BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

 

IN THE MATTER OF THE PROMULGATION                                )           CAUSE NO.      112

AND ESTABLISHMENT OF FIELD RULES TO                             )

GOVERN OPERATIONS IN THE IGNACIO-BLANCO                    )           DOCKET NO.    0407-GA-03

FIELD, LA PLATA COUNTY, COLORADO                                   )          

                                                                                                     

            NOTICE OF HEARING

 

TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:

 

            On June 15, 1988, the Commission issued Order No. 112-60 which established 320-acre drilling and spacing units for the production of gas and associated hydrocarbons from the Fruitland coal seams, underlying certain lands in the Ignacio-Blanco Field, with the permitted well when north of the north line of Township 32 North to be located in the NW¼ and the SE¼ of each section and when south of the north line of Township 32 North to be located in the NE¼ and SW¼ of each section, no closer than 990 feet from the boundaries of the quarter section, nor closer than 130 feet to any interior quarter section line.  Section 17, Township 32 North, Range 6 West, N.M.P.M. was included in this order.

 

            On July 28, 2000 (amended November 19, 2001), the Commission issued Order No. 112-157 which allowed an optional additional well to be drilled in certain 320-acre drilling and spacing units, including Section 17, Township 32 North, Range 6 West, N.M.P.M., for production from the Fruitland Coal seams, with permitted wells to be located in any undrilled quarter section no closer than 990 feet to any outer boundary of the unit nor closer than 130 feet to any interior quarter section line. 

 

             On February 13, 2004, McElvain Oil & Gas Properties, Inc. (“McElvain”) filed with the Commission an Application for Permit-to-Drill the Payne No. 1 Well located in the NW¼ NE¼ of Section 17, Township 32 North, Range 6 West, N.M.P.M.  The surface location of the Well was authorized by the Colorado Oil and Gas Conservation Commission through Permit No. 20040352 dated March 12, 2004.

 

            On April 7, 2004, the La Plata County Planning Department issued a conditional permit for the Payne No. 1 Well requiring, among other things, visual and sound mitigation through the installation of a low profile pumping device six (6) months after the first date of production, the use of electricity to power any motors (engines) at the site with the exception of motors used for drilling, periodic or temporary maintenance or recompletion, and the burial of any associated electrical lines.  McElvain believes that compliance with the County directive will cause waste as prohibited by §34-60-107 and §34-60-117, C.R.S. since it will significantly inhibit or limit production from this well and will violate waste prevention as defined in §13-60-103(12), (13)(a) and (b)., C.R.S. 

 

            NOTICE IS HEREBY GIVEN, that the Oil and Gas Conservation Commission of the State of Colorado, pursuant to the above, has scheduled the above-entitled matter for hearing on:

 

                        Date:                                        Monday, July 12, 2004

 

                        Time:                                        9:00 a.m.

 

Place:                                       Suite 801, The Chancery Building

                                                1120 Lincoln Street

                                                Denver, CO 80203

 

            In accordance with the Americans with Disabilities Act, if any party requires special accommodations as a result of a disability for this hearing, please contact Audra Serlet at (303) 894-2100 ext. 114, prior to the hearing and arrangements will be made.

 

            Pursuant to said hearing in the above-entitled matter at the time and place aforesaid, or at any adjourned meeting, the Commission will enter such orders as it deems appropriate to protect the health, safety and welfare of the public and to prevent the waste of oil and gas, either or both, in the operations of said field, and to carry out the purposes of the statute.

 

            In accordance with Rule 509., any interested party desiring to protest the granting of the application or to intervene on the application should file with the Commission a written protest or intervention no later than June 28, 2004, briefly stating the basis of the protest or intervention.  Such interested party shall, at the same time, serve a copy of the protest or intervention to the person filing the application.  An original and nine (9) copies shall be filed with the Commission (Rule 503.f.).  Anyone who files a protest or intervention must be able to participate in a prehearing conference during the week of June 28, 2004.  Pursuant to Rule 503.e., if a party who has received notice under Rule 503.b. wishes to receive further pleadings in the above-referenced matter, that party must file a protest or intervention in accordance with these rules.  In accordance with the practices of the Commission, should no protests or interventions be filed in this matter by June 28, 2004, the Applicant may request that an administrative hearing be scheduled for the week of June 28, 2004.

 

 

                        IN THE NAME OF THE STATE OF COLORADO

 

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                            OF THE STATE OF COLORADO

 

 

                                                                        By_____________________________________

                                                                                      Patricia C. Beaver, Secretary

 

 

Dated at Suite 801                                             Attorney for Applicant:

1120 Lincoln Street                                            Michael J. Wozniak

Denver, Colorado 80203                                      Dorsey & Whitney LLP

June 4, 2004                                                      370 17th Street, Suite 4700

                                                                        Denver, CO 80202

                                                                        (303) 629-3400