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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 d�1t3v/gU/7 Hello