BEFORE THE OIL AND GAS CONSERVATION COMMISSION

                                                 OF THE STATE OF COLORADO

 

IN THE MATTER OF THE APPLICATION OF                  )

UNITED STATES EXPLORATION, INC. TO                    )

AMEND ORDERS NOS. 232-1, ET SEQ. AND                  )

499-15 TO SEGREGATE A 320-ACRE DRILLING              )          CAUSE NO. 232

AND SPACING UNIT INTO TWO 160-ACRE                  )

DRILLING AND SPACING UNITS FOR THE                   )           CAUSE NO. 499

PRODUCTION OF GAS AND ASSOCIATED                   )

HYDROCARBONS FROM THE J AND DAKOTA           )

SAND FORMATIONS, WATTENBERG FIELD,                 )

WELD COUNTY, COLORADO                                  )          

 

               VERIFIED APPLICATION

 

COMES NOW, the Applicant, United States Exploration, Inc., by and through its attorneys, Bjork, Lindley, Danielson & Little, P.C., and respectfully petitions the Oil and Gas Conservation Commission of the State of Colorado as follows:

 

          I

 

The Commission, in Cause No. 232 in Order No. 232-3 and subsequent orders, established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the J Sand Formation underlying certain lands located in Weld County, Colorado, including the following described lands:

   

            Township 4 North, Range 63 West, 6th P.M.

           Section 31:    N/2

 

The Commission, in Cause No. 499 in Order No.499-15 and subsequent orders, established 320-acre drilling and spacing units for the production of oil, gas and associated hydrocarbons from the Dakota Formation underlying certain lands located in Weld County, Colorado, including the following described lands:

 

                                                         Township 4 North, Range 63 West, 6th P.M.

                                                                     Section 31:    N/2

 

The lands described above are located within the Greater Wattenberg Area and are subject to the Commissions Special Well Location Rule 318A which allows five (5) well sites per quarter section in which to locate a well proposed to test any cretaceous age formation.

 

              II

 

Applicant is the holder of certain rights to acquire oil and gas leasehold interests in lands described as follows in all formations:

 

Township 4  North, Range 63  West, 6th P.M.

                Section 31:    NE/4

                  containing 160 acres, more or less.

 

Applicant alleges and states that no well has heretofore been drilled to the Dakota and J Sands Formations underlying the N/2 of Section 31, Township 4 North, Range 63 West, 6th P.M. Applicant desires to drill a well for the production of oil, gas and associated hydrocarbons from the Dakota and J Sand Formations at a location in the NE/4 of said Section 31 and hereby petitions the Commission to issue an order segregating the above-described 320-acre drilling and spacing unit into two 160-acre drilling and spacing units for production of oil, gas and associated hydrocarbons from the Dakota and J Sand Formations, with the NE/4 of said Section 31 being one such unit and the NW/4 of said Section 31 being the other unit. 

 

               III

 

Applicant believes that the granting of this Application is necessary for the prevention of waste, for the protection of correlative rights, to assure the efficient and orderly development of the "J" Sand and Dakota common sources of supply, and to assure the greatest ultimate recovery of oil and/or gas.

 

                IV

 

Attached hereto as Exhibit A are the names and addresses of all interested parties as defined by the statutes and the rules of this Commission who own interests and are entitled to receive notice within the area affected by this Application.

 

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 September, 2002.

 

Respectfully submitted,

 

BJORK, LINDLEY, DANIELSON & LITTLE, P.C.

 

 

 

__________________________________________

Peter A. Bjork

1600 Stout Street, Suite 1400

Denver, Colorado 80203

 

Applicant's Address:

 

United States Exploration, Inc.

1560 Broadway, Suite 1900

Denver, CO 80202