BEFORE THE OIL AND GAS CONSERVATION COMMISSION

OF THE STATE OF COLORADO

                                                                                               

IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS IN THE CLIFF FIELD, LOGAN COUNTY, COLORADO              

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CAUSE NO. 511

 

ORDER NO. 511-3

 

REPORT OF THE COMMISSION

 

This cause came on for hearing before the Commission at 9:00 a.m. on March 22, 2005, in Room 201, Las Animas County Courthouse, 200 East First Street, Trinidad, Colorado for an order to rescind the lands subject to the provisions of the Cliff “D” Sand Unit Agreement and place the lands under the Rules and Regulations of the Colorado Oil and Gas Conservation Commission:

                       

FINDINGS

 

            The Commission finds as follows:

 

            1.  On May 16, 1994, the Commission issued Order No. 511-1, which created the Cliff “D” Sand Unit Agreement and Unit Operating Agreement for the below-listed lands:

 

Township 11 North, Range 54 West, 6th P.M.

Section 4:  All

Section 5:  All

Section 8:  NE¼ NW¼, N½ NE¼

Section 9:  N½ N½

 

Township 12 North, Range 54 West, 6th P.M.

Section 28:  W½, SE¼

Section 29:  E½, SW¼

Section 32:  All

Section 33:  All

 

            2.  On December 4, 2000, the Commission issued Order No. 511-2, which deleted the below-listed lands from Order No. 511-1 and placed the lands under the Rules and Regulations of the Colorado Oil and Gas Conservation Commission:

 

                                                            Township 11 North, Range 54 West, 6th P.M.

                                                            Section 4:  S½

                                                            Section 9:  N½ N½

 

3.  On February 7, 2005, L.R. Thompson and Julia Casement Campbell, by their attorney, filed with the Commission a verified application for an order to rescind the below-listed lands from the provisions of the Cliff “D” Sand Unit Agreement and place the lands under the Rules and Regulations of the Colorado Oil and Gas Conservation Commission:

 

                                                Township 11 North, Range 54 West, 6th P.M.

                                                Section 4:  N½

                                                Section 5:  All

                                                Section 8:  NE¼ NW¼, N½ NE¼

 

                                                Township 12 North, Range 54 West, 6th P.M.

                                                Section 28:  W½, SE¼

                                                Section 29:  E½, SW¼

                                                Section 32:  All

                                                            Section 33:  All

 

4.  Testimony and exhibits presented at the administrative hearing indicated that Dowd Land Company wanted to lease Thompson/Campbell minerals and because the lands were subject to the Cliff “D” Sand Unit, assistance was offered to Mr. Thompson and Ms. Campbell in getting the lands removed from the unit. 

 

5.  Testimony and exhibits presented at the administrative hearing indicated that Dowd Land Company provided the list of parties previously noticed for the establishment of the unit to a landman who researched the records to update the information, and on February 11, 2005 copies of the application were sent to all of the parties.  No protests to the application have been received.

 

            6.  Testimony and exhibits presented at the administrative hearing indicated that three (3) wells currently produce in the NW¼ of Section 33, Township 12 North, Range 54 West, 6th P.M., and that royalties from these wells will be paid on a lease basis.

 

            7.  The approval of the application would remove the lands from an unnecessary Order, allowing additional wells to be drilled in an area where no activity has occurred for many years, in hopes that production of gas from the “D” Sand Formation can be obtained in the application lands.

 

            8.  L. R. Thompson and Julia Casement Campbell agree to be bound by oral order of the Commission.

 

            9.  Based on the facts stated in the verified application, having received no protests to the application and having been heard by the Hearing Officer who recommended approval, the Commission should enter an order to rescind Order No. 511-1 to remove the lands listed in Finding No. 3 from the provisions of the Cliff “D” Sand Unit Agreement and place the lands under the Rules and Regulations of the Colorado Oil and Gas Conservation Commission

 

ORDER

 

NOW, THEREFORE IT IS ORDERED, that Order No. 511-1 is hereby rescinded and the below-listed lands are hereby placed under the provision of the Rules and Regulations of the Colorado Oil and Gas Conservation Commission:

 

                                                Township 11 North, Range 54 West, 6th P.M.

                                                Section 4:  N½

                                                Section 5:  All

                                                Section 8:  NE¼ NW¼, N½ NE¼

 

                                                Township 12 North, Range 54 West, 6th P.M.

                                                Section 28:  W½, SE¼

                                                Section 29:  E½, SW¼

                                                Section 32:  All

                                                            Section 33:  All

 

            IT IS FURTHER ORDERED, that the provisions contained in the above order shall become effective forthwith.

 

            IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.

 

            IT IS FURTHER ORDERED, that under the State Administrative Procedure Act the Commission considers this order to be final agency action for purposes of judicial review within thirty (30) days after the date this order is mailed by the Commission.

 

            IT IS FURTHER ORDERED, that an application for reconsideration by the Commission of this order is not required prior to the filing for judicial review.

 

 

            ENTERED this                  day of April, 2005, as of March 22, 2005.

 

                       

                                                                        OIL AND GAS CONSERVATION COMMISSION

                                                                           OF THE STATE OF COLORADO

 

 

                                                                        By                                                                               

                                                                                   Patricia C. Beaver, Secretary

Dated at Suite 801

1120 Lincoln Street

Denver, Colorado 80203

April 4, 2005