HomeMy WebLinkAbout20170708.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 AND NIOBRARA
FORMATIONS, WATTENBERG FIELD, WELD
COUNTY, COLORADO
CAUSE NO. 407
DOCKET NO. 170300139
TYPE: POOLING
NOTICE OF HEARING
TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:
APPLICATION LANDS
Township 6 North, Range 67 West, 6th P.M.
Section 26: S'/NW%; N%SW%4
Section 27: SYNA; N%SY
SWior-128T SE`4NE'T,;NEI.SE%
APPLICATION
RECEIVED
FEB 1 5 - .,
WELD COUNT
COMMISSIONERS
On January 19, 2017, Great Western Operating Company, LLC ("Great Western" or
"Applicant") filed a verified application pursuant to §34-60-116, C.R.S., for an order to:
1) Pool all interests in three approximate 560 -acre designated horizontal Wellbore
Spacing Units on the Application Lands, for the development and operation of the Codell and
Niobrara Formations.
2) Subject the 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 Kodak
North FD #28-162HN (API No. 05-123-39344) in WSU #1, the Kodak North FD #28-199HN (API
No. 05-123-39345) in WSU #2 and the Kodak North FD #28-162HC (API No. 05-123-39348) in
WSU #3 ("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 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.
2017-0708
• On October 24, 2016 the Commission entered Order No. 407-1824 which, among
other things, established an approximate 1,120 -acre drilling and spacing unit for
portions of Sections 25 and 26, Township 6 North, Range 67 West, 61h P.M., for the
production of oil, gas and associated hydrocarbons from the CodeII and Niobrara
Formations.
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: March 20-21, 2017
Time: 9:00 a.m.
Place: The Larimer County Conference Center at The Ranch
First National Bank Building
5280 Arena Circle
Loveland, CO 80538
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 March 6, 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 March 6, 2017. Pursuant to Rule 511, if the
matter is uncontested, it may be approved without a hearing.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
(1703000139)
Dated: February 7, 2017
Colorado Oil and Gas Conservation Commission
1120 Lincoln Street, Suite 801
Denver, Colorado 80203
Website: http://cogcc.state.co.us
Phone: (303) 894-2100
Fax: (303) 894-2109
Lease in Place : YES NO O
Lease a_
Acres I. 2 i
Keep for Hearing Outcome/Minutes
File - No Action Needed
Attorneys for Applicant:
Jamie L. Jost
Kelsey H. Wasylenky
Jost Energy Law, P.C.
1401 17"' Street, Suite 370
Denver, Colorado 80202
(720) 446-5620
jjost@jostenergylaw.com
kwasylenky@jostenergylaw.com
�,� s 7 -trey
(1703000139)
BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION OF
GREAT WESTERN OPERATING COMPANY,
LLC FOR AN ORDER TO POOL ALL
INTERESTS IN THREE (3) APPROXIMATE
560 -ACRE DESIGNATED HORIZONTAL
WELLBORE SPACING UNITS FOR PORTONS
OF SECTIONS 26, 27 AND 28, TOWNSHIP 6
NORTH, RANGE 67 WEST, 6TH P.M., FOR THE
CODELL AND NIOBRARA FORMATIONS,
WATTENBERG FIELD, WELD COUNTY,
COLORADO
CAUSE NO.
DOCKET NO.
TYPE: POOLING
APPLICATION
COMES NOW Great Western Operating Company, LLC (Operator No. 10110)
("Great Western" 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 three (3) approximate 560 -acre
designated horizontal Wellbore Spacing Units, as defined below, for the drilling of the
Kodak North FD #28-162HN (API No. 05-123-39344) in WSU #1, the Kodak North FD
#28-199HN (API No. 05-123-39345) in WSU #2 and the Kodak North FD #28-162HC
(API No. 05-123-39348) in WSU #3 (collectively, the "Wells"), for the development and
operation of the Codell and Niobrara Formations on the following described lands:
Township 6 North, Range 67 West, 6th P.M.
Section 26: S'/NW'/4; N'%SW'/
Section 27: S'/%N%; N%S'%
Section 28: SE'/NE%; NE'/SE'%
560 -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.
What is this?
RECEIVED
JAN a 1 2017
WELD COUNTY
',4AsisSIONER.G
The attached is an Application that has been
filed with the Colorado Oil & Gas Conservation
Commission (COGCC).
Why am I receiving it?
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:
Philip Zaranka
Great Western Operating Company, LLC
303-398-0302
pzaranka@gwogco.com
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.
