HomeMy WebLinkAbout20122798.tiff RECEIVED
BEFORE THE OIL AND GAS CONSERVATION COMMISSION OCT 0 2 2012
OF THE STATE OF COLORADO WELD COUNTY
COMMISSIONERS.
IN THE MATTER OF THE PROMULGATION ) CAUSE NO. 421
AND ESTABLISHMENT OF FIELD RULES TO )
GOVERN OPERATIONS IN THE HEREFORD ) DOCKET NO. To be assigned
FIELD, WELD COUNTY, COLORADO )
APPLICATION
EOG Resources, Inc. ("EOG" or "Applicant"), by and through its attorneys, Burleson
LLP, respectfully submits this Application to the Oil and Gas Conservation Commission of the
State of Colorado (the "Commission") for an order: (1) vacating the approximate 640-acre
drilling and spacing units established for Section 35, Township 11 North, Range 63 West, 6`h
P.M., and Section 2, Township 10 North, Range 63 West, 6`h P.M., for the production of oil, gas
and associated hydrocarbons from the Niobrara Formation; and (2) establishing an approximate
1,280-acre stand-up exploratory drilling unit consisting of said Sections 35 and 2, for horizontal
and vertical well development, for the production of oil, gas and associated hydrocarbons from
the Niobrara Formation. In support of its Application, Applicant states and alleges as follows:
1. Applicant is a corporation duly authorized to conduct business in the State of
Colorado, and has registered as an operator with the Commission.
2. Applicant owns substantial leasehold interests in the below-listed lands:
Township 11 North, Range 63 West, 6th P.M.
Section 35: All
Township 10 North, Range 63 West, 6th P.M.
Section 2: All
These lands are hereinafter referred to as the "Application Lands." A map depicting the acreage
comprising the Application Lands is attached hereto and marked as Exhibit A.
Vacating the Established 640-Acre Drilling and Spacing Units
3. On or about October 21, 2010, the Commission entered Order No. 421-3,
which, among other things, established 640-acre drilling and spacing units for certain lands,
including Section 35, Township 11 North, Range 63 West, 6th P.M., and Section 2, Township 10
North, Range 63 West, 6`h P.M., and approved one horizontal well for each unit, for the
production of oil, gas and associated hydrocarbons from the Niobrara Formation, with the
surface location for each horizontal well to be located anywhere upon the drilling and spacing
unit, provided that the horizontal leg into the Niobrara Formation shall not be closer than 600
feet to the outside boundary of the drilling unit and the terminus of the horizontal leg shall not be
any closer than 600 feet to the outside boundary of the drilling and spacing unit, without
exception being granted by the Director.
4. Applicant herein requests the establishment of an approximate 1,280-acre
stand-up exploratory drilling unit for the Application Lands for horizontal and .,Prtir,?l well
(002,0326 i) - ' - 2012-2798
/O d� a?D%7 cc' C/�
development, for the production of oil, gas and associated hydrocarbons from the Niobrara
Formation, and by so doing, it is necessary to vacate the 640-acre drilling and spacing units
previously established for the Application Lands. At present, one horizontal well is authorized
for each existing 640-acre drilling and spacing unit; however, by establishing an approximate
1,280-acre stand-up exploratory drilling unit, additional wells (either horizontal or vertical) may
be drilled which will allow the Niobrara Formation underlying the Application Lands to be more
efficiently and economically drained without promoting waste of the resource.
5. EOG has obtained an Application for Permit-to-Drill ("APD"), Form 2, for
the Critter Creek #28-35H Well, API #05-123-32658, a planned horizontal well for Section 2,
Township 10 North, Range 63 West, 6th P.M., under Order No. 421-3. Under this Application,
EOG is not requesting a change to the unit acreage assigned to the Critter Creek #28-35H Well,
and the distribution of the proceeds from the well will be allocated on a 640-acre basis.
