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 RULISON, PARACHUTE AND GRAND VALLEY FIELD AREAS, GARFIELD COUNTY, COLORADO

))))))))

 

 

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 Rulison, Parachute and Grand Valley Field areas, Garfield County, Colorado and in support of its application states and alleges as follows:

1.      1.                  That Applicant is a corporation duly authorized to conduct business in the State of Colorado.

2.      2.                  That Applicant owns a leasehold interest in the following described lands (both the surface estate and mineral estate of which are owned by the United States of America):

Township 6 South, Range 94 West, 6th P.M.

 

Section 2:

 

S/2SW/4, NE/4SW/4, SW/4SE/4

Section 3:

 

S/2S/2, NE/4SE/4, NW/4SW/4

Section 7:

 

SE/4

Section 8:

 

S/2

Section 9:

 

ALL

Section 10:

 

N/2, SW/4, S/2SE/4

Section 11:

 

E/2, N/2NW/4, SW/4SW/4

Section 12:

 

W/2W/2, SE/4NW/4

Section 13:

 

N/2NW/4

Section 16:

 

W/2NW/4

Section 17:

 

N/2, SE/4, N/2SW/4, SE/4SW/4

Section 18:

 

W/2, NE/4, NE/4SE/4

Section 19:

 

N/2, SE/4, N/2SW/4, SE/4SW/4

Section 20:

 

E/2NW/4, N/2NE/4

Section 21:

N/2NW/4

 

 

Township 6 South, Range 95 West, 6th P.M.

 

Section 16:

 

S/2SW/4

Section 17:

 

SE/4SE/4

Section 20:

 

S/2, NE/4NE/4, S/2NE/4

Section 21:

 

ALL

Section 26:

 

NW/4, N/2SW/4

Section 27:

 

N/2, N/2S/2, SE/4SE/4

Section 28:

 

NE/4, N/2SE/4, W/2W/2

Section 29:

 

ALL

Section 30:

 

S/2, NE/4, S/2NW/4

Section 31:

 

N/2, SW/4, N/2SE/4, SW/4SE/4

Section 32:

 

NW/4, N/2NE/4, SW/4NE/4

Section 33:

NW/4NW/4, SE/4NW/4

 

 

Township 6 South, Range 96 West, 6th P.M.

 

Section 19:

 

N/2, SE/4

Section 20:

 

W/2SW/4

Section 24:

 

SE/4

Section 25:

 

ALL

Section 26:

 

 

SE/4, S/2NE/4, S/2NW/4, NE/4NW/4, SE/4SW/4

 

Section 27:

 

SE/4SE/4

Section 29:

 

NW/4NW/4, N/2SW/4, SW/4SW/4

Section 30:

 

NE/4

Section 32:

 

NW/4NW/4, S/2S/2

Section 33:

 

S/2SW/4

Section 34:

 

S/2NE/4, NE/4NE/4

Section 35:

 

N/2, N/2S/2,  SE/4SW/4, SW/4SE/4

Section 36:

N/2, E/2SE/4

 

 

Township 7 South, Range 96 West, 6th P.M.

 

Section 1:

 

NE/4NE/4

Section 3:

 

S/2, NW/4

Section 4:

 

S/2, NW/4, S/2NE/4, NW/4NE/4

Section 5:

 

SE/4

Section 8:

 

E/2

Section 9:

 

N/2

Section 10:

 

N/2, SE/4

Section 11:

 

W/2, W/2E/2, SE/4NE/4

Section 14:

 

NE/4, W/2, NW/4SE/4

Section 15:

S/2, NE/4

 

 

Township 7 South, Range 95 West, 6th P.M.

 

Section 6:

 

NW/4NW/4

 

(hereinafter “Application Lands”)

1.      3.                  That the following described Application Lands are subject to the Commission's Order No. 479-5 which established 320 acre drilling and spacing units and within each such unit allowed up to eight (8) wells to be drilled into and produced from the Williams Fork Formation of the Mesaverde Group:

Township 6 South, Range 94 West, 6th P.M.

