BEFORE THE OIL AND GAS
CONSERVATION COMMISSION
OF
THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION )
OF FREEDOM ENERGY, INC. AND PRIMA ) CAUSE NO. 407
OIL & GAS COMPANY TO CERTAIN )
NON-CONSENTING INTERESTS UNDER )
SPACING ORDERS NOS. 407-1, ET SEQ., )
RELATING TO THE CODELL-NIOBRARA )
FORMATIONS COVERING CERTAIN LANDS )
LOCATED IN WELD COUNTY, COLORADO )
VERIFIED
APPLICATION
COMES NOW, the Applicant Prima Oil & Gas Company (“Prima”), by and through its attorneys, Bjork, Lindley, Danielson & Little, P.C., and
respectfully petitions the Oil and Gas Conservation Commission of the State of
Colorado as follows:
I
By virtue of certain Farmout Agreements
covering Oil and Gas Leases in which SOCO Wattenberg Corporation is the lessee, Applicant Prima is an “Owner” within the meaning of section 34-60-103(7) of
the Colorado Revised Statutes, of certain
rights to acquire oil and gas leasehold interests in lands described as
follows in all formations:
Township 5 North, Range 67 West, 6th P.M.
Section 2: E/2NW/4
containing 79.145
acres, more or less.
As such, Prima has the right to bring this Application pursuant to
section 34-60-116 of the Colorado Revised Statutes and Rule 503.b.(2) of the Rules and Regulations of the Colorado Oil and
Gas Conservation Commission.
II
This Commission in Cause No. 407 in
Orders Nos. 407‑1, et seq., (expressly referring to but not by way of
limitation, Orders Nos. 407‑1 and 407‑10) established 80‑acre
drilling and spacing units
for the production of
oil and/or gas and
associated hydrocarbons for the Codell and
Niobrara formations underlying certain lands located in Weld
County, Colorado, including the following described lands:
Township 5 North, Range 67 West, 6th P.M.
Section 2: All
Said Orders established drilling and
spacing units consisting of 80 acres, more or less, being the E/2 and the W/2
or the N/2 and S/2 of a governmental quarter section, the unit to be designated
by the operator upon drilling the first well in the quarter section. The permitted well is to be located in the
center of either 40‑acre tract within the unit with a tolerance of 200
feet in any direction. The operator
shall have the option to drill an additional well on the undrilled
40‑acre tract in each 80‑acre drilling and spacing unit.
III
As operator of a well proposed to be drilled, within the Subject
Lands, in accordance with the Commission’s Orders, Prima has
designated the E/2NW/4, Section 2, Township 5 North, Range 67 West as a
drilling and spacing unit.
Prima had made offers to all owners and interested parties within the
drilling unit to either purchase their interest or sign a Joint Operating
Agreement and participate in the drilling of a well within the drilling
unit. Although Prima has negotiated in
good faith and sent numerous notices to other lease owners and interested
parties, it has been unable to obtain agreement from all owners and interested
parties.
All owners and interested parties within the drilling unit are
designated on Exhibit A attached hereto.
IV
Applicant believes that the granting of this Application is necessary
for the prevention of waste, for the protection of correlative rights, to
assure the efficient and orderly development of the Sussex and the Codell-Niobrara common source of supply, and to avoid the
drilling of unnecessary wells.
V
Prima Oil respectfully request this
Commission enter an order providing that:
A. All interest within the
drilling unit comprised of the E/2NW/4, Section 2, Township 5 North, Range 67
West be pooled as to production from the Codell-Niobrara
formations.
B. That
the Pooling Order make provisions for the drilling of a well on the drilling
unit,
and for the operations thereof by Prima
& Oil & Gas Company.
C. That
the Pooling Order provide for the payment of the reasonable costs of the
drilling
and operation of the well, including a
reasonable charge for supervision and storage.
D. That
the Order determine the interest of each owner in the
drilling unit, as provided
on Exhibit B attached hereto, and provide
that each consenting owner be entitled to receive production attributable to
non-consenting owners in accordance with the provisions of section 34-60-116 of
the Colorado Revised Statutes.
VI
Attached hereto as Exhibit A are the names and addresses of all
interested parties as defined by the statutes and the rules of this Commission
who own interests and are entitled to receive notice within the area affected
by this Application.
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 14th day of April, 2003.
Respectfully submitted,
BJORK, LINDLEY, DANIELSON & LITTLE, P.C.
__________________________________________
Peter A. Bjork
Robert C. Mathes
1600 Stout Street, Suite 1400
Denver, Colorado 80203
Applicant's Address:
Prima
Oil & Gas Company
1099
18th Street
Suite
400
Denver,
CO 80202
VERIFICATION
STATE
OF COLORADO )
) ss.
COUNTY
OF DENVER )
Carol Myers upon oath,
deposes and says that she is a certified Landman with
of Applicant; that she has read the foregoing Verified Application before the
Oil and Gas Conservation Commission of the State of Colorado, and states that
the matters therein are true to the best of her knowledge and belief.
____________________________________
Carol Myers
Subscribed to and sworn to before me this
______ day of April, 2003, by Carol Myers as Landman
of Prima Oil & Gas Company.
My
Commission expires: ____________________________________
_________________________________ Notary Public
Address:_____________________________
_____________________________
EXHIBIT
A
Township 5 North, Range 67 West, 6th P.M.
Section 2: E/2 NW/4
Petroleum Development Corporation
Attention: Dewey Gerdom
2970 29th Street, Suite 18
Greeley, CO 80631
SOCO Wattenberg Corporation
c/o Patina Oil &
Gas Corporation
Attention: David Siple
1625 Broadway, Suite 2000
Denver, CO 80202
Shur View Ltd.
Partnership
4200 E. County Rd. 30
Fort Collins, CO 80528
Deborah J. Mitchell, as Trustee of the Eleanor
I. Johnson Revocable Trust
181 Ivy Street
Denver, CO 80220
Laurene Berger
Irrevocable Trust
c/o U.S. Bank, Natural
Resources
P.O. Box 17532
Denver, CO 80202
Bureau of Land Management
Royal Gorge Field Office
3170 East Main Street
Canon City, CO 81212
EXHIBIT
B
Oil and Gas Leasehold Interest:
As to the E1/2NW/1/4
Working Interest Net
Revenue Interest
Prima Oil & Gas Company .3235285
Petroleum Development Corporation .3160789
SOCO Wattenberg Corporation .2045297
Royalty Interest
Eleanor I. Johnson Revocable Trust .0383126
Laurene Berger
Irrevocable Trust .0212848
Shur View Limited
Partnership .0670470
U.S.A. .0292185
TOTAL 1.0000000