HomeMy WebLinkAbout20171761BEFORE 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. 170600340
TYPE: POOLING
NOTICE OF HEARING
TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:
APPLICATION LANDS
Township 6 North, Range 63 West, 6th P.M.
Section 8: E1/2E1/2
Section 9: W1/2W1/2
Section 16: NWY4NW' 4
Section 17: NEYNE%4�
APPLICATION
RECEIVED
MAY 0 8 2017
WELD COUNTY
COMMISSIONERS
On April 13, 2017, Noble Energy, Inc. (Operator No. 100322) ("Noble" or "Applicant"),
filed a verified application pursuant to §34-60-116, C.R.S. for an order to:
1) Ratify Order No. 407-1318 to pool all interests in the Application Lands
underlying two approximate 400 -acre designated horizontal wellbore spacing units 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 Mahalo
State AA09-79HNC Well (API No. 05-123-39105), and the Mahalo State AA09-79-1HNB Well (API
No. 05-123-39102) ("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 May 18, 2015, the Commission entered Order No. 407-1318 which, among other
things, pooled all interests in the two approximate 400 -acre designated horizontal
wellbore spacing units established for the Application Lands for the development and
operation of the Niobrara Formation, and subjected all nonconsenting interests to the
cost recovery provisions of C.R.S. §34-60-116(7) effective as of the earlier of the date of
the Application or the date the costs specified in C.R.S. §34-60-116(7)(b) were first
incurred for the drilling of the Mahalo State AA09-79HNC Well (API No. 05-123-39105)
1
2017-1761
LFU2LO8'
and Mahalo State AA09-79-1 HNB Well (API No. 05-123-39102) on the Application
Lands.
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: June 12-13, 2017
Time: 9:00 a.m.
Place: Rio Blanco County Courthouse
555 Main Street
Meeker, CO 81641
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 May 26, 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 May 26, 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: May 3, 2017
commission
Lease in Place : YES NO O
Lease #
Acres
1.r
Keep for Hearing Outcome/Minutes
File - No Action Needed
2
sr- - -
Peter Gow " , Acting Secretary
Attorneys for Applicant:
Jamie L. Jost
Kelsey H. Wasylenky
Jost Energy Law, P.C.
1401 17th Street, Suite 370
Denver, Colorado 80203
(720) 446-5620
jjost@jostenergylaw.com
kwasylenky@jostenergylaw.com
(170600340)
What is this?
The attached is an Application that has been
filed with the Colorado Oil & Gas Conservation
Commission (COGCC).
Why am I receiving it?
RECEIVED
APR 2 0 2017
WELD COUNTY
COMMISSIONERS
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:
Steve Hawthorne
Noble Energy, Inc.
303-228-4000
steve.hawthorne@nblenergy.com
BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION OF
NOBLE ENERGY, INC. FOR AN ORDER TO
RATIFY ORDER NO. 407-1318, WHICH POOLS
ALL INTERESTS IN TWO APPROXIMATE 400 -
ACRE DESIGNATED HORIZONTAL
WELLBORE SPACING UNITS ESTABLISHED
FOR SECTIONS 8, 9, 16 AND 17, TOWNSHIP 6
NORTH, RANGE 63 WEST, 6TH P.M., FOR
THE NIOBRARA FORMATION, WATTENBERG
FIELD, WELD COUNTY, COLORADO
CAUSE NO.
DOCKET NO.
TYPE: POOLING
APPLICATION
COMES NOW Noble Energy, Inc. (Operator No. 100322) ("Noble" or "Applicant"),
byits 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 ratify
Order No. 407-1318 and to pool all interests, including a previously designated
unknown address, within two (2) approximate 400 -acre designated horizontal wellbore
spacing units for the drilling and operation of the Mahalo State AA09-79HNC Well (API
No. 05-123-39105), and the Mahalo State AA09-79-1 HNB Well (API No. 05-123-39102)
(collectively "Wells"), for the development of the Niobrara Formation on the following
described lands:
Township 6 North, Range 63 West, 6th P.M.
Section 8: EY2EY2
Section 9: WY2W'/2
Section 16: NW'ANW'/
Section 17: NE%NE'/4
400 -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 in the Application Lands
or holds the right to operate certain leasehold interests in the Application Lands.
