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Home My WebLink About20172945.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 CODELL-NIOBRARA FORMATION, WATTENBERG FIELD, WELD COUNTY, COLORADO CAUSE NO. 4O7 DOCKET NO 170900630 TYPE: POOL:NG NOTICE OF HEARING TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN: APPLICATION LANDS Township 6 North, an a 65 West 6,h P.M. Section 29: W1 Township 6 North, Range 65 West, 6t" P.M. Section 32: N'/2 NW% h Dt''" 1Y :`..OMMlSSIONERS On July 13, 2017, Extraction Oil & Gas, Inc. (Operator No. 10459) ("Extraction" or "Applicant"), filed a verified application ("Application") pursuant to §34-60-116. C.R.S., for an order to: 1) Pool all interests in the approximate 400 -acre horizontal weilbore spacing unit established by Rule for the Application Lands, for development and operation of the Codell- Niobrara Formation, with the pooling order effective as of the date of the Aoplication. 2) Providing that the interests of certain owners, with whom tf•:e Applicant has been unable to secure a lease or other agreement to participate in the Matrix C1-29HN Well (API No. 05-123-40693), for production of oil, gas and associated hydrocarbons from the Coded -Niobrara Formation, having been pooled by operation of statute pursuant to §34-60-116(6) & (7), C.R.S., are made subject to cost recovery and risk penalties provided therein. APPLICABLE ORDERS AND RULES (available online at: Ic:! gc_cc.,-,tie , us, under "Regulation," then select "Orders" or "Rules") 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 we. 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 Wattenberg Area wells. On December 5, 2005, Rule 318A. was amended, among other things, to allow interior infili and bocr'dary wells to be drilled and welibore spacing units to be established. On August S 2011, Rule 318A. was again amended, among other things, to address drilling of horizontal wells. The Application Lands are subject to Rule 318A. for the Codell and Niobrara Formations. 2017-2945 NOTICE IS HEREBY GIVEN, pursuant to §§ 34-60-101 to -130, C.R.S., and the Commission's Rules of Practice and Procedure, 2 CCR 404-1, that the Commission has scheduled this matter for hearing on: Date: September 11-12, 2017 Time: 9:00 a.m. Place: Durango Public Library Program Room #2 1900 E 3rd Avenue Durango, CO 81301 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 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 accommodations 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 desired to protest or intervention should file with the Commission a written protest or intervention in accordance with Rule 509. no later than August 28, 2017. Such interested party shall, at the same time, serve a copy of the protest of intervention to the person filing the application. One electronic (cogcc.hearings_unit©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 preheating conference during the week of August 28, 2017. Pursuant to Rule 511., if the matter is contested, it may be approved without a hearing. OIL AND GAS CONSERVATION COMMISSION OF THE ST4E OF COLORADO By: Dated: August 2, 2017 Colorado Oil and Gas Conservation Commission 1120 Lincoln Street, Suite 801 Denver, CO 80203 Website: http://cogcc.state.co.us Phone: (303) 894-2100 Fax: (303) 894-2109 I Lease in Place : YES, NO O Lease # Le...(19.1S Acres i . $ 9 Keep for Hearing Outcome/Minutes File - No Action Needed Ames P. Rouse, Acting Secretary Attorneys for Applicant: Robert A. Willis The Shanor Group LLC 600 Seventeenth Street, Suite 2800 Denver, CO 80202 Phone: (303) 995-5120 rwillis@shanorgroup.com ;170:40063D) BEFORE Y IIE O11. AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN TILE MATTER OF TILE APPLICATION OF EXTRACTION O11, & GAS, INC., FOR AN ORDER POOLING AI.I_ INTERESTS WITHIN AN APPROXIMATE 400 -ACRE IIORIZON'I'AI. WELL BORE SPACING UNIT ESTABLISHED FOR Tim WY2 OF SECTION 29, TOWNSIIIP 6 NORTH, RANGE 65 WEST, 6'" P.M., AND TILE N'.4 NW! Of SECTION 32, TOWNSHIP 6 NORT11, RANGE 65 \V S'I', 6' a P.M., FOR DEVELOPMENT AND OPERATION OF Till: CODELL-NIOl3RARA FORMATION, AND Aim IORI7.ING COST RECOVERY AND RISK PENALTIES FROM CERTAIN NONCONSEN 1 ING OWNERS FOR THE MATRIX G-291IN WELL, WATTFNBERG