HomeMy WebLinkAbout20122826.tiff 1625 Broadway noble
Suite o 2200it) energy
Denver, Colorado 80202
WELD COUNTY
Tel: 303.228.4000 COMMISSIONERS
Fax: 303.228.4280
2012 AUG 13 A I& OB
August 8, 2012
RECEIVED
Weld County, Colorado
c/o Board of County Commissioners
915 10th Street
P.O. Box 758
Greeley, CO 80632
RE: Declaration of Pooling and Unitization
WELL NAME: Bashor AC18-62HN
Weld County, Colorado
Ladies and Gentlemen:
Enclosed for your records please find a recorded copy of the Declaration of Pooling and Unitization
for the captioned well that was recorded in Weld County,Colorado.
Please call me at 303-228-4271 if you have any questions pertaining to this matter.
Sincerely,
NOBLE ENERGY, INC.
MalloryWdorf
Land Tech
Enclosure
2012-2826
C011111Ili/ 1 l �Qt'CI O /0-3 LE va & 5
3861614 Pages: 1 of 2
r-4r !7,73' +i 07/26/2012 11:58 RM R Fee:$16.00
%z ;:I Steve Moreno, Clerk and Recorder, Weld County, CO
III hti��r11�«,1 leli �IraNNWIl h IN 11111
DECLARATION OF POOLING AND UNITIZATION
KNOW ALL MEN BY THESE PRESENTS:
1. Noble Energy, Inc. ("Noble"), does hereby pool, combine and designate the following
lands and the leasehold, mineral and royalty rights thereunder, as a drilling unit for the
drilling and production of oil and gas from the Niobrara formation:
Township 7 North, Range 63 West, 6th P.M.
Section 18: S/2S/2
Weld County, Colorado
hereinafter, the "Drilling Unit," limited to the wellbore of the Bashor AC18-62HN well, API
#05-123-35093, and to the Niobrara formation.
2. Noble has established the Drilling Unit pursuant to authorizations contained in the
following instruments, as set forth on Exhibit "A", attached hereto:
a. The Oil and Gas Leases in which Noble is the Lessee, operator, owner, or holder, as
originally written or as amended
b. Colorado Oil and Gas Conservation Commission Order No. 407-677, dated July 9,
2012, which pooled all interests in the Drilling Unit pursuant to Colorado Revised
Statutes § 34-60-118.
IN WITNESS WHEREOF, this instrument is dated the IV' day of
lid 2012, but shall be effective for all purposes as of the date of first
productionfrom the Bashor'
ashor AC18-62HN well.
NOBLE ENERGY, INC.
By: 1 /t
Jose nzo, Attorney-In-Fact 4,5
ACKNOWLEDGMENT
STATE OF COLORADO )
CITY AND ) ss.
COUNTY OF DENVER )
The foregoing instrument was acknowledged before me by Joseph H. Lorenzo, Attorney-In-
Fact for Noble Energy, Inc., this -N' day of c]12/8 , 2012.
WITNESS my hand and official seal.
Notary Public (
My commission expires: t/o/ad/(p
MALLORY WEMORI
Notary Public
State of Colorado
BashorAC18-62HN Page 1
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07/26/2012 11 :58 RM R Fee:$16.00
II!! VMoreno, tC:;4' �ia �d ;r�itl�atWirrkii u�i IN 11111
EXHIBIT A
Attached to and made a part of that certain Declaration of Pooling and Unitization covering the
S/2S/2 of Section 18, Township 7 North, Range 63 West, 6th P.M., Weld County, Colorado
Lease No.: Q043057092
Lessor: C. Millard Bashor a/k/a Millard Bashor a/k/a Charles M. Bashor
Lessee: Capital Land Services, Inc.
Date of Lease: March 18, 2009
Recording: Reception 3634443
Description: Township 7 North, Range 63 West, 61h P.M.
Section 18: S/2SE/4
Lot 3(38.77)and Lot 4 (38.93), as it pertains to the
S/2S/2
SE/4SW/4
Lease No.: Q043057090
Lessor: West Greeley Farms
Lessee: Capital Land Services, Inc.
