HomeMy WebLinkAbout20242520.tiffChevron
September 12, 2024
Via Certified Mail #7022 2410 0001 4961 0731
Weld County CO
Board of County Commissioners
PO Box 758
Greeley, CO 80632
RECEIVED
SEP 16 2024
WELD COUNTY
COMMISSIONERS
RE: Designation of Test Well Drill Block, pursuant to the West Pony Unit Agreement,
dated April 19, 2021.
Dear Weld County Colorado:
Noble Energy, Inc. ("Noble") is providing you with this Drill Block Notice (the "Notice"),
pursuant to the West Pony Unit Agreement, dated April 19, 2021 (the "UA" or "Unit Agreement").
The West Pony State Unit was established by the Colorado Energy and Carbon Management
Commission ("ECMC") on July 14, 2021, pursuant to Order No. 535-1352 (the "Order"), effective
July 14, 2021. Order No. 535-1352 incorporated the terms of the UA by reference.
Pursuant to Section 13 of the Unit Agreement, Noble, as the Unit Operator, has authority
to establish Drill Blocks in the West Pony State Unit Area. Section 11 of the Unit Agreement
mandated the drilling of a Test Well within the Unit Area within one year of the Unit Agreement's
effective date, and required Noble, as Unit Operator, to continue drilling one well at a time,
allowing not more than 8 months between completion of one well and commencement of drilling
operations for the next well, until a well capable of producing in paying quantities is completed.
Section 11 does not require the establishment of a Drill Block for purposes of the initial test well(s)
prior to drilling.
On or about May 22, 2022, Noble spud the Kummer LE23-668 Well (API No. 05-123-
36941) ("Test Well"). The Test Well is entirely within and producing from Section 23, Township 8
North, Range 61 West, 6th P.M. Since first production, the Test Well has produced in paying
quantities. Accordingly, the terms of Section 11 of the Unit Agreement were satisfied and no
additional drilling to discovery was required.
Weld County is the sole mineral owner and Noble the sole working interest owner within
Section 23, Township 8 North, Range 61 West, 6th P.M. Pursuant to the terms of the relevant
lease and Unit Agreement, Noble has distributed royalties on production from the Test Well to
Weld County since first production on a 640 -acre basis without objection. By the terms of the Unit
Agreement, Noble is providing this Notice formalizing the designation of the Test Well Drill Block
pursuant to the terms of the Unit Agreement. The Test Well Drill Block is established as follows:
coMMUn . G0.-(- S
oq /23 /24
Chevron Rockies Business Unit
1099 18th Street, Suite 1500
Denver, Colorado 80202
2024-2520
l.a,aaSa
Weld County CO, Board of County Commissioners
Page 2
September 12, 2024
Test Well Drill Block
Township 8 North, Range 61 West, 6th P.M.
Section 23: All
640 -acres, more or less, Weld County, Colorado
Although not explicitly required by the terms of the UA, the purpose of this letter is to
formalize the designation of the Test Well Drill Block, and to confirm that royalties will continue to
be paid according to the terms of the relevant lease and Unit Agreement. No action is required
on your part. Should you have any questions or concerns regarding this designation, please
contact me.
Sincerely,
Brant Douglass
Land Representative
brant.douglass@chevron.com
303-228-4210
Hello