ARKANSAS OIL AND GAS COMMISSION

Transcription

1 Director s Office: 301 Natural Resources Drive Suite 102 Little Rock, AR Phone: (501) Fax: (501) ARKANSAS OIL AND GAS COMMISSION Mike Beebe Governor Lawrence Bengal Director El Dorado Regional Office: 2215 West Hillsboro El Dorado, AR71730 Phone: (870) FAX: (870) Fort Smith Regional Office: 3309 Phoenix Avenue Fort Smith, AR72903 Phone: (479) FAX: (479) February 12, 2014 Arkansas Oil and Gas Commission 301 Natural Resources Drive, Suite 102 Little Rock, AR RE: Docket No.: 091A Subject: Abandoned Well Request Operator: Equinox Oil Co. Inc. Well: Murphy Smart Buckrange Unit Well #2-15 Location: Sec. 14-T15S-R20W Columbia County, Arkansas Dear Commissioners: The Commission Staff requests an Order declaring the Murphy Smart Buckrange Unit Well #2-15, formerly operated by Equinox Oil Co. Inc. ( Operator ) abandoned under the authority in Ark. Code Ann , , and Background The Murphy Smart Buckrange Unit # 2-15 well file indicates the well was plugged on December 1, Following a recent complaint from the purported landowner, an inspection by Staff found the well was still present. Staff believes that it likely that the bottom plug was set and nothing further was done to complete the plugging process for this well. If this request is granted, the Murphy Smart Buckrange Unit Well #2-15 can be added to an existing plugging project in the vicinity. Basis of Abandonment Request General Rule G-1 Operator is the last operator of record as reflected in the exhibits to this application. Upon review of Commission records, Commission Staff has determined that the subject well may be an Abandoned Well as defined in General Rule G-1, as the well has not produced for over 2 years. Determination of Abandonment / Request for Authority to Plug Staff further requests that the Order provide that if the Operator fails to properly plug and abandon the wells and restore and remediate surface conditions surrounding the wells and well sites within 30 COMMISSION MEMBERS Chad White, Chairman, Magnolia W. Frank Morledge, Vice-Chairman, Forrest City Charles Wohlford, Fort Smith Mike Davis, Magnolia William L. Dawkins, Jr., Fort Smith Jerry Langley, Smackover Chris Weiser, Magnolia Jim Phillips, Smackover George Carder, Searcy An equal opportunity employer

2 days of the effective date of the Order, the wells and well sites shall become part of the Commission s Abandoned and Orphaned Well Plugging Program, and the Director may either (1) transfer the wells in accordance with General Rule G-3, or (2) authorize any person to enter upon the land and properly plug and abandon the wells and well sites in accordance with General Rule G-1. As provided by General Rule G-1, any work shall be paid with funds from the Abandoned and Orphan Well Plugging Fund, and the Director may dispose of all well site equipment and hydrocarbons, to offset the costs to properly plug and abandon the wells and well sites and restore and remediate surface conditions surrounding the wells and well sites. The Operator shall reimburse the Commission for any and all costs expended to properly plug and abandon the wells and well sites and restore and remediate surface conditions surrounding the wells and well sites. All payments shall be by cashier s checks or money orders, and shall be deposited in the Abandoned and Orphaned Well Plugging Fund. Failure to reimburse the Commission may result in the initiation of Commission enforcement action to recover the expended funds. The Commission has authority to compel compliance and assess civil penalties pursuant to Ark. Code Ann , , , and/or other applicable statutes. Sincerely, Lawrence E. Bengal Director

3 091A LIST OF EXHIBITS Exhibit A. AOGC Form 1 Organization Reports Equinox Oil Company, Inc. (1995) B. AOGC Form 4 - Murphy Smart Buckrange Unit Well #2-15 C. AOGC Form 12 - Murphy Smart Buckrange Unit Well #2-15 D. Affidavit of Notice E. Copy of Notice F. Proof of Public Notice from Arkansas Democrat Gazette

4 EXHIBIT A

5 EXHIBIT B

6 EXHIBIT C

7 AFFIDAVIT OF SERVICE STATE OF ARKANSAS COUNTY OF PULASKI KNOW ALL MEN BY THESE PRESENTS: I, Alan J. York, being first duly sworn, do state under oath that: I am an employee of the Arkansas Oil and Gas Commission, who duties involve the mailing of notices of public hearings to interested parties. I hereby certify that a true and correct copy of the Notice attached hereto has been placed in the Unites States Mail, postage prepaid, addressed to each of the following interested parties: Equinox Oil Company, Inc Grogans Mill Rd. Suite 475 The Woodlands, TX At which public hearing of the Arkansas Oil and Gas Commission commencing on February 26, 2014, Docket #091A is scheduled to be heard. THE NOTICE WAS MAILED ON February 12, SIGNATURE SUBSCRIBED AND SWORN to before me, the undersigned Notary Public on this day of, Notary Public My Commission Expires: EXHIBIT D

8 NOTICE OF HEARING Docket No. 091A The Arkansas Oil and Gas Commission will conduct its monthly hearing beginning at 9:00 a.m. on February 26, 2014 and thereafter at the Embassy Suites Hotel, 400 Convention Boulevard, Hot Springs, Arkansas, Due to the length of some docket items, the hearing may continue into the following day. The AOGC will hear Docket No. 091A , the application of Staff requesting an Order compelling compliance with Arkansas Oil and Gas Commission General Rule G- 1, as authorized in Ark. Code Ann , , and : Operator: Equinox Oil Co. Inc. Well: Murphy Smart Buckrange Unit Well #2-15 Location: Sec. 14-T15S-R20W Columbia County, Arkansas Any parties who oppose a filed application, shall notify, in writing, or via at objections@aogc.state.ar.us, the Hearing Officer or Director of the Arkansas Oil and Gas Commission, no later than close of business on February 21, ARKANSAS OIL AND GAS COMMISSION Lawrence E. Bengal Director EXHIBIT E