HomeMy WebLinkAbout20193630.tiffEXHIBIT INVENTORY CONTROL SHEET
EMERGENCY ORD2019-13 - IN THE MATTER OF REPEALING AND REENACTING,
WITH AMENDMENTS, CHAPTER 5 REVENUE AND FINANCE, OF THE WELD
COUNTY CODE
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Description
Angela Mallon,
Confluence Resources Letter of Opposition
2019-3630
ORD2019-13
Cheryl Hoffman
From:
Sent:
To:
Cc:
Subject:
Angela Mallon <AMallon@confluencelp.com>
Friday, August 02, 2019 2:58 PM
Jason Maxey
Brittany Rothe; Mike Dickinson; Andrea J. Gross (agross@upstreampm.com)
Emergency Ordinance #2019-13
Caution: This email originated from outside of Weld County Government. Do not click links or open attachments unless you recognize the
sender and know the content is safe.
Jason,
A member of Confluence will be unable to attend the hearing on Monday at 9:00 am. I wanted to email you directly to
provide our thoughts. Please let us know if there is additional information I can provide from a small operators
perspective.
Confluence Resources LP and Confluence DJ LLC ("Confluence") strongly opposes the proposed fees set out in Ordinance
Number 2019-13, Appendix 5-D, #39 and #40. Confluence is a small operator with 100% of our drilling locations in Weld
County. As a small operator we do not have the same economies of scale as large operators in the basin and cost
increases have a substantial impact to our business model. The proposed fee of $1,000/well is significant to us and adds
another layer to the already complex and costly operating environment.
Further, the way the fee structure is set it, does not incentive operators to minimize their footprint or consolidate their
wells to just one pad. With a per well payment, operators may opt to have multiple pads instead of one pad. This will
likely lead to the unintended consequence of increased surface impacts. Or the reverse impact would cause operators
to permit fewer wells which could leave reserves behind.
In closing, we are incredibly grateful to Weld County for their outspoken support of our industry and we genuinely
appreciate their position with S3-181. However, we feel this proposed change goes beyond the scope of what is
reasonable, especially for small operators like Confluence, and we ask for you to strongly reconsider your position on the
aforementioned fees.
Thank you, Jason, for your time and your continued support for our industry.
Angela Mallon
Regional Land Manager
Confluence
3: 0 r• ,.
Confluence Resources LP
1001 17th Street, Suite 1250
Denver, CO 80202
Ph: 303-226-9506
Fax: 303-226-9595
Email: amallon@confluencelp.com
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