HEM, WELL) COUNTY, COLORADO APPLICATION ) CAUSE NO. 407 ) DOC'K'. I. NO. To be assigned ) ) TYPE: Pooling RECEIVED JUL 252017 WELD COUNTY COMMISSIONERS Extraction Oil & Gas, Inc. ("Extraction" or "Applicant"), Operator NI 0459, by and through its attorneys, The Shanor Group I I C, respectfully submits this Application to the Oil and Gas Conservation Commission of the State of Colorado (-Commission" or " CO(iC'C") for an order: (1) pooling all interests within the approximate 400 -acre horizontal wellbore spacing unit established by Rule fat the W1/2 of Section 29, Township 6 North, Range 65 West. 6"' P.M., and the N''? NW!a of Section 32, l ownship 6 North, Range 65 West, 6111 P.M., for de\elopntent and operation of the Codell-Niobiara I•ormation, and (2) authorizing statutory cost recovery and risk penalties from certain nonconsenting owners for the Matrix G -2911N well constructed within said unit. In support of this Application ("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 au operator with the COGC(' 2. Applicant owns substantial leasehold interests in the below -listed lands ("application I ands"): "I_ov nsltip 6 Not ill, Range 65 West, 6"' Section 29: W'„ 'hem nship 6 North, Range 65 West. 6"' P.M Section 32 N'/7 NW'/ An Application Map depicting the Application I ands is attached hereto and marked Fxhibit A. 1. On April 27, 1988, the Commission adopted Rule 31 SA. which, among other things. allowed certain drilling locations to be utilized to drill or twin c well, deepen a well or recomplete a well and to commingle an or all Cretaceous Age Formations from the base o1 the Dakota Formation to the surface. Rule 31 SA. supersedes all prior Commission drilling and spacing orders affecting well location and density requirements of Greater Wattenbcrg Area wells. On December 5. 2005, Rule 318A. was amended, among other things, to allow interior infill and boundary wells to be drilled and wellbore spacing units to be established. On August S. 2011, Rule 318A. was again amended, among other things, to address drilling of horizontal wells. The Application Lands are subject to Rut,: 318A. lot the ('odcll and Niobrara Formations. Pooling of all interest.' within the approximate -100-cadre horizontal wellhore spacing unit established for llrc Application Lands, for development and operation of 11w C'ndc'll-Mohrara Formation 4. On or about October 17, 2014, acting pursuant to notice requirements found in Rule 31 SA.e,(5), Bayswater proposed the Matrix Ci-29I IN well for an approximate 160 -acre horizontal wellbore spacing unit, defined by Rule 31 SA.a (4)I)., established for the E'! W!/. of Section 29, Township 6 North, Range 65 West, 6'c' P.M., for the production of oil, gas and associated hydrocarbons from the C'odell-Niobrara Formation. On November 20, 2016. Extraction spud the Matrix G-291IN well, and while drilling the lateral portion of the horizontal well encountered a fault in the Niobrara Formation which compromised thew ellbore's integrity and resulted in a sidetrack for the wellbore also within the Niobrara Formation. Upon teaching total depth, the wellbore was cased and cemented. with the Niobrara 1 ormation subsequently completed as permitted A recent survey of the wellbore indicated that while drilling certain portions of the lateral wellbute, the well wandered slightly from its intended wellbore path, which resulted in a shift (lithe Rule 31 SA.a.(4)1). horizontal weilbore spacing unit to the 400 -acre unit area described for the Application Lands. Extraction has amended C'OGCC records to reflect the change in the "as built' Rule 318A.a.(-l)D. horizontal wellbore spacing unit. 5. The C'odell-Niobrara Formation underlying the Application Lands is a common accumulation of oil, gas and associated hydrocarbons, constituting a common source of supply. 