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 FRITZLER RESOURCES, INC., ) DOCKET NO. 0404-OV-20
LOGAN COUNTY, COLORADO )
NOTICE
OF ADMINISTRATIVE ORDER BY CONSENT
TO
ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:
In February of 1998, the Fehringer #1 Well located in the
SW¼ NE¼ of Section 28, Township 12 North, Range 52 West, 6th P.M.
was drilled and completed by Winslow Resources, Inc. On August 7,
2002,
the Colorado Oil and Gas Conservation Commission (“COGCC”) approved the
Certification of Clearance and/or Change of Operator, Form 10 from Winslow
Resources, Inc. to Fritzler Resources, Inc. (“Fritzler”) with an effective date
of June 1, 2002. On June 2,
2003,
COGCC staff conducted a field inspection of the Fehringer #1 Well and
associated tank battery. Produced water
was observed being siphoned out of the earthen pit onto the ground. The produced water was flowing across the
lease and into the ditch adjacent to County Road 78. Produced water was also observed in the ditch
to approximately three-eighths (⅜) mile east of the tank battery. The topographic map of the area shows an
unnamed drainage approximately one-half (½) mile east of the tank battery. Although it appears that this release did not
reach this drainage, continued discharge had the potential to impact these
surface waters. Upon discovery, the
operator was notified immediately and the discharge discontinued. Corrective action also required the submittal
of a Spill/Release Report, Form 19 to the COGCC by June
15, 2003. A Form 19 was not received by June 15, 2003.
On June 23, 2003, COGCC environmental staff
placed a telephone call to Fritzler and left a voice mail regarding the failure
to submit the Form 19 by June 15, 2003. Fritzler did not return the telephone call
nor submit a Form 19 thereafter. On December 5, 2003, a Notice of Alleged Violation (“NOAV”) was issued
to Fritzler. The NOAV cited Rule
324A.a., for failure to prevent significant adverse environmental impacts to
air, water, soil, or biological resources and to prevent the unauthorized
discharge or disposal of E&P waste; Rule 906.b., for failure to report the
spill/release as required by the June 2, 2003 field inspection; Rule 907.a.(1),
for failure to ensure that E&P waste is properly stored, handled,
transported, treated, recycled or disposed to prevent threatened or actual
significant adverse environmental impacts; and Rule 907.c.(2), for disposing of
produced water in an unauthorized manner.
Corrective action included the submittal of a Spill/Release Report, Form
19. Corrective action also included the
requirement for Fritzler to submit an explanation for not submitting the Form
19 in a timely manner.
Per return receipt, the NOAV was accepted by Fritzler on December 8, 2003. On January 9, 2004, Mr. Jeffrey L. Hunter, attorney for Fritzler,
requested an extension for the submittal of a Form 19 and response to the
NOAV. COGCC environmental staff granted
a verbal extension to January 31, 2004. On January
16, 2004, a Form 19 and letter response was received by facsimile from Mr.
Jeffrey L. Hunter, attorney for Fritzler.
The Form 19 reported that less than five (5) barrels of produced water
had been released during the discharge event.
Based on photographic evidence and COGCC staff estimations, the volume
of produced water discharged potentially exceeded one hundred (100)
barrels. On January
30, 2004, COGCC environmental staff conducted a field inspection of the subject
location. No discharge of produced water
was observed and there was no evidence of significant environmental impacts
within the ditch adjacent to County Road 78.
It was determined that the tank battery site and discharge area were located
in a non-sensitive area. Upon a review of COGCC files, it was discovered that
the earthen pit at the subject tank battery does not have an approved
permit. Additionally, it does not appear
that Winslow Resources, Inc. included this pit in the inventory requirement in
accordance with Rule 911.b.
On March 2, 2004, COGCC staff issued an Administrative
Order by Consent (“AOC”) to Fritzler Resources, Inc. for the violation of COGCC
Rules 324A., 906.b., 907.a.(1), and 907.c.(2) for failure to prevent significant adverse
environmental impacts to air, water, soil, or biological resources and to
prevent the unauthorized discharge or disposal of E&P waste, to report the
spill/release as required by the June 2, 2003 field inspection, for failure to
ensure that E&P waste is properly stored, handled, transported, treated,
recycled or disposed to prevent threatened or actual significant adverse
environmental impacts and for disposing of produced water in an unauthorized
manner at the Fehringer #1 tank battery
located in the NW¼ NE¼ of Section 28, Township 12 North, Range 52 West, 6th
P.M. On March 17, 2004, Fritzler Resources, Inc. agreed to and accepted the
AOC, including the fine of One Thousand Dollars ($1,000).
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, April 19, 2004
Time: 9:00
a.m.
Place:
Suite 801, The
Chancery Building
1120 Lincoln Street
Denver, CO 80203
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 April
5, 2004 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
March 22, 2004