BEFORE THE OIL AND GAS
CONSERVATION COMMISSION
OF THE STATE OF COLORADO
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IN
THE MATTER OF THE APPLICATION OF MARALEX RESOURCES, INC. FOR AN ORDER POOLING
CERTAIN INTERESTS FOR THE PRODUCTION OF OIL AND GAS FROM THE FRUITLAND COAL
FORMATION IN THE IGNACIO-BLANCO FIELD, LA PLATA COUNTY, COLORADO |
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CAUSE
NO. 112 ORDER
NO. _____ |
VERIFIED APPLICATION
COMES NOW, the Applicant, Maralex Resources, Inc., authorized to conduct business in the State of Colorado, and makes application to the Oil and Gas Conservation Commission of the State of Colorado for an order pooling all non-consenting interests for the drilling of a well to the Fruitland Coal Formation in the drilling and spacing unit comprised of the W/2 of Section 11, Township 33 North, Range 7 West, N.M.P.M., La Plata County, Colorado. In support of its application, Applicant states as follows:
APPLICATION LANDS
I
Applicant
is the owner of interests in certain oil and gas leases within the following
described 320-acre drilling and spacing unit established for the production of
gas from the Fruitland Coal Formation pursuant to the orders of the Commission:
Township 33 North, Range 7
West, N.M.P.M.
Section 11: W/2
These
lands are referred to as the Application Lands.
EXISTING ORDERS
II
By Order No. 112-60 dated June 17, 1988, the Oil and Gas Conservation Commission of the State of Colorado established field rules governing the operation of the Ignacio-Blanco Field in La Plata County, Colorado. In that order, the Oil and Gas Conservation Commission of the State of Colorado established 320-acre drilling and spacing units for the production of gas from the Fruitland Coal Formation, a common source of supply. The Application Lands are subject to the order.
APPLICATION
III
Applicant proposes to drill the Keegan Patrick 33-7-11 #1 well on the Application Lands to the Fruitland Coal Formation.
IV
BP America Production Company has a 49.0296875% working interest in the W/2 of Section 11, Township 33 North, Range 7 West, N.M.P.M., La Plata County, Colorado. BP America Production Company has been offered the option to participate in the drilling of the well identified above. At the time of filing this Verified Application, BP America Production Company has not elected to participate in the drilling of this well.
Sierra Foundation Management LLC owns a 6.25% mineral interest in the W/2 of Section 11, Township 33 North, Range 7 West, N.M.P.M., La Plata County, Colorado, which is presently unleased. The Estate of Blake Touchstone owns a 1.5625% mineral interest in the W/2 of Section 11, Township 33 North, Range 7 West, N.M.P.M., La Plata County, Colorado, which is presently unleased. Julie A. Eisenmann owns a .396875% mineral interest in the W/2 of Section 11, Township 33 North, Range 7 West, N.M.P.M., La Plata County, Colorado, which is presently unleased. David L. Thomson and Carol E. Thomson own a .9835938% mineral interest in the W/2 of Section 11, Township 33 North, Range 7 West, N.M.P.M., La Plata County, Colorado, which is presently unleased. Timothy C. Hayes and Cindy L. Hayes own a 1.5054688% mineral interest in the W/2 of Section 11, Township 33 North, Range 7 West, N.M.P.M., La Plata County, Colorado, which is presently unleased. Applicant has contacted Sierra Foundation Management LLC, the Estate of Blake Touchstone, Julie A. Eisenmann, David L. Thomson and Carol E. Thomson, and Timothy C. Hayes and Cindy L. Hayes (“unleased mineral interest owners”) on several occasions and has made offers to lease their unleased mineral interest on competitive terms. At the time of the filing of this Verified Application, the unleased mineral interest owners have not agreed to lease their unleased mineral interest. In addition, in lieu of executing an oil and gas lease, the unleased mineral interest owners have been offered the option to participate in the drilling of the well identified above. Notifications in conformance with Rule 530 regarding this well have been sent more than 30 days prior to the date of the hearing. At the time of filing this Verified Application, the unleased mineral interest owners have not elected to participate in drilling of this well.
V
All
of the minerals in the Application Lands except those owned by the unleased
mineral interest owners are subject to valid existing oil and gas leases owned
by Applicant, Gosney & Sons or by BP America
Production Company. Applicant and Gosney & Sons
have agreed to enter into an operating agreement pertaining to operations
conducted upon the Application Lands, and the operating agreement is being
circulated for execution.
VI
In
order to prevent waste, to protect correlative rights, and in the interest of
conservation, Applicant requests the Commission, after notice and hearing,
enter an order determining that BP America Production Company and the unleased mineral
interest owners are
non-consenting owners under the terms of C.R.S.§34-60-116, and pooling the
interest of BP America Production Company and the unleased mineral interest
owners in the W/2 of Section 11, Township 33 North, Range 7 West, N.M.P.M. for
the production of gas and associated hydrocarbon substances from the Fruitland
Coal Formation underlying the Application Lands. Applicant requests that such
pooling order be upon terms and conditions that are just and reasonable. Applicant further requests, pursuant to
C.R.S.§34-60-116(7)(a) and (b), that the Applicant be able to recover from the
non-consenting owner’s share of production the penalty costs as provided in the
statute.
GENERAL PROVISIONS
VII
Applicant
states that to the best of its information and belief Exhibit A attached to
this Verified Application is the list of the names of owners required to be
notified in accordance with Commission Rule 507 covering the Application Lands.
VIII
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 the application as requested
herein. Applicant further requests that the Commission in its order grant such
other provisions as the Commission may find necessary or desirable in the
cause.
DATED
this 5th day of April, 2004.
Respectfully
submitted,
MARALEX
RESOURCES, INC.
