HomeMy WebLinkAbout20170711.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. 170300150
TYPE: POOLING
NOTICE OF HEARING
TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:
APPLICATION LANDS
Township 4 North, Range 67 West, 6th P.M.
Section 11: N1
Setib -1 NTh
APPLICATION
RECEIVED
FEB 1 5 2017
WELD COUNTY
COMMISSIONERS
On or before January 19, 2017, Great Western Operating Company, LLC (Operator No.
10110) ("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 the Application Lands underlying an approximate 640 -acre
Drilling and Spacing Unit comprising the Application Lands,
2) Subject any non -consenting 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. are first incurred for the drilling of the following
wells (API Nos. pending) to the Codell or Niobrara Formations on the Application Lands: Schneider
HD 11-022HC, Schneider HD 11-022HN, Schneider HD 11-059HNX, Schneider HD 11-059HN,
Schneider HD 11-099HN, Schneider HD 11-099HC, Schneider HD 11-102HNX, Schneider HD 11-
102HN, Schneider HD 11-142HN, and the Schneider HD 11-142HC.
3) For such other findings and orders as the Commission may deem proper or
advisable in this matter.
APPLICABLE ORDERS AND RULES
(available online at: http://cogcc.state.co.us, under "Regulation,"
then select 'Orders' or "Rules")
• 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 underlying certain lands, with permitted well locations in accordance with the
provisions of Order No. 407-1. The Application Lands are subject to this Order for the
Niobrara and Codell Formations.
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• On April 27, 1998, the Commission adopted Rule 318A, the Greater Wattenberg Area
Special Well Location, Spacing and Unit Designation Rule. The Application Lands are
subject to this Rule for the Niobrara and Codell 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:
Dates: 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
By _
Dated: February 7, 2017
2
Julie Murp , Secretary
(170300150)
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$ . N0O
Lease
Acres
Keep for Hearing Outcome/Minutes
File - No Action Needed
3
Attorneys for Great Western:
Jamie L. Jost
Kelsey Wasylenky
Jost Energy Law, P.C.
1401 17th Street, Suite 370
Denver, Colorado 80202
Phone: (720) 446-5620
Email: jjost@josteneravlaw.com
kwasvlenky@iostenergylaw.com
(170300150)
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 AN APPROXIMATE 640 -ACRE
DRILLING AND SPACING UNIT ESTABLISHED
FOR PORTIONS OF SECTIONS 11 AND 12,
TOWNSHIP 4 NORTH, RANGE 67 WEST, 6TH
P.M., FOR THE DRILLING OF TEN (10)
HORIZONTAL WELLS FOR THE
DEVELOPMENT OF 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 within an approximate 640 -acre drilling
and spacing unit established for portions of Sections 11 and 12, Township 4 North,
Range 67 West, 6th P.M., as defined below, and to subject any nonconsenting interests
to the cost recovery provisions of §34-60-116(7), C.R.S., for the drilling of the following
ten (10) horizontal wells with API Nos. pending: Schneider HD 11-022HC, Schneider
HD 11-022HN, Schneider HD 11-059HNX, Schneider HD 11-059HN, Schneider HD 11-
099HN, Schneider HD 11-099HC, Schneider HD 11-102HNX, Schneider HD 11-102HN,
Schneider HD 11-142HN, and the Schneider HD 11-142HC (collectively, the "Wells") for
the development and operation of the Codell and Niobrara Formations on the following
described lands:
Township 4 North, Range 67 West, 6th P.M.
Section 11: N1,4
Section 12: N'/
Weld County, Colorado
640 acres, more or less.
Hereinafter "Application Lands"
In support thereof, Applicant states and alleges as follows:
What is this?
RECEIVED
JAN 3 1 2017
WELD COUNTY
COMMISSIONERS
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:
Santiago Rodriguez
Great Western Operating Company, LLC
303-398-0302
srodriquezqwogco.com
1. Applicant is a limited liability company 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 has 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 underlying certain lands, with permitted well locations in
accordance with the provisions of Order No. 407-1. The Application Lands are subject
to this Order for the Niobrara and Codell Formations.
4. On April 27, 1998, the Commission adopted Rule 318A, the Greater
Wattenberg Area Special Well Location, Spacing and Unit Designation Rule. The
Application Lands are subject to this Rule for the Niobrara and Codell Formations.
