[CITE: DNR v. McIntosh, 12 CADDNAR 83 (2009)
[VOLUME 12, PAGE 83]
Cause #: 08-199G
Caption: DNR v.
McIntosh
Administrative Law
Judge: Jensen
Attorneys: Boyko
(DNR); pro se (McIntosh)
Date: July 15, 2009
FINAL ORDER
12. Permit numbered 38302, issued to Respondent, Harold McIntosh, is hereby ordered revoked.
13. Respondent, Harold McIntosh, is ordered to properly plug and abandon the well authorized by Permit numbered 38302 as well as perform site restoration required by 312 IAC 16-5-19(c).
14. A statutory lien is foreclosed in favor of the Department on the casing and all equipment located on or removed from the well site authorized by Permit numbered 38302 as well as on the leasehold of the land upon which the well is located and upon any crude oil stored on the well site or recovered at the time the well is plugged and abandoned.
15. If the Commission elects to plug and abandon the well, the Commission may enter an order authorizing the agents, employees, or contractors to dispose of the casing and all equipment located on or removed from the well site and any crude oil stored on the well site or recovered at the time the well is plugged and abandoned. An inventory of the casing and all equipment and any crude oil shall be made, and the salvage or other reasonable market value of the casing, all equipment and any crude oil shall be applied as a credit to offset the actual costs incurred by the Commission in plugging and abandoning the wells.
FINDINGS OF FACT AND
CONCLUSIONS OF LAW
1. On December 22, 2009, the Department of Natural Resources, Division of Oil and Gas (Department), filed its “Complaint for the Issuance of an Order to Revoke Permit” (Complaint) against Harold McIntosh.
2. The Department’s Complaint alleges that Harold McIntosh is the holder of an oil and gas permit numbered 38302 for which Harold McIntosh had been issued a Notice of Violation requiring him to operate, plug and abandon, or obtain a temporary abandonment permit. The Complaint alleges further that from January 24, 2008, the issuance date for the Notice of Violation, until December 22, 2009, the date the Department filed its Complaint, Harold McIntosh failed to take action to abate the violation.
[VOLUME 12, PAGE 84]
3. Consequently, the Department’s Complaint sought the revocation of permit numbered 38302, an order to plug and abandon the well, and for the placement of liens on certain property associated with the well authorized by permit numbered 38302.
4. Harold McIntosh is deceased.
5. On June 17, 2009, John McIntosh, son of Harold McIntosh, participated in a telephone status conference representing the interests of the estate and the heirs of Harold McIntosh.
6. John McIntosh confirmed that his father was the holder of permit numbered 38302.
7. During the June 17, 2009 telephone status conference, John McIntosh admitted that the Department had issued a Notice of Violation with respect to the well associated with permit numbered 38302 and that no action had been taken to abate the violation.
8. John McIntosh further relinquished any interest in the well or site associated with permit numbered 38302.
CONCLUSIONS OF LAW:
9. Pursuant to Indiana Code § 14-37-12-5 and Indiana Code § 14-37-13-1(5)(A), permit numbered 38302 held by Harold McIntosh is subject to revocation as a result of the failure to abate the violation issued by the Department on January 24, 2008.
10. In the event of a revocation of an oil and gas permit, Indiana Code § 14-37-13-2 authorizes the Natural Resources Commission (Commission) to plug and abandon the well or issue an order to the owner or operator to plug and abandon the well. Furthermore, the State may be granted a lien on the leasehold of the land where the oil and gas well is located as well as equipment and material, crude oil or other material located on, removed from, stored on or recovered when the well is plugged and abandoned.
11. Under the existing circumstance and in light of John McIntosh’s admission of the material allegations contained with the Department’s Complaint, the relief sought by the Department should be and is granted.
[NOTE: The original format of the this decision has been modified for inclusion in CADDNAR. The Final Order, designated as Paragraphs 12 through 15, has been inserted before the Findings of Fact and Conclusions of Law.]