BEFORE THE OIL AND
GAS CONSERVATION COMMISSION
OF THE STATE OF
COLORADO
|
IN THE MATTER OF THE
APPLICATION OF WILLIAMS PRODUCTION RMT COMPANY FOR AN ORDER ESTABLISHING
SPACING AND WELL LOCATION RULES FOR THE WILLIAMS FORK FORMATION OF THE
MESAVERDE GROUP FOR CERTAIN DESCRIBED LANDS IN THE GRAND VALLEY FIELD AREA,
GARFIELD COUNTY, COLORADO
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CAUSE NO. ___________
DOCKET NO. __________
|
APPLICATION
COMES NOW Williams Production RMT Company
("Applicant"), a Delaware corporation, by its attorneys, Gorsuch Kirgis
LLP, and makes
application to the Oil and Gas Conservation Commission of the State of Colorado
for an order establishing spacing rules applicable to the drilling and
producing of wells from the Williams Fork Formation of the Mesaverde Group
covering certain described lands in the Grand Valley Field area, Garfield
County, Colorado and in support of its application states and alleges as
follows:
1.
That Applicant is a corporation duly authorized
to conduct business in the State of Colorado.
2.
That Applicant owns a leasehold interest in the
following described lands:
Township 7 South, Range 96
West, 6th P.M.
Section 1: S/2SE/4, SW/4SW/4
Section 2: SE/4SE/4
Section 11: NE/4NE/4, E/2SE/4
Section 12: W/2W/2
(hereinafter “Application Lands”)
3.
That the following described Application Lands
are subject to the Commission's Order No. 479-2 which established 320 acre
drilling and spacing units and within each such unit allowed one well to be
drilled into and produced from the Mesaverde Formation:
Township 7 South, Range 96 West, 6th P.M.
Section 1: S/2SE/4, SW/4SW/4 (within 320 acre drilling
and spacing unit consisting of S/2 of Section 1)
Section 12: W/2W/2 (within 320 acre drilling and spacing
unit consisting of W/2 of Section 12)
4.
That the following described Application Lands
are subject to the Commission's Order No. 479-5 (Amended) which allowed up
to eight (8) wells to be optionally drilled into and produced from the Williams
Fork Formation of the Mesaverde Group within each 320 -acre drilling and
spacing unit, with the permitted well to be located no closer than 400 feet
from the boundaries of the unit and no closer than 800 feet from any existing
Williams Fork Formation well or wells:
Township 7 South, Range
96 West, 6th P.M.
Section
1: S/2SE/4, SW/4SW/4 (within 320 acre
drilling and spacing unit consisting of S/2 of Section 1)
5.
That the following described Application Lands
(unspaced) are subject to the Commission's Order No. 510-1 (which amended the
Commission's Rule 316, now Rule 318) which provides that permitted wells should
be located no closer than 400 feet from the boundaries of any lease line and no
closer than 800 feet from any existing well drilled into and producing from the
Williams Fork Formation of the Mesaverde Group:
Township 7 South, Range 96 West, 6th
P.M.
Section 2: SE/4SE/4
Section 11: NE/4NE/4, E/2SE/4
6.
That Applicant has drilled, tested and completed
multiple wells in the Williams Fork Formation of the Mesaverde Group upon the
Application
Lands and other nearby lands.
7.
That to promote efficient drainage within the
Williams Fork Formation of the Mesaverde Group of the Application Lands, the
Commission should increase the number of wells which can be drilled into and
produced from the Williams Fork Formation of the Application Lands which
constitute existing drilling units (or portions thereof) to the equivalent of
one Williams Fork well per 20 acres.
8.
That the permitted well location for each
Williams Fork well upon the Application Lands which constitute existing
drilling units should be located no closer than 200 feet from the boundaries of
a drilling unit and no closer than 400 feet from any existing Williams Fork
well or wells without exception being granted by the Director of the Oil and
Gas Conservation Commission. In cases
where the Application Lands which constitute existing drilling units constitute
only a portion of an existing drilling and spacing unit, each Williams Fork
well upon such Application Lands should be located no closer than 200 feet from
the boundaries of the drilling unit, no closer than 200 feet from the boundary
of such Application Lands and no closer than 400 feet from any existing
Williams Fork well without exception being granted by the Director of the Oil
and Gas Conservation Commission.
9.
That the permitted well location for each
Williams Fork well upon the Application Lands which are not part of any
existing drilling and spacing unit should be located no closer than 200 feet
from the boundaries of any lease line and no closer than 400 feet from an
existing well drilled into and producing from the Williams Fork without
exception being granted by the Director of the Oil and Gas Conservation
Commission. Applicant would clarify that
as to lands subject to these well location requirements,
it is not intended by this application to locate downhole more than two
Williams Fork wells per governmental quarter quarter section.
10.
That the above-proposed spacing and well
location rules will allow more efficient drainage of the Williams Fork
Formation of the Mesaverde Group; will not promote waste; will not violate
correlative rights and will assure the greatest ultimate recovery of gas and
associated hydrocarbon substances from the reservoir.
11.
That the names and addresses of the interested parties
according to the information and belief of the
Applicant are set forth in Exhibit A attached hereto and made a part hereof.
12.
Pursuant to the requirements of Rule 503c,
attached as Exhibit "B" hereto is Applicant's proposed plan to
address protection of the environment, public health, safety and welfare. The current surface use of the Application
Lands is agricultural.
WHEREFORE, Applicant respectfully requests that this matter be
set for hearing in August 2002, that notice be given as required by law and
that upon such hearing this Commission enter its order consistent with
Applicant's proposals as set forth above.
Dated this _____
day of June, 2002.
GORSUCH
KIRGIS LLP
By:
William A. Keefe
Tower 1,
Suite
1000
1515
Arapahoe Street
Denver,
Colorado
80202