BEFORE THE OIL & GAS CONSERVATION COMMISSION

                                                  OF THE STATE OF COLORADO

 

 

IN THE MATTER OF THE APPLICATION OF 44 CANYON, LLC FOR AN EXCEPTION INFILL LOCATION FOR A WELL TO BE PRODUCED IN THE FRUITLAND COAL SEAM FORMATION, IGNACIO-BLANCO FIELD, LA PLATA COUNTY, COLORADO

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            CAUSE NO. 112

 

            Docket No. _________

 

                                                                 APPLICATION

 

            COMES NOW 44 Canyon, LLC, a Delaware limited liability company (“Applicant”), by its attorneys, Dorsey & Whitney LLP, and submits this Application to the Oil and Gas Conservation Commission of the State of Colorado for an order allowing an exception to the location of a well to be drilled in an existing drilling and spacing unit in La Plata County, Colorado, affecting the Fruitland coal seam formation, all as more fully set forth as follows:

            1.         That the proposed well, the Eagles #1-2 Well is to be located 690’ FWL and 1465’ FSL of Section 1, within the SW/4 of Section 1, Township 34 North, Range 9 West, La Plata County, Colorado.  This location is 300 feet outside of the established Commission drilling window and has been located to comply with surface owner preferences and surface subdivision concerns. 

            2.         That the Fruitland coal seam formation has been spaced for production on 320-acre drilling and spacing units as set forth in Order Nos. 112-60, 61 and 62.  Wells are to be located in the NE/4 and SW/4 of the section and no closer than 990 feet to any outer boundary of the unit, nor closer than 130 feet to any interior quarter section line.  These lands are also subject to Order No. 112-156 which allows for optional second Fruitland wells within each drilling and spacing unit.

            3.         The 320-acre designated spacing unit for the Fruitland coal seam formation for this well is the S/2 of Section 1.  This well will be the second Fruitland coal well within the 320-acre spacing unit with the existing parent well, the Chaney #1-1 Well, being drilled at a legal location in the SE/4 of Section 1. 

            4.         The SW/4 of Section 1 is partially included within the La Paloma surface subdivision.  That in order to accommodate surface owner preferences, locate the well within a 13-acre surface tract and to insure adequate access, a location 300 feet west of the established window is required.  The proposed location is also within 150 feet of a property line and a subdivision road at its proposed location.

            5.         That in order to prevent waste and protect correlative rights of all owners in the area surrounding the proposed location, it is reasonable and equitable to permit an exception location to accommodate surface consideration and to allow Fruitland coal seam production.

            6.         That the only cornering and contiguous spacing unit which is encroached upon by the proposed exception location is the S/2 of Section 2 which is owned and operated by Applicant and its affiliated entities.  This spacing unit contains the Burnett #2-1 Well.  Therefore, Applicant has notified all adjacent mineral and royalty owners to obtain consent to the requested exception location for the Eagles #1-2 Well.

            7.         That all Owners in lands who are affected by the exception location as provided by Rule 507 b.4 have executed waivers consenting to this exception location except those who are set forth on Exhibit A attached hereto. 

            WHEREFORE, Applicant respectfully requests that this matter be set for hearing at the next regular hearing date, that notice thereof be given as required by law and that upon such hearing the Commission enter its order:

            A.        Determining that the proposed Eagles #1-2 Well to be located in the SW/4 of Section 1, Township 34 North, Range 9 West, N.M.P.M., be permitted to be drilled and completed at an exception location as follows:

 

Well Name                                                       Exception Location

 

                                                  Eagles #1-2 Well                                              690’ FWL and 1465’ FSL, Sec. 1, T34N, R9W

 

            B.         Granting any other relief necessary to prevent waste and protect correlative rights of the owners.

            DATED this _____ day of May, 2002.

 

                                                                        Respectfully submitted,

 

                                                                        44 CANYON, LLC

 

 

 

                                                                        By:_____________________________________

                                                                             Michael J. Wozniak

                                                                             Its Attorneys

                                                                             Dorsey & Whitney LLP

                                                                             370 17th Street, Suite 4700

                                                                             Denver, CO  80202

                                                                             (303) 629-3400

 

Applicant's Address:

 

500 W. Illinois

Midland, TX  79701

 

 


                                                                    EXHIBIT A

                                                         INTERESTED PARTIES

                                                    (Section 1, T34, T9W, N.M.P.M.)

 

 

IN THE MATTER OF THE APPLICATION OF 44 CANYON, LLC FOR AN EXCEPTION INFILL LOCATION FOR A WELL TO BE PRODUCED IN THE FRUITLAND COAL SEAM FORMATION, IGNACIO-BLANCO FIELD, LA PLATA COUNTY, COLORADO

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            CAUSE NO. 112

 

            Docket No. _________

 

OWNERS WHO HAVE NOT PROVIDED CONSENT

 

Antonia Rose Martinez

93 Bocea

Durango, CO  81301

Bernard R. Watts

988 Valley Rd.

Evergreen, CO  80439

Bonnie K. West

333 CR 233

Durango, CO  81301

Duane L. Mykra

P.O. Box 5023

Durango, CO  81301

Eugene Nick Martinez

P.O. Box 331

Bayfield, CO  81122

Glenn L. Luchies

P.O. Box 3424

Durango, CO  81302

John W. West

333 CR 233

Durango, CO  81301

Mary L. Mykra

P.O. Box 5023

Durango. CO  81301

Michael J. Simmonds

29423 US Hwy 160

Durango, CO  81301

Robert G. Daniels

740 Bardin Dr.

Durango, CO  81301

Stephen D. Lunceford Rev. Trust

P.O. Box 282

Driggs, ID  83422

Timothy D. &

Kathy E. Mowrer

415 CR 233

Durango, CO  81301

WLK Properties Inc.

P.O. Box 51167

Midland, TX  79710-1167