Establishment of the 1,280-acre Stand-up Exploratory Drilling Unit
6. The geologic strata subject to this request for unitization as an stand-up
exploratory drilling unit is the Niobrara Formation, found at a depth of 6,667 feet below ground
surface in the Jake #2-01H Well, API #05-123-30574, whose surface location is in the SE'/
NWY of Section 1, Township 11 North, Range 63 West, 6th P.M., and known to be a common
source of supply.
7. Applicant requests the Commission establish the Application Lands as an
approximate 1,280-acre stand-up exploratory drilling unit for the Niobrara Formation pursuant to
Rule 503.b.(1) and §34-60-116(2), C.R.S. For the Application Lands, the proposed stand-up
exploratory drilling unit is not smaller than the maximum area that can be economically and
efficiently drained by the wells proposed to be drilled under this Application and completed in
the Niobrara Formation.
8. Applicant requests it be authorized to drill and complete one or more
horizontal wells in the approximate 1,280-acre stand-up exploratory drilling unit for the
Application Lands, for the production of oil, gas and associated hydrocarbons from the Niobrara
Formation, as necessary to economically and efficiently recover resources, while minimizing
surface impacts, creating efficiencies for drilling and production, increasing the ultimate
recovery of the reserves, preventing waste, and protecting correlative rights.
9. In addition to the proposed horizontal wells, Applicant requests it be
authorized to drill and complete one or more new vertical or directional wells in the approximate
1,280-acre stand-up exploratory drilling unit for the Application Lands, for the production of oil,
gas and associated hydrocarbons from the Niobrara Formation, as necessary and for those same
reasons set forth in Paragraph 8.
10. Applicant states that wells to be drilled under this Application, whether
horizontal, vertical or directional, should be drilled from a new, common or existing well pad,
with no more than one well pad per quarter quarter section, without exception being granted by
the Director.
(00210326.I} 2
11. Applicant states that for any permitted wells to be drilled under this
Application, the bottomhole location or, in the case of horizontal wells, the treated intervals of
the wellbore, should be not less than 600 feet from the outer boundary of the proposed stand-up
exploratory drilling unit and not less than 460 feet from any other well or treated interval of a
well producing from the Niobrara Formation, without exception being granted by the Director.
* * *
12. The granting of this Application is in accord with the Oil and Gas
Conservation Act, found at §34-60-101, et seq., C.R.S., and the Commission rules.
13. That the names and addresses of the interested parties (owners within the
proposed stand-up exploratory drilling unit) according to the information and belief of the
Applicant are set forth in Exhibit B attached hereto. The Applicant shall submit a certificate of
service for the Application within the seven days as required by Rule 503.e.
WHEREFORE, Applicant respectfully requests that this matter be set for hearing, that
notice be given as required by law and that upon such hearing this Commission enter its order:
A. Vacating the approximate 640-acre drilling and spacing units established for
the Application Lands, for the production of oil, gas and associated hydrocarbons from the
Niobrara Formation.
B. Establishing an approximate 1,280-acre stand-up exploratory drilling unit for
the Application Lands, for horizontal and vertical well development, for the production of oil,
gas and associated hydrocarbons from the Niobrara Formation.
C. Requiring that any permitted wells to be drilled under this Application,
whether horizontal, vertical or directional, should be drilled from a new, common or existing
well pad, with no more than one well pad per quarter quarter section, without exception being
granted by the Director.
D. Requiring that any permitted wells to be drilled under this Application, the
bottomhole location or, in the case of horizontal wells, the treated intervals of the wellbore,
should be not less than 600 feet from the outer boundary of the proposed stand-up exploratory
drilling unit and not less than 460 feet from any other well or treated interval of a well producing
from the Niobrara Formation, without exception being granted by the Director.
E. For such other findings and orders as the Commission may deem proper or
advisable in the premises.
(00210326.1) 3
DATED this /7 day of September, 2012.
Respectfully submitted,
EOG RESOURCES, INC.
