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HomeMy WebLinkAbout20173083.tiffBEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORiaDO IN THE MATTER OF THE PROI'41ULGA-r tON AND ESTABLISHMENT CF FIELD RULES TO GOVERN OPERATIONS IONS FOR THE NICBRAR,%, FORMATION, UNNAMED FIELD, WELD COUNTY, COLORADO C,'iLiSE NO 5u5 DOCKET NO. q e 00D0571 TYPE. POOLING NOTICE CF f-iEIRING TO ALL NiIERESTED PARTIES AND TO WHOM IT MAY CONCERN APPLICATION DO ND s Township B North, R oe 'est Section 19 All Township 8 Northe_Raroe 00 t 6`h P M sec:ion 24' E;: APPLICATION C July13, 7(� 17 son Oil . Las il, LLC 'Operator No itIJl_ [ f.. i� V I t t B 3�r�1 X11 .Y e 3 verified eppiication perdue -tit to §34-50-1, 10 _ P S order 1) Pool all interests in a proposed apprcxir^ate 950 -acre drilling and spacing unit, for the development and operation of the Niobrara Formation, and Subject any nonconsenting interacts to the cost recovery p, c`.',cions of §34-60- 11r:;c C.R C effective as of the earlier of the date of the Application, or the date that any of t ire casts ec C r�incurred fr 1 t Castor .,. s,, �pL,,,,,ed in §34-;a0- � 1..�(7ji;r•), C R S ,`.Er�� fire+. I.�i the un ling of the j-24 13 Well, Castor 8-59 19-24 15 Well, and the. Castor 3-59 19-24 le wail "Wells"). APPLICABLE RULES AND ORDERS (vVallobie G'1 mc", at http i; COgCC state Cu Us, ender then select "Orders' or "Rules") ctulcctny Rule 318.a. of the Rules and Regulations of the Oil and Gas Conservation Commission requires that, on enspaced lands, wells drilled in excess of 2,500 feet in depth be located not less than 600 feet from any lease line, and located not less than 1,200 feet from any other producible or drilling oil or gas well when drilling to the same common source of supply On September 23, 2011, the Commission entered Order No 535-69, which established 40 approximate 640 -acre drilling and spacing unit for lands in Townships 7 North through 0 North, Ranges 58 West to 61 West, 6' P M , and approved two horizontal wells within each unit. for the production of c,l gas, and associated hydrocarbons from 2017-3083 the Niobrara Formation, with the treated interval of the weilbore to be located no closer than 600 feet from the unit boundaries, without exception being granted by the Director. o On July 13, 2017, Applicant filed a Concurrent Application in Docket No. 170900568 for an order to establish an approximate 960 -acre drilling and spacing unit for the Application Lands, and approve up to 16 horizontal wells within the unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation 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: September 11 - 12, 2017 Time• 9.00 a m. Place: Durango Public Library Program Room #2 1900 East Third Avenue Durango, CO 81301 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 August 28, 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 August 28, 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 7 - ) ) By */--2-11r ;e-1,5"z..fir.. /James Rouse, Acting Secretary ( Lease in Place : YES NO O Lease # IL.`p Acres \, g.\ Keep for Hearing Outcome/Minutes File - No Action Needed 2 (170903571 / O@e± August 1 2017 C dor do CA and Cos Ccrcorat n C m m. cn 112O Ur:o n Street, % R 301 Denver, Cc rado 30203 Webs±'h) %§cc .± me m2 cs Phone ;303) 894-2100 ?=X 03 394-2109 Attcrnays Jaseph C P e 7S o b G ecf%y W Storm 5 r S G;vcn Me:E & ~SG5g P.C. 1125 17th S:S/,Smm 2230 Oer, 2r, CO E0 C2 ;303) 330-2530 gam ch/ag &5m§=T =aE gG= @vsrMavvcor BEFORE THE OIL AND GAS CONSERVATION C OF THE STATE OF COLORADO IN THE MATTER OF THE APPLICATION OF BISON OIL & GAS II, LLC FOR AN ORDER POOLING ALL INTERESTS IN THE NIOBRARA FORMATION WITHIN AN ESTABLISHED 960 -ACRE DRILLING AND SPACING UNIT COVERING CERTAIN LANDS IN SECTION 19, TOWNSHIP 8 NORTH, RANGE 59 WEST, AND SECTION 24, TOWNSHIP 8 NORTH, RANGE 60 WEST, 6TH P.M., UNNAMED FIELD, WELD COUNTY, COLORADO. APPLICATION RECEIVED 3MOJ Sf NQo17 , COGCC CAUSE NO. 535 DOCKET NO. 170900571 TYPE: POOLING RECEIVED JUL 2 4 2017 WELD COUNTY COMMISSIONERP Bison Oil & Gas II, LLC ("Bison" or "Applicant"), Operator No. 10661, by and through its attorneys, Welborn Sullivan Meck & Tooley, 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 960 -acre drilling and spacing unit to be established by Commission order for Section 19, Township 8 North, Range 59 West, and the E1/2 of Section 24, Township 8 North, Range 60 West, 6th P.M., Weld County, Colorado, for the development and operation of the Niobrara Formation. In support thereof, Applicant states as follows: 1. Applicant is a limited liability company duly authorized to conduct business in the State of Colorado and is an operator in good standing with the Commission. 