ENFORCE34304

• Permit No: C1982057
• IBM Index Class Name: Enforcement
• Doc Date: 11/1/1993
• Doc Name: MERIDIAN OIL 3-22 DRY CREEK WELL ROUT CNTY COLO
• From: MERIDIAN OIL
• To: PEABODY WESTERN COAL CO
• Violation No.: CV1993141
• Media Type: D
• Archive: No

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MERIDIAN OO ~~
October 26, 1993
Mr. Tim Harris
Peabody W estcrn Coal Company
1300 South Yale Street
Flagstaff, Arizona 86001
Subject: Meridian Oil #3-22 Dry Creek Well
Rout County, Colorado
Dear Mr. Hams:
III IIIIIIIIIIIIIIII
999
In follow-up to our phone conversation of 10/25/93, damage catued by overbttrden blasting operations at
the Seneca Mine on 10/14/93 will require estimated repair and replacement expenses relative to the
subject well site as follows:
Tanks (2-400 bbl, used if available) with stairs and landing $10,000
Pumping unit repair and motor hottse 5,000
Lines, valves, fittings 5,000
Roustabouts (tear down, re-construction, painting, etc.) 10,000
Transportation 1,500
Miscellaneous (incl. loss of 75 gallons propane) 3 000
Total Replacement and Repair $34,500
Although damaged, the heater treater will be pressure tested and rettuned to use if possible. In the event
the treater requires replacement, additional estimated costs of approximately $9000 would be incurred.
The condition and any associated repair/replacement cost of the propane tank will be determined by
Amerigas, owner of the vessel. This expense is not included in the above estimate.
The above figures are estimates and will undoubtedly require revisions based upon [he actual condition of
the damaged equipment, replacement costs, etc. As with all of our operations, Meridian will pursue the
necessary avenues to obtain the most costs effective services and equipment and will certainly work with
Peabody with respect to any services that could best be performed by Peabody personnel and equipment:
With respect to the loss of cmde product, the gauge on the ruptured tank indicated [he volume lost to be
379 barrels, which on the date of the incident, would have represented $7238.90 in gross product value
based upon a price of $19.10lbarrel (this amount is not includes in the above tabulated figures). Per m}
conversations with Meridian's environmental representative. Mr. Lee Fyock, Peabody has accepted
responsibility for the crude oil spill and the appropriate clean-up operations.
Meridian appreciates the containment, clean-up and overall cooperative effort exhibited by Peabod}•
personnel following the blasting incident and certainly welcome }•our input as to reconswction
operations and with respect to arraigning a satisfactory billing method for the above listed items.
As we desire to regain production from the Dry Creek #3-22 at the earliest possible date, your prompt
response to the above issues would be appreciated.
Re ec[fully, ,Lt~~'
~~~ ~ ~'LOG71
Kenneth S. Moyef ~' I
Sr. Produnion Supen~sor =~ ~C~ 9`9~i
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5613 D.TC. Parkway, Englewood. Colorado 8011 t-3028. Telephone [phone] ~j<