HomeMy WebLinkAbout20172558.tiffBEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION AND
ESTABLISHMENT OF FIELD RULES TO GOVERN
OPERATIONS FOR THE NIOBRARA AND CODELL
FORMATIONS, WATTENBERG FIELD, WELD
COUNTY, COLORADO
CAUSE NO. 407
DOCKET NO. 170600350
TYPE: POOLING
NOTICE OF HEARING
TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:
APPLICATION LANDS
Township 5 -North, Range 63 -West. 6th P.M.
Section 30: E%
Section 31: E%
APPLICATION
RECEIVED
JUN 19 2017
WELD COUNTY
COMMISSIONERS
On April 13, 2017, Bill Barrett Corporation (Operator No. 10071) ("BBC" or °Applicant"),
filed a verified application pursuant to §34-60-116, C.R.S. for an order to:
1) Pool all interests in an approximate 640 -acre drilling and spacing unit established
for the Application Lands, for the development and operation of the Niobrara and Codeil
Formations.
2) Subject any nonconsenting interests to the cost recovery provisions of §34-60-
116(7), C.R.S., effective as of the earlier of the date of the Application, or the date that any of
the costs specified in §34-60-116(7)(b), C.R.S., were first incurred for the drilling of the Peterson
5-63-30-0758B2, Peterson 5-63-30-0756C2, Peterson 5-63-30-0857B2, Peterson 5-63-30-
0560B2, and the Peterson 5-63-30-0659D2 Wells.
APPLICABLE ORDERS AND RULES
(available online at: http://cogcc.state.co.us, under "Regulation,"
then select "Orders" or °Rules")
• On April 27, 1998, the Commission adopted Rule 318A, the Greater Wattenberg Area
Special Well Location, Spacing and Unit Designation Rule.
• On March 5, 2012, the Commission entered Order No. 407-573 which, among other
things, pooled all interests in an approximate 160 -acre designated wellbore spacing unit
for Section 30, Township 5 North, Range 63 West, 6th P.M., to accommodate the
planned Rothe BB30-23 Well, for the development and operation of the Codeil and
Niobrara Formations. Order No. 407-573 includes portions of the Application Lands but
does not affect this Application.
• On July 29, 2013, the Commission entered Order No. 407-839 which, among other
things, pooled all interests in four approximate 160 -acre designated wellbore spacing
t
2017-2558
T
units established for Sections 19, 20, 29 and 33, Township 5 North, Range 63 West, 6th
P.M., to accommodate the Peterson CX GH 30-26D Well, the Peterson CX GH 30-27D
Well, the Peterson CX GH 30-28D Well and the Peterson CX GH 30-40D Well, for the
development and operation of the Codell-Niobrara Formation. Order No. 407-839
contains portions of the Application Lands but does not affect this Application.
• On January 26, 2016, the Commission entered Order No. 407-1620 which, among other
things, pooled all interests in an approximate 320 -acre designated horizontal wellbore
spacing unit established for portions of Sections 29 and 30, Township 5 North, Range 63
West, 6th P.M., and to subject all nonconsenting interests to the cost recovery provisions
of §34-60-116(7), C.R.S., for the drilling of the R&R Farms 29i-221 Well, for the
development and operation of the Niobrara Formation. Order No. 407-1620 contains
portions of the Application Lands but does not affect this Application.
On January 26, 2016, the Commission entered Order No. 407-1621 which, among other
things, pooled all interests in an approximate 320 -acre designated horizontal wellbore
spacing unit established for portions of Sections 29 and 30, Township 5 North, Range 63
West, 6th P.M., and to subject all nonconsenting interests to the cost recovery provisions
of §34-60-116(7), C.R.S., for the drilling of the R&R Farms 29i-401 Well, for the
development and operation of the Codell Formation. Order No. 407-1621 contains
portions of the Application Lands but does not affect this Application.
• On April 18, 2016, the Commission entered Order No. 407-1688 which, among other
things, pooled all Interests in an approximate 240 -acre designated horizontal wellbore
spacing unit, and to subject any non -consenting interests to the cost recovery provisions
of §34-60-116(7), C.R.S., for the drilling of the R&R Farms 291-321 well, for the
development and operation of the Niobrara Formation. Order No. 407-1688 contains
portions of the Application Lands but does not affect this Application.
