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 OPERATIONS IN THE ) CAUSE NO. 328
WAVERLY
FIELD (OUTSIDE AREA), ) ORDER NO. ____
YUMA
COUNTY, COLORADO )
VERIFIED
APPLICATION
COMES NOW, the Applicant, J-W Operating
Company, by and through its attorneys, Poulson, Odell & Peterson, LLC, and
respectfully petitions the Oil and Gas Conservation Commission of the State of
Colorado as follows:
I
Applicant is the operator of certain oil and
gas leases and is acting for and on behalf of itself and certain of the owners
of oil and gas leasehold interests within the Waverly Field (Outside Area),
Yuma County, Colorado.
II
In Cause No. 328 by Order No. 328-3, the
Commission established 160-acre drilling and spacing units for the production
of gas and associated hydrocarbons from the Niobrara Formation underlying the
following described lands in the Waverly Field, Yuma County, Colorado:
Township 3 North, Range 46 West, 6th P.M.
Section
6: All
Township 4 North, Range 46 West, 6th P.M.
Sections 8, 16, 17, 20, 21, 29, 30, 31
and 32: All
Said
Order provided that said drilling units shall consist of one hundred sixty
(160) acres, and each such drilling unit shall consist of a quarter section,
according to the governmental survey thereof, and that the permitted well shall
be located no closer than 900 feet from the boundaries of the quarter section
upon which the well is located. The Order further provided that the then
presently producing well or wells capable of producing shall be the permitted
wells for the units upon which each is located.
III
The Commission in Cause No. 328 by Order No.
328-5 (Corrected) established 160-acre drilling and spacing units for the
production of gas and associated hydrocarbons from the Niobrara Formation
underlying certain lands lying immediately adjacent to the area spaced by Order
No. 328-3. This area was designated as the Waverly Field (Outside Area) and
covered the following described lands:
Township 4 North, Range 46 West, 6th P.M.
Sections 2 through 7, 9, 10, 15, 18 and
19: All
Section 22:
W/2
Sections 28, 33 and 34: All
Rule
2 of Order No. 328-5
(Corrected) further provided as follows:
Said drilling units shall consist of
160-acres, more or less, and consist of a quarter section according to the
governmental survey. The permitted well shall be located in the center of
either the NW quarter-quarter section, or the SE quarter-quarter section, with
a tolerance of 100 feet in any direction. An additional well shall be allowed
to be drilled, at the option of the operator, and shall be located in the
center of the undrilled diagonal offset quarter-quarter section with a
tolerance of 100 feet in any direction. Existing wells producing gas and
associated hydrocarbons from the Niobrara formation shall be considered the
permitted wells for the units upon which they are located.
IV
Subsequent drilling and production
operations in the area spaced by Order No. 328-5 (Corrected) have given
geological and engineering evidence to the effect that two wells will not in
some cases adequately drain an area of 160 acres within the following described
area spaced by Order No. 328-5 (Corrected):
Township 4 North, Range 46 West, 6th P.M.
Section
9: All
Section 10:
All
In
order to adequately and efficiently drain the 160-acre drilling and spacing
units within the area described above, it is necessary that this Commission
grant an order allowing the drilling of two additional wells within each said
160-acre drilling and spacing unit. Said additional wells should be located in
the center of any undrilled quarter-quarter section with a tolerance of 100
feet in any direction for topographic or geological reasons.
V
In order to prevent waste, to protect
correlative rights, to ensure proper and efficient development of the Waverly
Field (Outside Area) and to assure the greatest ultimate recovery of gas and
associated hydrocarbons from the Niobrara Formation, Applicant requests as
follows. After notice and hearing as provided by law, for the Commission to:
(1) issue its order allowing the drilling of
an additional two wells upon each 160-acre drilling and spacing unit
encompassed within the following described area:
Township 4 North, Range 46 West, 6th P.M.
Section
9: All
Section 10:
All
(2) that the additional wells be located
upon any undrilled quarter-quarter section within the spacing unit at a
location in the center of each such quarter-quarter section with a tolerance of
100 feet for topographic or geological reasons.
VI
Applicant states to the best of its
information and belief that the "interested parties" and the owners
as defined in the Oil and Gas Conservation Act of the State of Colorado and the
Rules and Regulations of this Commission are listed by name and address on
Exhibit "A" attached hereto.
WHEREFORE, Applicant respectfully requests
that this matter be set for hearing by the Commission; that notice thereof be
given as required by law; and that upon such hearing this Commission issue its
order granting this Application as requested herein. Applicant further requests
that the Commission in its order grant such other provisions as the Commission
may find to be necessary or desirable in the cause.
DATED this ___ day of March, 2000.
Respectfully submitted,
J-W OPERATING COMPANY
BY:________________________________
William G. Odell, Esq.
Poulson, Odell & Peterson, LLC
1775 Sherman Street, Suite 1400
Denver, Colorado 80203
(303) 861-4400
Applicant's
Address:
J-W
Operating Company
Post
Office Box 226406
Dallas,
Texas 75222-6406
J:\ODELL\JWOP\OIL&GAS\WAVERLY.APP
EXHIBIT
"A"
ATTACHED
TO VERIFIED APPLICATION OF
J-W
OPERATING COMPANY
CAUSE
NO. 328
WAVERLY
FIELD
YUMA
COUNTY, COLORADO
Marion
Dallas Monk
1203
Melrose Drive
Richardson,
Texas 75080
Robert
J. Gutru L.P.
200
East 1st Street, Suite 307
Wichita,
Kansas 67202
Roy
Co.
1008
9th Street
Post
Office Box 632
Greeley,
Colorado 80632
Elmer
Lundvall Co.
1008
9th Street
Post
Office Box 632
Greeley,
Colorado 80632
John
Shupe, Elmer E. Lundvall
and Roy Lundvall
d/b/a
JER
1008
9th Street
Post
Office Box 632
Greeley,
Colorado 80632
Stelbar
Oil Corporation, Inc.
155
North Market, Suite 500
Wichita,
Kansas 67202
Yuma
County Oil Company
Post
Office Box 1447
1131
8th Avenue
Greeley,
Colorado 80631
Yuma
County
Board
of County Commissioners
Yuma
County Courthouse
Post
Office Box 467
Wray,
Colorado 80758
J-W
Operating Company
Post
Office Box 305
Wray,
Colorado 80758-0305
J-W
Operating Company
Post
Office Box 226406
Dallas,
Texas 75222-6406
William
G. Odell, Esq.
Poulson,
Odell & Peterson, LLC
1775
Sherman Street, Suite 1400
Denver,
Colorado 80203