RAILROAD COMMISSION OF TEXAS OFFICE OF GENERAL COUNSEL HEARINGS SECTION OIL AND GAS DOCKET NO. 8A-0261746 ENFORCEMENT ACTION FOR ALLEGED VIOLATIONS COMMITTED BY PLATINUM EXPLORATION, INC. (667939), AS TO THE GRIFFIN C LEASE, WELL NO. 1, HOBO (PENNSYLVANIAN) FIELD, BORDEN COUNTY, TEXAS FINAL ORDER The Commission finds that after statutory notice the captioned enforcement proceeding was heard by the examiner on June 25, 2009, and that the respondent, Platinum Exploration, Inc. (667939), failed to appear or respond to the Notice of Opportunity for Hearing. Pursuant to 1.49 of the Commission's General Rules of Practice and Procedure [Tex. R. R. Comm'n, 16 TEX. ADMIN. CODE 1.49] and after being duly submitted to the Railroad Commission of Texas at conference held in its offices in Austin, Texas, the Commission makes the following findings of fact and conclusions of law. FINDINGS OF FACT 1. Platinum Exploration, Inc. (667939), ( Respondent") was given Notice of Opportunity for Hearing by certified mail, addressed to Respondent s most recent P-5 address, which was signed and returned to the Commission. 2. The returned certified receipt (green card) that was attached to the Original Complaint and the Notice of Opportunity for Hearing mailed to Respondent s most recent P-5 address, was signed and returned to the Commission on May 18, 2009. The certified receipt has been on file with the Commission for 15 days, exclusive of the day of receipt and day of issuance. 3. On January 30, 2008, Respondent, a Corporation, filed an Organization Report (Form P-5) with the Commission reporting that its officers consisted of the following individual(s): Harold James Rasmussen, President; Michael Paul Jobe, Vice-President; and Gregory James Rasmussen, Vice-President. 4. Harold James Rasmussen, was a person in a position of ownership or control of respondent, as defined by Texas Natural Resources Code Section 91.114, during the time period of the violations of Commission rules committed by respondent. 5. Michael Paul Jobe, was a person in a position of ownership or control of respondent, as defined by Texas Natural Resources Code Section 91.114, during the time period of the violations of Commission rules committed by respondent.
6. Gregory James Rasmussen, was a person in a position of ownership or control of respondent, as defined by Texas Natural Resources Code Section 91.114, during the time period of the violations of Commission rules committed by respondent. 7. The violations of Commission rules committed by respondent are related to safety and the control of pollution. 8. Respondent designated itself to the Commission as the operator of Well No. 1 on the Griffin C (64145) Lease (subject well / subject lease ) by filing a Form P-4 (Producer s Transportation Authority and Certificate of Compliance) with the Commission effective on July 1, 2001. 9. According to Commission records the Respondent s Form P-5 (Organization Report) became delinquent on January 1, 2009. Respondent had a $50,000.00 Letter of Credit as its financial assurance at the time of its last P-5 renewal. 10. Commission District inspections were conducted on August 7, 2006, December 14, 2006, February 7, 2007, March 29, 2007, June 22, 2007, July 31, 2007 and February 25, 2009 for the Griffin C (64145) Lease. The signs or identification required to be posted at the well and the tank were missing. 11. Failure to properly identify a well by the posting of the sign required by Statewide Rule 3 has the potential for causing confusion and delay in remedying a violation or emergency and poses a threat to the public health and safety. 12. Production from the subject well ceased on or before May 31, 1994. 13. Commission records indicate that no Form H-15 (Test On An Inactive Well More Than 25 Years Old) has been filed and approved for the Griffin C (64145) Lease, Well No. 1. Commission records further show that the Griffin C (64145) Lease, Well No. 1 was completed on November 6, 1982, that an H-15 test was due in October 2008, and that the well has not been plugged. 14. The Statewide14(b)(2) plugging extension for Well No.1 on the Griffin C (64145) Lease, was denied for other well violations and an H-15 has not been filed. 15. The subject well has not been properly plugged in accordance with, and is not otherwise in compliance with Statewide Rule 14. 16. Usable quality groundwater in the area is likely to be contaminated by migrations or discharges of saltwater and other oil and gas wastes from the subject well. Unplugged wellbores constitute a cognizable threat to the public health and safety because of the potential for pollution. 17. The estimated cost to the State of plugging the subject well is $36,300.00.
