Suite 801, The Chancery Building

1120 Lincoln Street

Denver, Colorado 80203

 

Monday, July 12, 2004

Agenda

 

9:00 a.m. Roll Call of Commissioners

 

Approval of Proceedings

 

9:05 a.m. Report from the Executive Directors Office

 

9:15 a.m. Report from the Director - Written report provided

 

9:45 a.m. Report from the Assistant Attorney General

 

9:55 a.m. Commissioner Comments

 

10:05 a.m. Audience Comments

 

10:15 a.m. Consent Agenda

 

10:30 a.m.  Presentation by Anthony Gorody (Universal Geoscience Consulting, Inc.), Debbie Baldwin (COGCC Environmental Supervisor), and Cindy Scott (Consulting Hydrogeologist): Dissolved Methane in Groundwater, San Juan Basin, La Plata County, Colorado: Analysis of Data Submitted in Response to COGCC Order Nos. 112-156 and 112-157

Cause No. 112, Docket No. 0302-UP-01, Ignacio Blanco Field, La Plata County

Applicants: Richard K. Watson, Theresa Watson, Molly Watson, Charles and Mary Parnell, James and Gladys Garnand, Denise A. Bohemier

Attorney: William D. Bontrager

 

Protestant: EnerVest Management Partners, Ltd.

Attorney: Brian S. Tooley

 

Protestant: Chevron USA Inc.

Attorney: William A. Keefe

 

Subject: Request to respond to the pending motions to dismiss the previously filed pooling application and discovery requests.

 

Comments: Continued to the August hearing so that settlement discussions can occur.

 

Cause No. 112, Docket No. 0407-UP-04, Ignacio-Blanco Field, La Plata County

Applicant: Chevron USA Inc.

Attorney: William A. Keefe

 

Protestants: Richard K. Watson, Theresa Watson, Molly Watson, Charles and Mary Parnell, James and Gladys Garnand, Denise A. Bohemier

Attorney: William D. Bontrager

 

Subject: Request for an order to pool all non-consenting owners in the E of Section 9, Township 34 North, Range 9 West, N.M.P.M. for the University 9-1 Well for the development and operation of the Fruitland coal seams.

 

Comments: Continued to the August hearing so that settlement discussions can occur.

Cause No. 1, Docket No. 0407-EX-03, Hiawatha West Field, Moffat County

Applicant: Chevron USA Inc.

Attorney: William A. Keefe

 

Subject: Request for an order allowing an exception to the permitted location for the Duncan #B-14 Well to be located at a proposed location of 1531 FNL and 1167 FEL in Section 20, Township 12 North, Range 100 West, 6th P.M. for production of gas and associated hydrocarbons from the Wasatch, Fort Union-Lance-Lewis and Mesaverde Formations.

 

Comments: Continued to the August hearing.

 

Cause No. 112, Docket No. 0407-AW-06, Ignacio-Blanco Field, La Plata County

Applicant: Red Willow Production Co.

Attorney: Michael J. Wozniak

 

Subject: Request for an order allowing a second well to be completed in the 320-acre drilling and spacing units consisting of the W of Sections 6 and 7, Township 33 North, Range 6 West, N.M.P.M. at the discretion of the operator, with the permitted well to be located in the center of the quarter section with a tolerance of 200 feet in any direction for production of gas and associated hydrocarbons from the Fruitland coal seams.

 

Comments: Continued to the August hearing.

Cause No. 334, Docket No. 0407-EX-05, Great Divide Field, Moffat County

Applicant: Tom Brown, Inc.

Attorney: Carleton L. Ekberg

 

Subject: Request for an order allowing an exception to the permitted location for the Meyers 14-32 Well to be located at a proposed location of 995' FSL and 450' FWL in Section 32, Township 10 North, Range 93 West, 6th P.M for production of gas and associated hydrocarbons from the Middle Lewis Formation.

 

Comments: Continued to the August hearing.

Cause No. 509, Docket No. 0407-SP-09, Arrowhead Field, Cheyenne County

Applicant: Monument Gas Marketing, Inc.

Representative: Ron Touchon

 

Protestant: Anadarko Petroleum Corporation

Attorney: Stephen J. Sullivan

Subject: Request to rescind the 320-acre drilling and spacing units in Sections 25-28 and 33-36, Township 16 South, Range 46 West, 6th P.M. and allow the lands to be developed pursuant to Rule 318, for production of gas and associated hydrocarbons from the Morrow Formation.

 

Comments: A prehearing conference was held on June 30, 2004 and the matter was continued so that a resolution can be reached.

 

 

CONSENT AGENDA

July 12, 2004

=============================

No protests/interventions were received (except as noted below) on the matters listed below and administrative hearings were held for these matters. Appropriate testimony accompanied by required exhibits was presented to the Hearing Officers in support of the applications. The Hearing Officer recommendations were provided and exhibits are available upon request. The Applicants agreed to be bound by oral Order of the Commission.

