BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF ALLEGED VIOLATIONS OF THE ) CAUSE NO. 1V
RULES AND REGULATIONS OF THE COLORADO OIL )
AND GAS CONSERVATION COMMISSION BY ) ORDER IV-248
SAMOTLOR PETROLEUM INVESTMENTS, LLC, )
CHEYENNE AND PROWERS COUNTIES, COLORADO )
REPORT OF THE COMMISSION
This cause came on for hearing before the Colorado Oil and Gas Conservation Commission on October 27, 2003, at 10:00 a.m. in Suite 801, 1120 Lincoln Street, Denver, Colorado, after giving notice of hearing as required by law on why Samotor Petroleum Investments LLC is in violation of Rule 210.b., (4 violations), Rule 319.b.(3), (4 violations), and Rule 326.b., (4 violations) and why the Commission should invoke the provisions of § 34-60-122, C.R.S., as amended, providing for violations of the Rules and Regulations of the Commission.
FINDINGS
1. The Lowe “H” #1 Well is located in the NE¼ SW¼ of Section 18, Township 16 South, Range 44 West, 6th P.M. and is operated by Samotlor Petroleum Investments (“Samotlor”). The well has not produced since October of 1999 and is currently incapable of production. A Notice of Alleged Violation (“NOAV”) was issued to Samotlor on January 22, 2003, citing violations of Rules 210.b. (missing well sign), 319.b.(3) (well shut-in longer than 6 months without Director’s approval), and 326.b., (failure to perform a mechanical integrity test within 2 years of being shut-in). The NOAV required Samotlor to install a well sign and either perform a mechanical integrity test (“MIT”), return the well to production or plug and abandon the well. The NOAV required the corrective action to be completed by July 9, 2003. As of July 30, 2003, none of the above requirements have been met.
2. The Amoco #25-1 Well is located in the SW¼ of Section 25, Township 16 South, Range 45 West, 6th P.M. and is operated by Samotlor. The well has not produced since December of 1999 and is currently incapable of production. A NOAV was issued to Samotlor on January 22, 2003, citing violations of Rules 210.b. (missing well sign), 319.b.(3) (well shut-in longer than 6 months without Director’s approval), and 326.b., (failure to perform a MIT within 2 years of being shut-in). The NOAV required Samotlor to install a well sign and either perform a MIT, return the well to production or plug and abandon the well. The NOAV required the corrective action to be completed by July 9, 2003. As of July 30, 2003, none of the above requirements have been met.
3. The Amoco #25-2 Well is located in the NE¼ SW¼ of Section 25, Township 16 South, Range 45 West, 6th P.M. and is operated by Samotlor. The well has not produced since May of 1999 and is currently incapable of production. A NOAV was issued to Samotlor on January 22, 2003, citing violations of Rules 210.b. (missing well sign), 319.b.(3) (well shut-in longer than 6 months without Director’s approval), and 326.b., (failure to perform a MIT within 2 years of being shut-in). The NOAV required Samotlor to install a well sign and either perform a MIT, return the well to production or plug and abandon the well. The NOAV required corrective action to be completed by July 9, 2003. As of July 30, 2003, none of the above requirements have been met.
4. The Hallock-Miller-Hallock #1-3X Well is located in the NW¼ NE¼ of Section 3, Township 21 South, Range 43 West, 6th P.M. and is operated by Samotlor. The well may have been plugged and abandoned sometime in 1998, however, the casing is standing open and junk is on location. No final plugging report or cementing tickets have been filed with the Colorado Oil and Gas Conservation Commission (“COGCC”). A NOAV was issued to Samotlor on January 22, 2003, citing violations of Rules 210.b. (missing well sign), 319.b.(3) (well shut-in longer than 6 months without Director’s approval), and 326.b., (failure to perform a MIT within 2 years of being shut-in). The NOAV required Samotlor to install a well sign and either perform a MIT, return the well to production or plug and abandon the well. If the well is currently plugged and abandoned Samotlor was required to submit the proper forms and attachments to verify the work was done properly. The NOAV required the corrective action to be completed by July 9, 2003. As of July 30, 2003, none of the above requirements have been met.
