BEFORE
THE OIL & GAS CONSERVATION COMMISSION
OF
THE STATE OF
|
IN THE MATTER OF THE APPLICATION OF THE SOUTHERN UTE INDIAN TRIBE,
d/b/a RED WILLOW PRODUCTION COMPANY, FOR AN ORDER ALLOWING AN OPTIONAL SECOND
WELL IN CERTAIN DRILLING AND SPACING UNITS COVERING THE FRUITLAND COAL SEAM
FORMATION, IGNACIO-BLANCO FIELD, LA PLATA COUNTY, COLORADO |
) ) ) ) ) ) ) ) ) |
CAUSE NO. 112 Docket No. _________ |
APPLICATION
COMES NOW Southern Ute
Indian Tribe, d/b/a Red Willow Production Company, by its attorneys Dorsey
& Whitney LLP makes application to the Oil and Gas Conservation Commission
of the State of Colorado, for an order to permit an optional second well in
three existing drilling and spacing units for the Fruitland Coal Seam formation. In support thereof the Southern Ute Indian
Tribe, d/b/a Red Willow Production Company ("Applicant"), states and
alleges as follows:
1. That
the Applicant is the owner of numerous leasehold interests in La Plata County,
Colorado, located within the area requested for spacing.
2. This
Application is submitted to this Commission in accordance with the terms of the
Memorandum of Understanding dated August 22, 1991 between the Bureau of Land
Management (“BLM”) and this Commission and separate Memorandum of Understanding
dated August 22, 1991 between the Bureau of Indian Affairs, the BLM and the
Southern Ute Indian Tribe. The Southern
Ute Indian Tribe owns surface interests and mineral interests underlying the
subject land.
3. That
the Applicant is requesting that two (2) wells be permitted in the existing
drilling and spacing units of 320 acres for the Fruitland Coal Seam formation
covering the following described lands in La Plata County, Colorado, to wit:
Township 33 North,
Range 11 West, N.M.P.M.
Section
1: W/2
Section
11: N/2
Section
11: S/2
4. That
the units of 320 acres with two (2) wells located thereon are expected to
efficiently drain the Fruitland Coal Seam formation which is the common source
of supply in this area and such spacing is not smaller than the maximum area
that can be efficiently and economically drained by two wells from said
formation.
5. That
lands requested have heretofore been subject to spacing orders for production
from the Fruitland Coal Seam formations pursuant to, among other orders, Order
No. 112-60, 61 and 62. Wells in Township
33 North are to be located in the center of the NW/4 and the SE/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. Applicant proposes that the second optional
well in each 320-acre unit be drilled, completed or recompleted in the operator's
discretion in the center of the NE/4 and/or SW/4 with a tolerance in any
direction of 200 feet for geological, topographic or surface location
concerns.
6. That
Orders emanating from Cause No. 112 have provided for 320-acre drilling and
spacing units for the production of oil and/or gas from the Fruitland Coal Seam
formation. Said units shall be remain as
previously established with the permitted wells to be located in the center of
the quarter section with a tolerance of 200 feet in any direction. To the extent possible, the drilling and
spacing units shall be coincident with any existing spacing units.
7. That the Director may without further
notice and hearing approve exceptions to the permitted well locations due to
topography or surface hazards.
8. That allowing two (2) Fruitland Coal
Seam wells within the existing spacing units is expected to economically and
efficiently drain the Fruitland Coal Seam formation and protect the correlative
rights of all parties. The drilling of
unnecessary wells will be prevented and the waste will therefore be avoided all
in accordance with the Colorado statutes and the rules and regulations of this
Commission and the BLM.
9. That granting of the relief requested
in this Application will have no adverse impacts on the public health, safety,
welfare or the environment. The rules
and regulations of the Commission together with the extensive environmental
monitoring programs administered by the Applicant are sufficient to adequately
address impacts to the environment and protect the public health, safety and
general welfare.
