HomeMy WebLinkAbout20032512.tiff •
4(44 RZdterei
CORK ESPONDE�NCE RESPO:
DEPARTMENT OF OA/A )1q1,(('(=• dettal:e t spa{kS-1
** * PLEASE RESPOND WITHIN THREE DAYS* * *
IF RESPONSE WILL BE DELAYED,
PLEASE NOTIFY "CTB GROUP" BY E-MAIL
OF EXPECTED DATE FOR RESPONSE.
RECOMMENDED ACTION:
Narrative:
MG RM BJ DL GV
BOARD ACTION: (Initial by Approval)
Agree with Recommendation
Worksession �— —
METHOD OF RESPONSE:
- Board Action
_ Work Session
- Letter (Attached)
Telephone Call
No Response (explain) ,4 � r 'w {Lv 1 p L6v
l
7 / t epartment Head Signature
c�\v �_ , _� tires\ .
/0 - ' v t;\
A vw sc�
M:\CAR0L\0PMAN\R DCOMP2
/4C-"6„-i 2003-2512
RainBaa Farm
3838 Florentine Cir.
Longmont, CO 80503
(303)485-9453 1
July 8, 2003
S. Stephen Bowling
EnCana Energy Resources, Inc.
950 17th Street, Ste. 2600
Denver, CO 80202
RE: Your Letter of June 2, 2003
Dear Mr. Bowling,
We have the subject letter. As you will notice, our
mailing address has changed. Please make note of this
change. Several weeks ago, I received a telephone call from
someone representing himself as your agent in this matter. I
informed him that EnCana owned no lease rights on our
property in Section 5 of Township 1 North, Range 68 West.
Thus, we were surprised to receive your letter. As an
initial matter, we request that you send, at the earliest
possible date, copies of all documents through which EnCana
claims to own any interest, lease or otherwise, in our
property.
It is our understanding that you are the successor in
interest to North American Resources Company (NARCO) . Some
years ago, NARCO attempted on two occasions, fraudulently in
our opinion, to drill on a portion of our property
immediately to the North of the subject property and located
in Section 32 of Township 2 North, Range 68 West. I refer
you to my letters to Mr. Robert Bram of NARCO dated May 9 and
May 15, 2001. If you do not have copies of these letters and
the related documents, I will be happy to provide them, at
your request.
As I noted in my earlier letters, it was only after we
pointed out that NARCO owned no interest in the oil and gas
lease on our property that NARCO contrived to produce
"evidence" of its ownership of the lease by creating the
document we believe to be fraudulent. It is our position
that NARCO had no interest in our property to transfer to
EnCana and that EnCana acquired no rights to our property by
virtue of succeeding to the interests of NARCO.
We urge you to take no further action regarding your
notice of proposed drilling, until this matter is resolved.
We sincerely hope that you are not attempting, as NARCO did,
to make a fraudulent claim against our property. If you do,
rest assured that we will pursue vigorously every legal
remedy available against all that are involved in such an
effort.
On a related, but slightly different issue, we have
noticed that the price you have been paying to us for gas
produced under leases you hold on neighboring properties, for
which we receive royalties under the unitization rules, are
consistently significantly under the Colorado Gas Price
Index, as reported on the web site of the Colorado Oil and
Gas Commission. For the 13 months since we have been
receiving checks from you, the prices paid by you have
averaged 37% less than the average in Colorado! In a number
of months, your prices are more than 50% less than the
average. From our rough calculations, this has resulted in
an underpayment to us of more than $1,800. We are concerned
that either you may not be making your best effort to market
the product or that your employees may lack competence. In
any event, we would like an immediate explanation as to why
the prices you receive lag the market by such a disturbing
amount.
We look forward to a response to these issues at your
earliest convenience.
Very truly yours,
David J. Yardley
cc: Brian Ma:/,/?Colorado Oil & Gas Commission
Clerk, W d County Board of Commissioners
David G. Hill, Esq.
Hello