2. Lands"): Applicant owns substantial leasehold in the following lands ("Application Township 8 North, Range 59 West, 6th P.M. Section 19: All Township 8 North, Range 60 West, 6th P.M. Section 24: E'/z A reference map of the Application Lands is attached hereto. 1. Rule 318.a. of the Rules and Regulations of the Oil and Gas Conservation Commission requires that, on unspaced lands, wells drilled in excess of 2,500 feet in depth be located not less than 600 feet from any lease line, and located not less than 1,200 feet from any other producible or drilling oil or gas well when drilling to the same common source of supply. The Application Lands are subject to this Rule for the Niobrara Formation. {00568309 1} • 2. On September 23, 2011, the Commission entered Order No. 535-69, which established 40 approximate 640 -acre drilling and spacing unit for lands in Townships 7 North through 9 North, Ranges 58 West to 61 West, 6th P.M., and approved two horizontal wells within each unit, for the production of oil, gas, and associated hydrocarbons from the Niobrara Formation, with the treated interval of the wellbore to be located no closer than 600 feet from the unit boundaries, without exception being granted by the Director. The Application Lands are subject to this Order for the Niobrara Formation. 3. On July 13, 2017, Bison filed an application to the Commission for an order to vacate Order No. 535-69 as to the Application Lands, and establish an approximate 960 -acre drilling and spacing unit and approve up to sixteen (16) horizontal wells within the unit, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation. The Application Lands are subject to this application for the Niobrara Formation. 4. Applicant intends to drill the following wells in the Application Lands: Well Name Spud Date Castor 8-59 19-24 13 Q4 2017-Q1 2018 Castor 8-59 19-24 15 Q4 2017-Q1 2018 Castor 8-59 19-24 16 Q4 2017-Q1 2018 (collectively the 'Wells"). 5. Applicant requests, upon approval of its corresponding application for an order to establish an approximate 960 -acre drilling and spacing unit in the Application Lands for the Niobrara Formation, the Commission enter an order pooling all interests in the Application Lands for the development and operation of the Niobrara Formation pursuant to 34-60-116(6) and (7), C.R.S., and COGCC Rule 530. 6. Applicant certifies that, at least thirty-five (35) days prior to the date of the scheduled protest deadline for this Application, each owner which Applicant was able to locate, not already leased or voluntarily pooled, will be provided with the well proposal and information required by Rule 530 and tendered a reasonable offer to lease (if an unleased mineral owner), or to participate and bear costs associated with the drilling and completion of the Wells. 7. Applicant requests that a pooling order be entered as a result of this Application and that it be made effective as of the earlier of the date of this Application, or the date costs specified in Section 34-60-116(7)(b)(II), C.R.S., are first incurred for the drilling of each of the Wells. 8. The granting of this Application is in accord with the Oil and Gas Conservation Act, found at Section 34-60-101, et seq., C.R.S., and the Commission Rules. {00568309 1} 2 $ 9. The names and addresses of the interested parties (persons who own an interest in the mineral estate of the tracts to be pooled, except owners of overriding royalty interest) are attached hereto and marked Exhibit A. Applicant certifies that copies of this Application will be served on all locatable interested parties to be pooled within seven (7) days of the date hereof, as required by Commission Rule 507.b(2), and that at least thirty-five (35) days prior to the deadline to submit Rule 511 testimony, each such owner not already leased or voluntarily pooled will be offered the opportunity to lease, or to participate in the drilling of the respective wells, and will be provided with the information required by Rule 530. 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 Application Lands for the development and operation of the Niobrara Formation; B. Providing that the pooling order is made effective as of the date of this Application, or the date that the costs specified in Section 34-60-116(7)(b)(II), C.R.S., are first incurred for the drilling of the following wells: Well Name Spud Date Castor 8-59 19-24 13 Q4 2017-Q1 2018 Castor 8-59 19-24 15 Q4 2017-Q1 2018 Castor 8-59 19-24 16 Q4 2017-Q1 2018 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 authorized wells are pooled by operation of statute, pursuant to, Section 34-60-116(6) and (7), C.R.S., and made subject to the cost recovery provisions thereof; and D. For such other findings and orders as the Commission may deem proper or advisable in the premises. 