5. The NOAVs were sent by registered mail to Samotlor’s last known address.
6. Repeated contacts by COGCC staff with Samotlor have not resulted in compliance with the NOAVs.
7. An Administrative Order by Consent (“AOC”) was sent to Samotlor on July 31, 2003 and was received by Samotlor on August 5, 2003. Samotlor did not execute and return the AOC or respond to the COGCC.
8. At the time of the hearing, COGCC staff presented testimony and exhibits to show the NOAVs issued, the AOC offered and photos of the well sites in support of staff’s recommendation.
9. Samotlor should be found in violation of Rule 210.b., failure to post well sign (4 violations), Rule 319.b.(3), failure to obtain Director’s approval for wells shut–in longer than six (6) months (four violations), and Rule 326.b., failure to perform MIT’s within two (2) years of being shut-in (4 violations).
10. Rule 523. specifies a base fine of Two Hundred and Fifty dollars ($250) for each violation of Rule 210.b., One Thousand dollars ($1,000) for each violation of Rule 319.b.(3), and One Thousand dollars ($1,000) for each violation of Rule 326.b.
11. A total monetary penalty of Eighteen Thousand dollars ($18,000) for violation of Rules 210.b., 319.b.(3)., and 326.b. should be assessed against Samotlor in accordance with Rule 523.a.
12. Samotlor Petroleum Investments LLC shall bring the Lowe “H” #1 Well, the Amoco #25-1 Well, the Amoco #25-2 Well, and the Hallock-Miller-Hallock #1-3X Well into compliance with COGCC rules within ninety (90) days of the date the order is issued.
13. If Samotlor Petroleum Investments does not comply with Finding #11, COGCC staff should be authorized to make a claim on the Thirty Thousand dollar ($30,000) plugging bond posted by Samotlor in order to plug, abandon and reclaim the wells listed above.
ORDER
NOW, THEREFORE IT IS ORDERED, that Samotlor Petroleum Investments LLC shall be found in violation of Rule 210.b., failure to post well sign (4 violations), Rule 319.b.(3), failure to obtain Director’s approval for wells shut–in longer than six (6) months (four violations), and Rule 326.b., failure to perform MIT’s within two (2) years of being shut-in (4 violations), for the Lowe “H” #1 Well, located in the NE¼ SW¼ of Section 18, Township 16 South, Range 44 West, 6th P.M., the Amoco #25-1 Well, located in the SW¼ of Section 25, Township 16 South, Range 45 West, 6th P.M., the Amoco #25-2 Well, located in the NE¼ SW¼ of Section 25, Township 16 South, Range 45 West, 6th P.M., and the Hallock-Miller-Hallock #1-3X Well, located in the NW¼ NE¼ of Section 3, Township 21 South, Range 43 West, 6th P.M.
IT IS FURTHER ORDERED, that Samotlor Petroleum Investments LLC shall be assessed a total fine of Eighteen Thousand dollars ($18,000) for the violations of the above rules payable within thirty (30) days of the date the order is issued.
IT IS FURTHER ORDERED, that Samotlor Petroleum Investments LLC shall bring the Lowe “H” #1 Well, the Amoco #25-1 Well, the Amoco #25-2 Well, and the Hallock-Miller-Hallock #1-3X Well into compliance with COGCC rules within ninety (90) days of the date the order is issued.
IT IS FURTHER ORDERED, that if Samotlor Petroleum Investments does not bring the wells into compliance, COGCC staff shall be authorized to make a claim on the Thirty Thousand dollar ($30,000) plugging bond posted by Samotlor in order to plug, abandon and reclaim the wells listed above.
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.
IT IS FURTHER ORDERED, that under the State Administrative Procedure Act the Commission considers this order to be final agency action for purposes of judicial review within thirty (30) days after the date this order is mailed by the Commission.
IT IS FURTHER ORDERED, that an application for reconsideration by the Commission of this order is not required prior to the filing for judicial review.
ENTERED this day of November, 2003, as of October 27, 2003.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By______________________________________
Patricia C. Beaver, Secretary
Dated at Suite 801
1120 Lincoln Street
Denver, Colorado 80203
November 5, 2003