The 1150 notices sent to the mineral owners in the Chalybeat Springs Unit concerning a hearing before the AOGC has an incorrect date for that hearing. It states the date is July 22 but the correct date and time are Wednesday, July 23 at 9 am in Eldorado.

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This unit was established 39 years ago with approx. 30 producing wells and contained 6144 acres spread over 14 sections in SE Columbia Co. It now has 1 well producing less than 1 barrel of oil and 200 mcf per day. EnerQuest is the operator and they have stated they have no intentions to further develop our acreage. If you have minerals in this area, please attend this meeting on Wednesday. You may have minerals in the unit and still did not receive a notice. We, the mineral owners, mailed 1150 notices and we have had over 130 returned due to incorrect addresses. EnerQuest supplied the addresses. It makes you wonder how they can pay those 130 mineral owners when they don't have a correct address to mail the check.

The link above is to our application. If you support the mineral owners' efforts to dissolve this unit, you can email the commission at the following address. .Your email must be received by tomorrow, Friday, July the 18th. Please take a few moments of your time and also take control of your mineral rights.

How do i get a list of mineral owners.

Really. I'm new to this and if the only reply is to go to the nearest cothanks in advance,

courthouse, that's the direction i will go.

In this day of wireless coms i just thought that by magic, someone somewhere had a list they could transmit electronically.

thanks in avance,

G. Gray

Unit Agreements:  Wolf in Sheep’s Clothing, One RI Receiver’s Opinion            


Unit Agreements, innocent name for contracts began in the 1950s and popular into

the1980s, intended to maximize production from a developing field by injection of fluids or gas within the unit’s area thereby maximizing flow, field drainage, overall production and increasing income for both operators and royalty recipients. It may achieved that goal in the early development years, but now this helpful (???) innocent looking agreement is legally recognized as a binding contract and is like the perfect firewall on a computer, nothing gets thru it! This contract ensures that the unit operator has HBP Lockdown on the property; preventing leasing, drilling, and development by outside progressive operators while the royalty income decreases due to diminishing production because exploration is too expensive plus highly risky as is recompletions and well maintenance servicing.


In the early development years the first Unit Operator #1 (=UO1) drilled, completed, and serviced wells before selling for appropriate profit to UO2 who drilled a (= singular = 1) well took his turn profiting and sold to UO3 “ Mr. Do-nothing” who in turn reaped and sold to current owner, UO4 “Mr. P. Pincher, CPA”. Although a contract provision required the ”Unit Operator shall conduct unit operations with diligence and in accordance with good engineering  and production practices”, production has decreased from an oil/condensate peak of 1,216bl/d from six wells, status 10 (Active – Producing), to three status 10 wells now producing only 12 bl/d and 289 mcf/d of gas;  nine wells status 33 (Shut In – PRODUCTIVE ???– Future Utility) and one well status 30 (Plugged and Abandoned).


Why so many 33s and only one 30?  P Pincher, using latest accounting/investment computer software had determined that even “plug and abandon” had certain risk and expenses and he prided himself in practicing diligent well management.  


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