Code of Colorado Regulations
400 - Department of Natural Resources
404 - Oil and Gas Conservation Commission
2 CCR 404-1 - PRACTICE AND PROCEDURE
Section 526 - DETERMINATION OF RESPONSIBLE PARTY
Current through Register Vol. 47, No. 17, September 10, 2024
The Director will have evidence to supports its allegations against an Operator. If the Director initiates an enforcement proceeding against an Operator, the Operator may raise as an affirmative defense that another person is the Responsible Party for the alleged violation. If the Operator raises an affirmative defense that a different person is the Responsible Party, it will provide credible evidence to support its affirmative defense.
a. A hearing may be initiated on the Commission's own motion, upon application, or at the request of the Director to decide Responsible Party status upon at least 21 days' notice to the potentially Responsible Parties.
b. Potentially Responsible Parties will be those persons that have or should have submitted a Form 1, Registration for Oil and Gas Operations, or that have or should have submitted Financial Assurance for Oil and Gas Operations pursuant to requirements of the Commission's 700 Series Rules.
c. Potentially Responsible Parties will provide to the Commission, Director, Administrative Law Judge, or Hearing Officer such information as the Commission, Director, Administrative Law Judge, or Hearing Officer may reasonably require in making such determination.
d. If an Operator raises an affirmative defense that another person is the Responsible Party, the Operator raising the affirmative defense will identify the person alleged to be the Responsible Party, and provide that person with notice concurrent with filing an Answer to an NOAV.
e. The Commission, Administrative Law Judge, or Hearing Officer will make the determination under this section without regard to any contractual or legal disputes between the parties regarding assignments of liability or other legal defenses.
f. Each Responsible Party will be liable only for a proportionate share of any costs imposed under this Rule, and will not be held jointly and severally liable for such costs.
g. The Commission, Administrative Law Judge, or Hearing Officer will find Responsible Party status and mitigation liability if the Responsible Party conducted operations that resulted in or threatened to cause an adverse impact to public health, safety, welfare, the environment, or wildlife resources in contravention of any then applicable provision of the Act or Commission Rule, or order of the Commission, or of any permit.