By:
b��
Robert A. Willis (Co orado Bar No. 26308)
Burleson LLP
Wells Fargo Center
1700 Lincoln Street, Suite 1300
Denver, CO 80203
(303) 801-3200
Applicant's Address:
600 17th Street, Suite 1100
Denver, CO 80202
VERIFICATION
STATE OF COLORADO )
) ss.
CITY & COUNTY OF DENVER )
Jason McLaren, Landman for EOG Resources, Inc., upon oath deposes and says that he
has read the foregoing Application and that the statements contained therein are true to the best
of his knowledge, information and belief.
EOG RESO ES, INC.
Jaso aren
Subscribed and sworn to before me this It-{Fh day of September, 2012, by Jason
McLaren, Landman for EOG Resources, Inc.
ELIZABETH VAN ORSDALE •
Witness my hand and official seal. NOTARY PE IBLIC
STATE OF COLORADO
My commission expires: Le(p(i/ Ot5- My Commission Expires 06/24/2013
Notary Pu is
100210326.1) 4
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EXHIBIT B
INTERESTED PARTIES
The names and addresses of the interested parties (owners within Section 35, Township
11 North, Range 63 West, 6th P.M., and Section 2, Township 10 North, Range 63 West, 6"' P.M.)
according to the information and belief of the Applicant are set forth in this Exhibit B.
EOG Resources, Inc. Robert A. Willis
600 17th Street, Suite 1100 Burleson LLP
Denver, CO 80202 1700 Lincoln St., Suite 1300
Denver, CO 80203
Exterra Resources, LLC David Bauer
256 Seaboard Lane STE H-102 Weld County LGD
Franklin, TN 37680 1111 H Street
Greeley, CO 80632
Kim Kaal Kent Kuster
Energy Liaison Colorado Department of Public Health and
Colorado Division of Wildlife Environment
711 Independent Avenue 4300 Cherry Creek Drive South
Grand Junction, CO 81505 Denver, CO 80246
Weld County, a political subdivision of the
State of Colorado
1150 O Street
Greeley, CO 80631
l0321032i5.I)
BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION ) CAUSE NO. 421
AND ESTABLISHMENT OF FIELD RULES TO )
GOVERN OPERATIONS IN THE HEREFORD ) DOCKET NO. To be assigned
FIELD, WELD COUNTY, COLORADO )
AFFIDAVIT OF MAILING
STATE OF COLORADO )
)ss.
CITY AND COUNTY OF DENVER )
Jessica Rauh, of lawful age, and being first duly sworn upon her oath, states and declares
that she caused a copy of the Application (for the spacing of Section 35, Township 11 North,
Range 63 West, 6`h P.M. and Section 2, Township 10 North, Range 63 West, 6th P.M.) in the
above-captioned matter to be deposited in the United 8). teis Mail, postage prepaid, addressed to
the interested parties on the attached Exhibit A on this Zhiniay of September 2012.
n
Je ica Rauh
Subscribed and sworn to before me on the/n�tltday of September, 2012.
Witness my hand and official seal.
, ( Dile)
Notaay Publi
NANCY R. WEBER
Notary Colorado
My commission expires: 1/15/2013
ublic
State of Colorado
My COmmtwon sopif®9,,__„�_
{00216778.1)
EXHIBIT A
EOG Resources, Inc. Robert A. Willis
600 17th Street, Suite 1100 Burleson LLP
Denver, CO 80202 1700 Lincoln St., Suite 1300
Denver, CO 80203
Exterra Resources, LLC David Bauer
256 Seaboard Lane STE H-102 Weld County LGD
Franklin, TN 37680 1111 H Street
Greeley, CO 80632
Kim Kaal Kent Kuster
Energy Liaison Colorado Department of Public Health and
Colorado Division of Wildlife Environment
711 Independent Avenue 4300 Cherry Creek Drive South
Grand Junction, CO 81505 Denver, CO 80246
Weld County, a political subdivision of the
State of Colorado
1150 O Street
Greeley, CO 80631
100216778J}
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