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 FRITZLER RESOURCES, INC., WASHINGTON COUNTY, COLORADO

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CAUSE NO. 1V

DOCKET NO. 170100002

ORDER NO. 1V-620

TYPE:  ENFORCEMENT

 

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.            Fritzler Resources, Inc. (“Fritzler”) (Operator No. 21357) is the operator of record for the Agnas Friendly 1 well (“Well) (API 05-121-11023) in Washington County, Colorado.

2.            Fritzler did not timely submit Form 7s, Monthly Reports of Operations, for the Well for the months of January 2016 until one month after it was properly abandoned.

3.            On January 20, 2016, Fritzler submitted a Form 6, Notice of Intent to Abandon, for the Well; Staff approved the Form 6 on February 26, 2016 (Doc. No. 22115055)

4.            On March 8, 2016, Fritzler submitted a Form 42, Field Operations Notice, stating its intent to plug the Well on March 10, 2016. (Doc. No. 401002098)

5.            On March 10, 2016 and March 18, 2016, COGCC Staff observed Fritzler conduct plugging operations of the Well. (Doc Nos. 67312873 and 6731037) On April 4, 2016, COGCC Staff inspected the Well and observed that it had been abandoned.

6.            Fritzler did not submit the requisite Form 6, Subsequent Report of Abandonment, within 30 days of plugging and abandoning the Well.

7.            On October 27, 2016, COGCC Staff issued NOAV No. 401083039 (“NOAV”) to Fritzler for violations of the following COGCC Rules of Practice and Procedure, 2. C.C.R. 404-1 (“Rule” or “Rules”):

a.    Rule 309 (Operator’s Monthly Report of Operations) for failing to submit Form 7s, Operator’s Monthly Reports of Operations, for the Well for the months of January 2016 until one month after it was properly abandoned; and

b.    Rule 311 (Well Abandonment Report) for failing to timely submit a Form 6, Subsequent Report of Abandonment, after abandoning the Well.

8.            On November 24, 2016, Fritzler submitted its Answer (Doc. No. 401156076) to the NOAV which attached Form 7s, Operator’s Monthly Reports of Operations, for the months of January through August 2016 and a Form 6, Subsequent Report of Abandonment, for the Well.

9.            Following factual investigation and legal review of the violations alleged in the NOAV, Hearing Staff now asserts Frtitzler has committed a 252-day violation of Rule 309 and a 206-day violation of Rule 311.

Rule No.

Class

Impact

 Daily Base Penalty

Start Date

End Date

Days of Violation

Penalty

309

1

Minor

$200

3/17/2016

11/24/2016

252

$3,806

311

1

Minor

$200

5/2/2016

11/24/2016

206

$3,668

 

 

 

 

 

Subtotal

458

$7,474

Settlement Inducement (25%)

$1,869

Final Penalty

$5,606

 

10.         Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings Staff calculated a penalty of $5,606 for these violations. The penalty calculation is based on the following:

a.    Rule 309;

                                                  i.    Start date March 17, 2016, 46 days after the Form 7 was due for the Well for the month of January 2016;

                                                ii.    End date November 24, 2016, day that Form 7s submitted;

                                               iii.    Class 1;

                                               iv.    Minor Impact;

                                                v.    Daily base penalty of $200;

b.    Rule 311;

                                                  i.    Start date May 2, 2016, 31 days after Fritzler abandoned the Well;

                                                ii.    End date November 24, 2016, day that Form 6, Subsequent Report of Abandonment submitted;

                                               iii.    Class 1;

                                               iv.     Minor Impact;

                                                v.    Daily base penalty of $200;

c.    Application of the Duration Matrix from the COGCC Enforcement Guidance and Penalty Policy January 2015 (corrected 4/8/2015);

d.    No aggravating factors or mitigating factors; and

e.    No pattern of violation, gross negligence, or knowing and willful misconduct.

11.         Without admission, Fritzler agrees to this AOC only for the purpose of expeditiously resolving this matter without a contested hearing. Fritzler reserves the right to contest the findings of this AOC in any proceeding before any agency, court, or other tribunal, except for a proceeding to enforce the terms of this AOC. The findings and any action undertaken by Fritzler pursuant to this AOC shall not constitute evidence of fault or liability by Fritzler with respect to any third-party claim against Fritzler.

 

AGREEMENT

 

NOW, THEREFORE, based on the Findings and pursuant to Rule 522.e.(1) and the Commission’s Enforcement and Penalty Policy, the Director and Fritzler request that the Commission approve the Order set forth below.

 

RECOMMENDED this 9th  day of January, 2017.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

By                                                                              

     Peter J. Gowen, Enforcement Supervisor

 

 

AGREED TO AND ACCEPTED this         day of January, 2017.                               

FRITZLER RESOURCES, INC.

 

 

By                                                                                          

Signature of Authorized Company Representative

                       

                                                                                         

Print Signatory Name

 

                                                                                         

Title

 

ORDER

 

HAVING CONSIDERED the Agreement between the Director and Fritzler Resources, Inc. to resolve the NOAV, the COMMISSION ORDERS:

 

1.            Fritzler is found in violation of Rules 309 and 311 as described above.

2.            Fritzler is assessed a penalty of $5,606.

3.            Fritzler will pay $5,606 within 30 days after this approved AOC is mailed by the Commission.

4.            This AOC does not relieve Fritzler from undertaking and completing abatement or corrective actions that may be required by the Notice of Alleged Violation described in Finding No. 7, above, or any amendments or modifications thereto specified by the COGCC Staff.

5.            This Order is effective as of the date it is mailed by the Commission. It constitutes final agency action for purposes of judicial review.

6.            The Commission expressly reserves its right after notice and hearing, to alter, amend, or repeal any and/or all of the above orders.

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ENTERED this          day of                        , 2017 as of the 30th day of January, 2017.

                                                            OIL AND GAS CONSERVATION COMMISSION

                                                            OF THE STATE OF COLORADO

 

 

                                                            By                                                                                          

                                                                                    Julie Murphy, Secretary

 

CERTIFICATE OF MAILING

 

On ­­__________________, 2017, a true and accurate copy of Commission Order 1V-620 was mailed by first-class mail return receipt requested to the following:

 

 

Fritzler Resources, Inc.

Attn: Gene Fritzler

P.O. Box 114

Fort Morgan, CO 80701

 

 

 

 

                                                            ____________________________________

                                                                                      Margaret Humecki