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 ENCANA OIL & GAS (USA) INC.,  )                    DOCKET NO. 0408-OV-30

WELD COUNTY, COLORADO                                                                )

                                                                                                                                                                                    

                                                NOTICE OF ADMINISTRATIVE ORDER BY CONSENT

 

TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:

 

            On May 19, 2004, Colorado Oil and Gas Conservation Commission (“COGCC”) staff received a complaint from Garfield County stating that EnCana Oil & Gas (USA) Inc. (“EnCana”) had set conductor pipe on two (2) wells prior to obtaining an approved Application for Permit-to-Drill (“APD”), Form 2 for the two (2) wells.  The wells are the Kelly 34-12C (M34NE) Well and the Kelly 34-11C (M34NE) Well (the “Wells”), both located in the SW¼ SW¼ of Section 34, Township 6 South, Range 92 West, 6th P.M.  The Wells are planned to be drilled directionally from the same surface pad.   On May 21, 2004, COGCC staff inspected the location and found that conductor pipe had been set for four (4) wells and only two (2) APDs had been approved.

 

            On May 21, 2004, two (2) Notices of Alleged Violation (“NOAVs”) were issued for the Wells to EnCana for violation of Rule 303.a., failure to obtain an approved APD before commencement of operations with heavy equipment.  The NOAVs required EnCana to submit a written explanation as to why it had not complied with Rule 303.a.  The abatement date for the NOAV was June 4, 2004.

 

            On June 3, 2004, COGCC staff received a letter from EnCana explaining its actions.  The letter stated that EnCana set the conductor casing on the Wells without APD approval due to internal miscommunication between Denver engineering staff and field construction personnel.  EnCana also stated that it had no intention of drilling the Wells prior to receiving the approved APD, and that construction personnel have been instructed not to begin conductor work unless an approved APD is on location.

 

On June 8, 2004, COGCC staff issued an Administrative Order by Consent (“AOC”) to EnCana Oil & Gas (USA) Inc. for the violation of Rule 303.a., setting conductor pipe prior to receiving an approved APD for the Kelly 34-12C (M34NE) Well and the Kelly 34-11C (M34NE) Well.  On June 18, 2004, EnCana Oil & Gas (USA) Inc. agreed to and accepted the AOC, including a fine of Two Thousand Dollars ($2,000).

 

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 16, 2004

 

Time:                           10:00 a.m.

 

Place:                          Ramada Inn, Aspen and Birch Rooms

                                                      124 W. 6th Street

                                                      Glenwood Springs, CO 81601

            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 2, 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. Anyone who files a protest or intervention must be available to participate in a prehearing conference during the week of August 2, 2004. 

 

      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 13, 2004