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
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