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-292
UNITED STATES EXPLORATION, INC., )
WELD COUNTY, COLORADO )
ADMINISTRATIVE ORDER BY CONSENT
FINDINGS
1. On August 14, 2005, United States Exploration, Inc. ("USX") notified the Colorado Oil and Gas Conservation Commission ("COGCC") that the Perkins #42-5 well located in the SE¼ NE¼ of Section 5, Township 2 North, Range 64 West, 6th P.M. had been drilled without an approved permit.
2. A Notice of Alleged Violation ("NOAV") was issued on August 22, 2005, for violations of Rule 303., requiring an approved permit to drill prior to drilling; Rule 305., requiring notice to surface owner prior to drilling; and Rule 306., requiring consultation with the surface owner prior to drilling. The NOAV required USX to "Obtain approved application to drill and submit written documentation as to what occurred, why, and procedures taken to prevent future occurrences. Submit Form 5 and all logs that were run during the drilling of the well."
3. USX complied with the NOAV on September 21, 2005.
4. Based on the reply from USX, COGCC staff believes no violation of Rules 305. and 306. has taken place, however, COGCC staff believes Rule 303. has been violated.
5. USX submitted an Application for Permit-to-drill ("APD") the Perkins 42-5 well on August 18, 2005, along with the necessary waiver of surface owner consultation. The APD was issued on August 30, 2005.
6. Rule 523. specifies a base fine of One Thousand dollars ($1,000) per day for each violation of Rules 303.
7. USX has been issued a prior NOAV during calendar year 2005, which also involved drilling in the wrong location.
8. A monetary penalty of Five Thousand dollars ($5,000.00) should be assessed against United States Exploration, Inc. in accordance with Rule 523.d., for violation of Rule 303.a.
ORDER
NOW, THEREFORE, IT IS ORDERED, that United States Exploration, Inc. shall be found in violation of Rule 303., failure to have an approved Application for Permit-To-Drill prior to drilling the Perkins #42-5 well located in the SE¼ NE¼ of Section 5, Township 2 North, Range 64 West, 6th P.M.
IT IS FURTHER ORDERED, that United States Exploration, Inc. shall be assessed a fine of Five Thousand dollars ($5,000.00) payable within thirty (30) days of the date the order is approved by the Commission for violations of the above described rules occurring on the Perkins #42-5 well.
IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.
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 November, 2005.
OIL AND GAS CONSERVATION COMMISSION
By
___________________________________
David K. Dillon, Hearing Officer
Dated at Suite 801
1120 Lincoln Street
Denver, Colorado 80203
November 15, 2005
AGREED TO AND ACCEPTED THIS _________DAY OF November, 2005
UNITED STATES EXPLORATION, INC.
By ____________________________________________
Title ____________________________________________