BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE APPLICATION OF TYLER ROCKIES EXPLORATION, LTD. FOR AN ORDER RESCINDING THE FIELD RULES FOR THE PEORIA FIELD IN THE W/2 OF SECTION 10, TOWNSHIP 5 SOUTH, RANGE 60 WEST, 6TH P.M., ARAPAHOE COUNTY, COLORADO

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CAUSE NO. 226

DOCKET NO. _____________

 

 

APPLICATION

 

            COMES NOW Applicant, TYLER ROCKIES EXPLORATION, LTD., by and through its attorneys, Burns, Wall, Smith and Mueller, P.C., and in support of this Application, states and alleges as follows:

 

1.                  The lands subject to this Application (the “Subject Lands”) are the following described lands in Arapahoe County, Colorado, to wit:

 

Township 5 South, Range 60 West, 6th P.M.

Section 10:  W/2

 

2.                  On February 16, 1971, the Commission issued Order No. 226-8, which established 80-acre drilling and spacing units for production of oil from the Muddy “J” Sand formation underlying the following described lands in Arapahoe County, Colorado, to wit:

 

Township 4 South, Range 60 West, 6th P.M.

Sections 19, 20, 22: S/2, 27, 28, 29, 30, 31, 32, 33 and 34

 

Township 4 South, Range 61 West, 6th P.M. Sections 24, 26 and 36

 

Township 5 South, Range 60 West, 6th P.M. Sections 3, 4, 5, 6, 8, 9 and 10

 

Township 5 South, Range 61 West, 6th P.M.

Section 1: All

 

3.                  On August 15, 1983, the Commission issued Order No. 233-5, which amended Order No. 233-1 by deleting certain lands from those previously established for the production of oil and associated hydrocarbons from the Muddy “J” Sand.  The provisions of Cause No. 233 established 80-acre drilling and spacing units which consist of the E/2 and W/2 or N/2 and S/2 of each quarter section and the permitted well located in the center of the NE/4 and SW/4 of each quarter section with the tolerance of 200 feet for all the described lands in Arapahoe County, Colorado to wit:

Township 4 South, Range 60 West, 6th P.M. Sections 10, 15 and 12: N/2

 

4.                  On May 21, 1990, the Commission issued Order No. 226-21 and 233-6, which deleted lands from the provisions of Order Nos. 226-1, 226-8 and 233-3 as applicable to the Muddy “J” Sand formation and providing such lands be subject to the Rules and Regulations of the Commission, for the following described lands in Arapahoe County, Colorado, to wit:

 

Township 4 South, Range 90 West, 6th P.M.

Sections 9, 10, 11, 12, 14, 15: E/2, 16: N/2, SE/4, 19:W/2, 21: NE/4NW/4, NE/4, N/2SW/4, S/2NW/4, SE/4SE/4, N/2SE/4, 24, 25, 26, 27, 34: E/2, 35 and 36

 

5.                  Only limited exploration and development has occurred outside the Peoria Unit with three wells currently capable of production of oil and associated hydrocarbons from the Muddy “J” Sand formation in the Unit.  Available engineering and geological information indicates the Subject Lands can be efficiently and economically developed pursuant to Rule 318, as modified hereby.

 

6.                  Rescinding the field rules for the Peoria Field for the Subject Lands and allowing such lands to be developed pursuant to Rule 318 would be the most efficient, economical and proper method of developing such lands for oil production from the Muddy “J” Sand formation in the future; provided however, that there be a tolerance of 200 feet in the well location distances of Rule 318 to accommodate surface features and to provide sufficient flexibility for the location of wells while still allowing one well for approximately every 40 acres.  Further development of the Subject Lands under Rule 318, as modified, will do away with the need for Applicant and others to apply to the Commission on a drilling unit-by-drilling unit basis to drill wells in accordance with spacing requirements of the Peoria Field.

 

7.                  Rescinding the field rules for the Peoria Field as to the Subject Lands and de-spacing the same is necessary to protect the correlative rights, to prevent the waste of oil and associated hydrocarbons, and to maximize recovery of oil and associated hydrocarbons from the Muddy “J” Sand formation.

 

8.                  To the best of Applicant’s knowledge, information and belief, the persons set forth in the Certificate of Mailing attached hereto and made a part hereof are the only interested parties in the Subject Lands.

 

            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 following such hearing the Commission issue its order:

 

(a)             Rescinding the field rules for the Peoria Field as to the Subject Lands and despacing the same as to the Subject Lands;

(b)            Providing that further development of the Muddy “J” Sand formation common source supply for oil and associated hydrocarbons in the Peoria Field as to the Subject Lands will take place pursuant to Commission Rule 318, as modified hereby;

(c)             Providing that there will be a tolerance of 200 feet in the location of each well on a 40-acre tract to accommodate surface features and to provide sufficient flexibility to allow one well for approximately every 40 acres; and

(d)            For such other and further relief as the Commission deems appropriate.

 

            DATED this                  day of April 2004.

 

Respectfully submitted,

 

BURNS, WALL, SMITH AND MUELLER, P.C.

 

By                                                                               

Peter J. Wall, #4158

303 East 17th Avenue, Suite 800

Denver, Colorado 80203

Telephone: (303) 830-7000

Facsimile: (303) 830-6708

 

Attorneys for Applicant

TYLER ROCKIES EXPLORATION, LTD.

Address of Applicant:

Tyler Rockies Exploration, Ltd.

P.O. Box 689

Tyler, Texas 75710

AFFIDAVIT OF VERIFICATION

 

 

STATE OF COLORADO                   )

                                                            )ss.

CITY AND COUNTY OF DENVER)

 

            The undersigned J.M. Abell, Agent for Tyler Rockies Exploration, Ltd., upon oath, states that he has read the foregoing Application and the statements contained therein are true and correct to the best of his information, knowledge and belief.

 

            DATED this                  day of April 2004.

 

 

 

                                                                                   

J.M. Abell, Agent for

TYLER ROCKIES EXPLORATION, LTD.

 

 

            Subscribed and sworn to before me this             day of April 2004, by J.M. Abell, Agent for Tyler Rockies Exploration, Ltd.

 

            Witness my hand and official seal.

 

                                                                       

Notary Public

My Commission Expires:

                                               


CERTIFICATE OF MAILING

 

            A copy of the foregoing Application has been sent to the parties listed below by placing said copy in the United States Mail, postage pre-paid, this                     day of April 2004.

 

Clarence G. and Susan L. Eldringhoff

P.O. Box 314

Deer Trail, Colorado 80105

 

Timothy J. Kelly

Colorado State Board of Land Commissioners

1313 Sherman Street, Room 621

Denver, Colorado 80203

 

Anadarko Land Corp.

P.O. Box 9149

The Woodlands, Texas 77387-9147

 

United States Exploration, Inc.

1500 Poly Drive, Suite 100

Billings, Montana 59102

 

Anadarko E&P Company LP

P.O. Box 9149

The Woodlands, Texas 77387-9147

 

 

                                                                       

Melinda M. Perez