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. 0407-OV-24

RIO BLANCO COUNTY, COLORADO                                                     )

                                                                                                                                                                                    

                                                NOTICE OF ADMINISTRATIVE ORDER BY CONSENT

 

TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:

 

            On October 29, 1999, a Colorado Oil and Gas Conservation Commission (“COGCC”) Application for Permit-to-Drill (“APD”), Form 2, was approved for Coastal Oil and Gas to drill the Park Mountain #2-2-3-104 Well (“Well”) located in the SE¼ SE¼ of Section 2, Township 3 South, Range 104 West, 6th P.M.  The APD for the Well specified the objectives as the Entrada and Dakota Formations.  The APD was approved by the COGCC Director for the Entrada and Dakota Formations only.  The Well was completed in the Dakota Formation on December 31, 1999 and later sold to EnCana Oil and Gas (USA) Inc. (“EnCana”) on July 1, 2002.

 

            EnCana plugged back the Dakota Formation and recompleted the Well to the Williams Fork Formation on July 7, 2003.  On April 6, 2004, a Notice of Alleged Violation (“NOAV”) was issued to EnCana for violation of Rule 303.b., recompletion to the Williams Fork Formation without a permit.  The NOAV required EnCana to submit an Application for Permit to Recomplete, Form 2, and submit a letter detailing the reason for not complying with Rule 303.b.  The abatement date for the NOAV was May 1, 2004.

 

            On May 3, 2004, COGCC staff received from EnCana the Form 2 for recompletion of the Park Mountain #9027 Well (previously known as #2-2-3-104) and a letter explaining its actions.  The letter stated that EnCana “did not understand that our data gathering expedition to obtain a permeability measurement in the Williams Fork constituted a recomplete of the Williams Fork which required approval of a State of Colorado Form 2.”  EnCana further stated “We simply did not understand that a Form 2 was required from the State for these operations conducted on Federal lands.”

 

            On May 25, 2004, COGCC staff issued an Administrative Order by Consent (“AOC”) to EnCana Oil & Gas (USA) Inc. for the violation of COGCC Rule 303.b., failure to have an approved Application for Permit to Recomplete to the Williams Fork Formation.  On June 1, 2004, EnCana Oil & Gas (USA) Inc. agreed to and accepted the AOC, including a 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, July 12, 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 June 28, 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 able to participate in a prehearing conference during the week of June 28, 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

June 3, 2004