4. 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-Niobrara Formations, the Codell Formation, and the Niobrara Formation
underlying certain lands, including the Application Lands, with the permitted well
locations in accordance with the provisions of Order No. 407-1.
5. On August 28, 2014 the Commission entered Order No. 407-1025
which, among other things, pooled all interests within nine approximate 320 -acre
designated wellbore spacing units established for Section 28, Township 6 North, Range
67 West, 6th P.M., and subjected any nonconsenting interests to the cost recovery
provisions of §34-60-116(7), C.R.S. for the Kodak #4 through #12 Wells, for the
development and operation of the Codell and Niobrara Formations. Order No. 407-
1025 is a wellbore specific order, and will not affect this Application.
6. On March 2, 2015 the Commission entered Order No. 407-1238 an
order to vacate Order No. 407-1025 which, among other things, pooled all interests in
five approximate 320 -acre designated wellbore spacing units established for the N% of
Section 28, Township 6 North, Range 67 West, 6th P.M., pooled seven designated
wellbore spacing units in Sections 20, 21, 22, 27, 28 and 29, Township 6 North, Range
67 West, 6th P.M., and subjected any nonconsenting interests to the cost recovery
provisions of §34-60-116(7), C.R.S. for the Kodak #2 Well, Kodak #3 Well, Kodak #5
Well, Kodak #6 Well, Kodak #9 Well, Kodak #10 Well, and Kodak #13 Well, for the
development and operation of the Codell and Niobrara Formations. Order No. 407-1238
is a wellbore specific order, and will not affect this Application.
7. On July 20, 2015 the Commission entered Order No. 407-1401
which, among other things, pooled all interests in two approximate 560 -acre designated
wellbore spacing units for portions of Sections 26, 27, and 28, Township 6 North, Range
67 West, 6th P.M., for the drilling of the Kodak North FD 28-082HC Well and the Kodak
North FD 28-119HN Well, for the development and operation of the Codell and Niobrara
Formations. Order No. 407-1401 is a wellbore specific order, and will not affect this
Application.
8. On December 8, 2015 the Commission entered Order No. 407-
1550 which, among other things, pooled all interests in an approximate 240 -acre
designated wellbore spacing unit established for portions of Sections 26 and 27,
Township 6 North, Range 67 West, 6th P.M., and subjected all nonconsenting interests
to the cost recovery provisions of §34-60-116(7), C.R.S. for the drilling of the Kodak
North FD 27-179HN Well, for the development and operation of the Niobrara Formation.
Order No. 407-1550 is a wellbore specific order, and will not affect this Application.
9. On December 8, 2015 the Commission entered Order No. 407-
1551 which, among other things, pooled all interests in an approximate 480 -acre
designated wellbore spacing unit established for portions of Sections 26 and 27,
Township 6 North, Range 67 West, 6th P.M., and subjected all nonconsenting interests
to the cost recovery provisions of §34-60-116(7), C.R.S. for the drilling of the Kodak
North FD 27-179HC Well, for the development and operation of the Codell Formation.
Order No. 407-1551 is a wellbore specific order, and will not affect this Application.
10. On December 8, 2015 the Commission entered Order No. 407-
1552 which, among other things, pooled all interests in an approximate 480 -acre
designated wellbore spacing unit established for portions of Sections 26 and 27,
Township 6 North, Range 67 West, 6th P.M., and subjected all nonconsenting interests
to the cost recovery provisions of §34-60-116(7), C.R.S. for the drilling of the Kodak
North FD 27-182HN Well, for the development and operation of the Niobrara Formation.
Order No. 407-1552 is a wellbore specific order, and will not affect this Application.
11. On January 27, 2016 the Commission entered Order No. 407-1631
which, among other things, pool all interests in two approximate 480 -acre designated
horizontal wellbore spacing units established for portions of Section 26 and 27,
Township 6 North, Range 67 West, 6th P.M., for the drilling of the Kodak South FD 27-
299HN Well and the Kodak South FD 27-339HN Well, for the development and
operation of the Niobrara Formation. Order No. 407-1631 is a wellbore specific order,
and will not affect this Application.
12. On January 27, 2016 the Commission entered Order No. 407-1632
which, among other things, pool all interests in two approximate 240 -acre designated
horizontal wellbore spacing units established for portions of Section 26 and 27,
Township 6 North, Range 67 West, 6th P.M., for the drilling of the Kodak South FD 27-
222HN Well and the Kodak South FD 27-259HC Well, for the development and
operation of the Niobrara and Codell Formations. Order No. 407-1632 is a wellbore
specific order, and will not affect this Application.
