BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO SECOND AMENDED APPLICATION
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1 BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE AMENDED APPLICATION OF WILLIAMS PRODUCTION RMT COMPANY FOR AN ORDER ESTABLISHING SPACING AND WELL LOCATION RULES FOR THE WILLIAMS FORK FORMATION OF THE MESAVERDE GROUP FOR CERTAIN DESCRIBED LANDS IN THE GRAND VALLEY FIELD AREA, GARFIELD COUNTY, COLORADO CAUSE NO. DOCKET NO. SECOND AMENDED APPLICATION COMES NOW Williams Production RMT Company ("Applicant"), a Delaware corporation, by its attorneys Poulson, Odell & Peterson LLC, and makes an amended application to the Oil and Gas Conservation Commission of the State of Colorado for an order establishing spacing rules applicable to the drilling and producing of wells from the Williams Fork Formation of the Mesaverde Group covering certain described lands in the Grand Valley Field area, Garfield County, Colorado and in support of its application states and alleges as follows: 1. That Applicant is a corporation duly authorized to conduct business in the State of Colorado. 2. That Applicant owns a leasehold interest in a substantial portion of the following described lands: Township 7 South, Range 96 West, 6th P.M. Section 14: SW/4SE/4 Section 22: NE/4, SW/4 and SE/4 Section 23: NE/4, NW/4, SW/4 and SE/4 Section 26: NE/4 and NW/4 Section 27: NE/4, NW/4, SW/4 and SE/4 Section 34: E/2NE/4 Section 35: SW/4 (hereinafter collectively Application Lands ) 3. That the Application Lands are unspaced and subject to Rule 318 (formerly Rule 316) of the Commission as amended by the Commission s Order No in Cause No. 510 which allows permitted wells for the Williams Fork Formation of the Mesaverde Group to be located downhole no closer than 400 feet from the boundaries of any lease line and no closer than 800 feet from any existing Williams Fork well or wells. WAK\60379\
2 4. That to promote efficient drainage within the Williams Fork Formation of the Mesaverde Group within the Application Lands, the Commission should increase the number of wells which can be optionally drilled into and produced from the Williams Fork Formation of the Application Lands which constitute new drilling units (pursuant to the application of paragraph 5 below) or which are to remain unspaced (pursuant to paragraph 6 below) to the equivalent of one Williams Fork well per ten (10) acres. 5. That as to the following described Application Lands, the Commission shall order that approximate 160 acre drilling and spacing units be created for the production of gas and hydrocarbons from the Williams Fork Formation: Township 7 South, Range 96 West, 6 th P.M. Section 22: NE/4 Section 23: NE/4 Section 23: SW/4 Section 23: SE/4 Section 26: NE/4 Section 26: NW/4 Section 27: NE/4 Section 27: SW/4 Section 35: SW/4 6. That as to the following described Application Lands, the Commission shall order that approximate standup 80-acre drilling and spacing units be created for the production of gas and hydrocarbons from the Williams Fork Formation: Township 7 South, Range 96 West, 6 th P.M. Section 27: SE/4 7. That as to the balance of the Application Lands to remain unspaced, the Commission shall order that all future Williams Fork wells should be located downhole anywhere upon the Application Lands but no closer than 100 feet from the boundaries of any lease line unless such lease line abuts or corners lands in respect of which the Commission has not at the time of drilling permit application granted the right to drill ten (10) acre density wells in which event the wells should be drilled downhole no closer than 200 feet from the lease line
3 which so abuts or corners the lands in respect of which ten (10) acre density downhole drilling for Williams Fork wells has not been ordered by the Commission. 8. That as to all future Williams Fork wells to be drilled upon the Application Lands within drilling and spacing units (granted pursuant to this Application), the well should be located downhole anywhere in the drilling and spacing unit but no closer than 100 feet from the boundaries of the unit without exception being granted by the Commission. It is provided however that in cases where the Application Lands abut or corner lands in respect of which the Commission has not at the time of drilling permit application granted the right to drill ten (10) density Williams Fork wells, the well should be located downhole no closer than 200 feet from the boundary or boundaries of the drilling unit so abutting or cornering such lands without exception being granted by the Director of the Oil and Gas Conservation Commission. 9. That wells drilled under this Application will be drilled from the surface either vertically or directionally from no more than one pad located on a given quarter quarter section unless exception is granted by the Commission pursuant to application made requesting such exception. 