6. Act mg pursuant to relevant provisions of §34-60-116(6), C.R.S.. Applicant seeks an order pooling all interests in the approximate 400 -acre horizontal wcllboi e spacing unit established by Rule iur the Application Lands, fat -the detielopment and operation of the ('odell-Niobrara Formation. .lrrthoiili to recover .ctamttorr cost.' and rtAL penalties front certain wmcw Mehra (miners for drilling, completion and opei anon o1 tin .ilcctrtx G -2911N well 7 Rule 530. provides that an application for involuntary pooling may he filed at any time prior or after the drilling of a well. with any pooling order retroactive to the date the application is tiled with the C'onunission unless the payoi agrees otherwise. In this matter, the Well (described in the table below ) has been drilled- completed and is presently producing oil and gas from the ('(dell -Niobrara Formation. ' if ell .Vail e 'r'Vunrhrt - 1 I Matrix G -2911N 1 - -- .41'1,\'rauhcr 17c.rrget /Ormation 05-123-40693 Niobrara 1 Extraction will pros ide Rule 530. w ell proposal materials to putative nonconsenting owners within the 400 -acre hori/ontal wellbore spacing unit established for the Application 7 Lands, thereby allowing those owners at least 35 days to make an election as to their participation in the drilling of the Well, or leasing their interests, if unleased. 9. Acting pursuant to §34-60-116(6) cfc (7), C.R.S.. and Rule 530., Applicant hereby seeks an order authorizing statutory cost recovery and risk penalties associated with the drilling, completion and operation of' the Well, from interests belonging to nonconsenting owners, for the development and operation of the Codell-Niobrara Formation, where Rule 530. \veil proposal materials are provided at least 35 days prior to the Application being heard by the Commission. 10. The granting of this Application is in accord with the Oil and Gas Conservation Act found at §34-60-10 I , et .''cq., C.R.S., and the C'OGC C rules. 11. Applicant requests that relief granted as result of this Application should be effective on oral order by the Commission, and Applicant hereby agrees to he hound by the oral order of the Commission. I2. That the names and addresses of interested parties (those persons who own any interest in the mineral estate of the tracts to be pooled, except owners of overriding royalty interest) according to the information and belief of the Applicant will be set fordi in Exhibit 13 and submitted with a certificate of service fon the Application within seven days as required by Rule 503.e. WHEREFORE, Applicant respectfully requests this matter be set for hearing, notice be given as required by law, and that upon such heat tug the Commission enter its order: A Pooling all interests in the approximate 400 -acre horizontal wellbore spacing unit established by Rule for the Application Lands, for development and operation of the Codell-Niobrara Formation, with the pooling order effective as of the date of the Application. 13. Providing that the interests of any owners, with whom the Applicant has been unable to seethe a lease or other agreement to participate in the drilling of the Matrix G-29ON well, for production of oil. gas and associated hydrocarbons hum the Codell-Niobrara Formation, having been pooled by operation of statute, pursuant to §34-50-I 16(7), C.R.S., ale made subject to cost rccovcry and t ask penalties pro\ ided therein. C. For such other findings and orders as the Commission may deem proper or advisable giNen the premises. DM 1 I) this 1 1 _ day ofJuly, 2017. Respectfully submitted, [ X'l RAC' ON O L & G +S, INC. By: Applicant's Addresti: Extraction Oil & Gas, Inc. 370 17°i Strcet, Suite 5300 Denver, CO 80202 STATE OF COLORADO CITY & COUNT 1' ut 1)ENVI_R obert A. Wil olorado Bar #26308) The Shanor Group LI C 600 Seventeenth Street. Suite 2800 Denver, CO 80202 (303) c195-512(1 VERIFICATION 55. Pamela B. Kingcry, Lund Ads isur lot Extraction Oil & (;as, Inc.. upon oath deposes and says that she has read the foregoing Application and that the statements contained therein arc true to the best of her knowledge, information and belief LX'1'RAC I ION OIL & GAS, INC. Pamela 13. Kingcry Subscribed and ;Morn to before me this d L �`' day of July. 2(117, by Pamela B. Kingcry, Land Advisor lin I. \traction Oil 6. (ins, Inc. \Fitness my hand and official seal My commission expires. _ ANNE MICHELLE PIERINI Notary Public State of Coloruuo Notary ID €P 20124030744 My Commission Expires (11-04.2021 119 1-2-1 Notary''Puhtic 4 Application Map e 65 West. 6th P.M. 6 North. Ran F2 - Horizontal WBSU i N i I I co I 1 i � ! I 1 I i I M I I I I I ---. I I I I I I I I ! I I I