BEFORE
THE OIL AND GAS CONSERVATION COMMISSION
OF
THE STATE OF
IN THE MATTER OF ALLEGED
VIOLATIONS OF THE RULES AND ) CAUSE NO. 1V
REGULATIONS OF THE
COMMISSION BY WILLIAMS PRODUCTION RMT CORPORATION, ) ORDER
NO. IV-
GARFIELD COUNTY, COLORADO )
ADMINISTRATIVE ORDER BY
CONSENT
1. On February 22, 2004, Williams Production RMT
Corporation (”Williams”) lost control of the PA 324-33 Well located in the SE¼ SW¼
of Section 33, Township 6 South, Range 95 West, 6th P.M. following production
casing cementing operations. Natural gas was uncontrollably vented to the
atmosphere, endangering the employees and the general public. The natural gas
ignited and burned for several hours damaging the rig substructure. The loss of
control was in violation of Rule 317.a. which states that “The operator shall
take all necessary precautions for keeping a well under control while being
drilled or deepened” and Rule 327. which states that “The operator shall take
all reasonable precautions, in addition to fully complying with Rule 317. to
prevent any oil, gas or water well from blowing uncontrolled …”. Williams should be found in violation of Rules
317.a. and 327. for failure to keep the well under control at all times during
the drilling process.
2. The PA 324-33 Well is located within the area
covered by Commission Order No. 139-38 (the “Order”). During the drilling
process, Williams failed to perform a surface casing shoe integrity test as
required by the Order which states that “The operator shall perform a surface
casing shoe integrity test on all wells drilled within applicable lands. Each
surface casing shoe integrity test shall be designed to test the drilled out
surface casing shoe to a pressure equivalent to the hydrostatic pressure
exerted by a full column of mud at the maximum mud weight anticipated during
the drilling of the well plus an additional one-half (1/2) pound per gallon.” Williams should be found in violation of the
Order for failure to comply with the Order.
4. On
5. Rule 523.
specifies a base fine of One Thousand dollars ($1,000.00) per day for each
violation of Rules 317. and 327.
6. A monetary penalty of Thirty Thousand dollars
($30,000.00) should be assessed against Williams in accordance with Rule 523.a.
and Rule 523.d., for violation of Rules 317.a. & 327., Commission Order No.
139-38 and the Notice to All Operators Drilling Williams Fork Formation Wells
in
ORDER
NOW,
THEREFORE, IT IS ORDERED, that Williams Production RMT Corporation shall be found in violation Rules 317.a. and 327., Order No. 139-38
and the Notice to All Operators Drilling Williams Fork Formation Wells in
Garfield County, Surface Casing Depth and Modifications of Leakoff Test Requirements
attached to the Application for Permit-to-Drill as described above for failure
to prevent a loss of well control on the PA 324-33 Well located in the SE¼ SW¼
of Section 33, Township 6 South, Range 95 West, 6th P.M. and for failure to
perform a surface casing shoe integrity test and for failure to report loss of
circulation zones and gas kicks.
IT
IS FURTHER ORDERED, that Williams Production RMT Corporation shall be assessed
a fine of Thirty Thousand dollars ($30,000.00)
payable within thirty (30) days of the date the order is approved by the
Commission for the above violations.
IT
IS FURTHER ORDERED, that Williams Production RMT Corporation shall explain why
the loss of well control occurred, file an Accident Report, Form 22 and a Loss
of Well Control Report, Form 23 documenting the incident and explain what will
be done differently in the future to prevent re-occurrence 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.
IT IS FURTHER ORDERED, that the Commission expressly
reserves its right after notice 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 May, 2004.
OIL
AND GAS CONSERVATION COMMISSION
By
Morris J. Bell, Hearing Officer
Dated at
AGREED
TO AND ACCEPTED THIS _________DAY OF ___________, 2004.
WILLIAMS
PRODUCTION RMT CORPORATION
By
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