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 PEASE OIL & GAS COMPANY     )                    DOCKET NO. 0401-OV-03

(a.k.a. REPUBLIC RESOURCES INC.), WASHINGTON COUNTY,          )

COLORADO                                                                                          )

                                                                       

                                                NOTICE OF ADMINISTRATIVE ORDER BY CONSENT

 

TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:

 

            On July 27, 1973, Colorado Oil and Gas Conservation Commission (“COGCC”) staff approved the Application for Permit to Use Earthen Pit, Form 15 submitted by A.T. Skaer (“Skaer”) for the Schwartz #1 lease located in the NE¼ NE¼ of Section 28, Township 3 South, Range 50 West, 6th P.M.  In June of 1992, the Schwartz #1-X Well located in the NE¼ NE¼ of Section 28, Township 3 South, Range 50 West, 6th P.M. was drilled and completed by Skaer Enterprises, Inc (“Skaer”).  The well was drilled as a replacement to the Schwartz #1 Well which had collapsed casing.  On October 18, 1994, the Colorado Oil and Gas Conservation Commission (“COGCC”) approved the Certification of Clearance and/or Change of Operator, Form 10 from “Skaer” to Pease Oil & Gas Company (“Pease”) with an effective date of March 1, 1994.  On April 22, 1997, the Schwartz #1-X Well was plugged and abandoned by Pease.  On May 5, 1999, a Sundry Notice, Form 4 from Pease was received by the COGCC stating that final reclamation was completed and the site was ready for inspection.  On June 7, 1999, COGCC staff received a letter from Pease dated June 3, 1999 indicating that the pits at the Schwartz #1-X facility were closed and reclaimed prior to December 31, 1997.  On October 2, 2000 COGCC staff conducted a field inspection of the site.  Oily soils, asphaltic material, and power poles remained on location. 

 

            On October 6, 2000, a Notice of Alleged Violation (“NOAV”) was issued to Pease for incomplete reclamation and oil impacted soils.  The NOAV cited Rule 906.d.(2), for remediation of spills/releases to meet the allowable concentrations in Table 910-1; Rule 907.a., 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; Rule 909.e., indicating that remediation and reclamation shall be complete upon compliance with the allowable concentrations in Table 910-1 or upon compliance with an approved workplan; and, Rule 1004 for incomplete final reclamation.  Corrective action included the requirement for Pease to submit a Site Investigation and Remediation Workplan, Form 27, by November 30, 2000. 

 

            On April 3, 2001, COGCC environmental staff conducted a field inspection of the site.  Four (4) soil borings were hand augered to a maximum depth of seven (7) feet below surface in the former pit area.  Two (2) of the borings encountered oily soil and representative soil samples were collected and submitted for analyses.  Laboratory results of one (1) soil sample indicated a Total Recoverable Petroleum Hydrocarbon (“TRPH”) concentration at 17,000 milligrams per kilogram (mg/kg). This exceeds the COGCC Allowable Concentrations for Organics in Soils for non-sensitive areas at 10,000 mg/kg.  On April 26, 2001, COGCC staff sent a letter to Pease with the laboratory results and requiring a Site Investigation and Remediation Workplan, Form 27, be submitted to the COGCC by May 31, 2001.  On May 29, 2001, a Site Investigation and Remediation Workplan, Form 27, was received by the COGCC.  On June 11, 2001, COGCC environmental staff conditionally approved the workplan.  On July 12, 2001, H&R Well Services (“H&R”), under contract to Pease, began remedial operations as per the approved workplan.  From July 12–27, 2001, H&R excavated and removed in excess of 1,500 cubic yards of oil impacted soil to the Washington County Landfill for disposal and further handling.  On July 16, 2001, COGCC staff received notification of a corporate name change from Pease Oil & Gas Company to Republic Resources Inc. (“Republic Resources”) effective July 11, 2001.  On March 11, 2002, COGCC environmental staff conducted a field inspection of the site.  Oily soils remained at the wellhead and tank battery locations.  From May 3-7, 2002, H&R excavated and removed an additional 46.8 tons of oil impacted soils to the Washington County Landfill for disposal and further handling.

 

            On January 28, 2003, COGCC environmental staff conducted a field inspection of the site.  Oily soil remained at the former tank battery location.  A representative soil sample was collected and submitted for analyses.  Laboratory results indicated a TRPH concentration at 14,000 mg/kg.  This exceeds the COGCC Allowable Concentrations for Organics in Soils for non-sensitive areas at 10,000 mg/kg.  On March 31, 2003, COGCC staff sent correspondence to Republic Resources with the soil sample results and an abbreviated chronology of events.  The letter stated that additional remediation and reclamation is required at the site.  The letter also required a revised Site Investigation and Remediation Workplan, Form 27, to be submitted to the COGCC for approval by April 30, 2003.  On April 9, 2003, COGCC staff received a request for an extension for the submittal of the revised Site Investigation and Remediation Workplan, Form 27, from April 30, 2003 to May 15, 2003.  The extension was granted by COGCC staff on April 9, 2003.  On May 8, 2003, the COGCC received a facsimile of correspondence from Republic Resources dated May 7, 2003.  The letter stated that Republic Resources is out of funds and is unable to do any additional remediation and/or reclamation at this site.  The letter suggests that remedies be pursued that may be available under the bond for cleanup of the site.  Republic Resources did not submit the revised Site Investigation and Remediation Workplan, Form 27, by the extended deadline of May 15, 2003.  COGCC staff has estimated the additional remediation and reclamation costs for this site at approximately Ten Thousand dollars ($10,000).  Republic Resources has stated that it has no funds available for the remediation and reclamation of the site.

 

            On October 3, 2003, COGCC staff issued an Administrative Order by Consent (“AOC”) to Pease Oil & Gas Company, for the violation of COGCC Rules 906.d.(2), 909.e., and 1004 for failure to remediate spills/releases to meet the allowable concentrations in Table 910-1 and for failure to complete the remediation of impacted soils and reclamation at the former Schwartz #1-X tank battery located in the NE¼ NE¼ of Section 28, Township 3 South, Range 50 West, 6th P.M.   On November 10, 2003, Pease Oil & Gas Company agreed to and accepted the AOC, including the fine of One Thousand Dollars ($1,000) and a claim on the Pease Oil & Gas Company’s blanket plugging bond to remediate the site to meet the COGCC Allowable Concentrations and Levels for Organics in Soil in Table 910-1 and to reclaim the site to rangeland.

 

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, January 5, 2004

                                   

Time:                           10:00 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 December 22, 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

December 5, 2003