BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF ALLEGED VIOLATIONS OF THE RULES AND REGULATIONS OF THE COLORADO OIL AND GAS CONSERVATION COMMISSION BY COACHMAN ENERGY OPERATING COMPANY LLC, GARFIELD COUNTY, COLORADO

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CAUSE NO. 1V

DOCKET NO. 150700258

 

TYPE:   ENFORCEMENT

 

ORDER NO. 1V-517

 

ADMINISTRATIVE ORDER BY CONSENT

 (Pursuant to Rule 522.e.(1) of the Rules and Regulations of the

Colorado Oil and Gas Conservation Commission, 2 CCR 404-1)

 

FINDINGS

 

1.         Coachman Energy Operating Company LLC (“Coachman”) is the operator of the Federal 14/15-1-21 (API No. 05-045-22456) (“Well”) in Garfield County.

 

2.         The Federal 14/15-1-21 Well was spud on October 8, 2014.  Rule 609 requires that operators submitting applications for oil and gas wells on or after May 1, 2013 are required to collect groundwater samples or submit a Sundry Notice requesting an exception. Coachman did not collect groundwater samples prior to drilling the Well, nor did it file a Sundry Notice requesting an exception prior to drilling the Well.  

 

3.         On January 27, 2015, Commission Staff issued a Notice of Alleged Violation (“NOAV”) (No. 200422072) to Coachman for a violation related to its failure to collect groundwater samples as described above.  The NOAV cited violation of Rule 609 (Groundwater baseline sampling and monitoring) of the COGCC Rules of Practice and Procedure, 2 CCR 404-1 (“Rule” or “Rules”).

 

            4.         Following a factual investigation and legal review of the violations alleged in the NOAV, the Hearings Staff now asserts Coachman is responsible for one 1-day violation of Rule 609, because Coachman failed to collect groundwater samples or receive an exception prior to drilling the Well.

 

5.         Pursuant to Rule 523 and the Commission’s Enforcement and Penalty Policy, Hearings staff calculated a penalty of $2,500 for these violations. The penalty calculation is based on a 1-day violation of Rule 609, which is a Class 2 Rule.  According to the Enforcement Policy Penalty Schedule, the violation is minor.

 

6.         Staff does not recommend any adjustments based on aggravating or mitigating factors.  Staff found no evidence of a pattern of violations, gross negligence, or knowing and willful misconduct.

 

AGREEMENT

 

NOW, THEREFORE, based on the Findings and pursuant to Rule 522.b.(3) and the Commission’s Enforcement and Penalty Policy, the Director proposes and Coachman agrees to settle the NOAV on the following terms and conditions:

 

I.    Coachman is found in violation of Rule 609.

 

II.   Coachman will be assessed a penalty of $2,000.

 

III.  Coachman will pay $2,000 within 30 days after the approved AOC is mailed by the Commission. 

 

 

RECOMMENDED this 10th day of June, 2015.

 

OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO

 

 

 

By                                                                       

Jennifer S. Bock, Enforcement Officer 

 

 

AGREED TO AND ACCEPTED this ______day of                   , 2015.

                                                                                                                                               

 

                        COACHMAN ENERGY OPERATING COMPANY LLC

 

                             

                        By                                                                                          

                        Signature of Authorized Company Representative

 

                                                                                                                       

                                    Print Signatory Name

                      

                                                                                                                                                                        Title

 

 

 

ORDER

 

HAVING CONSIDERED the Agreement between the Director and Coachman Energy Operating Company LLC to resolve the NOAV, the COMMISSION ORDERS:

 

            1.         Coachman is found in violation of Rule 609 as described above.

 

2.         Coachman will be assessed a total penalty of $2,000 for the rule violation described above.

 

3.         Entry of this Order constitutes final agency action for purposes of judicial review as of the date this order is mailed by the Commission. For all other purposes, this Order is effective as of the date of approval by the Commission.  

 

4.         The Commission expressly reserves its right after notice and hearing, to alter, amend, or repeal any and/or all of the above orders. 

 

 

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ENTERED this __ day of _______, 2015 as of the 20th day of July 2015.
           

                                                            OIL AND GAS CONSERVATION COMMISSION

            OF THE STATE OF COLORADO

 

 

            By                                                                                          

                                                                        Julie Murphy, Secretary