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IN THE MATTER OF ALLEGED VIOLATIONS OF THE RULES AND REGULATIONS OF THE COLORADO OIL AND GAS CONSERVATION COMMISSION BY ALFRED WARD & SON OPERATING COMPANY, WASHINGTON COUNTY, COLORADO |
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CAUSE NO. 1V
TYPE: ENFORCEMENT
ORDER NO. 1V-223
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ADMINISTRATIVE ORDER BY CONSENT
FINDINGS
1. On
August 15, 2001, Colorado Oil and Gas Conservation Commission (“COGCC”) staff
conducted an inspection of the State #1 and #2 tank battery operated by Alfred
Ward & Son Operating Company (“Ward & Son”) located in the NE¼ SE¼ of
Section 36, Township 3 South, Range 54 West, 6th P.M. Oil was observed covering
the first produced water pit. The Field Inspection Report required removal of
the oil from the pit by August 22, 2001.
2. On August 29, 2001, COGCC environmental staff conducted an inspection of the
State #1 and #2 tank battery. Oil was still present on the first produced water
pit.
3. On August 31, 2001, COGCC environmental staff issued a Notice of Alleged
Violation (“NOAV”) to Ward & Son for failure to remove the oil from the
pit. The NOAV cited violation of Rule 902.d., failure to remove the oil
accumulation by the required deadline and Rule 907.a.(1), failure to ensure
that Exploration & Production (“E&P”) waste is properly stored,
handled, transported, treated, recycled, or disposed to prevent threatened or
actual significant adverse environmental impacts to air, water, soil or biological
resources. The NOAV specified an abatement date of September 10, 2001 to remove
the oil from the pit. Corrective action also included removal of discharge
piping from the second produced water pit or to submit a status report of any
discharge permit from the Water Quality Control Division (“WQCD”) of the
Colorado Department of Public Health and Environment ("CDPHE").
4. Per return receipt, the NOAV was accepted by Ward & Son on September 5,
2001.
5. On September 11, 2001, COGCC environmental staff conducted an inspection of
the State #1 and #2 tank battery. The oil had been removed from the first
produced water pit. However, produced water was being discharged through piping
from the second produced water pit into adjacent surface waters. A water sample
was collected at the discharge point and submitted for analyses. Laboratory
results of the discharge water indicated non-detectable benzene, toluene,
ethylbenzene and xylene (“BTEX”) concentrations. The COGCC pit permit file for
the subject facility contained previous water quality data and indicated a
Total Dissolved Solids (“TDS”) concentration at 1,200 mg/l, a sulfate
concentration at 36 mg/l, and a chloride concentration at 150 mg/l.
6. On September 12, 2001, Ward & Son was informed by telephone to immediately
cease the unauthorized discharge activity. According to the operator, action
was taken within twenty-four (24) hours to stop the discharge.
7. On September 18, 2001, COGCC environmental staff conducted an inspection of
the State #1 and #2 tank battery. No unauthorized discharge of produced water
was observed.
8. On September 21, 2001, COGCC staff issued a Notice of Alleged Violation
(“NOAV”) to Ward & Son for the unauthorized discharge of produced water
into an unnamed surface drainage. The NOAV cited violation of: Rule 324A.a.,
failure to prevent the unauthorized discharge or disposal of E&P waste;
Rule 324A.b., performing an act or practice which shall constitute a violation
of water quality standards or classifications established by the Water Quality
Control Commission (“WQCC”) for waters of the state; Rule 902.a., failure to
operate a pit to protect the waters of the state from significant adverse
environmental impacts from E&P waste; Rule 907.a.(1), 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 to water, soil or biological resources or to the extent necessary to
ensure compliance with the allowable concentrations and levels in Table 910-1,
with consideration to WQCC ground water standards and classifications; Rule
907.a.(2), failure to conduct E&P waste management activities to protect
the waters of the state from significant adverse environmental impacts from E&P
waste; and Rule 907.c.(2), disposal of produced water by an unacceptable
method. The NOAV specified an abatement date of October 5, 2001 for Ward &
Son to submit an explanation for the discharge activity and when the discharge
commenced.
9. On October 25, 2001, the required explanation for the unauthorized discharge
was received by the COGCC. The discharge was estimated to have occurred for two
to three weeks.
10. On November 14, 2001, COGCC environmental staff conducted an inspection of
the State #1 and #2 tank battery. The discharge piping from the second produced
water pit had been removed.
11. A monetary penalty of Six Thousand dollars ($6,000.00) for violation of
Rules 324A.a., 324A.b., 902.a., 907.a.(1), 907.a.(2), and 907.c.(2) should be
assessed against Ward & Son for these violations in accordance with Rule
523.a.
ORDER
NOW,
THEREFORE IT IS ORDERED, that Alfred Ward & Son Operating Company shall be
found in violation of Rules 324A.a., 324A.b., 902.a., 907.a.(1), 907.a.(2), and
907.c.(2), for failure to ensure that E&P waste is properly stored,
handled, transported, treated, recycled or disposed and for the unauthorized
discharge of produced water into adjacent surface waters at the State #1 and #2
tank battery located in the NE¼ SE¼ of Section 36, Township 3 South, Range 54
West, 6th P.M.
IT IS FURTHER ORDERED, that Alfred Ward & Son Operating Company shall be
assessed a total fine of Six Thousand dollars ($6,000.00) for violation of
Rules 324A.a., 324A.b., 902.a., 907.a.(1), 907.a.(2), and 907.c.(2), for
failure to ensure that E&P waste is properly stored, handled, transported,
treated, recycled or disposed and for the unauthorized and intentional
discharge of produced water into adjacent surface waters, payable within thirty
(30) days of the date the order is approved by the Commission.
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.
RECOMMENDED this 14th day of January, 2002.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
Signed by Morris Bell, Hearing Officer, Dated at Suite 801, 1120 Lincoln St.,
Denver, Colorado 80203, January 14, 2002
AGREED TO AND ACCEPTED THIS 1st DAY OF May, 2002.
Alfred Ward & Son Operating Company
Signed By Randall Ward, President
(#1V-223)