13. On March 7, 2016 the Commission entered Order No. 407-1641
which, among other things, pooled all interests in two approximate 560 -acre designated
horizontal wellbore spacing units established for portions of Sections 25 and 26,
Township 6 North, Range 67 West, 6th P.M., and subjected all nonconsenting interests
to the cost recovery provisions of §34-60-116(7), C.R.S., for the drilling of the Kodak
South FD 25-202HC Well and the Kodak South FD 25 -239I -IN Well, for the development
and operation of the Niobrara and Codell Formations. Order No. 407-1641 is a wellbore
specific order, and will not affect this Application.
14. On March 7, 2016 the Commission entered Order No. 407-1642
which, among other things, pool all interests in three approximate 560 -acre designated
horizontal wellbore spacing units established for portions of Sections 25 and 26,
Township 6 North, Range 67 West, 6th P.M., and subjected all nonconsenting interests
to the cost recovery provisions of §34-60-116(7), C.R.S., for the drilling of the Kodak
South FD 25-279HN Well, the Kodak South FD 25-282HC Well, and the Kodak South
FD 25-319HN Well, for the development and operation of the Niobrara and Codell
Formations. Order No. 407-1642 is a wellbore specific order, and will not affect this
Application.
15. On August 29, 2016 the Commission entered Order No. 407-1763
which, among other things, pooled all interests in an approximate 560 -acre designated
wellbore spacing unit for portions of Sections 25 and 26, Township 6 North, Range 67
West, 6th P.M., for the drilling of the Kodak North FD 25-162HN Well, for the
development and operation of the Niobrara Formation. Order No. 407-1763 is a
wellbore specific order, and will not affect this Application.
16. On October 24, 2016 the Commission entered Order No. 407-1824
which, among other things, established an approximate 1,120 -acre drilling and spacing
unit for portions of Sections 25 and 26, Township 6 North, Range 67 West, 6th P.M., for
the production of oil, gas and associated hydrocarbons from the Codell and Niobrara
Formations.
17. On October 24, 2016 the Commission entered Order No. 407-1787
which, among other things, pooled all interests within an approximate 560 -acre
designated wellbore spacing unit for portions of Sections 26, 27, and 28, Township 6
North, Range 67 West, 6th P.M. for the drilling of the Kodak North FD 28-122HC Well,
for the development and operation of the Codell Formation. Order No. 407-1787 is a
wellbore specific order, and will not affect this Application.
18. Applicant designated the three (3) 560 -acre Wellbore Spacing Units
for the production and operation of oil, gas and associated hydrocarbons from the
Codell and Niobrara Formations pursuant to Rule 318A and notified the appropriate
parties under Rule 318A.
19. 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
Formation underlying the following approximate 560 -acre Wellbore Spacing Unit for the
drilling and operation of the Kodak North FD #28-162HN (API No. 05-123-39344):
Township 6 North, Ranqe 67 West, 6th P.M.
Section 26: S''/2NW'/; N'/2SW'%
Section 27: S'%N%; N1/2S1/2
Section 28: SE%NE'/4; NE'ASE'/<
560 -acres, more or less, Weld County, Colorado.
Hereinafter "Application Lands"
(throughout, the "WSU #1")
20. 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 Kodak North FD #28-
162HN Well to the Niobrara Formation in WSU #1 on the Application Lands.
21. 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
Formation underlying the following approximate 560 -acre Wellbore Spacing Unit for the
drilling and operation of the Kodak North FD #28-199HN (API No. 05-123-39345):
Township 6 North, Range 67 West, 6th P.M.
Section 26: S'%NW%; N'%SW'/
Section 27: S'/%N'/z; N'/2S'/2
Section 28: SE'ANE%; NE'ASE%
560 -acres, more or less, Weld County, Colorado.
Hereinafter "Application Lands"
(throughout, the "WSU #2")
22. 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 Kodak North FD #28-
199HN Well to the Niobrara Formation in WSU #2 on the Application Lands.
23. 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 Codell
Formation underlying the following approximate 560 -acre Wellbore Spacing Unit for the
drilling and operation of the Kodak North FD #28-162HC (API No. 05-123-39348):
Township 6 North, Range 67 West, 6th P.M.