 

Section 2:

 

S/2SW/4, NE/4SW/4, SW/4SE/4

Section 3:

 

S/2S/2, NE/4SE/4, NW/4SW/4

Section 9:

 

ALL

Section 10:

 

N/2, SW/4, S/2SE/4

Section 11:

 

E/2, N/2NW/4, SW/4SW/4

Section 12:

 

W/2W/2, SE/4NW/4

Section 13:

 

N/2NW/4

Section 16:

 

W/2NW/4

Section 17:

 

N/2, SE/4, N/2SW/4, SE/4SW/4

Section 18:

 

W/2, NE/4, NE/4SE/4

Section 19:

 

N/2, SE/4, N/2SW/4, SE/4SW/4

Section 20:

 

E/2NW/4, N/2NE/4

Section 21:

N/2NW/4

 

 

Township 6 South, Range 96 West, 6th P.M.

 

Section 24:

 

SE/4

Section 25:

 

ALL

Section 26:

 

 

SE/4, S/2NE/4, S/2NW/4, NE/4NW/4, SE/4SW/4

 

Section 27:

 

SE/4SE/4

Section 34:

 

S/2NE/4, NE/4NE/4

Section 35:

 

N/2, N/2S/2, SE/4SW/4, SW/4SE/4

Section 36:

E/2SE/4

 

 

Township 7 South, Range 96 West, 6th P.M.

 

Section 1:

 

NE/4NE/4

 

2.      4.                  That the following described Application Lands are subject to the Commission's Order No. 479-5 which established 160-acre drilling and spacing units and within each such unit allowed up to four (4) wells to be drilled into and produced from the Williams Fork Formation of the Mesaverde Group:

 

Township 6 South, Range 96 West, 6th P.M.

 

Section 36:

 

N/2

 

3.      5.                  That the following described Application Lands are subject to the Commission's Order No. 139-14 (Corrected) 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 6 South, Range 94 West, 6th P.M.

 

Section 8:

S/2

 

4.      6.                  That the following described Application Lands are subject to the Commission's Order No. 440-16, which established 320 acre drilling and spacing units and within each unit allowed up to 8 wells to be drilled into and produced from the Williams Fork Formation of the Mesaverde Group:

Township 6 South, Range 95 West, 6th P.M.

 

Section 16:

 

S/2SW/4

Section 17:

 

SE/4SE/4

Section 20:

 

S/2, NE/4NE/4, S/2NE/4

Section 26:

 

NW/4, N/2SW/4

Section 27:

 

N/2, N/2S/2, SE/4SE/4

Section 28:

 

NE/4, N/2SE/4, W/2W/2

Section 31:

 

N/2, SW/4, N/2SE/4, SW/4SE/4

Section 32:

 

NW/4, N/2NE/4, SW/4NE/4

Section 33:

NW/4NW/4, SE/4NW/4

 

Township 7 South, Range 95 West, 6th P.M.

 

Section 6:

NW/4NW/4

 

5.      7.                  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) to provide that the 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 6 South, Range 96 West, 6th P.M.

 

Section 19:

 

N/2, SE/4

Section 20:

 

W/2SW/4

Section 29:

 

NW/4NW/4, N/2SW/4, SW/4SW/4

Section 30:

NE/4

 

Section 32:

 

NW/4NW/4, S/2S/2

Section 33:

S/2SW/4

 

 

Township 7 South, Range 96 West, 6th P.M.

