BEFORE
THE OIL AND GAS CONSERVATION COMMISSION
OF
THE STATE OF COLORADO
IN
THE MATTER OF THE APPLICATION )
OF
PETROGLYPH ENERGY, INC. FOR )
THE
ESTABLISHMENT OF A UNIT ) CAUSE NO. ___
PURSUANT
TO THE PROVISIONS OF )
§34-60-118,
COLORADO REVISED )
STATUTES,
COVERING LANDS LOCATED ) ORDER NO. ___
IN
THE LITTLE CREEK FIELD, )
HUERFANO
COUNTY, COLORADO )
VERIFIED
APPLICATION
COMES NOW, the Applicant, Petroglyph Energy,
Inc., by and through its attorneys, Poulson, Odell & Peterson, LLC, and
respectfully petitions the Oil and Gas Conservation Commission of the State of
Colorado as follows:
I
Applicant is the owner and through its
wholly owned subsidiary, Petroglyph Operating Co., Inc., is the operator of
certain oil and gas leases covering the following described lands located in
Huerfano County, Colorado:
Township 28 South, Range 67 West, 6th P.M.
Section 34:
S/2 SE/4
Section 35:
S/2 NE/4, S/2
Section 36:
All
Township 29 South, Range 67 West, 6th P.M.
Section
2: Lots 1, 2, 3, 4, S/2 NW/4,
N/2 SW/4
Section
3: Lots 1, 2, 3, 4, S/2 N/2,
N/2 S/2, S/2 SW/4
Section
4: S/2 NE/4, SE/4
Section
9: NE/4, N/2 SE/4
Section 10:
N/2 NW/4
Said
lands are hereinafter referred to as the "Little Creek Plan Area".
II
Pursuant to the provisions of Section
34-60-118, Colorado Revised Statutes, to prevent waste and increase the
ultimate recovery of oil and/or gas, Applicant requests that the Commission
establish a unit for the production of coalbed methane gas and associated
hydrocarbons from the Vermejo and Raton Formations underlying the Little Creek
Plan Area.
III
Applicant has heretofore drilled and
completed certain wells located within the Little Creek Plan Area that are
capable of producing coalbed methane gas and associated hydrocarbons in
commercial quantities. However, water influx into the proposed unitized area
from lands located to the northeast thereof is causing a high volume of water
to be produced from said wells, with little measurable drop in reservoir
pressure from the present production. A Water Block Project has been designed
to eliminate or substantially reduce the water influx and to allow the Vermejo
and Raton Formations to depressure and produce significant volumes of coalbed
methane gas from said Vermejo and Raton Formations. This Water Block Project is
designed to optimize the ability of the existing wells to dewater the coalbed
methane reservoirs. It requires the drilling of approximately eleven
water-block wells. The Water Block wells will be placed up-dip of the existing
wells, and will greatly enhance the dewatering process for production from
producing wells in the Little Creek Plan Area.
IV
Because of the nature of the operations
conducted hereunder, it is reasonably necessary to establish a unit to increase
the ultimate recovery of gas, to prevent waste and to protect the correlative
rights of all parties.
V
Applicant is the owner of 100.0% of the
working interest within the Little Creek Plan Area. Attached hereto as Exhibit
"I" is a proposed Cooperative Development Plan for the Little Creek
Plan Area and attached hereto as Exhibit "II" is a Plan Operating
Agreement for the Little Creek Plan Area.
VI
Applicant states to the best of its
information and belief that the "interested parties" and the owners
as defined in the Oil and Gas Conservation Act of the State of Colorado and the
Rules and Regulations of this Commission are listed by name and address on
Exhibit "III" attached hereto.
WHEREFORE, Applicant respectfully requests
that this matter be set for hearing by the Commission; that notice thereof be
given as required by law; and that upon such hearing this Commission issue its
order granting this Application as requested herein. Applicant further requests
that the Commission in its order grant such other provisions as the Commission
may find to be necessary or desirable in the cause.
DATED this ___ day of March, 2000.
Respectfully submitted,
PETROGLYPH ENERGY, INC.
BY:________________________________
William G. Odell, Esq.
Poulson, Odell & Peterson, LLC
1775 Sherman Street, Suite 1400
Denver, Colorado 80203
(303) 861-4400
Applicant's
Address:
410
Seventeenth Street, Suite 1375
Denver,
Colorado 80202
J:\ODELL\PETROGLY\OIL&GAS\LITTLE‑C.APP
EXHIBIT
"III"
ATTACHED
TO VERIFIED APPLICATION OF
PETROGLYPH
ENERGY, INC.
CAUSE
NO. ___
LITTLE
CREEK FIELD
HUERFANO
COUNTY, COLORADO
William
A. Rohr and Alice M. Rohr
741
County Road 352
La
Veta, Colorado 81055
George
S. Spock and Martha Spock
356
East Sixth
Walsenburg,
Colorado 81089
Wellesley
College
106
Central Street
Wellesley,
Massachusetts 02181
Robert
Allen Ridge
59
Timber Creek Court
Lake
Jackson, Texas 77566
Craig
Hospital
2425
South Clarkson
Englewood,
Colorado 80110
Denver
Zoological Foundation
2300
Steele Street
Denver,
Colorado 80205
University
of Colorado Foundation
1305
University
Post
Office Box 1140
Boulder,
Colorado 80306-1140
Denver
Museum of Natural History
2001
Colorado Boulevard
Denver,
Colorado 80205
Mark
Martin Lively
1177
County Road 342
Walsenburg,
Colorado 81089
G.R.
(Bob) Miller
1040
Main Avenue
Durango,
Colorado 81301
Frank
Titoni, Esq.
Thatcher
Building, Suite 426
Pueblo,
Colorado 81003
State
of Colorado
Board
of Land Commissioners
1313
Sherman Street, Suite 620
Denver,
Colorado 80203
Goemmer
Minerals Company
c/o
J. Lowell Goemmer
Post
Office Box 25
La
Veta, Colorado 81055
Gerald
W. Steed
Post
Office Box 1888
Pee
Ridge, Arkansas 72751
United
States Department of Interior
Bureau
of Land Management
2850
Youngfield Street
Lakewood,
Colorado 80215
Howell
R. Spear
Post
Office Box 30169
Pensacola,
Florida 32503
Greg
Carnes
Post
Office Box 30169
Pensacola,
Florida 32503
ColTex
Petroleum, Inc.
108
East Cheyenne Road
Colorado
Springs, Colorado 80906
Infinity
Oil & Gas, Inc.
730
Seventeenth Street, Suite 200
Denver,
Colorado 80202
Andrew
Nigrini
Huerfano
County Local Government Designee
401
Main Street
Walsenburg,
Colorado 81089
Petroglyph
Energy, Inc.
410
Seventeenth Street, Suite 1375
Denver,
Colorado 80202
William
G. Odell, Esq.
Poulson,
Odell & Peterson, LLC
1775
Sherman Street, Suite 1400
Denver,
Colorado 80203