Date of Lease: March 9, 2009
Recording: Reception 3640498
Description: Township 7 North, Range 63 West, 6th P.M.
Section 18: S/2SE/4 and S/2SW/4
Lease No.: Q043057091
Lessor: Weld County, Colorado
Lessee: Hannon & Associates, Inc.
Date of Lease: December 28, 2009
Recording: Reception 3670473
Description: Township 7 North, Range 63 West, 6th P.M.
Section 18: S/2SW/4
Unleased Mineral Interest: Guttersen and Company, LLLP
COGCC Order No.: 407-677
Description: Township 7 North, Range 63 West, 6th P.M.
Section 18: S/2S/2
All in Weld County, Colorado
End of Exhibit "A"
8ashorAC18-62HN Page 2
9/28/12 Untitled Page
BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION AND ) CAUSE NO. 407
ESTABLISHMENT OF FIELD RULES TO GOVERN
OPERATIONS IN THE WATTENBERG FIELD, WELD ) ORDER NO. 407-677
COUNTY, COLORADO
REPORT OF THE COMMISSION
The Commission heard this matter on July 9, 2012, in Suite 801, The Chancery Building,
1120 Lincoln Street, Denver, Colorado, upon application for an order to pool all interests in an appro>mate
150.04-acre designated wellbore spacing unit for Section 18, Township 7 North, Range 63 West, 6th P.M.,
to accommodate the Bashor AC18-62HN Well, for the development and operation of the Niobrara
Formation.
FINDINGS
The Commission finds as follows:
1. Noble Energy, Inc. ("Noble" or "Applicant"), as applicant herein, is an interested party
in the subject matter of the above-referenced hearing.
2. Due notice of the time, place and purpose of the hearing has been given in all
respects as required by law.
3. The Commission has jurisdiction over the subject matter embraced in said Notice,
and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order
pursuant to the Oil and Gas Conservation Act.
4. On April 27, 1988, the Commission adopted Rule 318A which, among other things,
allowed certain drilling locations to be utilized to drill or twin a well, deepen a well or recomplete a well and to
commingle any or all Cretaceous Age Formations from the base of the Dakota Formation to the surface.
Rule 318A supersedes all prior Commission drilling and spacing orders affecting well location and density
requirements of Greater Wallenberg Area wells. On December 5, 2005, Rule 318A was amended to,
among other things, allow interior infill and boundary wells to be drilled and wellbore spacing units to be
established. On August 8, 2011, Rule 318A was again amended, among other things, to address drilling of
horizontal wells. Section 18, Township 7 North, Range 63 West, 6th P.M. is subject to Rule 318A for the
Niobrara Formation.
5. On May 15, 2012, Noble, by its attorneys, filed with the Commission a verified
application ("Application") for an order to pool all interests in an approbmate 150.04-acre designated
wellbore spacing unit for the below-described lands ("Application Lands") to accommodate the Bashor
AC18-62HN Well (API No. 05-123-35093) ("Well"), for the development and operation of the Niobrara
Formation, effective as of the earlier of the date of the Application, or the date that any of the costs
specified in C.R.S. § 34-60-116(7)(b)(II) were first incurred for the drilling of the Well, and to subject any
nonconsenting interests to the cost recovery provisions of C.R.S. § 34-60-116(7):
Townshio 7 North. Range 63 West, 6t P.M..
Section 18: S% S%
6. On June 26, 2012, Noble, by its attorneys, filed with the Commission a written
request to approve the Application based on the merits of the verified Application and the supporting
exhibits. Sworn written testimony and exhibits were submitted in support of the Application.
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7. Testimony and exhibits submitted in support of the Application by Joseph H. Lorenzo,
Senior Land Manager for Noble, showed that all nonconsenting interest owners were notified of the
Application and received an Authority for Expenditure ("AFE") and an offer to participate in the Well.
Further testimony concluded that the AFE sent by the Applicant to the interest owners was a fair and
reasonable estimate of the costs of the proposed drilling operation and was received at least 30 days prior
to the July 9, 2012 hearing date.
