>The problem – the fractures can extend 1,500 to 2,000 feet or more and cross property and lease lines thereby draining neighboring leases. "

In case anyone is thinking that this problem could be solved by not allowing drilling within 2000 feet of a border, think again. That would put a distance of 4000' between wells, creating yet another problem.

EnCana has drilled, completed and currently operates multiple wells in both Hunter Mesa Unit and Grass Mesa Unit (the “Unit(s)”). Wells in both Units produce oil, gas and associated hydrocarbons from the Mesaverde Formation, which is the unitized formation for both Units and is located at depths of greater than 2500 feet throughout both Units. Under the terms of both unit agreements, EnCana is obligated to produce unitized substances in the most economic and efficient manner, without waste. Information obtained from current and past operations in both Units indicated the most economic and efficient development of gas from the Mesaverde Formation in both Units requires wells to be located less than 1200 feet from an adjacent well producing from the same formation. Wells located 1200 feet or more apart will leave significant amounts of gas in the ground, resulting in waste.