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 8 NORTH, LLC, WELD COUNTY, COLORADO |
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CAUSE NO. 1V
DOCKET NO. 160800309
TYPE: ENFORCEMENT
ORDER NO. 1V-591 |
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. 8 North, LLC (“8 North”) (Operator No. 10575) is the operator of record of Cox 1 well (API No. 05-123-41933) (“Well”) in Weld County, Colorado.
2. The Well was spud on October 13, 2015.
3. Following the spudding of the Well, 8 North failed to timely submit monthly production reports.
4. On June 17, 2016, Colorado Oil and Gas Conservation Commission (“COGCC” or “Commission”) Staff issued Notice of Alleged Violation (“NOAV”) No. 401063543 to 8 North for an alleged violation of COGCC Rules of Practice and Procedure, 2 CCR 404-1 (“Rule” or “Rules”) Rule 309 (Operator’s Monthly Production Report) for 8 North’s failure to submit monthly production reports starting 45 days after the Well was spud.
5. On July 12, 2016, 8 North submitted all required monthly production reports.
6. Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Staff calculated a penalty of $3,680 for these violations. The penalty calculation is based on the following:
|
NOAV |
Rule |
Class, Impact |
Daily Penalty |
Start Date |
End Date |
Days |
Total Penalty |
|
401063543 |
309 |
Class 1, Minor |
$200 |
12/15/2015 |
7/12/2016 |
210 |
$3,680 |
|
TOTAL PENALTY |
$3,680 |
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a. Penalty calculations beginning after the effective date of HB 14-1356 (June 6, 2014);
b. Application of the Duration Matrix in the Enforcement Guidance and Penalty Policy;
c. Days of violation calculated from the date of the first monthly production report was due pursuant to Rule 309 to the date 8 North submitted all required production reports;
d. No aggravating factors;
e. No mitigating factors;
f. No pattern of violation or gross negligence/knowing and willful misconduct.
AGREEMENT
NOW, THEREFORE, based on the Findings and pursuant to Rule 522.e.(1), the Director recommends and 8 North agrees to settle the NOAV on the following terms and conditions:
I. 8 North violated Rule 309, as described above.
II. 8 North will be assessed a penalty of $3,680.
RECOMMENDED this 1 day of August, 2016.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
By __________________
Kyle W. Davenport, Assistant Attorney General
AGREED TO AND ACCEPTED this ___ day of August, 2016.
8 NORTH, LLC
By
Signature of Authorized Company Representative
Print Signatory Name and Title
ORDER
HAVING CONSIDERED the Findings and the Agreement between the Director and 8 North to resolve the NOAV, the COMMISSION ORDERS:
1. 8 North is found in violation of Rule 309 as described above.
2. 8 North is assessed a penalty of $3,680.
3. 8 North will pay $3,680 within 30 days after this Order is mailed by the Commission.
4. Entry of this Order constitutes final agency action. This Order is effective as of the date it is mailed by the Commission.
5. The Commission expressly reserves its right after notice and hearing, to alter, amend, or repeal any and/or all of the above Order.
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ENTERED this ___ day of August, 2016 as of the ___ day of August, 2016.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Julie Murphy, Secretary
CERTIFICATE OF MAILING
On September ___, 2016, a true and accurate copy of Commission Order 1V-591 was mailed by first-class mail, return receipt requested to the following:
8 North, LLC
Attn: Matt Owens
370 17th Street, Suite 5300
Denver, CO 80202
Signature: __________________________________