IN THE MATTER OF ALLEGED VIOLATIONS OF THE
CAUSE NO. 1
RULES AND REGULATIONS OF THE COLORADO OIL
AND GAS CONSERVATION COMMISSION BY
PLENERGY DEVELOPMENT LTD., SPINDLE FIELD,
ORDER NO. 1V-194
ADAMS COUNTY, COLORADO
REPORT OF THE COMMISSION
This cause came on for hearing before the Colorado Oil and Gas Conservation
Commission on February 15, 2000 at 8:30 a.m. at the Holiday Inn, Trinidad, 3125
Toupal Drive, Trinidad, Colorado after giving Notice of Hearing as required by
law on why Plenergy Development Ltd. is not in violation of Rule 319.b.(3),
failure to obtain Director approval for continuing shut-in status and Rule
326.b., failure to perform a mechanical integrity test within thirty (30) days
of removing the surface production equipment from the Ehler #18 Well located in
the SE¼ NE¼ of Section 15, Township 1 South, Range 67 West, 6th P.M.
FINDINGS
1. Plenergy Development Ltd. (“Plenergy”) is an interested party in the subject
matter of the above-referenced hearing.
2. Due notice of the time, place and purpose of the hearing has been given in
all respects as required by law.
3. The Commission has jurisdiction over the subject matter and of the parties
interested therein, and jurisdiction to promulgate the hereinafter prescribed
order.
4. On September 25, 1998, Colorado Oil and Gas Conservation Commission (“COGCC”)
staff conducted an inspection of the Ehler #18 Well located in the SE¼ NE¼ of
Section 15, Township 1 South, Range 67 West, 6th P.M. The well was determined to
be incapable of production as a result of insufficient tubing/casing flow
pressure to overcome the sales line pressure. The surface production equipment
was also removed.
5. On September 28, 1998, COGCC staff issued a Notice of Alleged Violation (“NOAV”)
to Plenergy for the Ehler #18 Well. The NOAV cited violation of Rule 319.b.(3),
failure to obtain Director approval for continuing shut-in status and Rule
326.b., failure to perform a mechanical integrity test within thirty (30) days
of removing the surface production equipment from the Ehler #18 Well. The NOAV
specified an abatement date of March 27, 1999. Per return receipt, the NOAV was
accepted on September 29, 1998.
6. On June 2, 1999, COGCC staff conducted an inspection on the Ehler #18 Well
and found it was in noncompliance. At the operator’s request, COGCC staff
extended the deadline to September 1, 1999, due to the amount of ongoing work in
bringing additional wells into compliance.
7. On September 10, 1999, COGCC staff inspected the Ehler #18 Well and found it
was in noncompliance. On September 16, 1999, COGCC staff issued an
Administrative Order by Consent (“AOC”) to Plenergy Development Ltd. for the
Ehler #18 Well. The AOC cited violation of Rule 319.b.(3), failure to obtain
Director approval for continuing shut-in status and Rule 326.b., failure to
perform a mechanical integrity test within thirty (30) days for a well incapable
of production. The AOC proposed the assessment of a total fine amount of Two
Thousand dollars ($2,000.00) and required the well to either pass a mechanical
integrity pressure test, be properly plugged and reclaimed or returned to
production within thirty (30) days from the date the order was entered. On
October 21, 1999, the AOC issued to Plenergy Development Ltd. was returned to
the COGCC as “unclaimed”. Plenergy did not execute or meet with COGCC staff to
discuss the proposed AOC for the Ehler #18 Well.
8. At the time of the hearing on February 15, 2000 COGCC staff presented
testimony and exhibits in support of the above findings. COGCC staff further
testified that notice of the hearing was sent via certified mail to Plenergy
Development Ltd. and to Planet Indemnity Company, provider of Plenergy’s
financial assurance posted with the COGCC
9. The Director requests that the Commission issue an Order Finding Violation in
accordance with Rule 522.c. for the above-described alleged violations. In
addition, Plenergy should be assessed a total fine of Four Thousand dollars
($4,000.00) for violation of Rules 319.b.(3) and 326.b. for the Ehler #18 Well,
payable within thirty (30) days of the date the order is entered. Plenergy
Development Ltd. should be required to either: 1) perform a successful
mechanical integrity pressure test; or 2) properly plug, abandon and reclaim; or
3) return to production within thirty (30) days of the date the order is entered
for the Ehler #18 Well. Further, if Plenergy does not comply with the order,
COGCC staff should be authorized to commence a claim on the Thirty Thousand
dollar ($30,000) plugging bond and proceed to plug, abandon and reclaim the
well.
ORDER
NOW, THEREFORE IT IS ORDERED, that Plenergy Development Ltd. shall be found in
violation of Rule 319.b.(3), failure to obtain Director approval for continuing
shut-in status, and Rule 326.b., failure to perform a mechanical integrity test
within thirty (30) days of removing the surface production equipment from the
Ehler #18 Well located in the SE¼ NE¼ of Section 15, Township 1 South, Range 67
West, 6th P.M.
IT IS FURTHER ORDERED, that Plenergy Development Ltd. shall be assessed a total
fine of Four Thousand dollars ($4,000.00) for violation of Rules 319.b.(3) and
326.b. for the Ehler #18 Well, payable within thirty (30) days of the date the
order is entered.
IT IS FURTHER ORDERED, that Plenergy Development Ltd. shall be required to
either: 1) perform a successful mechanical integrity pressure test; or 2)
properly plug, abandon and reclaim; or 3) return to production the Ehler #18
Well within thirty (30) days of the date this order is entered.
IT IS FURTHER ORDERED, that if Plenergy Development Ltd. does not comply with
the order, COGCC staff shall be authorized to commence a claim on the Thirty
Thousand dollar ($30,000) plugging bond and proceed to plug, abandon and reclaim
the Ehler #18 Well.
IT IS FURTHER ORDERED, that the provisions contained in the above order shall
become effective forthwith.
IT IS FURTHER ORDERED, that the Commission expressly reserves its right after
notice and hearing, to alter, amend, or repeal any and/or all of the above
orders.
ENTERED this 13th day of March, as of February 15, 2000.
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 13, 2000.
(1V#194)