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, 6th P.M.

Section 35:  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.                  In Order No. 191-6, Docket No. 0212-SP-14, the Commission removed Section 23, Township 6 South, Range 92 West, from the provisions of Order Nos. 191-3 and 191-4 and confirmed oil and gas operations on those lands would be subject to the Rules and Regulations of the Commission, including Rule 318 for well locations.

 

9.                  Calpine proposes that the Commission vacate Order Nos. 191-3 and 191-4 insofar as they apply to the Lands 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.

 

10.              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.

 

11.              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.

 

12.              Calpine and EnCana Oil & Gas (USA) Inc. are the only working interest 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.  The unleased mineral owners within the lands are described in Exhibit A to this Application.

 

13.              No later than seven days after this Application is filed with the Commission Calpine shall submit to the Commission a certificate of service demonstrating that it has mailed a copy of this Application to all persons entitled to notice pursuant to the Rules and Regulations of the Commission.

 

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 3rd day of March, 2003.

 

WELBORN SULLIVAN MECK & TOOLEY, P.C.

 

 

By:       ____________________________________

Stephen J. Sullivan

821 17th Street, Suite 500

Denver, CO 80203

Telephone:  303-830-2500

Applicant’s Address:

Calpine Natural Gas Company

1200 17th 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 3rd day of March, 2003.

 

Witness my hand and official seal.

 

My commission expires: ____________________________

 

 

_________________________________

Notary Public

EXHIBIT A

UNLEASED MINERAL INTEREST OWNERS

 

Daniel and Michelle Schirer

531 County Road 326

Silt, CO 81652

 

William M. Smith and Patricia A. Smith

795 County Road 326

Silt, CO 81652

 

Richard L. Williams and Kaethe Ellis-Williams

1037 County Road 326

Silt, CO 81652

 

May Kwok-Keating

PO Box 3358

Englewood, CO 80155

 

Harold R. Smith, Jr. and Linda L. Smith

546 County Road 326

Silt, CO 81652

 

Russell L. Dahlin

840 County Road 326

Silt, CO 81652

 

Kelly R. and Karen Protz

438 East 7th Street

Rifle, CO 81650

CERTIFICATE OF SERVICE

 

I hereby certify that on March ___, 2003, 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 the following parties:

 

EnCana Oil & Gas (USA) Inc.

950 ‑ 17th Street, Suite 2600

Denver  80202

Attn. Mr. Doug Jones

 

Daniel and Michelle Schirer

531 County Road 326

Silt, CO 81652

 

William M. Smith and Patricia A. Smith

795 County Road 326

Silt, CO 81652

 

Richard L. Williams and Kaethe Ellis-Williams

1037 County Road 326

Silt, CO 81652

 

May Kwok-Keating

PO Box 3358

Englewood, CO 80155

 

Harold R. Smith, Jr. and Linda L. Smith

546 County Road 326

Silt, CO 81652

 

Russell L. Dahlin

840 County Road 326

Silt, CO 81652

 

Kelly R. and Karen Protz

438 East 7th Street

Rifle, CO 81650

____________________________________