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Home My WebLink About20171102.tiffI BEFORE 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 CAUSE NO, 407 DOCKET NO. 170500276 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 15: S%SW'/ Section 16: SIAS% Section 21: N'AAN% Section 22: N%NW% APPLICATION RECEIVED MAR 302017 WELD COUNTY COMMISSIONERS On March 2, 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: 1) Pooling all interests in an approximate 480 -acre designated horizontal wellbore spacing unit established for the Application Lands, for the development and operation of the Niobrara Formation; and 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 Simpson FD 16-382HN Well (API No. 05-123-44219). 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 (amended August 20, 1993), the Commission entered Order No. 407-87 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. 1 (170500276) 2017-1102 L EO'3)-1 • On January 7, 2013, the Commission entered Order No. 407-741 which: 1) vacated the approximate 80 -acre drilling and spacing units established by Order No. 407-87 for Section 16, Township 6 North, Range 67 West, fith P.M.; 2) established an approximate 640 -acre drilling and spacing unit consisting of Section 16, Township 6 North, Range 67 West, 6th P.M., and 3) approved up to seven horizontal wells within each unit, for the development and operation of the Codell-Niobrara Formation, with the productive interval of the horizontal wellbores to be no closer than 460 feet from the unit boundaries, and no closer than 150 feet from the productive interval of any other welibore located in the unit, without exception being granted by the Director. • On July 29, 2013, the Commission entered Order No. 407-848, which pooled all interests in the approximate 640 -acre drilling and spacing unit established by Order No. 407-741 for Section 16, Township 6 North, Range 67 West, 6th P.M., for the development and operation of the Codell-Niobrara Formation. • On September 15, 2014, the Commission entered Order No. 407-1107, which applied the cost recovery provisions of C.R.S. § 34-60-116(7) to any non -consenting owners within the approximate 640 -acre drilling and spacing unit established by Order No. 407- 741 for Section 16, Township 6 North, Range 67 West, 6th P.M. for the DeTienne FD 16-022HC Well (API No. 05-123-39630). • On May 18, 2015, the Commission entered Order No. 407-1307 which, among other things, 1) amended Order No. 407-741 to authorize no more than one horizontal well within the approximate 640 -acre drilling and spacing unit established by such order, for the development and operation of the Codell-Niobrara Formation, 2) established an approximate 1,120 -acre drilling and spacing unit for the Application Lands, and 3) approved up to 21 horizontal wells within the unit, for the production of oil, gas and associated hydrocarbons from the Codell-Niobrara Formation. • On July 20, 2015, the Commission entered Order No. 407-1324 which, among other things, pooled all interests in the approximate 1120 -acre drilling and spacing unit established by Order No. 407-1307 for portions of Sections 15 and 16, Township 6 North, Range 67 West, 6th P.M., for the drilling of the Simpson FD 16-039HC Well, the Simpson FD 16-059HN Well, and the Simpson FD 16-062HN Well, for the development and operation of the Codell and Niobrara Formations. • On September 14, 2015, the Commission entered Order No. 407-1427 which, among other things, applied the cost recovery provisions of §34-60-116(7), C.R.S., to additional parties within the approximate 1120 -acre drilling and spacing unit established by Order No. 407-1307 for Sections 15 and 16, Township 6 North, Range 67 West, 6th P.M., and subjected 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., were first incurred for the drilling of the Simpson FD 16-039HC Well, the Simpson FD 16-059HN Well, or the Simpson FD 16- 062HN Well, for the development and operation of the Codell 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: 2 (170500276) Dates: May 1-2, 2017 Time: 9:00 a.m. Place: The Colorado Oil and Gas Conservation Commission 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 April 17, 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 April 17, 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 Gowen, Acting Se et Dated: March 24, 2017 1 Attorneys for Great Western: Jamie L. Jost Kelsey Wasylenky Jost Energy Law, P.C. 1401 17`h Street, Suite 370 Denver, Colorado 80202 Phone: (720) 446-5620 jjost@jostenergylaw.com kwasylenky@jostenergylaw.com Lease in Pace :YES ( NO O Lease # 2- Acres ' 1q4, Keep for Hearing Outcome/Minutes File - No Action Needed S I 0, T-Csv, a 4 % 3 (170500276) 4, &mei:LW 31ay What is this? RECEIVED MAR 1 4 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: Philip Zaranka Great Western Operating Company, LLC 303-398-0302 pzaranka@gwogco.com r 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 480 -ACRE DESIGNATED HORIZONTAL WELLBORE SPACING UNIT FOR PORTIONS OF SECTIONS 15, 16, 21 AND 22, TOWNSHIP 6 NORTH, RANGE 67 WEST, 6TH P.M., FOR THE DEVELOPMENT OF THE NIOBRARA FORMATION, 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 an approximate 480 -acre designated horizontal Wellbore Spacing Unit, as defined below, for the drilling of the Simpson FD 16-382HN (API No. 05-123-44219) for the development and operation of the Niobrara Formation on the following described lands: Township 6 North, Range 67 West, 6th P.M. Section 15: S'/2SW1/4 Section 16: S1/2S'/2 Section 21: W N% Section 22: N%NW%/4 480 -acres, more or less, Weld County, Colorado. Hereinafter "Application Lands." In support thereof, Applicant states and alleges as follows: 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-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. 