Community Room at City Hall

1000 10th Street

 Greeley, Colorado 80631

 

Monday, May 24, 2004

Agenda

 

1:00 p.m. Roll Call of Commissioners

 

Approval of Proceedings

 

1:05 p.m. Report from the Executive Directors Office

 

1:15 p.m. Report from the Director - Written report provided

 

1:45 p.m. Report from the Assistant Attorney General

 

2:00 p.m. Commissioner Comments

 

2:15 p.m. Audience Comments

 

2:45 p.m. Consent Agenda

Cause No. 232, Docket No. 0405-SP-06, Wattenberg Gas Spaced Area, Weld County

Applicant: Blue Chip Oil, Inc.

Attorney: Keith M. Crouch

 

Subject:Request for an order to segregate the 320-acre drilling and spacing unit consisting of the S of Section 22, Township 5 North, Range 67 West, 6th P.M. into two 160-acre drilling and spacing units consisting of the SE and the SE of said Section 22 for production of oil and gas from the J Sand Formation.

 

Comments: Application withdrawn; hearing cancelled.

 

CONSENT AGENDA

May 24, 2004

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

No protests/interventions were received 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. 112, Docket No. 0405-UP-03, Ignacio-Blanco Field, La Plata County

Applicant: Maralex Resources, Inc.

Representative: Diane I. Vigil

 

Protestant: Sierra Foundation Management, LLC

Representative: Larry Simmons

 

Subject: Request for an order to pool all non-consenting interests for the drilling of a well in the 320-acre drilling and spacing unit of the W of Section 11, Township 33 North, Range 7 West, N.M.P.M. for production of gas and associated hydrocarbons from the Fruitland coal seams.

 

Comments: Heard by Hearing Officers who recommend approval.

 

Cause No. 226, Docket No. 0405-SP-05, Peoria Field, Arapahoe County

Applicant: Tyler Rockies Exploration, Ltd.

Attorney: Peter J. Wall

 

Subject:Request to rescind the 80-acre drilling and spacing unit in the W of Section 10, Township 5 South, Range 60 West, 6th P.M. for production of oil from the Muddy J Sand Formation and to allow the lands to be developed pursuant to COGCC Rule 318, with a 200 foot tolerance for each well location.

 

Comments: Heard by Hearing Officers who recommend approval.

 

Cause No. 1, Docket No. 0405-SP-08, Niobrara Field, Washington County

Applicant: Delta Petroleum Corporation

Attorney: Harold E. Gosse

 

Protestants: Jim and Vickie Cecil

 

Protestant: Lanny Payne

 

Subject:Request for an order to change the existing well setbacks in Rule 318.a. that apply to certain lands in Township 3 South, Range 49 West, 6th P.M., to allow wells to be located no closer than 300 feet from the boundaries of any lease line and no closer than 600 feet from any producible or drilling well or wells for production of oil, gas and associated hydrocarbons from the Niobrara, D Sand and J Sand Formations.

 

Comments: Heard by Hearing Officers who recommend approval.

 

Cause No. 506, Docket No. 0405-SP-07, Pinyon Ridge Area, Rio Blanco & Moffat Counties

Applicant: KLT Gas Inc.

Attorney: Janet N. Harris

 

Letter of Support: Bureau of Land Management

Subject:Request to vacate Order No. 506-1, which established 320-acre drilling and spacing units for certain lands in Township 3 North, Ranges 96 and 97 West, 6th P.M. for the production of gas and associated hydrocarbons from the Cameo coal seams and allow the lands to be developed pursuant to COGCC Rule 318.

 

Comments: Heard by Hearing Officers who recommend approval.

 

Cause No. 112, Docket No. 0403-AW-05, Ignacio Blanco Field, La Plata County

Applicant: Four Star Oil and Gas Co.

Attorney: William A. Keefe

 

Letter of Support: Bureau of Land Management

 

Subject:Request for an order to allow a second well to be completed in an existing 320-acre drilling and spacing unit in the S of Section 12, Township 33 North, Range 10 West, N.M.P.M. for the production of gas and associated hydrocarbons from the Fruitland coal seams.

 

Comments:               Continued from the April hearing. 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. 0405-OV-21, Adams County

Staff Recommendation

 

Subject: Request for an Administrative Order by Consent finding Starlight Resources LLC in violation of Rule 326.d., failure to repair or plug and abandon the Mark Degenhart #10 Well located in the SE NE of Section 18, Township 1 South, Range 67 West, 6th P.M. within six (6) months of failing a mechanical integrity test.

 

Cause No. 1V, Docket No. 0405-OV-22, Weld County

Staff Recommendation

 

Subject: Request for an Administrative Order by Consent finding Swift Beef Company in violation of Rules 206., 309., and 310A., failure to file accurate and complete reports, to submit an Operator's Monthly Report of Operations, Form 7 within forty-five (45) days after the month in which production occurs and to submit Oil and Gas Conservation Levy, Form 8 and levy payments for eleven wells located in certain sections of Township 4 North, Range 66 West, 6th P.M. and Township 5 North, Range 64 West, 6th P.M.