7. 6. 5. 4. 3. 2. 1. 19. 18. OIL AND GAS DO Respondent including test is inactive responsible establishing Rule surface Respondent 14(b)(3), and proceed and shall be for that Rule maintaining commenced which subsurface plug the with is Respondent 14(b)(2), well responsible the requires measuring due and does well the diligence Rule water, within which each or not the subject is Respondent 3, successfully for facility responsible oil pose operator requires a which oil, maintaining until Respondent and period lease gas a shall parties potential completed. gas. requires of that or and of is All any post conduct for responsible geothermal one things appropriate subject maintaining well this threat that signs plugging year subject Proper more necessary hearing a violation each well fluid of after for identification. harm resource than lease persons notice operations property level the maintaining have compliance drilling of 25 to subject Commission or natural the was years been compliance legally Docket hydraulic well that or on issued lease operations old performed produces Docket and the resources, each entitled No. that subject in pressure Statewide tank, No. Docket dry by with 8A-0256714; becomes compliance No. the 8A-0252385; attaining or oil, to No. cease Statewide or lease 8A-0250450: inactive notice. No. Docket have gas Railroad other 8A-0239540; Nos. Rules 7C-0246040; and or docket(s): jurisdiction occurred. with compliance approved well Agreed geothermal Nos. 08-0250597 shall 3, Commission Statewide Respondent 14(b)(2) shall Agreed by Order place over crude Agreed Order with resources District and Order The the Served: Order to Statewide has oil 14(b)(3). 8A-0252534; subject Order Respondent respondent Served: Office a July prior Served: matter October lease and 15, July history Septe failed has 2008 Com and 18, Ap 19 n t 02-0248250, 08-0248249, 08 Agreed Order Served: August 14, 2007; CONCLUSIONS OF LAW
11. 10. 9. 8. OIL AND GAS DO organization all are and cleanup being corrected the this have 91.114(a)(2) organization and paid matter control, agreed, Rasmussen, plugging are violated becomes accordance shall whichever being for have As costs whichever Commission a be corrected period and final, agreed; person accordance subject plugging incurred with any have earlier. of corrected until other and a no final, earlier. to agreed; a rules by costs schedule accordance period more the position all with the organization be administrative, conditions related incurred restrictions and until State subject than a of and accordance schedule violated of to no any the seven with relating ownership all to which more by As to conditions other safety that administrative, a Commission of a to which years schedule than civil, the person constituted to organization Texas State with restrictions all are and those seven Commission and cleanup from that a being control relating the corrected schedule may Natural to the criminal conditions this have constituted rules the years Commission a control which civil, the 91.114(a)(2) organization position of hold and paid matter in date of control, to agreed, Texas related violations which from Resource respondent those Rasmussen, the penalties to plugging and of the position violated are which becomes pollution, Commission the of accordance Natural criminal the order to shall and conditions whichever being ownership paid As violations date safety for have may herein costs and Code the of a entered be corrected person the Resource a period final, hold Commission Gregory ownership penalties agreed; organization and the hazard subject are incurred order Section with The herein any a time the earlier. of position paid Chapters until documented other and entered control a to James no Code with to respondent and are by rules schedule accordance position more the all have and the organization are corrected all of public Section administrative, of conditions related 89 restrictions respondent the ownership applicable State than being agreed, pollution, cleanup this of and to violations organization health, ownership matter seven with relating 91.114(a)(2) paid which to are that and safety of Michael a Commis of and which becom years sched being civil, comm contr cons to the Tex de or th an C RES. CODE ANN. 81.0531(c).
CODE GOV'T MH/sa Done this General 14 are and are denied. subject operation for to All further civil Commission effective pending penalties of If a law, action notified timely 20 until motions hereby days of action of such up the after to and Commission. extended on Commission s motion $10,000.00 for 2. requests a rehearing party motion until overruled, 1. for per notified for 90 Pursuant is order relief filed days rehearing becomes three or by per of not from if to any the violation. such previously days the final: OIL party Commission s motion date this after AND case the interest, granted GAS parties grante date prior orde DO thi o a thday of July 2009. TEX. Noncompliance All requested with the findings provisions of fact It of is this and THOUSAND further disposition order conclusions ORDERED Platinum Commission subject Hobo FIVE as of Exploration, Platinum law provided by to HUNDRED (Pennsylvanian) enforcement the which IT rules Commission IS Exploration, are ORDERED by and Inc. DOLLARS not law, regulations; (667939), by expressly Field, the an that Inc. THAT Attorney adminis this ($9,500 (6679 shall Borde adop and with 2001.146(e) RAILROAD COMMISSION OF TEXAS (Signatures affixed by Default Master Order dated July 14, 2009)