PERMFILE128556

• Permit No: M2006003
• IBM Index Class Name: Permit File
• Doc Date: 3/13/2006
• Doc Name: Letter of Objection
• From: Keith M Crouch PC
• To: DMG
• Media Type: D
• Archive: No

03/13/06 09:50 FAX [phone] Calvin Enterprises f~003/004
Donna OrtiQ
March h3, 2006
Page 2
operation a safe distance from the flowlines and by ensuring the flowlines have
adequate support
The Exhibit 8 Index Map attached to the Public Notice indicates that the Parker
resource is logted In the SW/4NE/4 of Section 36 and Merit has no operations or
planned operations for that 40-acre tract If we are reading the map correctty, the Hal!-
Irwin planned operation may not impact Merit's operations in the NFJ4 of Section 36 but
that conclusion wifl have to be verified by Hall-Irwin.
With respect to the Merit well in the SE/4 of Section 36, Merit operates the Krrby
33-36 well as set forth above. In addition, Merit owns undrilled CodelUNiobrara and J
Sand locations in the FJ2SE/4 and the SW/4SFJ4 of Section 38. Merit's current plans
are to drill the following wells in the SFJ4 of Section 36:
Kirby 34-36 Well in the SW/4SE/4 of Section 36
Kirby 43-36 Well in the NFJ4SFJ4 of Section 38
Kirby 44-36 Well in the SFJ4SE/4 of Section 36
The Kriby 43-36 Well Is currently being permitted at a legal location, which is
within a Colorado Oil and Gas Conservation Commission mandated drilling window is a
400-foot square in the center of the SW/4SE/4 of Section 36. Because of existing
mining operations in the FJ2SFJ4 of Section 36, Merit now plans to drill the 43-36 Well
directionally from the wellsite of the tcrby 33-38 Well and the 44-36 Well directionally
from the wellsite of the Kirby 3436 Well.
In addition to the planned wells for the SE/4 of Section 36, Rule 316 A of the
Colorado Oil and Gas Conservation Commission, effective March 1, 20D6, provides for
the drilling of additional "infill and boundary' wells from the Commissions designated
"drilling windows" that are 400 foot squan;s in the center of each quarter-quarter section
and one 800 foot square in the center of each quarter section. Merit will need some
clarification of Hall-Irwin's proposed mining operations to determine the effect of those
operations on Merit's oil and gas activities.
Given the multiple use character of the E/2 of Section 36 and the oil and gas
resources that are available in this lime of shortages and high prices at the pump and
burner tip, Merit requests That the Hall-Irwin Reclamation Permit be conditioned on the
parties reaching an agreement that recognizes and protects Merit's ability to access its
Colorado Oil and Gas Conservation Commission mandated drilling window in the
SW/4SE/4 of Section 38 and to preserve the drilling window in the NW/4SEf4 of Section
36 for its planned and potential drilling activities. '
Please include this letter in the file for the Hall-Irwin application and advise Merit
of all additional hearings and proceedings concerning this permit Merft would be happy
to work with Hall-Irwin to negotiate a surface use agreement that recognizes and
protects the interests of both companies in the E/2 of Section 36. Merit and Hall-Irwin
have entered into such agreements in the past