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is 320 acres, (3) drilling restrictions for potash areas do not apply, (4) minimum depth to
beginning directional drilling is 4800 ft, (5) cost estimates are as of October 1979, (6)
maximum bottom hole target has a radius of 500 ft, (7) the path of the directional hole
below the kick-off point is not restricted, and (8) geologic structures are not factored into
cost estimates. Theoretically, all of the wells can be drilled into pay zones beneath zones
I-IV by directional methods from sites outside of control zone IV.
Sipes, Williamson, and Aycock, Inc., 1979a
Sipes, Williamson. and Aycock, Inc. (l979a) evaluated two tracts of land under
lease to Nola Ptasynski and others for their fair market value for hydrocarbons, effective
January 1, 1979. Tract 227M-l contains about 80 acres, is in sec. 4 T23S R31E, and was
appraised at $25,089. Tract 227M-2 contains about 270 acres, is in sec. 3 T23S R31E.
and was appraised at $156,405. The latter tract would qualify for higher rates on gas
because it is considered "new gas." In addition, the tracts were now in a recent expansion
of the potash enclave.
Sipes, Williamson, and Aycock, Inc., 1979b
Sipes, Williamson, and Aycock, Inc. (l979b) evaluated a single tract of land for
its hydrocarbon potential. Tract 219-1 contains about 80 acres, is in sec. 25 T22S R30E,
and was under lease to the Continental Oil Company; it was appraised at a fair market
value of $75,981, effective July 24, 1978. One drilling location was assigned to the tract.
Sipes, Williamson, and Aycock, Inc., 1979c
Sipes, Williamson, and Aycock, Inc. (1979c) evaluated Tract 221M for its
hydrocarbon potential. The tract contains about 640 acres, is in sec. 26 T22S R31E, and
was under lease to the Union Oil Company; it was appraised at a fair market value of
$358,444. The tract was outside the 1977 expansion of the potash enclave and was
devalued because it is poorly located relative to possible deeper hydrocarbon-bearing
structures.
Sipes, Williamson, and Associates, 1980&
Sipes, Williamson, and Associates (19803) reported on an engineering evaluation
to determine the potential hydrocarbon reserves underlying the WIPP site area, associated
costs for extraction, and income. Hydrocarbon reserves are associated with the Pennsylvanian
"formation," which contains the Strawn. Morrow, and Atoka reservoirs. Values of
reserves were based on a review of all wells that penetrated the Pennsylvanian "fonnation"
in a 410-section area surrounding WIPP. Reserves identified were 390,843 bbls of
condensate and 83,974,500 MCF of gas. Each was divided into four categories:
1-11
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