I I I I I I I I f I I I I I ! i I I I I I EXHIBIT B - INTERESTED PARTY LIST The Shanor Group LLC Robert A. Willis 600 17th Street, Suite 2800 Denver, CO 80202 Extraction Oil & Gas, Inc. Pam Kingery 370 17th Street, Suite 5300 Denver, CO 80202 Anadarko Land Corp. 1099 18th Street, Suite 1800 Denver, CO 80202 Anadarko Land Corp. 1201 Lake Robbins Dr. The Woodlands, TX 77380 Keith Anderson and Annette Anderson 7720 Mirimichi Drive Olympia, WA 98502 Kent Anderson and Arlene Anderson 12027 Huebner Road San Antonio, TX 78230 Anne Arnold 260 Inca Parkway Boulder, CO 80303 Karen Anderson and Robert W. Arnold 1706 Third Ave Longmont, CO 80501-4806 Charles W. Bliss and Margaret Elise Bliss 40738 Poudre Canyon Hwy Bellvue, CO 80512 Patricia Louise Eckhardt Browning 1124 Longbow Lane, Unit F Bozeman, MT 59718 Kathryn Jane Campbell 2205 Bridger Drive Bozeman, MT 59715 Carbody, LLC P.O. Box 125 Lucerne, CO 80646 Darryl Carlson 4429 Garden Lane Rockford, IL 61114-4778 Colorado Department of Transportation 4201 E. Arkansas Avenue Denver, CO 80222 Robert John Eckhardt 1147 Shadow Mountain Court Idaho Falls, ID 83404 Extraction Oil & Gas, Inc. 370 17th Street, Suite 5300 Denver, CO 80202 Gibbs Minerals LLC 1001 O Street Greeley, CO 80631 H & I Investments, Ltd. 7657 Via de Ventura Scottsdale, AZ 85258 H.C. Hammons Investments, Inc., formerly Hammons Implement Company C/O Colorado Sec. of State 1700 Broadway Suite 200 Denver, CO 80290 H.C. Hammons Investments, Inc., formerly Hammons Implement Company 2349 4th Ave. Greeley, CO 80631 Hoshiko Minerals, LLC P.O. Box 119 Kersey, CO 80644 J2 Mineral LLC 190 North Tisdale Buffalo, WY 82834 J. Patrick Hare, LLC 3200 Oakdale Forest Road Edmond, OK 73013 JAE Properties Colorado LLC 3001 North Victory Road Norfolk, NE 68701 Jerry & Carolyn Isbell, Inc. 2817 Grand View Drive Greeley, CO 80631 Noble Energy, Inc. 1625 Broadway, Suite 2200 Denver, CO 80202 PDC Energy, Inc. 1775 Sherman Street, Suite 3000 Denver, CO 80203 Producers Livestock Marketing Association P.O. Box 540477 North Salt Lake City, UT 84054 Richard W. Cooper Revocable Trust P.O. Box 25639 Oklahoma City, OK 73125 SBH Associates, Inc., formerly SBH Financial Corporation 1010 El Camino Real, Suite 325 Menlo Park, CA 94025-4368 St. Michael Exploration Co. 880-1500 West Georgia St. Vancouver, BC, Canada V6G 2Z6 St. Michael Exploration Co. 14062 Denver West Parkway, Suite 22 Lakewood, CO 80401-3187 St. Michael Exploration Co. C/O Colorado Sec. of State 1700 Broadway Suite 200 Denver, CO 80290 Martha Sue Stephens 4050 W. 20th Street Greeley, CO 80632 Toltek Drilling Company 340 Denver Club Building Denver, CO 80202 Toltek Drilling Company C/O Colorado Sec. of State 1700 Broadway Suite 200 Denver, CO 80290 Union Pacific Railroad Company 1400 Douglas Street Omaha, NE 68179 United States of America Bureau of Land Management 2850 Youngfield St. Lakewood, CO 80215 M. Jean E. Watson 169 Mill Creek, East Fork Livingston, MT 59047 Weld County P.O. Box 758 Greeley, CO 80632 Richmark Energy Partners, LLC 5200 West 20th Street Greeley, CO 80634 Ruth M. Wilson 33830 CR 61.5 Gill, CO 80624 Carole T. Hummel Properties I, LLC 760 Whalers Way B102 Fort Collins, CO 80525 Janis C. Demuth 22 High Point Drive Texarkana, TX 75503 Caspian Holdings LLC 15300 Bothell Way N.E. Seattle, WA 98155 Howard Williams and Cheryl Williams, as joint tenants 1320 Hawkridge Road Eaton, CO 80615 Donald E. Schwartz and Maxine A. Schwartz, as joint tenants P. O. Box 175 Lucerne, CO 80646 LJC Properties LLC c/o Lisa Cole, 521 10 Street Windsor, CO 80550 Countryside, Inc. P. O. Box 1441 Greeley, CO 80632 Donovan Olson and Sharon Olson, as joint tenants 304 High Croft Windom, MN 56101 Todd Family Partnership, L.P. 2313 17th Street Greeley, CO 80634 Wendy C. Berman -Baker, Trustee of the Wendy Baker Trust c/o Robert ML Baker, III, Esq., 2001 Wilshire Blvd., Ste 505 Santa Monica, CA 90403 Richmark Energy Partners, LLC 5200 West 20th Street Greeley, CO 80634 Catholic Charities and Community Services of the Archdiocese of Denver, Inc. 4045 Pecos Street Denver, CO 80211-2552 Jim D. Humphrey P. O. Box 13 Greeley, CO 80631 Jayna Donoho 30170 WCR 68 1/2 Gill, CO 80624 Guadalupe Apartments LLLP 4045 Pecos Street, Suite A Denver, CO 80211 Hello