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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
MULL DRILLING COMPANY INC., CHEYENNE COUNTY, COLORADO
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CAUSE NO. 1V
DOCKET NO. 1307-OV-16
ORDER NO. 1V-416
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ADMINISTRATIVE ORDER BY CONSENT
(Pursuant to Rule 522.b.(3) of the Rules and Regulations of the
Colorado Oil and Gas Conservation Commission, 2 CCR 404-1)
FINDINGS
1.
Mull Drilling Company Inc. (“Mull”), operates the Mull Unit 14 Well (API
05-017-06263), a Class II underground injection well, in NW¼ SE¼ of Section 4,
Township 14 South, Range 49 West, 6TH P.M., Cheyenne County.
2.
On April 11 of 2013, Mull commenced operations for the underground
injection of nitrogen into the above-referenced Class II enhanced recovery well. Mull conducted this underground
disposal without first having obtained written authorization for such operations
from the Commission. Mull suspended
its injection on April 22, 2013 when Mull learned written Commission approval is
required before commencement of injection operations.
3.
On April 25, 2013 Commission Staff approved the Form 33 authorizing
Mull’s injection operations. Mull resumed injection operations on May 7, 2013.
4.
On May 15, 2013, Commission Staff issued a Notice of Alleged Violation
No. 2617919 (“NOAV”) to Mull for an alleged violation of Rule 325.a.
5.
Rule 523. specifies a base fine of $1,000 for each day of violation of
Rule 325.a. Rule 523.a.(3). specifies that the maximum penalty for any single
violation shall not exceed $10,000 regardless of the number of days of such
violation, unless the violation results in significant waste of oil and gas
resources, damage to correlative rights, or a significant adverse impact on
public health, safety or welfare or the environment.
Staff does not allege these factors.
6.
Mull violated Rule 325.a. because it failed to obtain written authorization for its
underground disposal of fluids, into a Class II well, prior to its injection
operations. The unauthorized injection
occurred for at least 10 days. The COGCC Staff has calculated a base fine of
$10,000 for the violation of Rule 325.a.
7.
Pursuant to Commission Rule 522.b.(3), the Director proposes and Mull
agrees to settle the NOAV by the imposition of a $10,000 penalty.
8.
Mull agrees to the findings of this AOC only
for the purpose of expeditiously resolving the matter without a contested
hearing.
Pursuant to Rule 522.c.(3), entering into this AOC by Mull shall not be
construed as an admission of the alleged violations for purposes other than
entering this AOC. Mull fully reserves
its right to contest the same in any future action or proceeding other than a
proceeding to enforce this AOC.
ORDER
NOW, THEREFORE, IT IS
ORDERED, that:
1.
Mull is found in violation of Rule 325.a.
2.
Mull is assessed a penalty of $10,000 for this violation. This penalty shall be
due 30 days from the date this Order is mailed by the Commission to Mull.
3.
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.
4.
An application for reconsideration by the Commission of this order is not
required prior to the filing for judicial review.
5.
The provisions contained in the above order shall become effective immediately.
6.
The Commission expressly reserves its right after notice and hearing, to alter,
amend, or repeal any and/or all of the above orders.
RECOMMENDED this 8th
day of July, 2013.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Peter J. Gowen, Enforcement Officer
AGREED TO AND ACCEPTED this ______day of July, 2013.
MULL DRILLING COMPANY INC.
By __________________________________________
Signature of Authorized Company Representative
____________________________________________
Print Signatory
Name
____________________________________________
Title
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The Commission heard and approved this matter on the 29th day
of July, 2013.
ENTERED this _____ day of August, 2013 as
of the 29th day of July, 2013.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By____________________________________
Robert J. Frick, Secretary