BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE BEECHER ISLAND FIELD, YUMA COUNTY, COLORADO

 

 

 

CAUSE NO. 300

DOCKET NO. ___________

 

VERIFIED APPLICATION

 

            COMES NOW, the Applicant, Petroleum Development Corporation, by and through its attorneys, Gorsuch Kirgis LLP, and respectfully petitions the Oil and Gas Conservation Commission of the State of Colorado as follows:

 

                                                                                                                                                                                        I.         

 

            Applicant is the operator and/or working interest owner of one or more oil and gas leases covering all or a portion of the Application Lands (as described below) within the Beecher Island Field.

 

                                                                                                                                                                                     II.         

 

            By Order Nos. 300-5 and 300-6 dated August 22, 1978 and September 9, 1981 respectively, the Commission established 160‑acre drilling and spacing units for the production of gas from the Niobrara Formation underlying certain lands including the following described lands located in the Beecher Island Field, Yuma County, Colorado:

 

Township 2 South, Range 43 West, 6th PM

Section 6:  E/2

Section 7:  All

Section 8:  All

Section 9:  All

Section 10:  All

Section 15:  All

Section 17:  All

Section 18:  All

Section 22:  All

Section 27:  All

Section 32:  All

Section 33:  All

 

Township 2 South, Range 44 West, 6th PM

Section 13:  NE/4

Section 24:  All

Section 25:  All

Section 36:  W/2

 

Township 3 South, Range 43 West, 6th PM

Section 5:  All

 

            (hereinafter "Application Lands")

 

The Orders provide that each said drilling unit shall consist of 160 acres, that each such drilling unit shall consist of a quarter section, according to the governmental survey thereof, and that the permitted well in each unit shall be located no closer than 900 feet from the boundaries of the quarter section in which the well is located.

 

                                                                                                                                                                                   III.         

 

            By Order No. 300-7 dated March 25, 1997, the Commission ordered that an additional well would be allowed to be drilled on each 160-acre drilling and spacing unit on lands in the Beecher Island Field (including the Application Lands), at the option of the operator for production of gasfrom the Niobrara Formation, with the subsequent permitted well to be no closer than 560 feet from the outer boundaries of the drilling and spacing unit and further allowing the Director to grant exceptions to the permitted well locations wihout prior notice or hearing upon an adequate showing by the operator that topography make it unreasonable to drill a second well within the 560 feet setback, but no closer than 380 feet from the boundary of the drilling and spacing unit and requests for any other exception location may be granted in accordance with Rule 318. 

 

IV

 

Subsequent drilling and production operations in the area of the Application Lands have yielded geological and engineering evidence indicating that two wells will not adequately drain an area of 160 acres, and that an option to drill up to a total of four (4) wells within each drilling unit of the Application Lands should be permitted in order to allow economic and efficient drainage of the gas and associated hydrocarbons from the Niobrara Formation underlying each such 160‑acre drilling and spacing unit of the Application Lands.

 

V

 

            In order to allow maximum flexibility in the drilling of wells upon the Application Lands and consistent with protection of correlative rights, it is appropriate that each additional well drilled upon the Application Lands be allowed to be located anywhere within the drilling unit upon which it is drilled provided it is located no closer than 560 feet to the outer boundaries of the drilling unit.  In addition, the Director should be allowed to grant an exception to the permitted well location without prior notice or hearing upon an adequate showing by the operator that topography makes it unreasonable to drill the second well within a 560-feet setback, but no closer than 380 feet from the boundary of the drilling and spacing unit, and requests for any other exception location may be granted in accordance with Rule 318.

 

VI

 

            Therefore, to prevent waste, to protect correlative rights, to ensure proper and efficient development of the Beecher Island Field, and to assure the greatest ultimate recovery of gas and associated hydrocarbons from the Niobrara Formation, Applicant requests that after notice and hearing, as provided by law, the Commission issue its Order providing that a total of four (4) wells shall be allowed to be drilled on each drilling unit of the Application Lands at the option of the operator; that the permitted location be anywhere within the 160‑acre drilling and spacing unit provided it is no closer than 560 feet from the outer boundaries of said 160‑acre drilling and spacing unit; and that the Director be allowed to grant an exception to the permitted well location without prior notice or hearing upon an adequate showing by the operator that topography makes it unreasonable to drill the second well within a 560-feet setback, but no closer than 380 feet from the boundary of the drilling and spacing unit, and requests for any other exception location may be granted in accordance with Rule 318.