 

Section 3:

 

S/2, NW/4

Section 4:

 

S/2, NW/4, S/2NE/4, NW/4NE/4

Section 5:

 

SE/4

Section 8:

 

E/2

Section 9:

 

N/2

Section 10:

 

N/2, SE/4

Section 11:

 

W/2, W/2E/2, SE/4NE/4

Section 14:

 

NE/4, W/2, NW/4SE/4

Section 15:

S/2, NE/4

 

 

6.      8.                  That all of the described Application Lands (except N/2NE/4 of Section 20 in Township 6 South, Range 94 West and NW/4/NE/4 of Section 4 in Township 7 South, Range 96 West) are subject to the Commission’s Order Nos. 139-35, 440-20, 479-8 and 510-5 which allowed additional wells to be drilled for the production of gas and associated hydrocarbons from the Williams Fork Formation of the Mesaverde Group on the basis of one well per 20 acres; provided that as to the lands which constitute an existing drilling and spacing unit, the permitted well shall 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 Formation well or wells; provided that in cases where the lands constituted only a portion of an existing drilling and spacing unit that each Williams Fork well shall be located no closer than 200 feet from the boundaries of the drilling unit and no closer than 200 feet from the boundary of the application lands and no closer than 400 feet from any existing Williams Fork well; and provided that, as to those lands which are not part of an existing drilling and spacing unit, the permitted well shall be no closer than 200 feet from the boundaries of any lease line and no closer than 400 feet from an existing Williams Fork well. 

7.      9.                  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.  Williams also has completed two pilot programs upon which Williams Fork wells were drilled upon a 10 acre density basis. 

8.      10.              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 optionally 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 10 acres.

9.      11.              That as to all future Williams Fork wells to be drilled upon the Application Lands, the well should be located downhole anywhere in the drilling and spacing unit but no closer than 100 feet from the boundaries of the unit without exception being granted by the Director of the Oil and Gas Conservation Commission.  It is provided however that in cases where the Application Lands abut or corner lands in respect of which the Commission has not at the time of drilling permit application granted the right to drill 10 acre density Williams Fork wells, the well should be located downhole no closer than 200 feet from the boundary or boundaries of the drilling unit so abutting or cornering such lands without exception being granted by the Director of the Oil and Gas Conservation Commission.

10.  12.              As to those Application Lands which are unspaced, all future Williams Fork wells should be located downhole anywhere upon the Application Lands but no closer than 100 feet from the boundaries of any lease line unless such lease line abuts or corners lands in respect of which the Commission has not at the time of drilling application granted the right to drill 10 acre density wells in which event the wells should be drilled downhole no closer than 200 feet from the lease line which so abuts or corners the lands in respect of which 10 acre density downhole drilling for Williams Fork wells has not been ordered by the Commission.  Applicant would clarify that as to the Application Lands subject to these well location requirements, it is not intended by this application to drill more that four (4) Williams Fork wells per governmental quarter quarter section. 

11.  13.              Applicant commits that wells to be drilled under this Application within a given quarter quarter section will be drilled from the surface either vertically or directionally from one pad located on that quarter quarter section unless exception is granted by the Director of the Colorado Oil and Gas Conservation Commission.

12.  14.              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.

13.  15.              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.

WHEREFORE, Applicant respectfully requests that this matter be set for hearing in August, 2003, 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, 2003.

GORSUCH KIRGIS LLP

 

 

By:                                                                             

      William A. Keefe

Tower 1, Suite 1000

1515 Arapahoe Street

Denver, Colorado  80202

 

STATE OF COLORADO                               )

                                                                        )         ss.

CITY AND COUNTY OF DENVER             )

 

Mark Rothenberg, of lawful age, being first duly sworn upon oath, deposes and says that he is the Petroleum Engineer for Williams Production RMT Company and that he has read the foregoing Application and that the matters therein contained are true to the best of his knowledge, information and belief.

                                                                                  

Mark Rothenberg

Subscribed and sworn to before me this _____ day of June, 2003.

Witness my hand and official seal.

My commission expires:                                                   

                                                                                  

Notary Public

( S E A L )

EXHIBIT A

Mark Bean, County Planner

109  8th Street

Glenwood Springs, Colorado  81601

 

Tom Brown, Inc.