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 consistent with Applicant's proposals as set forth above. [remainder of this page intentionally left blank] {00568309 1} 3 Dated this /31lay of July, 2017 Respectfully submitted, WELBORN SULLIVAN MECK & TOOLEY, P.C. By: z -� 1 Joseph,Ffiierzchafa Geoffrey W. Storm Welborn Sullivan Meck & Tooley, P.C. Attorneys for Applicant 1125 - 17th Street, Suite 2200 Denver, CO 80202 303-830-2500 jpierzchala@wsmtlaw.com gstomi @wsmtlaw.com Applicant's Address: Bison Oil & Gas II, LLC 518 17th St. Ste 1800 Denver, CO 80202 Attn: Robert Pierini, Land Manager Phone: 720-644-6997 {00568309.11 4 • VERIFICATION STATE OF COLORADO ) ss. CITY & COUNTY OF DENVER Robert Pierini, Land Manager for Bison Oil & Gas II, LLC, upon oath deposes and says that he has read the foregoing Application and that the statements contained therein are true to the best of his knowledge, information and belief. BISON OIL & GAS II, LLC Robert Pierini Land Manager Subscribed and sworn to before me this th day of July 2017 by Robert Pierini, Land Manager for Bison Oil & Gas II, LLC. Witness my hand and official seal. ABIGAIL WENK NOTARY PUBLIC STATE OF COLORADO NOTARY ID 20184009689 MY COMMISSION EXPIRES MARCH 8, 2020 Notary Public My Commission Expires: Yir.,t-c1n {00545589 1) 4 VERIFICATION STATE OF COLORADO ) ) ss. CITY & COUNTY OF DENVER ) Robert Pierini, Land Manager for Bison Oil & Gas II, LLC, upon oath deposes and says that he has read the foregoing Application and that the statements contained therein are true to the best of his knowledge, information and belief. BISON OIL & GAS II, LLC z Robert Pierini Land Manager Subscribed and sworn to before me this13 th day of July 2017 by Robert Pierini, Land Manager for Bison Oil & Gas II, LLC. Witness my hand and official seal. ABIGAIL WENK NOTARY PUBLIC STATE OF COLORADO NOTARY ID 20164009889 MY COMMISSION EXPIRES MARCH 8, 2020 NoTary Public My Commission Expires: kl i 2O 2O {00532202 1) 5 EXHIBIT A INTERESTED PARTIES Royalty Interest Owners Larry T. Shull and Geraldine L. Shull MAP2012-OK, an Oklahoma General Partnership do MAP Royalty, Inc. Tyler J. Shull Tamera K. Martin Rodeo Minerals Partners LLC Denver Mineral & Royalty Company AED Group, LLC Mike D. Shull and Peggy Shull The Klein Family Reconstituted Mineral Trust, BOKF, NA dba Bank of Oklahoma, Successor Trustee Wade E. Castor Gutfreund Sisters, LLP The Skeeters Company United States of America Acoma Energy, LLC BLG Resources, LLC Centennial Mineral Holdings, LLC Clayton L. Vandergriff [4161258] Cynthia Marie Spurlock DC heritage Trust De Soto Royalty Company, LLC Denver Mineral & Royalty Company, LLC Doxa Heritage Trust Duell Family Irrevocable Trust dated May 26, 2015 Grayrock Minerals, LLC Harvey E. Cozzens Heritage Trust Helen Crews Janet K. Schmidt John Allen Duell John Herpers and Kristen Herpers, as joint tenants LHB Ventures, LLC Linda S. Cantrell Martha H. Salser Mekusukey Oil Company, LLC Mike's Oil Well, LLC [4114938] Rodeo Mineral Partners, LLC Sharon Eileen Brandt Shirley Williamson fka Shirley A. Hnizdil The Fowler Revocable Living Trust, dated April 17, 2014 also known as The Fowler Revocable Trust dated April 17, 2014 {00568309 1} 6 a Working Interest Owners Noble Energy VII, LLC Noble Energy WyCo, LLC Noble Energy Inc. OOGC America, Inc. Whiting Oil and Gas Corporation Carrizo (Niobrara) LLC IOCL (USA), Incl., a Texas Corporation OIL India (USA), Inc., a Texas Corporation Haimo Oil & Gas LLC, a Delaware Limited Liability Company Morning Gun Exploration LLC Unleased Mineral Owners BIA Minerals, LLC Lutin Curlee Family Partnership Ltd. Lee Ann Cook Mary Lynn Wilson Weld County, Colorado for the Department of Highways, Division of Highways, State of Colorado Magnolia Mineral Trust, LLC Marvin E. Allred and Carlotta Allred, in joint tenancy Board of County Commissioners of Weld County, Colorado Bayshore Minerals, LLC Chandel Investments, LLC Clove Hitch, LLC Greg R. Thome LutherMinerals, LLC MK/Colorado, LLC Piggyback Petroleum LLC Rodella Minerals, LLC STA, LLC Trent Oram, as Trustee of TJO Investment Trust Whitaker Energy, LLC Yggdrasil Minerals, LLC KeyBank National Association, Successor Corporate Trustee of the George A. Doll Trust KeyBank National Association, Trustee of the E. William Haffke, Jr. Family Trust Douglas F. Nelson and Judith R. Nelson Brian H. Wert and Lindsay T. Wert Donald O. Peterson and Penelope G. Peterson, as joint tenants {00568309 I} 7 Exhibit B - Application Lands 4,,1/4k 13 a 18 0 4 19 25 1" = 1500 Feet ill 0 750 1500 3000 30 Hello