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 January 7, 2013, the Commission entered Order No. 407-741 which: 1) vacated the approximate 80 -acre drilling and spacing units established by Order No. 407-87 for Section 16, Township 6 North, Range 67 West, 6th P.M.; 2) established an approximate 640 -acre drilling and spacing unit consisting of Section 16, Township 6 North, Range 67 West, 6th P.M., and 3) approved up to seven horizontal wells within each unit, for the development and operation of the Codell-Niobrara Formation, with the productive interval of the horizontal wellbores to be 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 being granted by the Director. 6. On July 29, 2013, the Commission entered Order No. 407-848, which pooled all interests in the approximate 640 -acre drilling and spacing unit established by Order No. 407-741 for Section 16, Township 6 North, Range 67 West, 6th P.M., for the development and operation of the Codell-Niobrara Formation. 7. On September 15, 2014, the Commission entered Order No. 407- 1107, which applied the cost recovery provisions of C.R.S. § 34-60-116(7) to any non - consenting owners within the approximate640-acre dn(ting and spacing untrestablished by Order No. 407-741 for Section 16, Township 6 North, Range 67 West, 6th P.M. for the DeTienne FD 16-022HC Well (API No. 05-123-39630). 8. On May 18, 2015, the Commission entered Order No. 407-1307 which, among other things, 1) amended Order No. 407-741 to authorize no more than one horizontal well within the approximate 640 -acre drilling and spacing unit established by such order, for the development and operation of the Codell-Niobrara Formation, 2) established an approximate 1,120 -acre drilling and spacing unit for the Application Lands, and 3) approved up to 21 horizontal wells within the unit, for the production of oil, gas and associated hydrocarbons from the Codell-Niobrara Formation. 9. On July 20, 2015, the Commission entered Order No. 407-1324 which, among other things, pooled all interests in the approximate 1120 -acre drilling and spacing unit established by Order No. 407-1307 for portions of Sections 15 and 16, S Township 6 North, Range 67 West, 6th P.M., for the drilling of the Simpson FD 16- 039HC Well, the Simpson FD 16-059HN Well, and the Simpson FD 16-062HN Well, for the development and operation of the Codell and Niobrara Formations. 10. On September 14, 2015, the Commission entered Order No. 407- 1427 which, among other things, applied the cost recovery provisions of §34-60-116(7), C.R.S., to additional parties within the approximate 1120 -acre drilling and spacing unit established by Order No. 407-1307 for Sections 15 and 16, Township 6 North, Range 67 West, 6th P.M., and subjected 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., were first incurred for the drilling of the Simpson FD 16-039HC Well, the Simpson FD 16- 059HN Well, or the Simpson FD 16-062HN Well, for the development and operation of the Codell and Niobrara Formations. 11. Applicant designated the 480 -acre Wellbore Spacing Unit for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations pursuant to Rule 318A and notified the appropriate parties under Rule 318A. 12. 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 480 -acre Wellbore Spacing Unit for the drilling of the Simpson FD 16-382HN (API No. 05-123-44219): Township 6 North, Range 67 West, 6th P.M. Section 15: S1/ZSW'A Section 16: S1/2S' Section 21: N1 N% Section 22: N%NW1/4 480 -acres, more or less, Weld County, Colorado. (the "Wellbore Spacing Unit") 13. 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 Simpson FD 16-382HN well to the Niobrara Formation in the above -described Wellbore Spacing Unit on the Application Lands. 14. 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 Simpson FD 16-382HN, and will be provided with the information required by Rule 530 as applicable. 15. That in order to prevent waste and to protect correlative rights, all interests in the Wellbore Spacing Unit should be pooled for the orderly development and operation of the Niobrara Formation, including any non -consenting interests therein. WHEREFORE, Applicant requests that this matter be set for hearing in May 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 480 -acre designated horizontal Wellbore Spacing Unit on the Application Lands for the development and operation of the Niobrara Formation. 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 Simpson FD 16-382HN well in the Wellbore Spacing Unit for the development of the Niobrara Formation 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 Simpson FD 16-382HN 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 Simpson FD 16-382HN drilled to develop the Niobrara Formation in the 480 -acre Wellbore 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: March 2, 2017. Respectfully submitted: GREAT WESTERN OPERATING COMPANY, LLC By: amiebAost Kelsey H. Wasylenky Jost Energy Law, P.C. Attorneys for Applicant 1401 17th Street, Suite 370 Denver, Colorado 80202 (720) 446-5620 "ost@'ostenergylaw.com kwasylenky'ostenergylaw.com Applicant's Address: Great Western Operating Company, LLC ATTN: Michael Tucker 1801 Broadway, Suite 500 Denver, CO 80202 VERIFICATION STATE OF COLORADO ) ss. CITY AND COUNTY OF DENVER Michael Tucker, of lawful age, being first duly sworn upon oath, deposes and says that he is 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. Subscribed and sworn to before me this Witness my hand and official seal. [SEAL] Michael Tucker Senior Landman Great Western Operating Company, LLC JANET C WILLSON NOTARY PUBLIC STATE OF COLORADO NOTARY ID S 20024018949 MY COMMISSION EXPIRES JUNE 11. 2018 My commission expires: Gilt 1)1.46 day of March 2017. NotaMPublic Page 5 of 5 Hello