• On March 2, 2017, BBC filed an Application in Docket No. 170500243 for an order to,
among other things, establish an approximate 640 -acre drilling and spacing unit for the
Application Lands and approve up to six horizontal wells in the unit, for the production of
oil, gas and associated hydrocarbons from the Codell and Niobrara Formations, with the
productive interval of any horizontal well to be no closer than 460 feet from the unit
boundaries, and not less than 150 feet from the productive interval of another well within
the unit, unless an exception is granted by the Director; and to require that the approved
- wells be -located -on no more -than three well pads -within -the -unit, or -adjacent -thereto, —
unless an exception is granted by the Director. Docket No. 170500243 is set to be heard
at the Commission's May 1-2, 2017 hearing.
NOTICE IS HEREBY GIVEN, pursuant to C.R.S. §§ 34-60-101 to -130, and the
Commission's Rules of Practice and Procedure, 2 CCR 404-1, that the Commission has
scheduled this matter for hearing on:
Dates: July 24-25, 2017
Time: 9:00 a.m.
Place: Colorado Oil and Gas Conservation Commission
2
(170500350)
1120 Lincoln Street, Suite 801
Denver, CO 80203
Additional information about the hearing on this Application will be in the Commission's
Agenda, which is posted on the Commission website approximately 3 days before the hearing.
In accordance with the Americans with Disabilities Act, if any party requires special
accommodations as a result of a disability for this hearing, please contact Margaret Humecki at
(303) 894-2100 ext. 5139, prior to the hearing and arrangements will be made.
At hearing, the Commission will consider the Application and enter an order pursuant to
its authority under the statute. Any interested party desiring to protest or intervene should
file with the Commission a written protest or Intervention in accordance with Rule 509,
no later than May 26, 2017. Such Interested party shall, at the same time, serve a copy of the
protest or intervention to the person filing the application. One electronic
(cogcc.hearingsunit@state.co.us),- one original and two -copies shall be filed with the
Commission. Anyone who files a protest or intervention must be able to participate in a
prehearing conference during the week of May 26, 2017. Pursuant to Rule 511, if the matter
is uncontested, it maybe approved without a hearing.
OIL AND GAS CONSE: TION COMMISSION
OFT - ATE OFC'LO- 'O
By
Dated: June 15, 2017
Colorado Oil and Gas Conservation Commission
1120 Lincoln Street, Suite 801
Denver, Colorado 80203
Website: hitp://cogcc.state.co.us
Phone: (303) 894-2100
Fax: (303) 894-2109
Lease in Place : YES
NO O
Lease #
Acres
Keep for Hearing Outcome/Minutes
File - No Action Needed-----_ J
a
Pe : r owe , Acting Secretary
eys for Applicant:
Jamie L. Jost
Kelsey H. Wasylenky
Jost Energy Law, P.C.
1401 17th Street, Suite 370
Denver, Colorado 80203
(720) 446-5620
jjost@jostenergylaw.com
kwasylenky@jostenergylaw.com
(170600350)
7.
.4.
Lj(7s1I1
What is this?
The attached is an Application that has been
filed with the Colorado Oil & Gas Conservation
Commission (COGCC). RECEIVED
APR 2 a 2017
Why am I receiving it?
WELD COUNTY
COMMISSIONERS
COGCC Rules and Regulations, as well as
Colorado Statues, require that this Application
is sent to you.
What should I do if I need more information?
If you have any questions, you may contact the
individual below:
Gabe Findlay
Bill Barrett Corporation
303-293-9100
gfindlay@billbarrettcorp.com
I'
BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION OF
BILL BARRETT CORPORATION FOR AN
ORDER TO POOL ALL INTERESTS IN .AN
APPROXIMATE 640 -ACRE DRILLING AND
SPACING UNIT ESTABLISHED FOR THE
EAST %Z OF SECTIONS 30 AND 31,
TOWNSHIP 5 NORTH, RANGE 63 WEST, 6TH
P.M., FOR THE NIOBRARA AND CODELL
FORMATIONS, WATTENBERG FIELD, WELD
L.COUNTY,4COLORADO
CAUSE NO.
DOCKET NO.
