BEFORE THE OIL AND GAS CONSERVATION COMMISSION

                                                 OF THE STATE OF COLORADO

 

IN THE MATTER OF THE APPLICATION OF               )

CALPINE NATURAL GAS COMPANY                            )           Cause No. 191

TO VACATE PRIOR SPACING ORDER IN THE           )

MAM CREEK FIELD, MESAVERDE FORMATION,    )           Docket No.

GARFIELD COUNTY, COLORADO                                 )

 

                                                                 APPLICATION

 

Calpine Natural Gas Company (“Calpine”) by and through its attorneys, Welborn Sullivan Meck & Tooley, P.C., respectfully requests the Colorado Oil & Gas Conservation Commission (the “Commission”) vacate the existing Order which established 640-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Mesaverde formation, including but not limited to the Cozzette and Corcoran formations, underlying the following lands (the “Lands”).

 

Township 6 South, Range 92 West, 6^th P.M.

Section 23:  All

 

In support of this Application, Calpine states as follows:

 

1.                  Calpine is authorized to do business in Colorado.

 

2.                  Calpine owns leasehold interests in the Lands.

 

3.                  By Order No. 191-3 dated August 18, 1982 and Order No. 191-4 dated March 10, 1994, the Commission established 640-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Mesaverde formation, including, but not limited to the Cozzette and Corcoran formations, underlying the Lands and other lands, known as the Mam Creek Field.

 

4.                  Commission records indicate that no wells have been drilled and currently produce in the Lands.

 

5.                  Geological and engineering data acquired by Calpine, including production data from the Friport 14-22 well located in Section 22 of Township 6 South, Range 92 West,  indicate that one well is not sufficient to efficiently and economically recover gas and associated hydrocarbons from the Mesaverde formation underlying an entire section.

 

6.                  Calpine’s geologic and engineering data indicate that 40 acres is not smaller that the maximum area that can be efficiently and economically drained by one well.

 

7.                  In Order Nos. 191-3 and 191-4 the Commission reserved the right to alter, amend or repeal all or any part of its Order.  The Commission is authorized to change spacing orders if the evidence does not support the spacing established by a previous order.

 

8.                  Calpine proposes that the Commission vacate Order Nos. 191-3 and 191-4 and allow the location of wells to produce gas and associated hydrocarbons from the Mesaverde formation, including but not limited to the Cozzette and Corcoran formations, subject to Commission Rule 318.  Calpine also proposes that the Director of the Commission be allowed to grant exceptions to the well location requirement in accordance with both Rule 318 and previous orders in Cause No. 191.

 

9.                  Calpine believes that granting this Application would (1) not be prejudicial to the owners of the Lands; (2) maintain and protect the correlative rights of all parties; (3) prevent or assist in preventing waste; (4) not result in an owner obtaining more than its just and equitable share of production from the pool; and (5) insure that gas and associated hydrocarbons from the Mesaverde formation, including but not limited to the Cozzette and Corcoran formations are efficiently and economically developed.

 

10.              Calpine and EnCana Oil & Gas (USA) Inc. are the only working interest owners in the Lands and there are no unleased mineral owners in the Lands.  A copy of this application has been mailed to Mr. Doug Jones at EnCana Oil & Gas (USA) Inc. at 950 ‑ 17th Street, Suite 2600, Denver  80202.

 

WHEREFORE, Calpine Natural Gas Company respectfully requests this matter be set for hearing, that notice be given as required by law, that an informal administrative hearing be conducted by an examiner in the event there are no protests to this Application, and that upon such hearing the Commission issue an order granting the Application requested herein.  Calpine further requests that the Commission in it order grant such other provisions as the Commission may find necessary or desirable in this matter.

 

Respectfully submitted this 10th day of October, 2002.

 

WELBORN SULLIVAN MECK & TOOLEY, P.C.

 

 

By:       ____________________________________

Stephen J. Sullivan

821 17^th Street, Suite 500

Denver, CO 80203

Telephone:  303-830-2500

Applicant’s Address:

Calpine Natural Gas Company

1200 17^th Street, Suite 770

Denver, Colorado 80202

Telephone: (303) 359-9144

                                                                VERIFICATION

 

STATE OF COLORADO                   )

CITY AND                                          ) ss

COUNTY OF DENVER                     )

 

Gerald T. Sullivan, of lawful age, being first duly sworn upon oath, deposes and says that he is the Senior Landman for Calpine Natural Gas Company, that he has read the foregoing Application and that the matters therein contained are true to the best of his knowledge and belief.

 

 

CALPINE NATURAL GAS COMPANY

 

 

By:       _________________________________

Gerald T. Sullivan

 

Subscribed and sworn before me this ____ day of October, 2002.

 

Witness my hand and official seal.

 

My commission expires: ____________________________

 

 

_________________________________

Notary Public

 

 

 

CERTIFICATE OF SERVICE

 

I hereby certify that on October ___, 2002, a true and correct copy of APPLICATION OF CALPINE NATURAL GAS COMPANY TO VACATE PRIOR SPACING ORDER, MAM CREEK FIELD, GARFIELD COUNTY, COLORADO was mailed, postage prepaid, addressed to EnCana Oil & Gas (USA) Inc. at 950 ‑ 17th Street, Suite 2600, Denver  80202

 

 

 

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