HomeMy WebLinkAbout20172545.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
FORMATION, WATTENBERG FIELD, WELD
COUNTY, COLORADO
NOTICE OF HEARING
CAUSE NO. 407
DOCKET NO. 170700487
TYPE: POOLING
TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:
" ---APPUCATiON-LANDS -- --
Township 1 North, Range 65 West, 69' P.M.
Section 29: WW/2
Section 30_;_ E1/2E1/2
Section 31: E'hE'/z
Section 32: W1hWYz
Wellbore Spacing Unit ("WSU") No. 1
APPLICATION
On May 23, 2017, HRM Resources II, LLC (Operator No. 10548) ("HRM" 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 horizontal welibore spacing unit,
established for the Application Lands, for the development and operation of the Niobrara
Formation; and
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., ware first incurred for the drilling of the Lehl 30-
8 Well (API No. 05-123-41051) (WSU #1).
APPLICABLE RULES AND ORDERS
(available online at: http://coocc.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.
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: July 24 & 25, 2017
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ao 7- a515-
(170700487)
LO)55
Time: 9:00 a.m.
Place:
Colorado Oil and Gas Conservation Commission
The Chancery Building
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 July 10, 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.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
prehearing conference during the week of July 10, 2017. Pursuant to Rule 511., if the matter
is uncontested, it may be approved without a hearing.
Lease inPIpce: YES . NO O
Lease #
Acres
Keep for Hearing Outcome/Minutes
File - No Action Needed
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
iot,en,
Peter en, Acting Secretary
ommission Attorneys for Applicant:
James Parrot
Jillian Fulcher
Joby Rittenhouse
Beatty & Wozniak, P.C.
216 16th Street, Suite 1100
Denver, Colorado 80202
(303) 407-4499
jparrot@bwenergylaw.com
ifulcher@bwenergylaw.com
jrittenhouse@bwenergyiaw.com
2
(170700487)
BEFORE THE OIL & GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF AN APPLICATION BY HRM
RESOURCES II, LLC FOR AN ORDER POOLING ALL
INTERESTS IN AN APPROXIMATE 640 -ACRE
DESIGNATED HORIZONTAL WELLBORE SPACING
UNIT FOR CERTAIN PORTIONS OF SECTIONS 29,
30, 31, AND 32, TOWNSHIP 1 NORTH, RANGE 65
WEST, 6TH P.M., FOR THE
DEVELOPMENT/OPERATION OF THE NIOBRARA
FORMATION, WATTENBERG FIELD, WELD
COUNTY, COLORADO
'APPLICATION
CAUSE NO. 407
DOCKET NO.
TYPE: POOLING
RECEIVED
JUN 0 5 2017
WELD COUNTY
COMMISSIONERS
HRM Resources II, LLC, Operator No. 10548 ("HRM" or "Applicant"), by and
through its attorneys, Beatty & Wozniak, P.C., respectfully submits this Application to the
Oil and Gas Conservation Commission of the State of Colorado ("Commission") for an
order pooling all interests in an approximate 640 -acre horizontal wellbore spacing unit
established for certain portions of Sections 29, 30, 31, and 32, Township 1 North, Range
65 West, 6th P.M., for the development and operation of 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 is an Owner in the below -listed lands:
Township 1 North, Range 65 West, 6th P.M.
Section 29: WAWA
Section 30: E%E'%
Section 31: E'/E'Y2
Section 32: WYZW%
Wellbore Spacing Unit (WSJ!) No. 1
640 acres, more or less, Weld County, Colorado.
These lands are hereinafter collectively referred to as the "Application Lands" and depicted
in Exhibit A, attached hereto.
3. 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. The Application
Lands are subject to Rule 318A.
4. Upon information and belief, Applicant designated an approximate
640 -acre horizontal wellbore spacing unit comprised of certain portions of the Application
Lands, for the below -described well, for the production of oil, gas, and associated
hydrocarbons from the Niobrara Formation. Applicant notified all owners in the proposed
wellbore spacing unit pursuant to Rule 318A.e.(5). Applicant did not receive objections to
the establishment of the proposed horizontal wellbore spacing unit within the 30 -day
response period:
a. Lehl 30-8 Well (API No. 05-123-41051) — Niobrara Formation — WSU #1.
This well is hereinafter collectively referred to as the "Subject Well."
5. Acting pursuant to the relevant provisions of §34-60-116(6) & (7),
C.R.S., and Rule 530., Applicant seeks an order pooling all interests, including, but not
limited to, any nonconsenting interests, in WSU No. 1 established for the Application
Lands, for the development and operation of the Niobrara Formation.
6. 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 §34-60-116(7)(b), C.R.S. are first incurred for the drilling of the Subject Well within WSU
No. 1.
7. Further, Applicant requests that the interests of any owners with
whom the Applicant has been unable to secure a lease or other agreement to participate
in the drilling of the Subject Well, are made subject 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 the
costs specified in §34-60-116(7)(b), C.R.S. are first incurred for the drilling of the Subject
Well.
8. 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.
9. Applicant requests that relief granted under this Application should be
effective on oral order by the Commission, and Applicant hereby agrees to be bound by
said oral order.
10. The undersigned certifies that copies of this Application will be served
on each interested party as required by Rule 507 within seven (7) days of the filing hereof,
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, the
Commission enter its order:
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A. Pooling all interest's in WSU No. 1 established for the Application Lands,
for the development and operation of the Niobrara Formation, effective as of the earlier of
the date of this Application, or the date that the costs specified in §34-60-116(7)(b), C.R.S.
are first incurred for the drilling of thel Subject Well within WSU No. 1.
B. Providing that the 'interests of any owners with whom the Applicant has
been unable to secure a lease or other agreement to participate in the drilling of the
Subject Well, are made subject 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 the costs specified in
§34-60-116(7)(b), C.R.S. are first incurred for the drilling of the Subject Well.
C. For such other findings and orders as the Commission may deem
proper or advisable in the premises.
DATED this ≤day of May, 2017.
Respectfully submitted,
HRM RESOURCES II, LLC
By�.
ames Parrot
Jillian Fulcher
Joby Rittenhouse
Beatty & Wozniak, P.C.
Attorneys for Applicant
216 16th Street, Suite 1100
Denver, Colorado 80202
(303) 407-4499
jparrot@bwenergylaw.com
jfulcher@bwenergylaw.com
jrittenhouse@bwenergylaw.com
Applicants Address:
HRM Resources II, LLC
ATTN: Janet Paul
410 17th Street, Suite 1100
Denver, CO 80202
VERIFICATION
STATE OF COLORADO
SS.
CITY & COUNTY OF DENVER
Janet Paul, Land Manager for HRM Resources II, LLC, upon oath deposes and
says that she has read the foregoing Application and that the statements contained
therein are true to the best of her knowledge, information and belief.
HRM RESOURCES II, LLC
Janet Paul
Subscribed and sworn to before me this d.G.' day of May, 2017, by Janet
Paul, Land Manager for HRM Resources II, LLC.
Witness my hand and official seal.
My commission expires:
orufaity
Notary Public
APRIL M. PROHASKA
NOTARY PUSUC
STATE OF COLORADO
NOTARY ID 18674111564
w CC WNSSI0N EXPIRES ARE 16, 2816
Exhibit A
Reference Map for Pooling Application
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