TYPE: POOLING
Y�✓iu ;j v -,. APPLICATION
analiciPAimroCOMES NOW Bill Barrett Corporation (Operator No. 10071) ("BBC" or
"Applicant"), by its attorneys, Jost Energy Law, P.C., and makes this application to the
Oil and Gas Conservation Commission of the State of Colorado ("Commission") for an
order to pool all interests in an approximate 640 -acre Drilling and Spacing Unit, as
defined below, for the drilling of the following wells with API Nos. pending: Peterson 5-
63-30-075862, Peterson 5-63-30-0758C2, Peterson 5-63-30-0857B2, Peterson 5-63-
30-0560B2, and the Peterson 5-63-30-0659D2 (the "Wells"), for the development of the
Niobrara and Codell Formations on the following described lands:
Township 5 North, Range 63 West, 6th P.M.
Section 30: E%
Section 31: E'/
640 -acres, more or less, Weld County, Colorado.
Hereinafter "Application Lands"
In support thereof, Applicant states and alleges as follows:
1. Applicant is a corporation duly authorized to conduct business in
the State of Colorado, and is a registered operator in good standing with the
Commission.
2. Applicant owns certain leasehold interests or holds the right to
operate leasehold interests in the Application Lands.
3. On February 19, 1992, the Commission entered Order No. 407-87
(amended August 20, 1993) which; among other things, established 80 -acre drilling and
spacing units for the production of oil, gas and associated hydrocarbons from the Codell
and Niobrara Formations, with permitted well locations in accordance with the
provisions of Order No. 407-1. The Application Lands are subject to this Order for the
Codell and Niobrara Formations.
4. On April 27, 1998, 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 of the Cretaceous Age
Formations from the base of the Dakota Formation to the surface. On December 5,
2005, Rule 318A was amended to 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 to, among other things, address drilling of horizontal wells.
5. On March 5, 2012, the Commission entered Order No. 407-573
which, among other things, pooled all interests in an approximate 160 -acre designated
wellbore spacing unit for Section 30, Township 5 North, Range 63 West, 6th P.M., to
accommodate the planned Rothe BB30-23 Well, for the development and operation of
the Codell and Niobrara Formations. Order No. 407-573 includes portions of the
Application Lands but does not affect this Application.
6. On July 29, 2013, the Commission entered Order No. 407-839
which, among other things, pooled all interests in four approximate 160 -acre designated
wellbore spacing units established for Sections 19, 20, 29 and 33, Township 5 North,
Range 63 West, 6th P.M., to accommodate the Peterson CX GH 30-26D Well, the
Peterson CX GH 30-27D Well, the Peterson CX GH 30-28D Well and the Peterson CX
GH 30-40D Well, for the development and operation of the Codell-Niobrara Formation.
Order No. 407-839 contains portions of the Application Lands but does not affect this
Application.
7. On January 26, 2016, the Commission entered Order No. 407-1620
which, among other things, pooled all interests in an approximate 320 -acre designated
horizontal wellbore spacing unit established for portions of Sections 29 and 30,
Township 5 North, Range 63 West, 6th P.M., and to subject all nonconsenting interests
to the cost recovery provisions of §34-60-116(7), C.R.S., for the drilling of the R&R
Farms 29i-221 Well, for the development and operation of the Niobrara Formation.
Order No. 407-1620 contains portions of the Application Lands but does not affect this
Application.
8. On January 26, 2016, the Commission entered Order No. 407-1621
which, among other things, pooled all interests in an approximate 320 -acre designated
horizontal wellbore spacing unit established for portions of Sections 29 and 30,
Township 5 North, Range 63 West, 6th P.M., and to subject all nonconsenting interests
to the cost recovery provisions of §34-60-116(7), C.R.S., for the drilling of the R&R
Farms 29i-401 Well, for the development and operation of the Codell Formation. Order
No. 407-1621 contains portions of the Application Lands but does not affect this
Application.
4
9. On April 18, 2016, the Commission entered Order No. 407-1688
which, among other things, pooled all interests in an approximate 240 -acre designated
horizontal wellbore spacing unit, and to subject any non -consenting interests to the cost
recovery provisions of §34-60-116(7), C.R.S., for the drilling of the R&R Farms 291-321
well, for the development and operation of the Niobrara Formation. Order No. 407-1688
contains portions of the Application Lands but does not affect this Application.
10. On March 2, 2017, BBC filed an Application in Docket No.
170500243 for an order to, among other things, establish an approximate 640 -acre
drilling and spacing unit for the Application Lands and approve up to six horizontal wells
in the unit, for the production of oil, gas and associated hydrocarbons from the Codell
and Niobrara Formations, with the productive interval of any horizontal well to be no
closer than 460 feet from the unit boundaries, and not less than 150 feet from the
productive interval of another well within the unit, unless an exception is granted by the
Director; and to require that the approved wells be located on no more than three well
pads within the unit, or adjacent thereto, unless an exception is granted by the Director.