 

VII

 

            Applicant states to the best of its information and belief that the "interested parties" and the owners as defined in the Oil and Gas Conservation Act of the State of Colorado and the Rules and Regulations of this Commission are listed on Exhibit A attached hereto by name and address.

 

            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 December, 2003.

 

Respectfully submitted,

GORSUCH KIRGIS LLP

 

 

By:                                                                       

William A. Keefe

Tower I, Suite 1000

1515 Arapahoe Street

Denver, Colorado 802020

303-376-5000

 

 

Applicant's Address:

 

Petroleum Development Corporation

Attn:  Eric R. Stearns, Executive Vice President

2970 29th Street

Greeley, CO 80631

 


 

VERIFICATION

 

 

 

STATE OF COLORADO                                      )

                                                                               )      ss.

County of Weld                                                       )

 

 

Eric R. Stearns, as Executive Vice President of Petroleum Development Corporation, upon oath, deposes and says that he has read the foregoing Verified Application before the Oil and Gas Conservation Commission of the State of Colorado, and states that the matters contained therein are true to the best of his knowledge and belief.

 

 

                                                                                   

Eric R. Stearns

 

 

 

Subscribed to and sworn to before me this _____ day of December, 2003, by Eric R. Stearns as Executive Vice President of Petroleum Development Corporation.

My commission expires:                                                     

 

 

 

                                                                                   

Notary Public

 


Exhibit A

BEECHER ISLAND

 


Billy G. Mansfield and Ellen Mansfield

938 W. 11th Street

Wray, CO 80758-2034

 

Rosewood Resources, Inc.

2711 N. Haskell Avenue

Suite 2800, LB #22

Dallas, TX 75204

 

Samedan Oil Corporation

12600 Northborough, Suite 250

Houston, TX 77067

 

FMP Operating Company, a Limited Partnership

3421 N. Causeway Boulevard

Metairie, LA 70002

 

James T. Rutherford, Jr.

11 Hillside Drive

Denver, CO 80215

 

Harold S. Wood

217 E. 24th Street

Tulsa, OK 74105

 

Stephen G. Bolyard

6071 S. Aberdeen

Littleton, CO 80120

 

H. Robert Wood

3101 E. 45th Street

Tulsa, OK 74105

 

Donald G. McLean, D.V.M.

8080 Meade Street

Westminster, CO 80020

 

J.W. Chandler

2910 S. Tejon Street

Englewood, CO 80110

 

Jose M. Calhoun, Trustee u/a Joseph D. Sargent dated December 11, 1973

c/o Conning & Company

41 Lewis Street

Hartford, CT 06103

 


Alexander & Ambrose Oil Corporation

1020 15th Street, Suite 20-C

Denver, CO 80202

 

SGT Oil & Gas Ltd.

1615 California St, Suite 407

Denver, CO 80202

 

Lonetree Oil & Gas Company

c/o LoneTree Energy, Inc.

621 17th Street, Suite 2501

Denver, CO 80293

 

John P. Lockridge

1801 Broadway, Suite 1250

Denver, CO 80202

 

Thompson Brothers Ventures, LLC

c/o Clyde E. Thompson

59 Golden Eagle Road

Greenwood Village, CO 80121-2120

 

Heartland Oil and Gas Company

Heartland 1989 Oil & Gas Partnership

Heartland 1990 Oil & Gas Partnership

5390 Manhattan Circle, Suite 100

Boulder, CO 80303

 

Blair Oil Interests, LLC, a Colorado Limited Liability Company

885 S. Colorado Boulevard

Denver, CO 80246

 

OXY USA Inc.

10889 Wilshire Boulevard, Suite 1500

Los Angeles, CA 90048

 

Mountain Petroleum Corporation

1801 Broadway, Suite 1250

Denver, CO 80202

 

WBI Production, Inc.

200 N. Third Street, Suite 300

Bismark, ND 58501

 

Thompson Gas Corporation

7951 E. Maplewood Avenue, Suite 324

Englewood, CO 80111

 


American Production Partnership-V, Ltd

2100 RepublicBank Center

700 Louisiana

Houston, TX 77002

 

Ninian Oil Finance Corp.

2100 RepublicBank Center

700 Louisiana

Houston, TX 77002

 

Chester F. Whomble and

Doris J. Whomble, h/w

433 Adams

Wray, CO 80758-2034

 

Press Oil Investments

1645 Court Place, Suite 402

Denver, CO 80202

 

Cogeneration Holdings, LLC.