555 17th Street, Suite 1850

Denver, CO  80202-3918

Attn:  Mr. Dave Davenport, Division Land Manager

 

Ms. Celeste C. Grynberg

c/o Grynberg Petroleum Company

5299 DTC Boulevard

Prentice Point Building, Suite 500

Greenwood Village, CO  80111

 

Carbon Energy Corporation (USA)

1700 Broadway, Ste. 1150

Denver, CO  80290

Attn:  Mr. Ronald A. Bookman, Landman

 

Mr. and Mrs. Howard Orona

P.O. Box 1

Parachute, CO  81635

 

Firetrucks Northwest, Inc.

0808 County Road 215

Parachute, CO  81635

Attn:  Mr. Joseph F. Feeley, Jr., President

 

Puckett Land Company

5460 South Quebec St., # 250

Greenwood Village, CO  80111

Attn:  Mr. Robert Puckett

 

Petroleum Development Corporation

P.O. Box 26

Bridgeport, West Virginia  26330

Attn:  Mr. Eric Stearns, Vice-President

 

 

 

 

Bureau of Land Management

2850 Youngfield Street

Lakewood, Colorado  80215

Attention:  Mr. Duane Spencer

 

Bureau of Land Management

2815 "H" Road

Grand Junction, CO  81506

Attn:  Mr. Wayne Bankert

 

ExxonMobil Oil Corporation

and Exxon Mobil Corporation

16825 Northchase Drive, Suite 200

Houston, TX  77060

Attn:  Mr. Brent Patterson

 

ExxonMobil Oil Corporation

and Exxon Mobil Corporation

396 West Greens Road

Houston, TX  77067

Attn:  Mr. Christopher H. Dunbar

 

Unocal Corporation

546 Main Street # 404

Grand Junction, CO  81501

Attn:  Mr. Richard Brammer and Ms. Susan Alvillar

 

Yates Petroleum Corporation

Yates Drilling Company

ABO Petroleum Corporation

MYCO Industries, Inc.

105 S. Fourth St.

Artesia, NM  88210

 

Chevron U.S.A. Inc.

P.O. Box 36366

Room S-1037

Houston, TX 77236-6366

Attn:  Mr. J.T. (Tom) Schmid Jr.

 

EnCana Oil & Gas (USA) Inc.

950 17th Street, Suite 2600

Denver, CO  80202-2828

Attention:  Mr. Douglas Jones

 

Occidental Oil Shale, Inc.

P.O.Box 27570

Houston, TX  77227-7570

Attention:  Ms. Vicki Hollub

 

Mr. Ivo E. Lindauer

269 Lodgepole Circle

Parachute, CO  81635

 

Mr. Sidney R. Lindauer

and Mr. Sidney R. Lindauer, Trustee of the Sidney and

Ruth Lindauer Family Trust

P.O.Box 626

Parachute, CO  81635

 

Union Pacific Real Estate Division

1800 Farnam Street

Omaha, Nebraska 68102

Attn: Mr. Bill Ince

 

Colorado Department of Transportation

222 South 6th Street, Room 100

Grand Junction, CO 81501

Attn: Ms. Mike Verketis

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 RULISON, PARACHUTE AND GRAND VALLEY FIELD AREAS, GARFIELD COUNTY, COLORADO

))))))))

 

 

CAUSE NO. ____

 

DOCKET NO. ___

 

 

AFFIDAVIT OF MAILING

STATE OF COLORADO                         )

                                                                  )           ss.

CITY AND COUNTY OF DENVER       )

 

William A. Keefe of lawful age, and being first duly sworn upon his oath, states and declares:

That he is the attorney for Williams Production RMT Company, that on July 1, 2003, he caused a copy of the attached Application in the subject docket to be deposited in the United States Mail, postage prepaid, addressed to the parties listed on Exhibit A to the Application.

 

                                                                                  

William A. Keefe

 

Subscribed and sworn to before me July 1, 2003.

Witness my hand and official seal.

My commission expires: January 24, 2005

                                                                                  

Notary Public