10. The above-proposed well location rules will allow more efficient drainage of the Williams Fork Formation of the Mesaverde Group; will not promote waste; will not violate correlative rights and will assure the greatest ultimate recovery of gas and associated hydrocarbons from the reservoir. 11. That the names and addresses of the interested parties according to the information and belief of the Applicant are set forth in Exhibit A attached hereto and made a part hereof. WHEREFORE, Applicant respectfully requests that this matter be set for hearing in March, 2005, that notice be given as required by law and that upon such hearing this Commission enter its order consistent with Applicant's proposals as set forth above. Dated: February 16, POULSON, ODELL & PETERSON, LLC By: William A. Keefe Suite Sherman Street Denver, Colorado 80203
4 VERIFICATION STATE OF COLORADO ) ) ss. CITY AND COUNTY OF DENVER ) Chad E. Odegard, of lawful age, being first duly sworn upon oath, deposes and says that he is the Staff Petroleum Engineer for Williams Production RMT Company and that he has read the foregoing Application and that the matters therein contained are true to the best of his knowledge, information and belief. Chad E. Odegard Subscribed and sworn to before me this day of February, Witness my hand and official seal. My commission expires: Notary Public
5 EXHIBIT A ACRE APPLICATION NOTICE LIST BOSELY, ET AL Mark Bean, Garfield County Planner Garfield County Building & Planning 108 8th Street, Suite 201 Glenwood Springs, Colorado Bureau of Land Management Attn: Mr. Wayne Bankert 2815 "H" Road Grand Junction, CO Puckett Land Company and Desert Resources 5460 S. Quebec Street, Suite 250 Greenwood Village, CO Petroleum Development Company Attn: Mr. Eric Stearns, Vice-President P.O. Box 26 Bridgeport, WV ExxonMobil Oil Corporation and Exxon Mobil Corporation Attn: Mr. Brent Patterson Northchase Drive, Suite 200 Houston, TX ExxonMobil Oil Corporation and Exxon Mobil Corporation Attn: Mr. Christopher H. Dunbar 396 West Greens Road Houston, TX Yates Petroleum Corporation; Yates Drilling Company; ABO Petroleum Corporation; MYCO Industries, Inc. 105 S. Fourth St. Artesia, NM Union Pacific Real Estate Division Attn: Mr. Bill Ince 1800 Farnam Street Omaha, Nebraska Colorado Department of Transportation Attn: Ms. Mike Verketis 222 South 6th Street, Room 100 Grand Junction, CO Tom Brown, Inc. and EnCana Oil & Gas (USA) Inc. Attn: Mr. Dave Davenport, Landman th Street, Suite 1700 Denver, CO William R. Patterson Road Rodney C. Power Road Ronald E. Tipping and Marie E. Tipping Road Janet Smallwood 2630 El Corona Dr. Joan Wright 2630 El Corona Dr. Joseph Casteel 2630 El Corona Dr. Steven W. Weller and Toni L. Weller Wyotex Oil Company B. Kole Killion JLW Investment, LLC John W. Savage, Jr.; Marshall T. Savage; Daniel W. Savage; Roy E. Savage c/o John W. Savage, Jr. P.O. Box 1926 Rifle, CO Larry A. Klebold and Karen K. Klebold 301 Himalaya Ave. Broomfield, CO WAK\60379\ Exhibit A
6 Cypress Land Acquisitions, LLC Excel Land Services, LLC Charles F. Weller and Eva Charlene Weller Apollo Energy LLC Martha R. Berry and Robert H. Zeis 1470 County Road 300 P.O. Box 594 Larry D. Knox Road Montrose, CO James M. Larson P.O. Box 272 Glenwood Springs, CO Jean M. Larson Attn: James M. Larson P.O. Box 272 Glenwood Springs, CO Scott Ziegler P.O. Box 2467 Vail, CO Eugene Verkerk and Alice Fay 5509 Highway 6 & Greg L. Cotner and Diane E. Cotner 7817 County Road 306 Ray and Patricia Richardson 49 Cedar Circle Gerald R. Grunska 7700 County Road 306 Frank and Yoneko McNeil 7300 County Road 306 Mary Anne Bosely 301 Liberty Lane Wood Creek, CO WAK\60379\ Exhibit A
7 BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE AMENDED APPLICATION OF WILLIAMS PRODUCTION RMT COMPANY FOR AN ORDER ESTABLISHING SPACING AND WELL LOCATION RULES FOR THE WILLIAMS FORK FORMATION OF THE MESAVERDE GROUP FOR CERTAIN DESCRIBED LANDS IN THE GRAND VALLEY FIELD AREA, GARFIELD COUNTY, COLORADO CAUSE NO. DOCKET NO. AFFIDAVIT OF MAILING STATE OF COLORADO ) ) ss. CITY AND COUNTY OF DENVER ) William A. Keefe of lawful age, and being first duly sworn upon his oath, states and declares: That he is the attorney for Williams Production RMT Company, that on February 16, 2005, he caused a copy of the attached Application in the subject docket to be deposited in the United States Mail, postage prepaid, addressed to the parties listed on Exhibit A to the Application. William A. Keefe Subscribed and sworn to before me February 16, Witness my hand and official seal. My commission expires: January 28, Notary Public WAK\60379\
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