370 Van Gordon Street

Lakewood, CO 80228

 

State of Colorado

State Board of Land Commissioners

1313 Sherman Street, Room 621

Denver, CO 80203

 

Alice Crossland

824 Olive Street

Denver, CO 80220

 

Robert W. Crossland

Eckley, CO 80727

 

Victor H. Crossland

Haxton, CO 80731

 

Annabell Sharpe

2909 Swing Station Way

Fort Collins, CO 80521

 

Baylor Van Meter, Jr

1600 Broadway, Suite 1470

Denver, CO 80202

 

Frank W. Winegar Trust

5460 Ward Road, Suite 200

Arvada, CO 80002

 

Joseph Sargent Trust

25 Cream Hill Road

Mendon, VT 05701

 

J-Chan Inc

357 N. Broadway

Denver, CO 80203

 

Martin Living Trust

400 West Illinois

Suite 1120, Midland, TX 79701

 

Marshall & Winston, Inc

P.O. Box 50880

Midland, TX 79710-0880

 

Judson Operations Ltd.

P.O. Box 3340

Midland, TX 79702-3340

 

LAJ Corporation

P.O. Box 10626

Midland, TX 79702-0626

 

The Skeeters Company

410 SW Brielle Lane

Lees Summit, MO 64082

 

Bobbie Jean Wood Trust

C/O Stephen A. Milligan Trustee

4815 S Harvard, #128

Tulsa, OK 74135-3052

 

Richard D. Lammers

2615 Oak Driver, #33

Lakewood, CO 80215

 

Robert E. Kavli and Judith K. Kavli

34743 County Road 22

Wray, CO 80758

 

Britoil Ventures, Inc.

P.O. Box 42833

Houston, TX 77242-2833

 

Kansas-Nebraska Natural Gas Company, LLC

300 North St. Joseph Ave

Hastings, NE 68901

 

Baseline Minerals, Inc

1645 Court Place, Suite 422

Denver, CO 80202

 

Press Oil Investments

P.O. Box 464

Wray, CO 80758

 


Fidelity Exploration & Production Company

1700 Lincoln, Street, Suite 4600

Denver, CO 80203

 

FM Properties Operating Company

1615 Poydras Street

P.O. Box 60004

New Orleans, LA 70160

 

High Plains Energy Company

1600 Broadway, Suite 1565

Denver, CO 80202

 

Ninian Oil Company

2100 Republic Bank Center

700 Louisiana

Houston, TX 77002

 

The Richard W. Smith Trust dtd 7/2/03

The Helen E. Smith Trust dtd 7/2/03

1038 West 9th

Wray, CO 80758

 

Mountain Petroleum Ltd

712 Denver Center Bldg

Denver, CO 80203

 

Joe Gray

1445 Ross Ave, Ste 3200

Dallas, TX 75202-2711

 

XTO, Inc

Hickory Timbers Limited Partnership

810 Houston Street, Suite 2000

Ft. Worth, TX 76102

 

Doris J. Whomble

Judy D. Shively

Arthur Rowe Shively

29520 County Road 13

Idalia, CO 80735

 

Ellen A. Mansfield

938 West 11th

Wray, CO 80758

 

Robert J. Gutru, LP

307 Farmers and Bankers Bldg

Wichita, KS 67202

 

Heyliger Oil and Gas Corporation

885 S. Colorado Blvd

Denver, CO 80246

 

Stelbar Oil Corporation, Inc

200 West Douglas, Suite 950

Wichita, KS 67202

 

Glenn R.  Wudtke

7551 County Road CC

Idalia, CO 80735

 

JG-Kansas No. 2 Venture

1445 Ross Ave, Ste 3200

Dallas, TX 75202-2711

 

Sarah H. Potter

451 Northcentral Expressway

Dallas, TX 75206-6401

 

Meredith Mallory, Jr.

8700 Crownhill, Suite 601

San Antonio, TX 78209

 

Laura Jane Westerman, Individually

and as Personal Representative of the Estate of

Howard G. Westerman aka H.G. Westerman

c/o Cohort Energy Company

P.O. Box 226406

Dallas, TX 75222-6406

 

Cohort Energy Company

P.O. Box 226406

Dallas, TX 75222-6406

 

Thomas J. Jeffery

1750 N. Collins Blvd., Ste 122

Richardson, TX 75080

 

Richard L. Wudtke

9567 County Road CC

Idalia, CO 80735

 

Linda Briggs

Yuma County

310 Ash Street, Suite A

Wray, CO  80758