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
amended to, among other things, address drilling of horizontal wells but did not prohibit
the establishment of drilling and spacing units within the Greater Wattenberg Area. The
lands encompassing the Application Lands are subject to Rule 318A, for the Niobrara
Formation.
4. Applicant designated the two (2) approximate 400 -acre horizontal
wellbore spacing units on the Application Lands for the production of oil, gas, and
associated hydrocarbons from the Niobrara Formation pursuant to Rule 318A and
notified the appropriate parties under Rule 318A.
5. On various dates prior to the date of this Application, the
Commission entered Order Nos. 407-765, 407-820, 407-862, 407-1032, 407-1243, 407-
1319, 407-1320, and 407-1321 which, among other things, pooled all interests within
certain designated horizontal wellbore spacing units in the vicinity of the Application
Lands. The above -named Orders do not affect this Application.
6. On May 18, 2015, the Commission entered Order No. 407-1318
which, among other things, pooled all interests in the two approximate 400 -acre
designated horizontal wellbore spacing units established for the Application Lands for the
development and operation of the Niobrara Formation, and subjected all nonconsenting
interests to the cost recovery provisions of C.R.S. §34-60-116(7) effective as of the earlier
of the date of the Application or the date the costs specified in C.R.S. §34-60-116(7)(b)
were first incurred for the drilling of the Mahalo State AA09-79HNC Well (API No. 05-123-
39105) and Mahalo State AA09-79-1 HNB Well (API No. 05-123-39102) on the Application
Lands.
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 ratify Order No. 407-1318 and
to pool all interests, including but not limited to, a previously designated unknown address
and any non -consenting interests, underlying the designated horizontal wellbore spacing
units established by Order No. 407-1318 for the Application Lands.
8. 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 Mahalo State AA09-
79HNC Well (API No. 05-123-39105) and Mahalo State AA09-79-1 HNB Well (API No. 05-
123-39102) to the Niobrara Formation on the Application Lands.
9. Applicant certifies that copies of this Application will be served on all
persons owning an interest in the mineral estate of the tracts subject to this Application
within seven (7) days of the date hereof, as required by Rule 503.e., and that Applicant
shall comply with Rule 530 as applicable.
A
10. In order to prevent waste and to protect correlative rights, the
Commission should ratify Order No. 407-1318 and pool all interests, including a
previously designated unknown address, 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
June 2017, that notice be given as required by law, and that upon such hearing, the
Commission enter its order:
A. Ratifying Order No. 407-1318 to pool all interests in the Application
Lands, including a previously designated unknown address, for the development and
operation of the Wells on the Application Lands.
B. Providing that the Commission's order ratifying Order No. 407-
1318, including the cost recovery provisions of C.R.S. §34-60-116(7), be made 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 Mahalo State
AA09-79HNC Well (API No. 05-123-39105) or the Mahalo State AA09-79-1 HNB Well (API
No. 05-123-39102) to the Niobrara Formation on the Application Lands.
C. For such other findings and orders as the Commission may deem
proper or advisable in this matter.
Dated: ' J ,t l �?j , 2017.
Respectfully submitted:
NOBLE ENERGY, INC.
By:
Applicant's Address:
Noble Energy, Inc.
ATTN: Julie T. Jenkins
1625 Broadway, Suite 2200
Denver, CO 80202
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
jjost@jostenergylaw.com
kwasylenky@jostenergylaw.com
VERIFICATION
STATE OF COLORADO
) ss.
CITY AND COUNTY OF DENVER
Julie T. Jenkins, of lawful age, being first duly sworn upon oath, deposes and says
that she is a Land Manager for Noble Energy, Inc., and that she has read the foregoing
Application and that the matters therein contained are true to the best of her knowledge,
information and belief.
fh
Subscribed and sworn to before me this g day of
Witness my hand and official seal.
[SEAL]
My commission expires:
2017.
JULIE K. BROWN
NOTARY PUBLIC
STATE OF COLORADO
NOTARY ID # 20094014382
MY COMMISSION EXPIRES APRIL 30. 2017
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