BEFORE
THE OIL AND GAS CONSERVATION COMMISSION
OF
THE STATE OF
IN THE MATTER OF GRANTING OF A VARIANCE TO )
THE RULES AND REGULATIONS OF THE
OIL AND GAS CONSERVATION COMMISSION, )
This
cause came on for hearing before the Commission on June 3, 2003 at 10:00 a.m.
in the Conference Center, Holiday Inn
Express, 2121 E. Main Street, Cortez, Colorado, after giving Notice of
hearing as required by law, on the application of Gunnison Energy Corporation,
for an order granting a variance extending the time within which Gunnison
Energy Corporation may commence operations on four wells.
The
Commission finds as follows:
1. Gunnison Energy Corporation (“GEC”), as
applicant herein is an interested party in the subject matter of the
above-referenced hearing.
2. Due notice of the time, place and purpose of
the hearing has been given in all respects as required by law.
3. The Commission has jurisdiction over the
subject matter embraced in said notice and of the parties interested therein,
and jurisdiction to promulgate the hereinafter prescribed order.
4. On June 10, 2002, GEC filed with the Colorado
Oil and Gas Conservation Commission (“COGCC”) an Application for Permit to
Drill (“APD”) the Spaulding Peak #1 Well.
On
5. The APDs complied in all respects with the
rules and regulations of the COGCC. GEC
subsequently submitted amended APDs discussing additional information requested
by the COGCC staff. In further compliance
with the rules and regulations of the COGCC, GEC served
6. On
7. The APDs for the
8. On
9. On
10. The four APDs
previously approved by the COGCC are scheduled to expire on
11. On April 24, 2003, GEC, by its attorney,
filed with the Commission a verified application for an order or other approval
for a variance under Rule 502.b.(1) to Rule 303.h. extending
the time within which GEC may commence operations on the Spaudling
Peak #1 Well, the Dever Creek #1 Well and the Lone
Pine #1 Well from July 3, 2003 until July 3, 2004 and on the Stevens Gulch #1
Well from July 15, 2003 until July 15, 2004.
12. Testimony presented at the hearing indicated
that no material change in the APDs or the approved
drilling and reclamation plans have been made to render the APDs
outdated.
13. The Commission finds that in accordance with
§34-60-108(7) if no protest to the granting of a verified petition has been
made, an order based upon the facts in the verified petition may be entered,
without the necessity of taking testimony or the making of a record.
14. The Commission finds that the granting of a
variance under Rule 502.b.(1) to Rule 303.h. does not
violate the basic intent of the Oil and Gas Conservation Act and the
application should be approved.
NOW,
THEREFORE IT IS ORDERED that a variance in accordance with 502.b.(1) is hereby
granted extending the time within which Gunnison Energy Corporation may
commence operations on the Spaudling Peak #1 Well, the Dever Creek #1 Well and
the Lone Pine #1 Well to July 3, 2004 and the Stevens Gulch #1 Well to July 15,
2004.
IT IS FURTHER ORDERED,
that the provisions contained in the above orders shall become effective
forthwith.
IT IS FURTHER ORDERED,
that the Commission expressly reserves its right, after notice and hearing, to
alter, amend or repeal any and/or all of the above orders.
ENTERED this day of June, 2003, as of
OIL
AND GAS CONSERVATION COMMISSION
OF
THE STATE OF
By__________________________________________
Patricia
C. Beaver, Secretary
Dated at