5. On various dates prior to the date of this Application, the
Commission entered the following Orders pooling established Wellbore Spacing Units
on the Application Lands:
a. On July 29, 2013, the Commission entered Order No. 407-818
which, among other things, pooled all interests in an approximate 160 -acre designated
wellbore spacing unit established for Sections 10 and 11, Township 4 North, Range 67
West, 6th P.M., to accommodate the Purvis 10WD Well for the development and
operation of the Codell-Niobrara Formation. This Order is a wellbore-specific order and
will not affect this Application.
b. On December 16, 2013, the Commission entered Order No. 407-
912 which, among other things, affirmed that all interests, including interests owned by
previously unnoticed parties, were pooled, in an approximate 160 -acre designated
wellbore spacing unit established for Sections 10 and 11, Township 4 North, Range 67
West, 6th P.M. by Order No. 407-818, to accommodate the Purvis 10WD Well, for the
development and operation of the Codell-Niobrara Formation. This Order is a wellbore-
specific order and will not affect this Application.
c. On July 20, 2015, the Commission entered Order No. 407-1382
which, among other things, pooled all interests within an approximate 299 -acre
designated wellbore spacing unit established for the W1/2SW1/4 of Section 6 and the
W1/2NW1/4 of Section 7, Township 4 North, Range 66 West, 6th P.M. and the
E1/2SE1/4 of Section 1 and the E1/2NE1/4 of Section 12, Township 4 North, Range 67
West, 6th P.M., and to subject any nonconsenting interests to the cost recovery
provisions of §34-60-116(7), C.R.S., for the drilling of the Bernhardt 6G-323 Well for the
development and operation of the Niobrara Formation. This Order is a wellbore-specific
order and will not affect this Application.
d. On July 20, 2015, the Commission entered Order No. 407-1383
which, among other things, pooled all interests within an approximate 299 -acre
designated wellbore spacing unit established for the W1/2SW1/4 of Section 6 and the
W1/2NW1/4 of Section 7, Township 4 North, Range 66 West, 6th P.M. and the
E1/2SE1/4 of Section 1 and the E1/2NE1/4 of Section 12, Township 4 North, Range 67
West, 6th P.M., and to subject any nonconsenting interests to the cost recovery
provisions of §34-60-116(7), C.R.S., for the drilling of the Bernhardt 6G-403 Well for the
development and operation of the Codell Formation. This Order is a wellbore-specific
order and will not affect this Application.
e. On June 6, 2016, the Commission entered Order No. 407-1724
which, among other things, pooled all interests within an approximate 320 -acre
horizontal wellbore spacing unit, established for portions of Sections 10 and 11,
Township 4 North, Range 67 West, 6th P.M., for the drilling of the Spaur 10Y 241 well,
for the development and operation of the Niobrara Formation. This Order is a wellbore
specific order and will not affect this Application.
6. On June 30, 2016, Applicant filed an Application in Docket No.
160800344 for an order to establish an approximate 640 -acre drilling and spacing unit
for the Application Lands for the production of oil, gas and associated hydrocarbons
from the Codell and Niobrara Formations, to approve up to ten (10) horizontal wells
within the unit, to provide that the productive interval of any horizontal well be located no
closer than 460 feet from the unit boundaries, and no closer than 150 feet from the
productive interval of any other wellbore located in the unit, without exception granted
by the Director. Applicant's Application in Docket No. 160800344 is set to be heard at
the Commission's March 20-21, 2017 hearing.
7. 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 in an the
approximate 640 -acre drilling and spacing unit for the Application Lands for the
development and operation of the Niobrara and Codell Formations, and to 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 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 in the drilling and spacing
unit for the development of the Niobrara and Codell Formations.
8. 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 Wells, and will be provided with the information required by Rule 530 as applicable.
9. In order to allow for more efficient reservoir drainage, prevent
waste, assure a greater ultimate recovery of hydrocarbons, and to protect correlative
rights, and all interests in the 640 -acre drilling and spacing unit 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 in
March 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
Niobrara and Codell Formations, 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)(II), C.R.S., are first
incurred for the drilling of the following wells within the drilling and spacing unit:
Schneider HD 11-022HC, Schneider HD 11-022HN, Schneider HD 11-059HNX,
Schneider HD 11-059HN, Schneider HD 11-099HN, Schneider HD 11-099HC,
Schneider HD 11-102HNX, Schneider HD 11-102HN, Schneider HD 11-142HN, and the
Schneider HD 11-142HC.
B. Providing that the production obtained from the drilling and spacing
unit shall be allocated to each owner in the unit on the basis of the proportion that the
number of acres in such tract bears to the total number of mineral acres within the
drilling and spacing unit; each owner of an interest in the drilling and spacing unit shall
be entitled to receive its share of the production of the Wells located on the drilling and
spacing unit applicable to its interest in the drilling and spacing unit.
C. Providing that the nonconsenting working interest owners must
reimburse the consenting working interest owners for their share of the costs and risks
of drilling and operating each of the Wells (including penalties as provided by §34-60-
116(7)(b), C.R.S.) out of production from the drilling and spacing unit representing the
cost -bearing interests of the nonconsenting working interest owners as provided by §34-
60-116(7)(a), C.R.S.