 

Cause No. 510, Docket No. 0407-SP-10, Rulison Field, Garfield County

Applicant: Petroleum Development Corp.

Attorney: William A. Keefe

 

Subject: Request for an order to increase well density, the equivalent of 1 well per 10 acres, and change existing well setbacks in Rule 318.a. that apply to certain lands in Townships 6 and 7 South, Ranges 96 and 97 West, 6th P.M., to allow wells to be located downhole anywhere in the drilling and spacing unit but no closer than 100 feet from the boundaries, with no more than 1 multi-wellsite per 40-acre quarter-quarter section for production of gas and associated hydrocarbons from the Williams Fork Formation.

 

Comments: Heard by Hearing Officers who recommend approval.

 

Cause No. 1, Docket No. 0407-EX-04, Mamm Creek Field, Garfield County

Applicant: EnCana Oil and Gas (USA) Inc.

Attorney: Michael J. Wozniak

 

Subject: Request for an order to amend the setback requirements of Rule 318.a. that apply to Sections 8, 17 and 20, Township 7 South, Range 92 West, 6th P.M. to allow wells drilled deeper than 2,500 feet to be located no closer than 600 feet from the outer section lines with no more than 1 multi-wellsite per 40-acre quarter-quarter section for production of oil, gas and associated hydrocarbons from the Mesaverde Formation.

 

Comments: Heard by Hearing Officers who recommend approval.

 

Cause No. 112, Docket No. 0407-GA-04, Ignacio-Blanco Field, La Plata County

Applicant: BP America Production Co.

Attorney: Michael J. Wozniak

 

Subject: Request for an order to eliminate the production caps for nine Fruitland coal seam wells located in certain sections of Townships 33 and 34 North, Ranges 8 and 9 West, N.M.P.M. so that the wells may produce in accordance with their capacity gas and associated hydrocarbons from the Fruitland coal seams.

 

Comments: Heard by Hearing Officers who recommend approval.

Cause No. 112, Docket No. 0407-GA-03, Ignacio-Blanco Field, La Plata County

Applicant: McElvain Oil & Gas Properties, Inc.

Attorney: Michael J. Wozniak

 

Intervenor: La Plata County

Attorney: Jeffrey Robbins

 

Subject: Request for an order establishing that the existing permit for the Payne No. 1 Well be clarified to authorize the operator to utilize the appropriate artificial lift device which will maximize the economic and efficient production from the Payne No. 1 Well located in the NW NE of Section 17, Township 32 North, Range 6 West, N.M.P.M and to conduct its operations without buried electrical lines provided it is in compliance with existing Commission sound regulations for production of gas and associated hydrocarbons from the Fruitland coal seams.

 

Comments: Intervenor did not wish to participate in Commission hearing and wanted intervention to stand on its own. Heard by Hearing Officers who recommend approval.

 

Administrative Order by Consent

 

The following Administrative Orders by Consent were accepted and agreed to:

 

Cause No. 1V, Docket No. 0407-OV-23, Weld County

Staff Recommendation

 

Subject: Request for an Administrative Order by Consent finding Petroleum Development Corporation in violation of Rules 301., 303.b. and 34-60-117.(1), C.R.S., failure to provide written notice of intention to do work, to have an approved Application for Permit-to-Drill or Application for Permit to Recomplete to the Codell Formation and to protect correlative rights of all owners in every field or pool for the Wells Ranch #14-2 Well located in the SW SW of Section 2, Township 5 North, Range 63 West, 6th P.M.

 

Cause No. 1V, Docket No. 0407-OV-24, Rio Blanco County

Staff Recommendation

 

Subject: Request for an Administrative Order by Consent finding EnCana Oil and Gas (USA) Inc. in violation of Rule 303.b., failure to have an approved Application for Permit to Recomplete to the Williams Fork Formation for the Park Mountain #2-2-3-104 Well located in the SE SE of Section 2 Township 3 South, Range 104 West, 6th P.M.

 

Cause No. 1V, Docket No. 0407-OV-25, Garfield County

Staff Recommendation

 

Subject: Request for an Administrative Order by Consent finding Williams Production RMT Company in violation of Rules 317.a., 327., Order No. 139-38 and the Notice attached to the Application for Permit-to-Drill, failure to keep the PA 324-33 Well located in the SE SW of Section 33, Township 6 South, Range 95 West, 6th P.M. under control at all times during the drilling process, to comply with Order No. 139-38 and to notify staff of the lost circulation zones and gas kicks.

 

Cause No. 1V, Docket No. 0407-OV-26, Weld County

Staff Recommendation

 

Subject: Request for an Administrative Order by Consent finding EnCana Oil and Gas (USA) Inc. in violation of Rules 301, 318A.a. and 318.c., failure to obtain Commission approval for change of surface hole location and failure to obtain Commission approval for change of bottom hole location for the Bangert #31-19 Well located in the NE NE of Section 19, Township 2 North, Range 66 West, 6th P.M., failure to locate the Well in accordance with the Greater Wattenberg Area well location setback rules and failure to obtain a location exception for the Well.