BEFORE THE OIL & GAS CONSERVATION COMMISSION
OF THE STATE OF
|
IN THE MATTER OF THE APPLICATION OF ENSIGN OPERATING CO. FOR AN ORDER
ALLOWING UP TO EIGHT (8) WELLS TO BE DRILLED AND COMPLETED AT THE OPTION OF
THE OPERATOR IN CERTAIN 320-ACRE DRILLING AND SPACING UNITS COVERING THE
WASATCH AND THE FORT UNION-LANCE-LEWIS FORMATIONS, HIAWATHA WEST FIELD,
MOFFAT COUNTY, COLORADO |
) ) ) ) ) ) ) ) ) ) |
CAUSE NO. 133 Docket No. _________ |
APPLICATION
COMES
NOW, Ensign Operating Co., a Delaware corporation, by its attorneys Dorsey
& Whitney LLP and makes application to the Oil and Gas Conservation
Commission of the State of Colorado, for an order to permit up to eight (8)
wells to be drilled and completed into 320-acre drilling and spacing units at the
option of the Operator for the Wasatch and the Fort Union-Lance-Lewis
Formations. In support thereof, Ensign
Operating Co. (“Applicant”) states and alleges as follows:
1.
That the Applicant is the owner of leasehold interests
in Moffat County, Colorado, located within the area requested for spacing.
2.
That the Applicant, as owner and operator of the lease
covering the subject lands, is requesting that up to eight (8) wells be
permitted in the existing drilling and spacing units of 320 acres for the Wasatch
and Fort Union-Lance-Lewis Formations covering the following described lands in
Moffat County, Colorado, to wit:
Township 12 North, Range 101 West, 6th P.M.
Section 26: All
Section 36: N/2
3.
That the units of 320 acres with up to eight (8) wells
located thereon are expected to efficiently drain the Wasatch and the Fort
Union-Lance-Lewis Formations which are common sources of supply in this area
and such spacing is not smaller than the maximum area that can be efficiently
and economically drained by eight wells from said Formations.
4.
That lands requested have heretofore been subject to
spacing orders for production from the Wasatch and the Fort Union-Lance-Lewis
Formations pursuant to, among other orders, Order No. 133-21 which authorizes
up to four (4) wells as well as similar orders in nearby lands. See Orders 133-19 and 133-20 which have
authorized up to five (5) wells in the referenced Formations in order to
economically and efficiently drain the reserves. Applicant proposes that the optional wells in
each 320-acre unit be drilled and completed in the Operator’s discretion in a
pattern determined most likely to effectively drain the existing reserves which
are not being efficiently drained by existing wells. Applicant has existing wells located on the above-described
lands producing from the Wasatch and the Fort Union-Lance-Lewis
Formations. Any new wells shall be
located no closer than 600’ to the unit boundaries.
5.
That Orders emanating from Cause No. 133 have provided
for 320-acre drilling and spacing units for the production of oil and/or gas
from the Wasatch and the Fort Union-Lance-Lewis Formations. Said units shall remain as previously
established in the Application area as “lay-down” 320-acre units.
6.
That the Director may without further notice and hearing
approve exceptions to the permitted well locations due to topography or surface
hazards.
7.
That allowing eight (8) Wasatch and Fort
Union-Lance-Lewis Formation wells within the existing spacing units is expected
to economically and efficiently drain the Formations and protect the
correlative rights of all parties. The
drilling of unnecessary wells will be prevented and waste will therefore be
avoided, all in accordance with the Colorado statutes and the rules and
regulations of this Commission.
8.
Exhibit A attached hereto and made part hereof is the list of the
names of “Owners” required to be notified in accord with Commission Rule 507
b.(1), including within the areas covered by this Application. To the best of Applicant’s knowledge and
belief, Exhibit A contains the names of all such owners.
WHEREFORE, Applicant respectfully requests that this
matter be set for hearing, that notice thereof be given as required by law and
that upon such hearing the Commission enter its order:
A. Establishing
that up to eight (8) Wasatch, Fort Union, Lance and Lewis Formation wells may
be completed in the existing 320-acre drilling and spacing units for oil and
associated hydrocarbons from the Wasatch and the Fort Union-Lance-Lewis
Formations underlying the lands set forth in paragraph 2 with the additional
wells being optional wells in the discretion of the Operator located no closer
than 600’ from the unit boundaries.