10. Exhibit A attached hereto and made part
hereof is the list of the names of "Owners" required to be notified
in accord with Commission Rules, 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 this Commission enter
its order:
A. Establishing that two (2) Fruitland Coal
wells may be completed in the 320-acre drilling and spacing units for oil
and/or gas from the Fruitland Coal Seam formation underlying the lands set
forth in paragraph 2 with the second well being an optional well in the
discretion of the operator. The
permitted wells shall be located in the center of the quarter section as
described in paragraph 4 above with a tolerance of 200 feet in any direction
subject to the Director approving exceptions for the permitted well location in
his discretion.
B. For such other findings and orders as
the Commission may deem proper or advisable in the premises.
DATED this ____ day of August, 2003.
Respectfully submitted,
SOUTHERN UTE INDIAN TRIBE, D/B/A
RED WILLOW PRODUCTION COMPANY
By:
Michael J. Wozniak
Dorsey & Whitney LLP
Attorneys for Applicant
370 17th Street, Suite 4700
Denver, Colorado 80202
(303) 629-3400
Applicants' Address:
P. O. Box 737
Ignacio, CO 81137
VERIFICATION
STATE OF COLORADO )
)
ss.
COUNTY OF LA PLATA )
Rex Richardson, of
lawful age, being first duly sworn upon oath, deposes and says that he is the
Land and Acquisition Manager for Red Willow Production Company and that he has
read the foregoing Application and that the matters therein contained are true
to the best of my knowledge, information and belief.
_________________________________
Subscribed and sworn to
before this ____ day of August, 2003.
Witness my hand and
official seal.
My commission
expires:
______________________________
Notary
Public
EXHIBIT
A
INTERESTED
PARTIES
|
IN THE MATTER OF THE APPLICATION OF THE SOUTHERN UTE INDIAN TRIBE,
d/b/a RED WILLOW PRODUCTION COMPANY, FOR AN ORDER ALLOWING AN OPTIONAL SECOND
WELL IN CERTAIN DRILLING AND SPACING UNITS COVERING THE FRUITLAND COAL SEAM
FORMATION, IGNACIO-BLANCO FIELD, LA PLATA COUNTY, COLORADO |
) ) ) ) ) ) ) ) ) |
CAUSE NO. 112 Docket No. _________ |
Southern Ute Indian Tribe
Tribal Annex Building
Moache Drive
Ignacio, CO 81137
Attn: Ms. Barbara Wickman
Bureau of Indian Affairs
Southern Ute Agency
383 Ute Road
BIA Bldg. No. 1
Ignacio, CO 81137
Attn: Ken Young
Department of the Interior
Bureau of Land Management
701 Camino Del Rio
Durango, CO 81301
Attn: Helen Mary Johnson
LaPlata County Assessor
P. O. Box 3339
Durango, CO 81302
Arthur Isgar & Anne I. Isgar
11202 County Rd 213
Durango,
CO 81301
Chevron/Texaco
P. O. Box 840659
Dallas,
TX 75284
Robert J. Clark
1 County Rd 127
Hesperus, CO 81326
Margaret Mae Clark Morley
966 County Rd 127
Hesperus, CO 81326
Jack G. Newbold & Jolene E. Newbold
21016 Hwy 160
Durango, CO 81303
Robert A. Johnson & Norma K. Johnson
2082 County Rd 203
Durango, CO 81301
44 Canyon LLC
P. O. Box 378111
Denver, CO 80237
Bowen Gas Corp
2525 Meadow Ave
Boulder, CO 80304
Edwards Energy
Corp
1401 17th
Street, Suite 1401
Denver, CO 80202
BP America
Production Company
501 Westlake
Park Blvd.
Houston, TX 77079
Louis F. Davis
Consultants Inc
4252 Armstrong
Pkwy.
Dallas, TX 75205-3716
Redelity, LLP
P. O. Box 737
Ignacio, CO 81137