BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF ALLEGED VIOLATIONS OF THE
)
CAUSE NO. 1V
RULES AND REGULATIONS OF THE COLORADO OIL )
AND GAS CONSERVATION COMMISSION BY ) ORDER NO. 1V-278
ENCANA OIL & GAS (USA) INC., )
GARFIELD COUNTY, COLORADO )
ADMINISTRATIVE ORDER BY CONSENT
FINDINGS
1. On February 13, 2003, a Colorado Oil and Gas Conservation Commission ("COGCC") Application for Permit-to-Drill ("APD"), Form 2, was approved for EnCana Oil and Gas (USA) Inc. ("EnCana") to drill the Shaeffer No. 12-6B (F12) Well ("Well") located in the SE¼ NW¼ of Section 12, Township 7 South, Range 93 West, 6th P.M.
2. The APD for the Well specified the objective as the William Fork Formation. The APD was approved by the COGCC Director for the William Fork Formation only. The Well was completed in the Rollins Formation on November 13, 2003.
3. EnCana verbally self-reported the Rollins Formation recompletion and on March 29, 2004, the COGCC received an Application for Permit to Recomplete, Form 2, to recomplete the Rollins Formation in the Well.
4. On April 29, 2004, a Notice of Alleged Violation ("NOAV") was issued to EnCana for violation of Rule 303.b., recompletion to the Rollins Formation without a permit. The NOAV required Encana to submit a letter detailing the reason for not complying with Rule 303.b. The abatement date for the NOAV was June 1, 2004.
5. On June 1, 2004, COGCC staff received a letter from EnCana explaining its actions. The letter stated that EnCana "did not intentionally violate the rule".
6. For the unauthorized completion of the Rollins Formation in the Shaeffer No. 12-6B (F12) Well, EnCana should be found in violation of Rule 303.b., failure to obtain an approved Application for Permit to Recomplete to the Rollins Formation.
7. Rule 523. specifies a base fine of One Thousand dollars ($1,000) per day for violation of Rule 303. The time of the violation is approximately one hundred thirty (130) days.
8. A monetary penalty of Five Thousand dollars ($5,000.00) should be assessed against EnCana, in accordance with Rule 523.d., for violation of Rule 303.b. A mitigating factor in determining the fine recommendation under Rule 523.d.(1) is that the violation was self-reported.
ORDER
NOW, THEREFORE, IT IS ORDERED, that EnCana Oil and Gas (USA) Inc. shall be found in violation of Rule 303.b., failure to obtain an approved Application for Permit to Recomplete to the Rollins Formation, for the Shaeffer No. 12-6B (F12) Well located in the SE¼ NW¼ of Section 12, Township 7 South, Range 93 West, 6th P.M.
IT IS FURTHER ORDERED, that EnCana Oil and Gas (USA) Inc. shall be assessed a fine of Five Thousand dollars ($5,000.00) for the above violation, payable within thirty (30) days of the date the order is approved by the Commission.
IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.
and hearing, to alter, amend, or repeal any and/or all of the above orders.
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.
Recommended this day of June, 2004.
OIL AND GAS CONSERVATION COMMISSION
By
Morris J. Bell, Hearing Officer
Dated at Suite 801
1120 Lincoln Street
Denver, Colorado 80203
June 21, 2004
AGREED TO AND ACCEPTED THIS _________DAY OF June, 2004.
ENCANA OIL AND GAS (USA) INC.
By
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