BEFORE THE OIL AND GAS CONSERVATION COMMISSION

                                                                  OF THE STATE OF COLORADO

 

IN THE MATTER OF ALLEGED VIOLATIONS OF THE RULES                    )                     CAUSE NO. 1V

AND REGULATIONS OF THE COLORADO OIL AND GAS                          )

CONSERVATION COMMISSION BY PUCKETT ENERGY CO.,                    )                     DOCKET NO. 0308-OV-05

LOGAN COUNTY, COLORADO                                                                 )                    

                                                                                                                                                           

                                                   NOTICE OF ADMINISTRATIVE ORDER BY CONSENT

 

TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:

 

            On October 15, 1996, the Dalke #2 Well, located in the SW¼ SW¼ of Section 11, Township 8 North, Range 54 West, 6th P.M. and operated by Puckett Energy Company (“Puckett”), passed a mechanical integrity test (“MIT”). The well was required to pass a MIT because it had been shut-in since August of 1988. Rule 326.b. requires shut-in wells to pass a MIT within two (2) years of the initial shut-in date. The Form 14, Mechanical Integrity Report, dated October 28, 1996, noted that a disposal application must be approved prior to injection.  In a letter dated November 26, 1996, Puckett submitted an application to convert the Dalke #2 Well to a disposal well.  On September 9, 1997 Puckett withdrew the disposal well permit by telephone conversation with Colorado Oil and Gas Conservation Commission (“COGCC”) staff.  On February 4, 1998, the COGCC received a Form 4, Sundry Notice, from Puckett, indicating the plans to convert the Dalke #2 Well to a disposal well had been abandoned. The Form 4 was approved by COGCC staff on February 13, 1998.

 

On April 3, 2003, COGCC staff inspected the Dalke #2 Well and determined the well was being utilized as a disposal well without an approved disposal permit. COGCC staff directed the pumper to cease injection operations immediately and disconnect the well from the injection line. Injection into the well ceased and the well was disconnected from the injection line.  On April 3, 2003 a Notice of Alleged Violation (“NOAV”) was issued to Puckett for violation of Rule 325.a., injecting without first obtaining written authorization for injection, Rule 210., not having a well sign, and Rule 326.b, not conducting a MIT on shut-in wells every five (5) years. The NOAV required the well cease injection immediately and not be reconnected to the flowline until Puckett received written approval from the COGCC. The NOAV also required that Puckett submit an explanation by May 1, 2003, for why the well was injecting without authorization. Further, the NOAV required that a MIT be conducted on the well and a well sign be installed on the well by June 1, 2003.  In a letter dated April 18, 2003, Puckett submitted the explanation required by the NOAV, stating its belief that they were authorized to inject into the well.

 

On April 21, 2003, Puckett submitted Form 7’s, Operator’s Monthly Report of Operations, for January and February of 2003. The Form 7’s indicate the Dalke #2 Well is shut-in. Puckett did not report Dalke #2 Well as an injection well and did not report the injected volumes into the well.

 

On May 30, 2003, COGCC Staff issued an Administrative Order by Consent (“AOC”) to Puckett Energy Co. for the violation of COGCC Rules 210., 325.a. and 326.b.  On June 30, 2003 Puckett Energy Co. agreed to and accepted the AOC, including the fine of Ten Thousand Dollars ($10,000).

 

NOTICE IS HEREBY GIVEN, that the Oil and Gas Conservation Commission of the State of Colorado, pursuant to the above, has scheduled the above-entitled matter for hearing on:

                 

Date:                            Monday, August 18, 2003

                                   

Time:                            10:00 a.m.

 

Place:                           Petroleum Hall, Green Center, Colorado School of Mines

                                    1500 Illinois Street

                                    Golden, CO 80401

                       

            In accordance with the Americans with Disabilities Act, if any party requires special accommodations for this hearing as a result of a disability, please contact Audra Serlet at (303) 894-2100, extension 114, prior to the hearing and arrangements will be made.

 

Pursuant to said hearing in the above-entitled matter at the time and place aforesaid, or at any adjourned meeting, the Commission will enter such orders as it deems appropriate and necessary to protect public health, safety and welfare and to prevent the waste of oil and gas, either or both, in the operations of said field, and carry out the purposes of the statute.

 

In accordance with Rule 509., any interested party desiring to protest or to intervene should file with the Commission a written protest or a notice to intervene no later than August 4, 2003 briefly stating the basis of the protest or intervention.  Such interested party shall, at the same time, serve a copy of the protest or notice to intervene to the person filing the application.  An original and nine (9) copies shall be filed with the Commission.

 

      IN THE NAME OF THE STATE OF COLORADO

 

                                                                  OIL AND GAS CONSERVATION COMMISSION

                               OF THE STATE OF COLORADO

 

 

 

                        By_________________________________

Dated at Suite 801                                                                Patricia C. Beaver, Secretary

1120 Lincoln Street

Denver, Colorado, 80203

July 17, 2003