D. Providing that any unleased owners are deemed to have elected
not to participate and shall therefore be deemed to be nonconsenting as to the Wells
and be subject to the penalties as provided for by §34-60-116(7), C.R.S.
E. Providing that each nonconsenting unleased owner within the
drilling and spacing unit shall be treated as the owner of the landowner's royalty to the
extent of 12.5% of its record title interest, whatever that interest may be, until such time
as the consenting owners recover, only out of each nonconsenting owner's
proportionate 87.5% share of production, the costs specified in §34-60-116(7)(b),
C.R.S., as amended. After recovery of such costs, each unleased nonconsenting
mineral owner shall then own its proportionate 8/8ths share of the well, surface facilities
and production, and then be liable for its proportionate share of further costs incurred in
connection with the well as if it had originally agreed to the drilling.
F. Providing that the operator of the Wells drilled on the above -
described drilling and spacing unit shall furnish the nonconsenting owners with a
monthly statement of all costs incurred, together with the quantity of oil and gas
produced, and the amount of proceeds realized from the sale of production during the
preceding month.
G. For such other findings and orders as the Commission may deem
proper or advisable in this matter.
Dated: January (9, 2017.
Respectfully submitted:
GREAT WESTERN OPERATING COMPANY, LLC
By:
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
Applicant's Address:
Great Western Operating Company, LLC
ATTN: Santiago Rodriguez
1801 Broadway, Suite 500
Denver, CO 80202
VERIFICATION
STATE OF COLORADO
) ss.
CITY AND COUNTY OF DENVER
Santiago Rodriguez, of lawful age, being first duly sworn upon oath, deposes and
says that he is the Senior Landman 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.
Santiago Rodriguez
Senior Landman
Great Western Operating Company, LLC
Subscribed and sworn to before me this r. • day of January 2017.
Witness my hand and official seal.
[SEAL]
JANET C WILLSON
NOTARY PUBLIC
STATE OF COLORADO
NOTARY ID 020024018949
MY COMMISSION EXPIRES JUNE 11. 2018
My commission expires: 64 Li
Notary public
DOI%
Karla Ford
From:
Sent:
To:
Cc:
Subject:
Attachments:
Karla:
Santiago Rodriguez <srodriguez@gwogco.com>
Monday, February 20, 2017 11:21 AM
Karla Ford
Michael Tucker
FW: Weld County - GWOG C
1338_001.pdf
I copied Mr. Michael Tucker in this correspondence as he will be able to answer the Kodak pooling apps on Pages 5-7 & 9
of the attached.
• (Page 1 and Page 8 are the same Pooling App) — Weld County is being placed on notice as a leased mineral
interest owner (Reception No. 4038141 and Reception Nos. 4115533; 4115534; 4115535; 4115536; 4114437 &
4115538 — the latter six reception numbers being corrected at Reception No. 4127639). Being a leased mineral
interest owner, said pooling application serves as notice only to Weld County.
• Page 2 - Weld County is being placed on notice as a leased mineral interest owner regarding the attached
pooling application for the Schneider HD 11-382HNX. Weld County leased its interest within said unit at
Reception No. 4096713. Being a leased mineral interest owner, said pooling application serves as notice only to
Weld County.
• Page 3 - Weld County is being placed on notice as a leased mineral interest owner regarding the attached
pooling application for the seven Schneider wells. Weld County leased its interest within said unit at Reception
No. 4096713. Being a leased mineral interest owner, said pooling application serves as notice only to Weld
County.
• Page 4 - Weld County is being placed on notice as a leased mineral interest owner regarding the attached
pooling application for the three Schneider wells. Weld County leased its interest within said unit at Reception
No. 4096713. Being a leased mineral interest owner, said pooling application serves as notice only to Weld
County.
With continued research being conducted, we may find additional Weld County tracts within the Town of Milliken, but
as currently stands, these are the tracts we leased from Weld County that will be incorporated into our Schneider units.
)Santiago Rodriguez
Sr. Landman
Direct: 303.398.0596
Cell: 303.929.5922
Fax: 866.742.1784
Privileged / Confidential information may be contained in this message. This information is intended solely for use by the individual entity named as the
recipient. If you are not the intended recipient, be aware that any disclosure. copying, distribution, or use of the contents of this communication is
prohibited. In such case, you should destroy this communication and notify the sender by reply email.
From: Karla Ford [mailto:kford@co.weld.co.us]
Sent: Sunday, February 12, 2017 1:13 PM
To: Santiago Rodriguez
Hello