Content-Type: text/html 93-390g.v7.html

CADDNAR


[CITE: DNR v. Lynn Ann Oil Co., 7 CADDNAR 27 (1994)]

[VOLUME 7, PAGE 27]

Cause #: 93-390G
Caption: DNR v. Lynn Ann Oil Co.
Administrative Law Judge: Rider
Attorneys: Prather; Van Winkle
Date: February 28, 1994

ORDER

1. The permits listed at Exhibit A issued to Lynn Ann Oil Company are revoked pursuant to IC 13-8-15-1.

2. Lynn Ann Oil, pursuant to IC 13-8-15-2, is ordered to immediately plug and abandon the wells listed at Exhibit A in accordance with 310 IAC 7-1-33.

3. The Director of the Department of Natural Resources is authorized to order forfeiture of Bond No. LP 211849 pursuant to IC 13-8-8-5.

4. Pursuant to IC 13-8-15-2(c) a statutory lien in the name of the Department of Natural Resources is placed on all casing and equipment used by Lynn Ann Oil in the operation of the wells identified at Exhibit A.

FINDINGS OF FACT

1. On September 7, 1993, the Department of Natural Resources (DNR) filed with the Natural Resources Commission (NRC) Division of Hearings, a Complaint for the Issuance of an order to Revoke Permit and Forfeit Surety Bond (the "Complaint").

2. The Complaint named forty-three (43) permits as specified at Exhibit A.

3. The Complaint named Lynn Ann Oil Company as operator and Capitol Indemnity Corporation as Surety.

4. A prehearing conference was held on October 27, 1993, in Indianapolis.

5. The Respondent's were notified of the prehearing conference by certified mail.

6. Counsel for Lynn Ann appeared and notified the administrative law judge that Lynn Ann could not respond to the complaint because it had no money for corrective action or plugging.

7. Capitol Indemnity did not appear.

8. Counsel for parties present agreed that this case should be disposed of with Motions of Summary Judgment.

9. The DNR filed its Motion on December 15, 1993.

10. Lynn Ann Oil chose not to file any Motion.

11. Capitol Indemnity did not participate.

12. The DNR is an agency as defined in IC 4-21.5-1-3.

13. As defined in IC 421.5-1-15, "ultimate authority" means the individual or panel in whom the final authority of an agency is vested.

14. The NRC is the ultimate authority for this proceeding.

15. IC 13-8-15-1 provides that the NRC may revoke a permit issued under Article 13 if it finds that an operator has:

a. Failed to abate a notice of violation (NOV) issued by the Division of Oil & Gas of the DNR pursuant to IC 13-8-14-1,
b. failed to secure an extension of time to abate the NOV, or
c. failed to initiate an administrative review proceeding pursuant to IC 4-21.5.

16. With its Motion the DNR has tendered copies of NOV issued for each of the 43 permits.

17. By affidavit of Inspector Stan Wininger of the DNR, the claimant has shown that the 43 permits remain in a state of noncompliance.

18. Inspector Wininger's affidavit is based on his personal inspection of each well.

19. By affidavit of Mr. Jim AmRhein, the enforcement manager for the Division of Oil & Gas of the DNR, the claimant has shown that none of the NOVs in question are the subject of administrative review under IC 4-21.5.

20. Based on the above, the administrative law judge finds no material facts in dispute.

21. Further, the administrative law judge finds that each of the permits listed at Exhibit A have outstanding NOVs that have not been abated and are not the subject of administrative review under IC 4-21.5.

22. Accordingly, the administrative law judge grants the DNR Motion for Summary Judgment.