By:
_______________________________
Diane
L. Vigil
Land
Technician
518
17th Street
Suite
1600
Denver,
Colorado 80202
(303)
292-5636
VERIFICATION
STATE
OF __COLORADO___ §
§ ss.
COUNTY
OF __DENVER ___ §
Diane L. Vigil, as Land Technician of Maralex Resources, Inc., upon oath, deposes and says that he/she has read the foregoing Verified Application before the Oil and Gas Commission of the State of Colorado, and states that the matters contained therein are true to the best of his/her knowledge and belief.
_____________________________________
NAME:
_Diane L. Vigil_________________
TITLE:
Land Techncian
Subscribed
to and sworn to before me this _____ day of April, 2004, by Diane L. Vigil,
Land Technician of Maralex Resources, Inc.
My
Commission Expires: ________________________ ________________________________
Notary Public
Address: _________________________
_________________________
Exhibit
“A”
Attached
to and made a part of the Verified Application of
Maralex
Resources, Inc. in
Cause
No. 112, Order No. ______
Royalty
(ROY), Unleased (UNLD) and Working Interest (WI) Owners
W/2
Section 11, Township 33 North, Range 7 West, N.M.P.M.
La
Plata County, Colorado
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Alton Jimmy Covery, Jr. |
ROY |
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2807 Hwy 151 |
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Ignacio, CO 81137 |
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Frances L. Foss |
ROY |
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P.O. Box 1135 |
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Ignacio, CO 81137 |
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Lillian A. Horvat |
ROY |
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P.O. Box 278 |
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Aztec, NM 87410 |
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Patricia E. Wright |
ROY |
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17331 Hwy 550 |
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Aztec, NM 87410 |
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Robert J. Olson |
ROY |
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4249 CR 309 |
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Ignacio, CO 81137 |
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Phyllis A. Lewis |
ROY |
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2934 CR 309A |
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Ignacio, CO 81137 |
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Richard M. Olson & Ella
May Olson |
ROY |
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684 Middle Ridge |
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Clifton, CO 81520 |
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Mary Louise Heaton (aka Mary Louise Owsley) |
ROY |
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4725 Cove Circle, Apt. 711 |
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St. Petersburg, FL 33708 |
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Frazier Land, LLC |
ROY |
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Attn: John Randle |
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134 Rock Ridge Dr. |
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Durango, CO 81301 |
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Turner Securities |
ROY |
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P.O. Box 1670 |
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Durango, CO 81302 |
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Henry E. Parks |
ROY |
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1056 Alpine Forest Drive |
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Bayfield, CO 81122 |
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Heirs of Lila May Wagner,
deceased |
ROY |
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81 Pleasant View Dr. |
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Ignacio, CO 81137 |
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Louis M. Cummins |
ROY |
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P.O. Box 1495 |
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Durango, CO 81302 |
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Margaret C. Pargin |
ROY |
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31 Lucero |
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Los Lunas,
NM 87301 |
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Rita M. Adkins |
ROY |
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P.O. Box 21268 |
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Albuquerque, NM 87154 |
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Michael H. Miller, Trustee |
ROY |
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c/o American Investors Life |
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555 S. Kansas Ave. |
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Topeka, KS 66603 |
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Moulds Family Trust |
ROY |
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1401 Cardenas NE |
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Albuquerque, NM 87110 |
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Carol F. Smith, Trustee |
ROY |
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1707 Westridge
Rd. |
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Los Angeles, CA 96049 |
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Marybeth Marjorie Smith |
ROY |
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1657 CR 324 |
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Ignacio, CO 81137 |
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Kathleen Ann Wolter Bartshe |
ROY |
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P.O. Box 1468 |
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Durango, CO 81302 |
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Ralph E. Wolter |
ROY |
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1880 E. 4500 N. |
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Buhl, ID 83316 |
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Larry J. Zufelt |
ROY |
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P.O. Box 170 |
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Ignacio, CO 81137 |
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Ronald H. Short &
Claudia Schalk-Short |
ROY |
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6831 Guadalupe Tr. NW |
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Albuquerque, NM 87110 |
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San Juan Basin Properties |
ROY |
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1499 Blake St., Suite #7K |
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Denver, CO 80202 |
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R. L. Rathjen
& Donnie L. Rathjen |
ROY |
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2203 W. Third Ave. |
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Durango, CO 81301 |
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Robert E. Candelaria & Jacqueline S. Candelaria |
ROY |
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2432 County Road 220 |
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Durango, CO 81303 |
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Martha T. Tuffli & Elizabeth T. Clayton, Trustees |
ROY |
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1412 Lower Paseo La Cresta |
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Palo Verde Estates, CA 90274 |
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Laurie A. Clark |
ROY |
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937 County Road 336 |
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Ignacio, CO 81137 |
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BP America Production
Company |
WI |
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Attn: Gary Weitz |
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Durango Operations Center |
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380 Airport Rd. |
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Durango, CO 81303 |
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Mr. Don L. Gosney |
WI |
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Gosney
& Sons |
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P.O. Box 367 |
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Bayfield, CO 81122 |
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Sierra Foundation Management
LLC |
UNLD |
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63 N. Pagosa
Blvd., Suite B-3 |
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Pagosa
Springs, CO 81147 |
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Estate of Blake Touchstone,
deceased |
UNLD |
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600 Covington Place |
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Pasadena, CA 91105 |
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Julie A. Eisenmann |
UNLD |
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825 County Road 336 |
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Ignacio, CO 81137 |
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David L. Thomson |
UNLD |
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733 County Road 336 |
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Ignacio, CO 81137 |
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Timothy Clinton Hayes and
Cindy L. Hayes |
UNLD |
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539 County Road 336 |
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Ignacio, CO 81137 |
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