BEFORE THE OIL CONSERVATION DIVISION OF THE STATE OF NEW MEXICO IN THE MATTER OF THE APPLICATION OF YATES PETROLEUM CORPORATION FOR COMPULSORY POOLING, EDDY COUNTY, NEW MEXICO CASE NO. APPLICATION COMES NOW Yates P e t r o l e u m C o r p o r a t i o n , by i t s a t t o r - neys, and i n s u p p o r t h e r e o f , r e s p e c t f u l l y 1. states: A p p l i c a n t has t h e r i g h t t o d r i l l S t a t e No. 1 W e l l as a gas w e l l , i t sAnthill t o a d e p t h s u f f i c i e n t t o test, t h e Morrow f o r m a t i o n , w h i c h i s t o be l o c a t e d 660 f e e t l i n e and 2,150 f e e t "WAR" from the* south from t h e e a s t l i n e o f S e c t i o n 2, Township 20 South, Range 2 9 East, N.M.P.M., Eddy County, New Mexico. 2. tion A p p l i c a n t i n t e n d s t o d e d i c a t e t h e S/2 o f s a i d Sec- 2 to this well, ration unit and t h e r e a r e i n t e r e s t who have n o t agreed p a r t i e s who have n o t agreed addresses owners i n t h e p r o - t o pool t h e i r t o pool t h e i r interests. interests, and t h e i r a r e as f o l l o w s : Southland R o y a l t y Company 1100 W a l l Towers West M i d l a n d , Texas 79701 Cal-Mon O i l Company P. 0. Box 2066 M i d l a n d , Texas 79702 J . H. Herd P. O. Box 130 M i d l a n d , Texas M a r s h a l l & Winston, I n c . P. O. Box 874 M i d l a n d , Texas 79702 79702 E s t o r i l Producing C o r p o r a t i o n 11th F l o o r , Vaughn B u i l d i n g M i d l a n d , Texas 79701 The John H. H e n d r i x 525 M i d l a n d Tower M i d l a n d , Texas 79701 Joe R. Henderson 308 N. C o l o r a d o , P a t i o B l d g . M i d l a n d , Texas 79701 H i l l Revocable T r u s t s 3404 F t . Worth N a t ' l Bank Bldg. M i d l a n d , Texas 79702 Horseshoe O i l & Gas C o r p o r a t i o n P. 0. Box 1715 M i d l a n d , Texas 7 970 2 Nautilus Exploration, Inc. P. 0. Box 1715 M i d l a n d , Texas 79702 V i c t o r H. Z o l l e r 910 M i d l a n d N a t i o n a l Bank Tower M i d l a n d , Texas 79701 Jack Markham 1500 Broadway, S u i t e 1212 Lubbock, Texas 79401 J. M. Welborn 1212 F i r s t N a t ' l Pioneer B l d g . Lubbock, Texas 79401 E r n e s t Angelo, J r . 410 N o r t h Main S t r e e t M i d l a n d , Texas 79701 A. T. C a r l e t o n P. 0. Box 293 M i d l a n d , Texas Robert L. Monaghan P. 0. Box 2066 M i d l a n d , Texas 79701 7970 2 Barnes A d e l a n t e T r u s t s No. 2 P. 0. Box 5 05 M i d l a n d , Texas 79702 R u s s e l l J . Ramsland, Sr„ P. 0. Box 505 M i d l a n d , Texas 79702 Jane Barnes Ramsland P. O. Box 10 505 M i d l a n d , Texas 79 70 2 C l a u d i a Jane Ramsland Burch P. O. Box 10505 M i d l a n d , Texas 79702 R u s s e l l J . Ramsland, J r . Box 505 M i d l a n d , Texas 79702 J. Clem Barnes 1308 G i h l s Tower West M i d l a n d , Texas 79701 V. E l a i n e Barnes Murphy P. O. Box 505 M i d l a n d , Texas 79702 C h r i s t i n e Barnes Ray P. O. Box 505 M i d l a n d , Texas 79702 L a u r i e M. Barnes Reid P. O. Box 505 M i d l a n d , Texas 79702 Steven C. Barnes P. O. Box 505 M i d l a n d , Texas 79702 V i o l a S. Barnes P. O. Box 505 M i d l a n d , Texas 79702 C. F. Wynn P. O. Box 6832 Houston, Texas W. F o r r e s t Wynn P r e s t o n S t a t e Bank, S u i t e 701 8111 P r e s t o n Road D a l l a s , Texas 75225 S h i r l e y Barnes Wynn P r e s t o n S t a t e Bank, Suite. 701 8111 P r e s t o n Road D a l l a s , Texas 75225 -2- 77265 3. A p p l i c a n t should be d e s i g n a t e d t h e o p e r a t o r o f t h e w e l l and t h e p r o r a t i o n u n i t . 4. protect To avoid correlative the rights drilling and of unnecessary to afford t o the wells, to owner c f each i n t e r e s t i n s a i d u n i t t h e o p p o r t u n i t y t o r e c o v e r or r e c e i v e w i t h o u t unnecessary expense, h i s j u s t and fair share o f t h e gas s a i d u n i t , a l l m i n e r a l i n t e r e s t s , whatever t h e y may wolfcamp f o r m a t i o n t h r o u g h d e r l y i n g t h e S/2 5. t h a t does n o t pay any non-consenting working interest h i s share o f e s t i m a t e d w e l l c o s t s additional 200% t h e r e o f as un- pooled. w i t h h e l d from p r o d u c t i o n h i s share o f t h e reasonable p l u s an fi:om t h e t h e base o f t h e Morrow f o r m a t i o n o f s a i d S e c t i o n 2, should be That be, in a reasonable owner should have well costs, charge f o r t h e r i s k i n v o l v e d i n the d r i l l i n g of the w e l l . 6. production the Applicant should be authorized p r o p o r t i o n a t e share o f to withhold a reasonable from supervision charge f o r d r i l l i n g and p r o d u c i n g w e l l s a t t r i b u t a b l e t o each non- c o n s e n t i n g w o r k i n g i n t e r e s t owner. WHEREFORE, A p p l i c a n t p r a y s : A. That t h i s a p p l i c a t i o n be s e t f o r h e a r i n g b e f o r e an examiner and t h a t n o t i c e o f s a i d h e a r i n g be g i v e n as r e q u i r e d by law. B. pooling That a l l mineral upon hearing interests, the Division whatever -3- they enter may be, i t s order from the Wolfcamp formation through the base o f the Morrow formation, underlying the S/2 o f said Section 2, Township 20 South, Range 29 East, N.M.P.M., Eddy County, New Mexico, t o form a 320-acre spacing u n i t dedicated t o Applicant's w e l l . C. And f o r such other and f u r t h e r r e l i e f as may be j u s t i n the premises. YATES PETROLEUM CORPORATION By: Chad Dickerson LOSEE, CARSON & DICKERSON, P.A. P. 0. Drawer 2 39 A r t e s i a , New Mexico 88210 Attorneys f o r Applicant -4-
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