HomeMy WebLinkAbout20171096.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 NIOBRARA
AND CODELL FORMATIONS, WATTENBERG
FIELD, BOULDER AND WELD COUNTIES,
COLORADO
CAUSE NO. 407
DOCKET NO. 170500197
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: SW%NW'A, W' SW'
Section 18: W'/2W'/2
Township 1 North, Range 69 West, 6th P.M.
Section 12: SE ANE%, E% SE
Section 13: E1/2E1/2
Wellbore Spacing Unit ("WSU") Nos. 1 and 2
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 two approximate 550.396 -acre horizontal wellbore spacing
units, established for the Application Lands, for the development and operation of the Niobrara
and Codell Formations; 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 costs specified in §34-60-116(7)(b), C.R.S., were first incurred for the drilling of the Woolley
Sosa 2A -7H -E168 Well (API No. 05-123-38104) (WSU #1) and the Woolley Sosa 2B -71 -I -E168
Well (API No. 05-123-38108) (WSU #2).
APPLICABLE RULES AND ORDERS
(available online at: http://cogcc.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,
1
2017-1096
(170500197)
LECOF
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:
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, 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.
Dated: March 22, 2017
Lease in Place : YES CS, i O O
Lease # I7 �Qa=
Acres
Keep for Hearing Outcome/Minutes
File - No Action Needed
n sly T1 R(c\A)
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Peter CGwen, Acting Secretary
mission 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
(170500197)
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 TWO
APPROXIMATE 550.396 -ACRE DESIGNATED
HORIZONTAL WELLBORE SPACING UNITS
ESTABLISHED FOR CERTAIN PORTIONS OF
SECTIONS 7 AND 18, TOWNSHIP 1 NORTH, RANGE
68 WEST; 6TH P.M. AND SECTIONS 12 AND 13,
TOWNSHIP 1 NORTH, RANGE 69 WEST, 6TH P.M.,
FOR THE DEVELOPMENT/OPERATION OF THE
NIOBRARA AND CODELL FORMATIONS,
WATTENBERG FIELD, WELD COUNTY, COLORADO
APPLICATION
CAUSE NO. 407
DOCKET NO.
TYPE: POOLING
RECEIVED
MAR 0 6
'119.
WELD COUNTY
COMMISSI0NIPDC
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 two approximate 550.396 -acre
horizontal wellbore spacing units established for certain portions of Sections 7 and 18,
Township 1 North, Range 68 West, 6th P.M. and Sections 12 and 13, Township 1 North,
Range 69 West, 6th P.M., for the development and operation of the Niobrara and Codell
Formations. 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: SW1/4NW', W'/2SW%
Section 18: W%W'/2
Township 1 North, Range 69 West, 6th P.M.
Section 12: SE1/4NE1/4, E1/2SE%
Section 13: E�/2E�/2
Wellbore Spacing Unit ("WSU") Nos. 1 and 2
550.396 acres, more or less. Weld and Boulder Counties, 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 two approximate
550.396 -acre horizontal wellbore spacing units comprised of the Application Lands, for the
below -described wells, for the production of oil, gas and associated hydrocarbons from the
Niobrara and Codell Formations. Applicant notified all owners in the proposed wellbore
spacing units pursuant to Rule 318A.e.(5). Applicant did not receive objections to the
establishment of the proposed horizontal wellbore spacing units within the 30 -day
response period:
a. Woolley Sosa 2A -7H -E168 Well (API No. 05-123-38104) — Codell Formation
— WSU #1; and
b. Woolley Sosa 2B -7H -E168 Well (API No. 05-123-38108) — Niobrara
Formation — WSU #2;
These wells are hereinafter referred to as the "Subject Wells."
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 WSU Nos. 1 and 2 established for the
Application Lands, for the development and operation of the Niobrara and Codell
Formations.
6. 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 §34-60-116(7)(b), C.R.S. are first incurred for the drilling of the Subject Wells within
WSU Nos. 1 and 2.
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 Wells, 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
Wells.
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.
2
I
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 WSU Nos. 1 and 2 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 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 Wells within WSU Nos. 1 and 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 Wells, 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 Wells.
C. For such other findings and orders as the Commission may deem
proper or advisable in the premises.
DATED this
1
day of March, 2017.
Respectfully submitted,
CRESTONEBEAK 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
VERIFICATION
STATE OF COLORADO
CITY & COUNTY OF DENVER
)
) ss.
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.
CRESTONE PEAK RESOURCES OPERATING, LLC
_ _) Ver,U
Sheila Frazier
rh
Subscribed and sworn to before me this ow Q day of sc r 2017, by
Sheila Frazier, Senior Land Negotiator for Crestone Peak Resources Operati g, LLC.
Witness my hand and official seal.
My commission expires: ) \ • )i-1 • "2°
LAURIE J. WIZEMAN
NOTARY PUBLIC
STATE OF COLORADO
NOTARY ID 20104028615
MY COMMISSION EXPIRES NOVEMBER 14, 2020
NeiCtAAAA:91A)
Notary Public
R
Exhibit A
Reference Map for Pooling Application
Township 1 North, Range 68 West, 6`" P.M.
Section 7: SW1ANW1/4, W1/2SW1/4
Section 18: W1%W1/2
Township 1 North, Range 69 West, 6th P.M.
Section 12: SE1ANE1A, EASE%
Section 13: E1/ZE1/2
Wellbore Spacing Unit ("WSU") Nos. 1 and 2
550.396 acres, more or less, Weld and Boulder Counties, Colorado
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