B. For such
other findings and orders as the Commission may deem proper or advisable in the
premises.
DATED
this ___ day of June, 2003.
Respectfully submitted,
ENSIGN OPERATING CO.
By:
Michael J. Wozniak
Dorsey & Whitney LLP
Attorneys for Applicant
370 17th Street, Suite 4700
Denver, Colorado 80202
(303) 629-3400
Applicants' Address:
1225 17th Street, Suite 1900
Denver, CO
80202-5519
VERIFICATION
STATE OF COLORADO )
)
ss.
CITY AND COUNTY OF DENVER )
Mary Sharon Balakas,
of lawful age, being first duly sworn upon oath, deposes and says that she is
the Regional Landman for Ensign Operating Co. and that she has read the
foregoing Application and that the matters therein contained are true to the
best of her knowledge, information and belief.
MARY
SHARON BALAKAS
Subscribed and sworn to before this ____ day of June,
2003.
Witness my hand and official seal.
My commission expires:
________________
Notary Public
EXHIBIT A
INTERESTED PARTIES
|
IN THE MATTER OF THE APPLICATION OF ENSIGN OPERATING CO. FOR AN ORDER
ALLOWING UP TO EIGHT (8) WELLS TO BE DRILLED AND COMPLETED AT THE OPTION OF
THE OPERATOR IN CERTAIN 320-ACRE DRILLING AND SPACING UNITS COVERING THE
WASATCH AND THE FORT UNION-LANCE-LEWIS FORMATIONS, HIAWATHA WEST FIELD,
MOFFAT COUNTY, COLORADO |
) ) ) ) ) ) ) ) ) ) |
CAUSE NO. 133 Docket No. _________ |
United States of
America
Bureau of Land
Management
2850 Youngfield
St.
Lakewood,
CO 80125-7076
State of
Colorado
State Land Board
1313 Sherman
Street
6th
Floor
Denver, CO 80202
Chevron U.S.A.
Inc.
P. O. Box 1635
Houston, TX 77251-1635
Klabzuba Oil and
Gas
Lexington Place
930 West First
Street
Ft. Worth,
TX 76102
Tom Brown, Inc.
555 17th
Street, Suite 1850
Denver, CO 80202-3918
Questar
Exploration and Production Company
1331 17th
Street, Suite 800
Denver, CO 80202
Wexpro Company
1331 17th
Street, Suite 800
Denver, CO 80202
Stone Energy LLC
1670 Broadway,
Suite 2800
Denver, CO 80202
Marathon Oil
Company
7301 NW
Expressway
P. O. Box 689
Oklahoma City,
OK 73101
Wiepking-Fullerton
Energy LLC
4600 S Downing
Street
Englewood,
CO 80110
Fidelity Exploration
& Production Company
1700 Lincoln,
Suite 4600
Denver, CO 80203
Xeric Oil and
Gas Corporation
P. O. Box 352
Midland, TX 79702
Logan 1985
Drilling Fund L.P.
Box 479
Minneapolis,
MN 55440
Kenisa Drilling
Company
666 Dundee Road
Northbrook,
IL 60062
True Oil LLC
P. O. Box 2360
Casper, WY 82602
ABO Petroleum
Corp.
Myco Industries
Inc.
Sharbro Oil Ltd
Co.
Yates Drilling
Co.
Yates Petroleum
Corp.
105 S 4th
Street
Artesia, NM 88210
T H McElvain Oil
& Gas Ltd.
Box 2148
Santa Fe,
NM 87504
Mull Drilling
Co., Inc.
221 No. Main
#300
Wichita, KS 67202
CERTIFICATE OF MAILING
I
hereby certify that on or before July 3, 2003, a true and correct copy of the
Application in this matter has been sent by mail, addressed to the owners
listed on Exhibit A of this Application, who have an interest in the
lands identified in the Application.