HomeMy WebLinkAbout20171098.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
FORMATION, WATTENBERG FIELD, WELD
COUNTY, COLORADO
CAUSE NO. 407
DOCKET NO. 170500199
TYPE: POOLING
NOTICE OF HEARING
TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:
APPLICATION LANDS
Township 1 North, Range 68 West, 6`h P.M.
Section 7: SEANWY4, SWY4NEA, E'/SSW'/a,
W'/zSE'/a
Section 18:
E Y2 W Y2 , W'/2 E?i2
Wellbore Spacing Unit ("WSU")
APPLICATION
RECEIVED
MAR 2 4 2017
WELD COUNTY
COMMISSIONERS
On March 2, 2017, Crestone Peak Resources Operating, LLC, Operator No. 10633
("Crestone" 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 560 -acre horizontal wellbore spacing unit,
established for the Application Lands, for the development and operation of the Codell
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
r: a. '1: -.4 §34-60-1416'(7)(b), n fti •... rr. ::...., incurred for
drilling
r. of 4kr. {A(t.r.11 .
the costs specified in C.R.S., lrvere first incurred o the drilling o tic ric,olli✓'y
Sosa 2G -7H -E168 Well (API No. 05-123-39246) (WSU).
APPLICABLE RULES AND ORDERS
(available online at: http://coqcc.state.co.us, under "Regulation,"
then click on "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:
1
2017-1098
(170500199)
Le oua\ --1
Date:
Time:
Place:
May 1-2, 2017
9:00 a.m.
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, pilot io 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.
Dated: March 22,2017
Lease in Place : YES j , NO Q
Lease # a, .--
Acres a
Keep for Hearing Outcome/Minutes
File - No Action Needed
VU2 5tS `-I /WIW
on Attorneys for Applicant:
James Parrot
Jillian Fulcher
Evan Bekkedahl
Beatty & Wozniak, P.C.
216 16th Street, Suite 1100
Denver, Colorado 80202
(303) 407-4499
jparrot@bwenergylaw.com
jfulcher@bwenergylaw.com
ebekkedahl@bwenergylaw.com
2
(170500199)
BEFORE THE OIL & GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF AN APPLICATION BY
CRESTONE PEAK RESOURCES OPERATING LLC
FOR AN ORDER POOLING ALL INTERESTS IN AN
APPROXIMATE 560 -ACRE DESIGNATED
HORIZONTAL WELLBORE SPACING UNIT
ESTABLISHED FOR CERTAIN PORTIONS OF
SECTIONS 7 AND 18, TOWNSHIP 1 NORTH, RANGE
68 WEST; 6TH P.M., FOR THE
DEVELOPMENT/OPERATION OF THE CODELL
FORMATION, WATTENBERG FIELD, WELD
COUNTY, COLORADO
APPLICATION
CAUSE NO. 407
DOCKET NO.
TYPE: POOLING
RECEIVED
MAR 062017
WELD COUNTY
COMMISSIONERS
Crestone Peak Resources Operating, LLC, Operator No. 10633 ("Crestone" 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 560 -acre horizontal
wellbore spacing unit established for certain portions of Sections 7 and 18, Township 1
North, Range 68 West, 6th P.M., for the development and operation of the Codell
Formation. In support of its Application, Applicant states and alleges as follows:
1. Applicant is a limited liability company duly authorized to conduct
business in the State of Colorado, and has registered as an operator with the Commission.
lands:
2. Applicant owns substantial leasehold interests in the below -listed
Township 1 North, Range 68 West, 6th P.M.
Section 7: SEA NW�A, SWANE1%, EY2SW�A, W%/2SE%
Section 18: E%W%/2, W1AE1/2
Wellbore Spacing Unit ("WSU")
560 acres, more or less, Weld County, Colorado
These lands are hereinafter 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
560 -acre horizontal wellbore spacing unit comprised of the Application Lands, for the
below -described well, for the production of oil, gas and associated hydrocarbons from the
Codell 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. Woolley Sosa 2G -7H -E168 Well (API No. 05-123-39246) — Codell Formation
—WSU;
This well is hereinafter 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 the WSU established for the Application Lands,
for the development and operation of the Codell Formation.
6. Applicant requests that the Commissions 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 the
WSU.
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, this Commission enter
its order:
A. Pooling all interests in the WSU established for the Application Lands,
for the development and operation of the Codell 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 the Subject Well within the WSU.
2
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 I day of March, 2017.
Respectfully submitted,
CRESTONE PEAK RESOURCES OPERATING, LLC
By:
Jillian Fulcher
James Parrot
Evan Bekkedahl
Beatty & Wozniak, P.C.
Attorneys for Applicant
216 16th Street, Suite 1100
Denver, Colorado 80202
(303) 407-4499
jfulcher@bwenergylaw.com
jparrot@bwenergylaw.com
ebekkedahl@bwenergylaw.com
Address of Applicant
Crestone Peak Resources Operating, LLC
ATTN: Sheila Frazier
1801 California Street, Suite 2500
Denver, Colorado 80202
3
Sheila Frazier
C , ESTONE PEAK RESOURCES OPERATING, LLC
J
VERIFICATION
STATE OF COLORADO )
) ss.
CITY & COUNTY OF DENVER )
Sheila Frazier, Senior Land Negotiator for Crestone Peak Resources Operating,
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.
Subscribed and sworn to before me this 01 00 day of - o r a 2017, by
Sheila Frazier, Senior Land Negotiator for Crestone Peak Resources Operati g, LLC.
Witness my hand and official seal.
My commission expires: )1.114 149
LAURIE I WIZEMAN
NOTARY PUBLIC
STATE OF COLORADO
NOTARY ID 20104028615
MY COMMISSION EXPIRES NOVEMBER 14, 2020
.is0LAAA,C6/O
Notary Public
Exhibit A
Reference Map for Pooling Application
Township 1 North, Range 68 West, 6th P.M.
Section 7: SE1hNW1A, SW1%NE1/4, E1/2SW14, WY2SE1A
Section 18: E1/2W1/2 W1/2E%
Wellbore Spacing Unit ("WSU")
560 acres, more or less, Weld County, Colorado
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