Medical waste, poor conditions found at Windsor oil drilling site

The Coloradoan.com
Bobby Magill

UPDATED: First, an oil drilling rig became unstable earlier this year when it was drilling on top of an old landfill near Windsor only a few hundred feet from a residential neighborhood.

Now, medical waste, including syringes, have been found where Ranchers Exploration Partners is drilling for oil in eastern Larimer County.

But it’s not just the used syringes a state inspector found that have prompted state oil and gas regulators to issue Ranchers Exploration Partners an alleged violation notice.

It’s the erosion on the edge of the drilling pad, a poorly constructed roadway to the drilling site and numerous weeds growing in the area, too.

These problems are right in the backyards of residents in the River West subdivision near the site of the long-shuttered Johnston Landfill at the eastern edge of Larimer County.

Ranchers doesn’t want to talk about what’s going on at its “Retta J 1” well site. Phone service to Ranchers’ Greeley office has been suspended, and company Vice-President Jordan Gitterman hung up his phone when reached Monday morning.

The Colorado Oil and Gas Conservation Commission inspector who visited the drilling site on July 12 documented at least three used syringes laying around the well pad and numerous erosion, weed control and dust control issues there.

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ADDITIONAL DOCUMENTATION

Compiled by: Shane Davis

Source: COGCC

CLICK IMAGE TO ENLARGE

HISTORICAL INSPECTIONS

You requested :	Inspection Information
API Number:	05-069-06431

New Inspection Search Results - 9 record(s) returned.
Inspection Date	Doc #	Location ID	Insp. API #	Insp. Status	Overall Inspection Status	Overall I.R. Pass/Fail	Overall F.R. Pass/Fail	Violation (Y/N)
07/12/2012	665400294	419639	069-06431		Violation			Y
07/12/2012	665400294	419639	069-06431	XX	Violation			Y
04/27/2012	665400236	419639	069-06431		Unsatisfactory			N
04/27/2012	665400236	419639	069-06431	XX	Unsatisfactory			N
04/26/2012	665400234	419639	069-06431		Unsatisfactory			N
04/26/2012	665400234	419639	069-06431	XX	Unsatisfactory			N
04/25/2012	665400223	419639	069-06431		Unsatisfactory			N
04/25/2012	665400223	419639	069-06431	XX	Unsatisfactory			N
04/23/2012	665400221	419639	069-06431		Unsatisfactory			N

Search Results - 1 record(s) returned.
Inspection Date	Doc #	Insp. Type	Insp. Status	PA P/F/I	Pass/Fail P/F	Violation Y/N
1/29/2011	200293884	CO	ND			N

CEASE AND DESIST ORDER

BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO

IN THE MATTER OF VIOLATION OF THE RULES AND REGULATIONS OF THE OIL AND GAS CONSERVATION COMMISSION BY RANCHERS EXPLORATION PARTNERS LLC, LARIMER COUNTY, COLORADO

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CAUSE NO. 1C ORDER NO. 1C-9

CEASE AND DESIST ORDER

                        This Cease and Desist Order (“Order”) is issued by the Director of the Colorado Oil and Gas Conservation Commission (“Commission” or “COGCC”) pursuant to §34-60-121(5)(a), C.R.S. and Commission Rule 522.d.    

FINDINGS

The Commission finds as follows:
                        1.         Ranchers Exploration Partners LLC, (“Ranchers” or “Operator”), is an interested party in the subject matter of the above‑referenced hearing.      
                        2.         The Commission has jurisdiction over the subject matter and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order.
                        3.         Rule 522.d. of the Rules and Regulations of the Oil and Gas Conservation Commission permits the Director to issue a cease and desist order under circumstances deemed to constitute an emergency situation. 
                        4.         Pursuant to §34-60-121(5)(a), C.R.S., “such cease and desist shall require such action by the operator as the Director deems appropriate.”  §34-60-121(5)(c), C.R.S., states, “in the event an operator fails to comply with a cease and desist order, the commission may request the attorney general to bring suit pursuant to §34-60-109.” 
                        5.         This matter arises out of and relates to Ranchers' operations at the Ranchers Retta J #1 Well (“Well”) (API No. 05-069-06431), in Larimer County, Colorado.
                        6.         On September 9, 2010, Ranchers received an approved Location Assessment Permit, Form 2A, for the Well, with additional conditions of approval (“COA”). 
                        7.         On September 30, 2010, Ranchers received an approved Permit to Drill, Form 2 for the Well, with COA’s.
                        8.         On January 27, 2011, the Colorado Department of Public Health and Environment, Hazardous Materials and Waste Management Division (“CDPHE”) conducted an inspection at the below-described lands (“Well Location”):
Township 6 North, Range 68 West, 6th P.M. 
Section 24:      SWNW

                        9.         On January 28, 2011, CDPHE, by certified mail, notified Mr. Michael Ward, Agent for Ranchers, of a Compliance Advisory (“Advisory”) for the closed Johnston Landfill, Larimer County, Colorado.  The Advisory notified Ranchers of the deficiencies found at the Well location and requested Ranchers to immediately cease excavating the landfill cap and scattering solid waste at the Well location.  Ranchers was also required to properly remove and dispose of the solid waste, and provide receipts of the disposal.  Additionally, Ranchers was required to evaluate damage to the cover of the landfill and prepare a plan for repairing damaged slopes and other areas.

