BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE
MATTER OF THE APPLICATION OF )
LARAMIE ENERGY, LLC ) CAUSE NO. 429
BRUSH CREEK FIELD )
MESA COUNTY, COLORADO ) DOCKET NO. ____
VERIFIED APPLICATION
COMES NOW, the Applicant, Laramie
Energy, LLC, by and through its attorneys, Poulson, Odell & Peterson, LLC,
and makes application to the Oil and Gas Conservation Commission of the State
of Colorado for an order to permit, at the option of the operator, additional
wells to be drilled in certain drilling and spacing units in the Brush Creek
Field in Mesa County, Colorado. In
support thereof, Laramie Energy, LLC states as follows:
APPLICATION LANDS
I
Applicant is the owner of oil and
gas leases and the operator of wells producing from the Mesaverde Formation in
the Brush Creek Field in the following described lands:
Township 9 South,
Range 94 West, 6th P.M.
Section 2: All
Section 11: All
Section 12: All
Section 13: All
Section 14: All
These
lands are referred to as the Application Lands.
EXISTING ORDER
II
By Cause No. 429, Order No. 429-1
dated May 30, 1985, as of May 20, 1985, the Oil and Gas Conservation Commission
established drilling and spacing units
in the Application Lands, among other lands, for production of gas and
associated hydrocarbons from the Mesaverde Formation (including the
Cozzette-Corcoran Sandstones). The order
establishes drilling and spacing units of 160-acres to consist of a
quarter-section of land for the production of gas and associated hydrocarbons
from the Mesaverde Formation. The order
provides that the permitted wells are to be located no closer than 600 feet
from the quarter-section lines. The
order states that wells in the area designated as the Brush Creek Field
producing or producible at the time of the order are designated as the
permitted wells for the unit on which they are located.
APPLICATION
III
Subsequent operations of the wells producing from the Mesaverde Formation in the Application Lands have provided geological and engineering evidence to the effect that in the Application Lands one well producing from the Mesaverde Formation will not efficiently and economically drain an area of 160 acres. Based upon Applicant’s analysis of existing data, Applicant asserts that up to four wells may be required in each such drilling and spacing unit to drain the Mesaverde Formation efficiently and economically. Applicant requests that, at the option of the operator, three additional wells be permitted to be drilled to and completed in the Mesaverde Formation in each 160-acre drilling and spacing unit in the Application Lands, with the result that up to four wells can be drilled to and completed in the Mesaverde Formation in each drilling and spacing unit in the Application Lands. Applicant alleges that each such drilling and spacing unit is not smaller than the maximum area that can be efficiently and economically drained by four wells producing from the Mesaverde Formation, and that the correlative rights of all parties will be protected. Applicant further alleges that the additional wells may be drilled in a manner consistent with the protection of public health, safety and welfare.
IV
To
prevent waste, to protect correlative rights, to ensure the proper and
efficient development of the Mesaverde Formation
in the Application Lands, and to ensure the greatest ultimate recovery of gas
and associated hydrocarbon substances from the Mesaverde Formation in the
Application Lands, Applicant requests that, after notice and hearing as
provided by law, the Commission issue its order providing that, at the option
of the operator, four wells may be drilled to and completed in the Mesaverde
Formation in each 160-acre drilling and spacing unit in the Application Lands.
GENERAL PROVISIONS
V
Applicant states that to the best of
its information and belief Exhibit A attached to this Verified Application is
the list of the names of owners required to be notified in accordance with
Commission Rule 507 covering the Application Lands.
VI
WHEREFORE, Applicant respectfully
requests that this matter be set for hearing by the Commission; that notice
hereof be given as required by law; and that upon hearing this Commission issue
its order granting this Application as requested. 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 29th day of June, 2004.
Respectfully
submitted,
Laramie
Energy, LLC
BY:________________________________
Carleton
L. Ekberg, Esq.
Poulson,
Odell & Peterson, LLC
1775
Sherman Street, Suite 1400
Denver,
Colorado 80203
(303)
861-4400
Applicant's Address:
Laramie Energy, LLC
730 17th Street, Suite
405
Denver, Colorado 80202
STATE OF COLORADO )
) ss.
COUNTY OF DENVER )
Kenneth G. Leis, Land Manager of Laramie Energy, LLC, upon oath, deposes and says that he has read the foregoing Verified Application before the Oil and Gas Conservation Commission of the State of Colorado, and states that the matters contained therein are true to the best of his knowledge and believe.
Kenneth G. Leis
Subscribed to and sworn to before me this ______ day of June, 2004 by Kenneth G. Leis, Land Manager of Laramie Energy, LLC.
My Commission expires:
Notary Public
Address