Section 26: S%NW'/; N'AASW'/a
Section 27: S'/%N'/z; N'IAS'%
Section 28: SE'/NE'A; NE'/SEA
560 -acres, more or less, Weld County, Colorado.
Hereinafter "Application Lands"
(throughout, the "WSU #3")
24. 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 Kodak North FD #28-
162HC Well to the Codell Formation in WSU #3 on the Application Lands.
25. 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 opportunity to lease, or to participate in the drilling of
the Well, and will be provided with the information required by Rule 530 as applicable.
26. That in order to prevent waste and to protect correlative rights, all
interests in the three (3) 560 -acre Wellbore Spacing Units should be pooled for the
orderly development and operation of the Codell and Niobrara Formations, including any
non -consenting interests therein.
WHEREFORE, Applicant requests that this matter be set for hearing at
the next available opportunity, that notice be given as required by law, and that upon
such hearing, the Commission enter its order:
A. Pooling all interests in three (3) approximate 560 -acre designated
horizontal Wellbore Spacing Units on the Application Lands for the development and
operation of the Codell and Niobrara 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 Kodak North FD #28-
162HN (API No. 05-123-39344) in WSU #1, the Kodak North FD #28-199HN (API No.
05-123-39345) in WSU #2 and the Kodak North FD #28-162HC (API No. 05-123-39348)
in WSU #3 for the development of the Codell and 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 other agreement to participate in the drilling of the
Well 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 Well drilled to
develop the Codell and Niobrara Formations in the 560 -acre Wellbore Spacing Units
comprising the Application Lands.
D. For such other findings and orders as the Commission may deem
proper or advisable in this matter.
WHEREFORE, Applicant respectfully requests that this matter be set for
hearing in March 2017, that notice be given as required by law, and that upon such
hearing, the Commission enter its order consistent with Applicant's request as set forth
above.
Dated: January 2017.
Respectfully submitted:
GREAT WESTERN OPERATING COMPANY, LLC
By:
J ie L. Jost
Kelsey H. Wasylenky
Jost Energy Law, P.C.
Attorneys for Applicant
1401 17th Street, Suite 370
Denver, Colorado 80202
(720) 446-5620
jjosta@ jostenergylaw.com
kwasylenkyi jostenergylaw.com
Applicant's Address:
Great Western Operating Company, LLC
ATTN: Hal Writer
1801 Broadway, Suite 500
Denver, CO 80202
VERIFICATION
STATE OF COLORADO )
) ss.
CITY AND COUNTY OF DENVER )
Hal Writer, of lawful age, being first duly sworn upon oath, deposes and says that
he is the Land Manager for Great Western Operating Company, LLC, 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.
caLN
Hal Writer
Land Manager
Great Western Operating Company, LLC
Subscribed and sworn to before me this /O) day of January 2017.
Witness my hand and official seal.
[SEAL]
JANET C WILLSON
NOTARY PUBLfC
STATE OF COLORADO
NOTARY ID 0 20024618949
MY COMMISSION EXPIRE$ JUNE 11, 2018
My commission expires:
BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION OF
GREAT WESTERN OPERATING COMPANY,
LLC FOR AN ORDER TO POOL ALL
INTERESTS IN THREE (3) APPROXIMATE
560 -ACRE DESIGNATED HORIZONTAL
WELLBORE SPACING UNITS FOR PORTONS
OF SECTIONS 26, 27 AND 28, TOWNSHIP 6
NORTH, RANGE 67 WEST, 6TH P.M., FOR THE
CODELL AND NIOBRARA FORMATIONS,
WATTENBERG FIELD, WELD COUNTY,
COLORADO
CAUSE NO.
DOCKET NO.
TYPE: POOLING
APPLICATION
COMES NOW Great Western Operating Company, LLC (Operator No. 10110)
("Great Western" 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 three (3) approximate 560 -acre
designated horizontal Wellbore Spacing Units, as defined below, for the drilling of the
Kodak North FD #28-162HN (API No. 05-123-39344) in WSU #1, the Kodak North FD
#28-199HN (API No. 05-123-39345) in WSU #2 and the Kodak North FD #28-162HC
(API No. 05-123-39348) in WSU #3 (collectively, the 'Wells"), for the development and
operation of the Codell and Niobrara Formations on the following described lands:
Township 6 North, Range 67 West, 6th P.M.
Section 26: S'/NW%; N'/2SW%
Section 27: S'/2N'/:; N%S'/%
Section 28: SE'ANEIA; NE' SE%
560 -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.
Hello