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IN THE MATTER OF ALLEGED VIOLATIONS OF THE RULES AND REGULATIONS OF THE COLORADO OIL AND GAS CONSERVATION COMMISSION BY ONEOK RESOURCES COMPANY, BACA COUNTY, COLORADO |
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CAUSE NO. 1V
TYPE: ENFORCEMENT
ORDER NO. 1V-224
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ADMINISTRATIVE ORDER BY CONSENT
1. On January 29, 2001,
Colorado Oil and Gas Conservation Commission (“COGCC”) staff received a letter
from Sandlin Oil Corporation (“Sandlin”) stating that Sandlin was no longer the
operator of the Bauman A #1-2 Well located in the SW¼ SW¼ of Section 2,
Township 33 South, Range 42 West, 6th P.M. The letter indicted that Oneok
Resources Company (“Oneok”) is the current operator.
2. On August 6, 2001, COGCC staff by letter requested that Oneok provide
financial assurance for plugging and abandonment of the subject well, submit a
Registration for Oil and Gas Operations, Form 1, and submit a Certification of
Clearance and/or Change of Operator, Form 10.
3. On November 11, 2001, COGCC staff issued a Notice of Alleged Violation
(“NOAV”) to Oneok. The NOAV cited violations of Rule 302., failure to provide a
Registration for Oil and Gas Operations, Form 1, Rule 312, failure to provide a
Certification of Clearance and/or Change of Operator, Form 10 and Rule 706.,
failure to provide financial assurance in accordance with the 700 Series rules
prior to assuming the operations of a well. The NOAV specified December 10,
2001 as the abatement date.
4. To date, Oneok has not completed the actions required in the NOAV dated
described above.
5. A review of COGCC records indicates that Oneok has not submitted Operator’s
Monthly Report of Operations, Form 7. The last Form 7 for the well was
submitted for December of 2000.
6. Oneok should be found in violation of Rules 302., 312., and 706. for the
Bauman A #1-2 Well.
7. A monetary penalty of One Thousand Seven Hundred Fifty dollars ($1,750) for
these violations should be assessed against Oneok in accordance with Rule
523.a.
8. Oneok should submit a Registration for Oil and Gas Operations, Form 1, a
Certification of Clearance and/or Change of Operator, Form 10 and provide
financial assurance in accordance with the 700 Series rules.
9. Oneok should submit the appropriate Form 7’s to update the COGCC production
records.
ORDER
NOW, THEREFORE IT IS ORDERED,
that Oneok Resources Company shall be found in violation of Rules 302., 312.,
and 706. for the Bauman A #1-2 Well located in the SW¼ SW¼ of Section 2,
Township 33 South, Range 42 West, 6th P.M.
IT IS FURTHER ORDERED, that Oneok Resources Company shall be assessed a fine of
One Thousand Seven Hundred Fifty dollars ($1,750), payable within thirty (30)
days of the date the order is approved.
IT IS FURTHER ORDERED, that Oneok Resources Company shall provide an updated
Registration for Oil and Gas Operations, Form 1 within thirty (30) days of the
date the order is approved.
IT IS FURTHER ORDERED, that Oneok Resources Company shall provide an updated
Certification of Clearance and/or Change of Operator, Form 10 within thirty
(30) days of the date the order is approved.
IT IS FURTHER ORDERED, that Oneok Resources Company shall provide financial
assurance in accordance with the 700 Series Rules within thirty (30) days of
the date the order is approved.
IT IS FURTHER ORDERED, that Oneok Resources Company shall provide updated
Operator’s Monthly Report of Operations, Form 7 within thirty (30) days of the
date the order is approved.
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/or all of the above orders.
RECOMMENDED this 31st day of January 31, 2002.
OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO
Signed By Morris Bell, Hearing Officer, Dated at Ste. 801, 1120 Lincoln St.,
Denver, CO 80203, January 31, 2002
AGREED TO AND ACCEPTED THIS ______ DAY OF __________________, 2002.
Oneok Resources Company
(#1V-224)