February
The Oil and Gas
Conservation Commission met on February 12th at 10:00 a.m. in the
Raton Room, Holiday Inn Trinidad, 3125 Toupal Drive, Trinidad, Colorado, for a hearing in Cause Nos. 1V (1
matter), 112, 270, and 517.
Those present were:
Brian Cree Vice Chair
Tom Ann
Casey Commissioner
Michael Klish Commissioner
Peter Mueller Commissioner
Abe Phillips Commissioner
Carol Harmon Assistant
Attorney General
Brian Macke Deputy Director
Patricia
Beaver Hearings Manager
The Commission unanimously approved the
minutes from the January 2002 meeting.
Executive Director’s Report: Shane Henry, Assistant Director of the
Department of Natural Resources (DNR) discussed the following: The budget situation for the state shows a
shortfall of approximately fifty (50) to ninety (90) million dollars with only one
(1) million dollars needed this year. Less than 20% of the Department of Natural
Resources’ budget is funded through the general fund. The bill to codify the severance tax reserve
balance for two (2) years is now null and void due to the budget
situation. The state assisted the Nature
Conservancy in the acquisition of the Baca Ranch lands. The Division of Wildlife is attempting to
handle the elk wasting disease. The
Division of Parks is working on forest conditions in light of fire damage. A Constitution Fund Bill for thirty (30)
million dollars to fund various water projects throughout the state is in
process. The Division of Minerals and Geology
is working to permit a facility in
Director’s Report: Deputy Director Macke
provided a written report and discussed the following: The statistics report shows the number of
permits issued in 2001, with four hundred (400) of the 2273 total permits
issued in Las Animas County, representing the third most Applications for
Permit to Drill (APD) in
AAG’s Report: The Commission’s decision was upheld by the
court in regard to the Petroglyph/Lively matter. The Allen Oil and Gas federal case depositions
are scheduled for March 19-22. The Town
of
Commissioner Comments: Commissioner Casey briefly described some of
the issues concerning J.M. Huber’s pumping unit on a certain well in
Consent Agenda: The Commission unanimously approved the
consent agenda, which included the following:
Cause
No. 517, Docket No. 0202-SP-06, request by Evergreen Resources, Inc. to repeal
and vacate Order Nos. 517-1 and 517-2 which established spacing and pooling for
certain lands in Townships 33 and 34 South, Ranges 66 and 67 West for
production of gas from the Raton and Vermejo Formations and places the lands
under the provisions of the Colorado Oil and Gas Conservation Commission rules
was approved.
Cause No. 270, Docket No.
0202-SP-07, request by R & G Oil, LLC to vacate Order No. 270-1 which
ordered that no gas shall be produced from the gas cap
zone of the reservoirs in the Dakota and Lakota Formations in portions of
Section 21, 28 and 33 of Township 9 North, Range 91 West, 6th P.M.
and places the lands under the provision of the Colorado Oil and Gas
Conservation Commission rules was approved.
Cause
No. 112, Docket No. 0202-UP-01, request by Exok, Inc. to pool unleased
interests in the 320-acre drilling and spacing unit consisting of the S½ of
Section 1, Township 32 North, Range 6 West, N.M.P.M. for the development and
operation of the Fruitland Coal Formation was approved.
Audience Comments: Tom Morrisey - land and mineral owner. Founding member of East of Huajatolla
Citizens Alliance. Mentioned possibility of
Leroy Hassenack - landowner in
Kim Crisco - resides in
Mark Ritz - Las Animas
Kenneth Torres - Las Animas
Albert Robinson - Was contacted in December
about water well testing. Robinson had
his well tested for minerals and wants to locate state agency(ies) to take
charge on finding answers to water issues.
Ron Leef - resides in Weston. Would like to see first purchaser on gas
companies’ printouts. Discussed a newspaper
article on Lorencito area where about 50 to 75 semis per day go through this
area. Concerned about Lorencito Coal
Company using 10 million pounds of explosives near Evergreen’s wells and the
impact the explosives may have on the wells.
Sara Ferguson - resides in
Penny Beiber - Southern
Deputy Director Macke introduced John Duran
as the new COGCC Southeast Field Inspector.
Cause No. 1, Docket No. 0202-GA-02, request by
Eugene Dechant for an order to bring Energy Search Company before the
Commission to determine why payment of proceeds have not been made on the
Ginther 1 & 2 Wells since April 1998 was withdrawn.
Cause No. 191, Docket No. 0202-AW-01, request by Calpine
Natural Gas Company for an order to allow additional wells for certain lands in
Section 22, Township 6 South, Range, 92 West, 6th P.M. was continued
to the March 2002 hearing.
Cause No. 1, Docket No. 0202-OV-02, request to approve
and Order Finding Violation finding Woosley Oil Company in violation of Rule 326.b., for the Ken
Decker #1 Well located in the NE¼ NW¼, Section 9, Township 35 North, Range 13
West, N.M.P.M., the Hackathorn #1 Well located in the NE¼ NW¼, Section 8,
Township 35 North, Range 13 West, N.M.P.M., and the Kent Woosley #1 Well
located in the SW¼ NE¼, Section 6, Township 35 North, Range 13 West, N.M.P.M.
was approved. The Commission heard
testimony and reviewed exhibits presented by David Dillon, Engineering
Supervisor in support of the staff’s position.
Mr. Dillon testified that Mrs. Woosley in a phone conversation described
that Woosley Oil Company has been bankrupt for nine years. After deliberation,
the Commission ordered Woosley Oil Company to pay a fine of six thousand
dollars ($6000) for the violation; Woosley Oil Company was ordered to either
perform MIT’s, return to production or plug, abandon and reclaim the
wells. If the work is not completed by
The meeting adjourned at
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The Secretary was therefore authorized to
issue the following orders:
Order No. 1V-220, Montezuma County: Approves the Order
Finding Violation finding Woosley Oil Company in violation of Rule
326.b., for the Ken Decker #1 Well located in the NE¼ NW¼, Section 9, Township
35 North, Range 13 West, N.M.P.M., the Hackathorn #1 Well located in the NE¼
NW¼, Section 8, Township 35 North, Range 13 West, N.M.P.M., and the Kent
Woosley #1 Well located in the SW¼ NE¼, Section 6, Township 35 North, Range 13
West, N.M.P.M. Woosley Oil Company was
ordered to pay a fine of six thousand dollars ($6000) for the above violation;
Woosley Oil Company shall either perform MIT’s, return to production or plug,
abandon and reclaim the wells. If the
work is not completed by
Order No. 517-7, Lorencito Field, Las Animas County: Approves the request by Evergreen Resources,
Inc. to repeal and vacate Order Nos. 517-1 and 517-2 which established spacing
and pooling for certain lands in Townships 33 and 34 South, Ranges 66 and 67
West for production of gas from the Raton and Vermejo Formations and places the
lands under the provisions of the Colorado Oil and Gas Conservation Commission
rules.
Order No. 270-2, Lone Pine Field,
Order No. 270-1 which ordered that no gas shall be
produced from the gas cap zone of the reservoirs in the Dakota and Lakota
Formations in portions of Section 21, 28 and 33 of Township 9 North, Range 91
West, 6th P.M. and places the lands under the provision of the Colorado
Oil and Gas Conservation Commission rules.
Order
No. 112-162, Ignacio-Blanco Field,
Patricia C. Beaver, Secretary
Approved:
Brian J. Cree, Vice Chairman