8. The above-referenced testimony and exhibits show that granting the Application will
allow more efficient reservoir drainage, will prevent waste, will assure a greater ultimate recovery of
hydrocarbons, and will not violate correlative rights.
9. Noble agreed to be bound by oral order of the Commission.
10. Based on the facts stated in the verified Application, having received no protests,
and based on the Hearing Officer review of the Application under Rule 511., the Commission should enter
an order to pool all interests in an approximate 150.04-acre designated wellbore spacing unit for Section
18, Township 7 North, Range 63 West, 6th P.M., to accommodate the Bashor AC18-62HN Well, for the
development and operation of the Niobrara Formation.
ORDER
NOW, THEREFORE IT IS ORDERED, that:
1. Pursuant to the provisions of §34-60-116, C.R.S., as amended, of the Oil and Gas
Conservation Act, all interests in an approximate 150.04-acre designated wellbore spacing unit for the
below-described lands, are hereby pooled, for the development and operation of the Niobrara Formation,
effective as of the earlier of the date of the Application, or the date that the costs specified in C.R.S. §34-
60-116(7)(b)(II) are first incurred for the drilling of the Bashor AC18-62HN Well:
Townshia 7 North. Range 63 West. 61' P.M.
Section 18: S% S%
2. The production obtained from the wellbore spacing unit shall be allocated to each
owner in the unit on the basis of the proportion that the number of acres in such tract bears to the total
number of mineral acres within the wellbore spacing unit; each owner of an interest in the wellbore spacing
unit shall be entitled to receive its share of the production of the Well located on the wellbore spacing unit
applicable to its interest in the wellbore spacing unit.
3. The nonconsenting leased (working interest) owners must reimburse the consenting
working interest owners for their share of the costs and risks of drilling and operating the Well (including
penalties as provided by §34-60-116(7)(b), C.R.S.) out of production from the wellbore spacing unit
representing the cost-bearing interests of the nonconsenting working interest owners as provided by §34-
60-116(7)(a), C.R.S.
4. My unleased owners are hereby deemed to have elected not to participate and
shall therefore be deemed to be nonconsenting as to the Well and be subject to the penalties as provided
for by§34-60-116 (7), C.R.S.
5. Each nonconsenting unleased owner within the wellbore spacing unit shall be
treated as the owner of the landowner's royalty to the extent of 12.5% of its record title interest, whatever
that interest may be, until such time as the consenting owners recover, only out of each nonconsenting
owner's proportionate 87.5% share of production, the costs specified in §34-60-116(7)(b), C.R.S. as
amended. After recovery of such costs, each unleased nonconsenting mineral owner shall then own its
proportionate 8/8ths share of the Well, surface facilities and production, and then be liable for its
proportionate share of further costs incurred in connection with the Well as if it had originally agreed to the
drilling.
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9/28/12 Untitled Page
6. The operator of the well drilled on the above-described wellbore spacing unit shall
furnish the nonconsenting owners with a monthly statement of all costs incurred, together with the quantity
of oil and gas produced, and the amount of proceeds realized from the sale of production during the
preceding month.
7. Nothing in this order is intended to conflict with §34-60-116, C.R.S., as amended.
Any conflict that may arise shall be resolved in favor of the statute.
IT IS FURTHER ORDERED, that the wellbore spacing unit described above, shall be
considered a drilling and spacing unit established by the Commission for purposes of Rule 530.a.
IT IS FURTHER ORDERED, that the provisions contained in the above order shall become
effective immediately.
IT IS FURTHER ORDERED, that the Commission expressly reserves its right, after notice
and hearing, to alter, amend or repeal any and/or all of the above orders.
IT IS FURTHER ORDERED, that under the State Administrative Procedure Act the
Commission considers this Order to be final agency action for purposes of judicial review within 30 days
after the date this Order is mailed by the Commission.
IT IS FURTHER ORDERED, that an application for reconsideration by the Commission of
this Order is not required prior to the filing for judicial review.
ENTERED this 11til-day of July, 2012, as of July 9, 2012.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Robert J. Frick, Secretary
Dated at Suite 801
1120 Lincoln Street
Denver, Colorado 80203
July 11, 2012
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