PERMFILE125797

• Permit No: M2002120
• IBM Index Class Name: Permit File
• Doc Date: 2/6/2003
• Doc Name: Merit Energy Co. comments on the application
• From: Keith M Crouch PC
• To: DMG
• Media Type: D
• Archive: No

KEITH M. CROUCH, P.C.
Attorney at Law
5015 Ingersoll Piace, Boulder, CO 80303
Phone: (303) 444~d515 or [phone]
Fax: (303) 444a~624 or [phone]
RECEIVED
FE8 ° & ~~U3
t)iviafon at tdinerals an/ 8eolo8y
February 4, 2003
Division of Geology and Minerals
State of Colorado
1313 Sherman Street
Room 215
Denver. CO 80203

Board of County Commissioners
Attention: Clerk of the Board
Weld County, Colorado
915 10~h Street
Greeley, CO B0631
w, X0-02- lZo
!; vLlO
Re: Merit Energy Company Bernhardt 1-3 and 1-4 and Hansen 1-1 Wells, S/2
of Section 1, T4N, R67W, 6th P.M. and MLRB Permit Application Filed by
Halt trvvin Corporation
Ladies and Gentlemen:
Merit Energy Company ("Merit") is the owner certain oil and gas leases covering
the referenced land and Merit also owns the referenced oil and gas wells that are
located on those lands together with their related flowlines and production facilities.
Merit has received Notice of the MLRB Permit Application filed by Hall Irwin Corporation
("Hall Irwin°) for sand and gravel mining permit covering a portion of the S/2 of Section 1
above described. The letter from Rocky Mountain Consultants that accompanied the
Notice indicates that HaII Irvvin is planning on mining sand and gravel from the S/2 of
S•aCion 1 and aperating ba±ch plants and processin? facilities on the lands.
The six paragraph narrative section on the mining plan causes concern for Merit.
Merit has an existing operation for its three wells that are located on the S/2 of Section 1.
The mining plan submitted by Hall Irwin implies that it can unilaterally change Merit's
existing operations under the approved mining plan without the consent of Merit. For
example, in paragraph 1 of the narrative, Hall Irwin states that "Upon sending thirty (30)
days written notice to the oil and gas operator ("Notice"), temporary mining operations
may occur within the setback area up to 75 feet from a well on a quarter circle basis
("Mined SegmenY').° The same paragraph of the mining plan provides that mining
operations may be commenced on lands adjacent to a Mined Segment provided no
more than one cumulative quarter circle segment is subject to mining operations at any
one time, Nowhere in paragraph 1 of the narrative does Hal! Irwin suggest that it needs
the agreement or consent of Merit to conduct the temporary mining operations or that it
is required to coordinate its operations with those of Merit. Also, there is no indication as
to how long the temporary mining operations are to last. That is important because Merit