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 SYNERGY RESOURCES CORPORATION WELD
COUNTY, COLORADO
|
)
)
)
)
)
|
CAUSE
NO. 1V
DOCKET
NO. 1310-OV-40
ORDER
NO. 1V-429
|
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. Synergy
Resources Corporation (“Synergy”) is the operator of record for the wells
identified in Table 1 (“Wells”). Synergy hydraulically fractured the Wells on
the dates identified in Table 1.
TABLE 1
API
|
Well Name
|
Well Number
|
Treatment Date
|
05-123-34400
|
SRC Airport
|
34-35D
|
09/17/12
|
05-123-34531
|
SRC Aims
|
43-10D
|
06/25/12
|
05-123-34543
|
SRC GCC
|
12-11D
|
06/22/12
|
05-123-34660
|
SRC Aims
|
10PD
|
06/22/12
|
05-123-35486
|
Coyle
|
42-34D
|
10/25/12
|
2. Rule 205A.
requires that for hydraulic fracturing treatments performed on or after April
1, 2012, the hydraulic fracturing chemical disclosure registry form must be
completed within 60 days following the conclusion of a hydraulic fracturing and
in no case later than 120 days after the commencement of such hydraulic
fracturing treatment. Synergy did not meet this requirement for the Wells.
3. On June 20, 2013
Commission staff released a Notice To Operators – 205A. Hydraulic Fracturing
Chemical Disclosure (“NTO”). The NTO states failure to meet the requirements of
the Rule within the specified timeframes will be considered a violation of the
Rule. Rule violations will be enforced pursuant to Rule 522, and penalties will
be assessed pursuant to Rule 523.
4. On
September 18, 2013 Commission staff issued Synergy a Notice of Alleged
Violation No. 200387530 ("NOAV") alleging violation Rule 205A of the
COGCC Rules of Practice and Procedure, 2 CCR 404-1 (“Rule” or “Rules”).
5. Following
a factual investigation and legal review of the violations alleged in the NOAV,
the Hearings Staff now asserts Synergy has committed the following violations:
a. Five
violations of Rule 205A for failure to satisfy reporting requirements of Rule
205A at the Wells.
6.
Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy,
Hearings staff calculated a penalty of $ 5,000 for these violations.
AGREEMENT
NOW,
THEREFORE, based on the Findings and pursuant to Rule 522.b.(3), COGCC Rules of
Practice and Procedure, 2 CCR 404-1 (“COGCC Rule(s)”), the Director proposes
and Synergy agrees to settle the NOAV on the following terms and conditions:
I. Synergy
will pay a penalty of $ 5,000.
II. Operator
shall submit all delinquent reports within 30 days of the approval of this
Order by the Commission.
III. The
alleged Rule 205A violations for the Swift 24-65 Well (API # 05-123-34088) and
the Swift 24-42 Well (API # 05-123-34816) (“Swift Wells”) that were included in
the NOAV, are dismissed in this action against Synergy. The Swift Wells were
owned and treated by an operator subsequently purchased by Synergy. The violations
for the Swift Wells will be considered in a parallel enforcement action against
Orr Energy LLC.
IV. Payment
of the penalty pursuant to this AOC does not relieve the operator from its
obligations to complete corrective actions set forth in the NOAVs, as may be
amended or modified by COGCC Staff.
V. Synergy
agrees to the findings of this AOC only for the purpose of expeditiously
resolving the matter without a contested hearing.
RECOMMENDED this 20th
day of September, 2013.
OIL AND GAS CONSERVATION
COMMISSION OF THE STATE OF COLORADO
By
Peter J. Gowen,
Enforcement Officer
AGREED TO AND
ACCEPTED this ______day of September , 2013.
SYNERGY
ENERGY LLC
By
Signature
of Authorized Company Representative
Print
Signatory Name
Title
ORDER
HAVING CONSIDERED the Agreement
between the Director and Synergy to resolve the NOAV, the COMMISSION ORDERS:
1. Synergy is
found in violation of Rule 205A for failing to complete the chemical disclosure
registry form and post the form on the chemical disclosure registry within the
specified timeframe.
2. Pursuant
to § 34-60-121, C.R.S., and Rule 523, COGCC Rules of Practice and
Procedure, 2 CCR 404-1, Synergy shall pay a penalty of $ 5,000 not later than 30
days from receipt of the Order and invoice.
3. Synergy will
file all delinquent disclosures within 30 days of the approval of this Order by
the Commission.
4. Synergy
will promptly implement procedures to assure timely filing of future
disclosures.
5. 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.
6. The
provisions contained in the above order are effective on the date this matter
is heard and approved by the Commission.
===========================================================================
The Commission heard and approved
this matter on the 28th day of October, 2013.
ENTERED
this _____ day of , 2013 as of the 28th
day of October, 2013.
OIL
AND GAS CONSERVATION COMMISSION
OF
THE STATE OF COLORADO
By____________________________________
Robert
J. Frick, Secretary