BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

 

IN THE MATTER OF THE PROMULGATION )

AND ESTABLISHMENT OF FIELD RULES  )    CAUSE NO. 489

TO GOVERN OPERATIONS IN THE       )

BUFFALO GRASS FIELD, YUMA COUNTY, )    DOCKET NO. ____

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 other owners of oil and gas leasehold interests within the Buffalo Grass Field, Yuma County, Colorado.

 

II

 

     In Cause No. 489 by Order No. 489-1, 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 Buffalo Grass Field, Yuma County, Colorado:

 

          Township 4 North, Range 47 West, 6th P.M.

          Section 22:  All

          Section 23:  All

          Section 26:  All

          Section 27:  All

          Section 34:  All

          Section 35:  All

 

Said Order provided that said drilling and spacing units shall consist of one hundred sixty (160) acres, and each such drilling and spacing unit shall consist of a quarter section, according to the governmental survey thereof, and that the permitted well for each such drilling and spacing unit shall be located no closer than 900 feet from the boundaries of the quarter section upon which the well is located with a tolerance of one hundred feet in any direction. 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 well is located.

 

III

 

     The Commission in Cause No. 489 by Order No. 489-5 amended Order No. 489-1 to allow one additional well to be drilled on each 160-acre drilling and spacing unit at the option of the Operator for the production of gas and associated hydrocarbons from the Niobrara Formation. It further provided that subsequent wells shall be located no closer than 560 feet from the outer boundaries of said 160-acre drilling and spacing unit.

 

IV

 

     Subsequent geologic, production and test data in the area spaced by Order No. 489 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 Buffalo Grass Field. In order to efficiently and economically drain the 160-acre drilling and spacing units within the Buffalo Grass Field, 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 shall be located no closer than 560 feet from the outer boundaries of said 160-acre drilling and spacing units.

 

V

 

     In order to prevent waste, to protect correlative rights, to ensure proper and efficient development of the Buffalo Grass Field 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 Buffalo Grass Field area; and providing

 

(2)  that the additional well or wells be located upon any undrilled quarter-quarter section within the spacing unit; and further providing

 

     (3)  that any well or wells drilled on a drilling and spacing unit subsequent to the issuance of this Order be located no closer than 560 feet to the outer boundaries of said unit.

 

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 April, 2003.

 

                             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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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