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      )                  CAUSE NO. 112

OPERATIONS IN THE IGNACIO-BLANCO FIELD,         )

LA PLATA COUNTY, COLORADO                                    )                    DOCKET NO. 0302-UP-01

 

NOTICE OF HEARING ON PROCEDURAL ISSUES

 

TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:

 

            On June 15, 1988, the Commission issued Order No. 112-60 which established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Fruitland coal seams, underlying certain lands in the Ignacio-Blanco Field, with the units to consist of a governmental half section and the permitted well when South of the Ute Line to be located in the NE¼ and the SW¼ of each section and when North of the Ute Line to be located in the NW¼ and SE¼ of each section, no closer than 990 feet from the boundaries of the quarter section, nor closer than 130 feet to any interior quarter section line.  On August 15, 1988 Order No. 112-61 was subsequently adopted amending Order No. 112-60 to establish additional field rules for the Fruitland coal seams.  The E½ of Section 9, Township 34 North, Range 9 West, N.M.P.M. is subject to these orders.

 

            On December 23, 2002, Richard and Theresa Watson (the “Applicants”) filed an application with the Commission for an order pooling their mineral interests in four (4) acres within the 320-acre drilling and spacing unit consisting of the E½ of Section 9, Township 34 North, Range 9 West, N.M.P.M., for the University #9-1 Well effective as of the date of completion.  The Applicants seek the pooling order against EnerVest San Juan Operating, LLC. (“EnerVest”) because EnerVest purchased the University #9-1 Well from Emerald Gas Operating Company, who purchased the Well from Bowen/Edwards Associates, Inc., who originally drilled the well.  The Well was operated by Texaco E & P Inc. subsequent to EnerVest and is currently operated by Chevron U.S.A. (“Chevron”).  In addition, the Applicants requested to be paid the money attributable to their mineral interests from the time of the completion of the University #9-1 Well to the present.  Further, the Applicants requested that the pooling order contain a list of all of the mineral interests of each owner in the pooled unit and their percentage interest in 100% of the total mineral interests in the pool.

 

On January 13, 2003, EnerVest filed with the Commission a Motion to Intervene and Protest.  On January 27, 2003 Chevron filed with the Commission a Protest or alternatively, a Motion to Intervene and a Motion for Continuance.  On January 28, 2003, the Commission held a prehearing conference with the attorneys for the parties to discuss, among other things, the issue of whether proper notice was given.  At the conclusion of the prehearing conference, the Applicants’ attorney requested the matter be continued to the June 2003 hearing.  On January 28, 2003, the Applicants’ attorney filed with the Commission a written request for a continuance to the end of March 2003 at the earliest.

 

On March 21, 2003, dated March 3, 2003, the Applicants’ attorney filed a First Amended Application for Involuntary Pooling with the Commission, removing the request to be paid the money attributable to their mineral interests from the time of the completion of the University #9-1 Well to the present.  On March 21, 2003, EnerVest filed with the Commission a Motion to Dismiss First Amended Application for Involuntary Pooling, supplemented on April 2, 2003 insofar as the Application seeks retroactive pooling.  On April 4, 2003, Chevron filed concurrently a Motion to Dismiss First Amended Application for Involuntary Pooling and a Combined Motion to Strike Discovery and for Protective Order, or in the alternative, to Hold Discovery in Abeyance until a ruling on pending Motions to Dismiss.  According to the Motion to Strike Discovery, a Request for Production of Documents was served on both EnerVest and Chevron on March 14, 2003, although a copy was not filed with the Commission.

 

On April 7, 2003, Nicholas Palmer, attorney for the Applicants, filed with the Commission a Notice of Withdrawal as Counsel.  On April 7, 2003, Richard Watson sent an email to the Commission requesting a postponement of the second prehearing conference scheduled for April 9, 2003 until Mr. Watson could hire a bona fide oil and gas attorney.  Commission staff responded that not only would the prehearing conference be postponed, the hearing scheduled for June 2003 would also be postponed.  Subsequently, numerous written and verbal correspondence has occurred between Mr. Watson and Commission staff in an effort to bring this matter before the Commission.  On March 10, 2004, Mr. Watson served a Request for Production of Documents on Chevron and filed a copy of the request with the Commission.

 

            The parties are hereby ordered to appear before the Commission at the below-described date and time to respond to the pending motions and discovery requests.  Written responses to the pending motions or the discovery requests should be filed with the Commission no later than June 7, 2004.  In addition, any party desiring to reply to any response filed to the Motions to Dismiss or to the Requests for Discovery should file a written response no later than June 24 2004.

 

            NOTICE IS HEREBY GIVEN, that the Oil and Gas Conservation Commission of the State of Colorado, pursuant to the above, has scheduled the above-described procedural issues for hearing on:

 

                        Date:                                       Monday, July 12, 2004

                        Time:                                      9:00 a.m.

 

                        Place:                                     Suite 801, The Chancery Building

                                                                        1120 Lincoln Street

                                                                        Denver, CO 80203

 

            In accordance with the Americans with Disabilities Act, if any party requires special accommodations as a result of a disability for this hearing, please contact Audra Serlet at (303) 894-2100 ext. 114, prior to the hearing and arrangements will be made.

 

            Pursuant to said hearing in the above-entitled matter at the time and place aforesaid, or at any adjourned meeting, the Commission will enter such orders as it deems appropriate to protect the health, safety and welfare of the public and to prevent the waste of oil and gas, either or both, in the operations of said field, and to carry out the purposes of the statute.

 

                        IN THE NAME OF THE STATE OF COLORADO

 

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                             OF THE STATE OF COLORADO

 

 

                                                                        By                                                                       

                                                                                 Patricia C. Beaver, Secretary

 

Dated at Suite 801                                       Richard K. Watson

1120 Lincoln Street                                      2373 Hwy 172

Denver, Colorado 80203                             Durango, CO  81303

May 7, 2004                                                   (970) 259-4756