Docket No. 170500243 is set to be heard at the Commission's May 1-2, 2017 hearing.
11. Applicant, pursuant to Commission Rule 530 and/or the provisions of
C.R.S. § 34-60-116 (6) and (7), hereby requests an order to pool all interests, including but
not limited to, any non -consenting interests, in the Application Lands in the Niobrara and
Codell Formations underlying the approximate 640 -acre Drilling and Spacing Unit
established for the Application Lands for the drilling of the Wells.
12. Applicant requests that the Commission's pooling order be made
effective as of the earlier of the date of this Application, or the date that the costs specified
in C.R.S. § 34-60-116(7)(b) are first incurred for the drilling of the Wells to the Niobrara or
Codell Formations in the Drilling and Spacing Unit on the Application Lands.
13. Applicant certifies that copies of this Application will be served on all
persons owning an interest in the mineral estate of the tracts to be pooled within seven (7)
days of the date hereof, as required by Rule 503.e., and that at least thirty-five (35) days
prior to the hearing on this matter, each such interest owner not already leased or
voluntarily pooled will be offered the sole opportunity toparticipate in the drilling of the
Wells, and will be provided with the information required by Rule 530 as applicable.
14. That in order to prevent waste, to protect correlative rights, and to
allow for efficient development, all interests in the 640 -acre Drilling and Spacing Unit
should be pooled for the orderly development and operation of the Niobrara and Codell
Formations, including any non -consenting interests therein.
WHEREFORE, Applicant 'requests that this matter be set for hearing at in
June, 2017, that notice be given as required by law, and that upon such hearing, the
Commission enter its order:
A. Pooling all interests in an approximate 640 -acre Drilling and
Spacing Unit established for the Application Lands for the development and operation of
the Wells in the Niobrara and Codell Formations.
B. Providing that the Commission's pooling order is made effective as of
the earlier of the date of this Application, or the date that any of the costs specified in
C.R.S. § 34-60-116(7)(b) are first incurred for the drilling of the following wells with API
Nos. pending: Peterson 5-63-30-0758B2, Peterson 5-63-30-0758C2, Peterson 5-63-30-
0857B2, Peterson 5-63-30-0560B2, and the Peterson 5-63-30-0659D2, to the Codell or
Niobrara Formations on the Application Lands.
C. Providing that the interests of any owners with whom the Applicant
has been unable to secure a lease or agreement to participate in the drilling of the Wells
are pooled by operation of statute pursuant to C.R.S. § 34-60-116(6) and (7), and made
subject to the cost recovery provisions thereof with respect to the Wells drilled to develop
and operate the Codell and Niobrara Formations in the 640 -acre Drilling and Spacing
Unit comprising the Application Lands.
D. For such other findings and orders as the Commission may deem
proper or advisable in this matter.
Dated: April 1J, 2017.
I
Respectfully submitted:
BILL BARRETT CORPORATION
By:
Applicant's Address:
Bill Barrett Corporation
ATTN: Gabriel Findlay
1099 18th Street, Suite 2300
Denver, CO 80202
(ej
Jamie L. Jost
Kelsey H. Wasylenky
Jost Energy Law, P.C.
Attorneys for Applicant
1401 17th Street, Suite 370
Denver, Colorado 80202
(720) 446-5620
jjostc iostenergylaw.com
kwasylenky(c�josten ergylaw.com
Kenneth A. Wonstolen
Senior Vice President & General Counsel
Bill Barrett Corporation
VERIFICATION
STATE OF COLORADO
)ss.
CITY AND COUNTY OF DENVER
Gabriel Findlay, of lawful age, being first duly sworn upon oath, deposes and says
that he is a Senior Landman for Bill Barrett Corporation, and that he has read the
foregoing Application and that the matters therein contained are true to the best of his
knowledge, information and belief.
G'abri7 Findlay
Senior Landma
Bill Barrett Corporation
Subscribed and sworn to before me this }Z 3 day of April 2017.
Witness my hand and official seal.
[SEA1-I
My commission expires: ICI I lP 1-7aI i g
QM iYV1an&
Public
LESLIE MANN
NOARY PUBLIC 1
STATETOF COLORADO I
NOTARY ID 0 20114064505
MY COMMISSION EXPIRES OCTOBER 00.II616
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