Content-Type: text/html Cause #: 93-211g.v7.html

CADDNAR


[CITE: DNR v. Sullivan Petroleum, Inc. and Capitol Indemnity, 7 CADDNAR 65 (1994)]

[VOLUME 7, PAGE 65]

Cause #: 93-211G
Name: DNR v. Sullivan Petroleum, Inc. and Capitol Indemnity
Administrative Law Judge: Teeguarden
Attorneys: Prather; pro se (Havens); no appearance (Indemnity)
Date: August 2, 1994

ORDER

The department's motion for summary judgment is granted. Permits 8422, 8423, 9418, 18322, 49023, 49024, 49068, 40622, 39254, 18003, 16689, 16797, 16639, and A0027 issued by the Indiana Department of Natural Resources to Sullivan Petroleum, Inc. are hereby revoked. Further, the blanket bond filed with the Department of Natural Resources on July 1, 1990, on behalf of Sullivan Petroleum, Inc. by Surety Capitol Indemnity Corporation is ordered forfeited and ordered paid to the Department of Natural Resources, Division of Oil and Gas.

FINDINGS OF FACT

1. The Indiana Department of Natural Resources ("DNR") is an agency within the meaning of IC 4-21.5.

2. IC 4-21.5, IC 13-8, and 310 IAC 7 apply to these proceedings.

3. The DNR is the state agency charged with the responsibility of regulating oil and gas wells in Indiana.

4. The Indiana Natural Resources Commission (NRC) is the ultimate authority within the meaning of IC 4-21.5 with respect to DNR decisions to revoke oil well permits and forfeit bonds.

5. At all times relevant to these proceedings, Sullivan Petroleum, Inc. ("Sullivan") held oil and gas permits 8422, 8423, 9428, 18337, 49023, 49024, 49008, 40622, 39254, 18003, 16689, 16797, 16639, and A0027 ("permits") issued by the DNR which allowed the extraction of crude oil from the subsurface of Sullivan County, Indiana.

6. Capitol Indemnity Corp. ("Capitol") is surety on the permits.

7. On June 2, 1993, the DNR filed complaints to revoke the permits and forfeit the bonds.

8. On March 9, 1994, the DNR filed a motion for summary judgment.

9. Summary judgment may be granted pursuant to IC 4-21.5 3-23 if the evidence contained in the record shows non-material dispute of facts.

10. The exhibits provided by the DNR and not rebutted in any way by Sullivan (or Capitol) show that each of the permitted wells listed in paragraph five of these findings has at least- one unabated violation.

11. The evidence available to the administrative law judge also shows that no petition for administrative review pursuant to IC 4-21.5 has been filed with the hearings division with respect to the 14 notices.[FOOTNOTE 1]

12. The 14 notices of violation become final agency orders if no review is requested within 30 days of issuance.

13. The notices of violation were issued in 1991 and 1992.

14. As of February of 1994, all the violations remained unabated. See Potts affidavit, Exhibit P.

15. The evidence available to the trier of fact in this case shows undisputed evidence of unabated outstanding notices of violation on the 14 permits in question.

16. The evidence also shows that both Sullivan and Capitol were served with the complaints on June 14, 1993, and that Sullivan has participated in proceedings in these matters by telephone.

17. IC 13-8-15-1 allows the NRC to revoke permits for failure to abate or successfully appeal notices of violation.

18. IC 13-8-8-5 requires the NRC to forfeit a bond if an oil and gas permit is revoked.

19. In short, the uncontroverted evidence shows the parties have received notice of these proceedings, there are unabated violations, and a bond available for forfeiture.

20. The permits in question should be revoked and the bond forfeited to the Department.

FOOTNOTE

1. There are Notices of Violation written against John Havens and Sullivan Petroleum under review in cause numbers 93-062G through 93-067G. Permit numbers 8422, 8423, 9428, 18337, and 49023 have administrative reviews pending but for different notices of violation than are involved here.