                        10.       On June 13, 2011, Bob Chesson, COGCC Environmental Protection Specialist, issued a Memorandum to David Neslin, Director of the COGCC, summarizing recent events at the Well for Senate President Brandon Shaffer.  The COGCC had no information on the presence of an old landfill on the property during the 2A and APD review process.  No concerns were raised by Larimer County Local Government Designee (“LGD”).  The presence of the former landfill was brought to Larimer County’s attention by the adjacent landowner.  Mr. Dearborn, of the CDPHE, required Ranchers Exploration to do subsurface boring around the proposed well locations to determine if their proposed well locations were within the landfill footprint.  Ranchers subsequently moved the well locations approximately 80-feet to the east as the new location of the wells.  The resulting borings constructed to a total depth of approximately 6 feet below ground surface had no apparent evidence of landfill materials and satisfied the CDPHE that drilling in that area of the location would not impact the former landfill.

                        11.       On April 25, 2012, the Well was spud, whereupon the drill rig became unstable and subsided.  Ranchers stabilized the rig by using cement.  Furthermore, while drilling on April 25, 2012, landfill debris and other trash materials were identified in the drill cuttings.  Ranchers experienced adverse drilling issues with lost circulation of fluids, likely due to the presence of highly permeable unconsolidated landfill materials.

                        12.       On April 26, 2012, Jim Precup, COGCC Field Inspector, conducted a rig and stormwater management inspection with Greg Hovivian, Representative for Ranchers and Mr. Melvin Richards, Consultant for Ranchers.  Mr. Precup discussed with Mr. Hovivian and Mr. Richards the lack of secondary containment on sewage, chemicals, rig oils, and the inadequacy of the BMP’s for stormwater management.  Furthermore, Mr. Precup informed Ranchers that installing the required protections after drilling the Well was not an option.

                        13.       The Director finds that Ranchers failure to comply with: 1) the CDPHE Compliance Advisory dated January 28, 2011; 2) COGCC Forms 2A and 2, with Conditions of Approval; and 3) COGCC Field Inspector’s requirements - constitutes an emergency situation that poses a risk to public health, safety, or welfare, including the environment and wildlife resources.  Specifically, the Commission finds an emergency exists because Ranchers is not qualified to handle the potential hazardous toxic waste from the landfill.

                        14.       Landfill material is unstable and cannot be compacted without expert engineering.  Drilling through the landfill and base layers has the potential to cause groundwater contamination.

                        15.       This Cease and Desist Order shall require Ranchers to immediately cease drilling and take all action necessary to prevent further harm to the public health, safety and environment.  The Cease and Desist Order shall remain in effect until Ranchers has consulted with CDPHE and Larimer County, or has received a hearing pursuant §34-60-121(5)(b), which shall be no sooner than 15-days after the issuance of the Cease and Desist Order, unless requested by the operator.

                        16.       Ranchers, its Officers, Agents, and Representatives shall preserve all documents, well logs, and communications pertaining to all activities at the Well Location.
17.                   COGCC Staff believes that the findings set forth in the inspection reports submitted by COGCC Staff and CDPHE, which are incorporated in this Order by reference, should be deemed to constitute a continuation of an emergency situation.

ORDER

                        NOW, THEREFORE, IT IS ORDERED, that in accordance with §34-60-121(5)(a), C.R.S., and Commission Rule 522.d., the Director of the Colorado Oil and Gas Conservation Commission, hereby orders, Ranchers Exploration Partners LLC, to cease and desist all drilling operations for the Ranchers Retta J #1 Well, located at, Section 24, Township 6 North, Range 68 West, 6th P.M., Larimer County.

                        IT IS FURTHER ORDERED, this Cease and Desist Order shall remain in effect until such time as Ranchers applies for and receives a public hearing before the Commission or develops a plan with concurrence of CDPHE and COGCC that allows for continuation of drilling operations in a manner that protects the public health, safety, welfare and environment.
                       
                        IT IS FURTHER ORDERED, that Ranchers Exploration Partners LLC, shall within 30 days of this Order:  1) resolve the health and safety issues of drilling in the landfill to the satisfaction of the Commission, or 2) have a date set for plugging operations and have submitted a Notice of Intent to Abandon, Well Abandonment Report, Form 6.

                        IT IS FURTHER ORDERED, that Ranchers Exploration Partners LLC, its Officers, Agents, and Representatives shall preserve all documents and communications pertaining to all activities at the Well Location.

                        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 and COGCC Rule 522.d 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 unless the operator protests.

                        EXECUTED this April 27, 2012

                                                                         IN THE NAME OF THE STATE OF COLORADO
                                                                         OIL AND GAS CONSERVATION COMMISSION

                                                                         By                                                                                                          Thomas Kerr, Acting Director

Dated at Suite 801
1120 Lincoln St.
Denver, Colorado 80203
April 27, 2012

CERTIFICATE OF SERVICE

            I certify that on April 27, 2012, copies of the foregoing were sent as follows:

Mr. Michael Ward Ranchers Exploration Partners, LLC 7257 W. 4th Street, Suite 3 Greeley, CO 80634 VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED	Mr. Allen Stout Ranchers Exploration Partners, LLC 3910 Pecos-McLeod, Suite A-100 Las Vegas, NV 89121 VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
Darrell Dearborn Colorado Department of Public Health & Environment 4300 Cherry Creek Dr. S. Denver, CO 80246-1530 303-692-2000 VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED	Charles G. Johnson Colorado Department of Public Health & Environment 4300 Cherry Creek Dr. S. Denver, CO 80246-1530 VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
Mr. Melvin Richards Ranchers Exploration Partners, LLC 7257 W. 4th Street, Suite 3 Greeley, CO 80634 VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED	Mr. Robert Helmick Larimer County Planning Department P.O. Box 1190 Fort Collins, CO 80522 970-498-7682 VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED

____________________________
Roger Allbrandt, Hearings Officer

SURFACE AGREEMENT