
$10,000 |
|
2618127 |
Ross-Government-USA 44-7 |
309 |
$1,000 |
2011 |
2015 |
10 |
$10,000 |
|
2618128 |
Wellins-Government 33-7 |
309 |
$1,000 |
2011 |
2015 |
10 |
$10,000 |
|
2618129 |
Pole Gulch Unit 2 |
309 |
$1,000 |
2012 |
2015 |
10 |
$10,000 |
|
|
|
|
|
|
TOTAL PENALTY |
$60,000 |
|
8. Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings Staff calculated a penalty of $60,000 for these violations. The penalty calculation is based on the following:
a. Violations occurring prior to the effective date of HB 14-1356;
b. Daily penalty of $1,000 per day;
c. Statutory limit of ten days of violation;
d. No aggravating or mitigating factors; and
e. No pattern of violations or gross negligence/willful misconduct.
AGREEMENT
NOW, THEREFORE, based on the Findings and pursuant to Rule 522.e.(1) and the Commission’s Enforcement and Penalty Policy, the Director proposes and Antler Energy agrees to settle the NOAV on the following terms and conditions:
RECOMMENDED this 29th day of July, 2015.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By
Britta Beckstead, Assistant Attorney General
AGREED TO AND ACCEPTED this ______day of July, 2015.
ANTLER ENERGY LLC
By
Signature of Authorized Company Representative
Print Signatory Name and Title
ORDER
HAVING CONSIDERED the Agreement between the Director and Antler Energy to resolve the NOAV, the COMMISSION ORDERS:
1. Antler Energy is found in violation of Rule 309, as described above.
2. Antler Energy is assessed a penalty of $60,000.
3. Antler Energy will pay $15,000 of this penalty within 30 days after the approved AOC is mailed by the Commission. Failure to pay the penalty by the deadline is an independent violation that may be subject to additional penalties.
4. The remaining $45,000 of the penalty will be suspended pending Antler Energy’s timely payment of the $15,000 and compliance with Rule 309 for one year following the approval of this Order. If Antler Energy complies, the suspended portion of the penalty will be vacated. If Antler Energy does not comply, the suspended penalty will be due within 30 days after notification from the Director, without further action by the Commission.
5. Entry of this Order constitutes final agency action for purposes of judicial review 30 days after the date this Order is mailed by the Commission. For all other purposes, this Order is effective as of the date it is approved by the Commission.
6. The Commission expressly reserves its right after notice and hearing, to alter, amend, or repeal any and/or all of the above Order.
===================================================================ENTERED this _____ day of September, 2015 as of the 14th day of September, 2015.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Julie Murphy, Secretary