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HomeMy WebLinkAbout20160934.tiff G'V BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE PROMULGATION AND ) CAUSE NO. 407 ESTABLISHMENT OF FIELD RULES TO ) GOVERN OPERATIONS FOR THE CODELL ) DOCKET NO. 160300123 FORMATION, WATTENBERG FIELD, WELD ) COUNTY, COLORADO ) TYPE: POOLING • NOTICE OF HEARING • TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN: RECEIVED APPLICATION LANDS____. . FEB 0 5 202 Township 7 North, Range 64 West, 6th P.M. Section 27: WAWA WELD COMMISSIONERSTY Section 28: E'/E+/ Section 33: EVEY% Section 34: WAWA APPLICATION On January 7, 2016, Bayswater Exploration & Production, LLC (Operator No. 10261) ("Bayswater" or "Applicant") filed a verified application pursuant to §34-60-116, C.R.S., for an order to: 1) Pool all interests in an approximate 640-acre welibore spacing unit ("WSU") established for the Application Lands, for the development and operation of the Codell Formation; 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 Mojack P-28HC Well (API No. 05-123-39829). APPLICABLE RULES AND ORDERS (available online at: http://coocc.state.co.us, under"ORDERS") On April 27, 1998, the Commission adopted Rule 318A, the Greater Wattenberg Area Special Well Location, Spacing and Unit Designation Rule. 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: March 7-8, 2016 Time: 9:00 a.m. 2016-0934 LEO 72,, Place: 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 February 22, 2016. 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 February 22, 2016. 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 n J lie Mur y, Seci ry Dated: January 27, 2016 Colorado Oil and Gas Conservation Commission Attorneys for Applicant; 1120 Lincoln Street, Suite 801 Joseph C. Pierzchala Denver, Colorado 80203 Chelsey J. Russell Website: http://cogcc.state.co.us Welborn Sullivan Meck &Tooley, P.C. Phone: (303)-894=2100— -- _ --1125 17th Street, Suite-2200 I Fax: (303) 894-2109 Denver, CO 80202 • (303) 830-2500 jpierzchala@wsmtlaw.com crussell@wsmtlaw.com Lease in Plac : Y S NO Q Lease# L Acres Keep for Hearing Outcome/Minutes File-No Action Needed 2 (160300123) 0 �eG�\v 0\6 '� R CEWW 1 \P�1 \GpVN�RS JAN 072016 G EMtO\,c� ORE THE OOIL F THE AND GAS OFCONSERVATION COLORADO COMMISSION COGCC IN THE MATTER OF THE APPLICATION OF ) BAYSWATER EXPLORATION & PRODUCTION, ) Cause No. 407 LLC FOR AN ORDER POOLING ALL ) INTERESTS IN THE CODELL FORMATION IN A ) Docket No. 160300123 640-ACRE WELLBORE SPACING UNIT ) LOCATED IN SECTIONS 27, 28, 33 AND 34, ) Type: POOLING TOWNSHIP 7 NORTH, RANGE 64 WEST, 6TH ) P.M., WATTENBERG FIELD, WELD COUNTY, ) COLORADO. ) — APPLICATION Bayswater Exploration & Production, LLC ("Bayswater" or "Applicant"), Operator No. 10261, 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" or "COGCC") for an order pooling all interests in an approximate 640-acre wellbore spacing unit for the W' W'/2 of Section 27, the E'/2E'/2 of Section 28, the E'/2E'/2 of Section 33, and the W'/2W'h of Section 34, Township 7 North, Range.64 West, 6th.P.M., Weld County, Colorado for the development and production from the Codell Formation. In support thereof, the Applicant states as follows: 1. Applicant is a limited liability company duly authorized to conduct business in the State of Colorado. 2. Applicant owns a leasehold interest in the wellbore spacing unit comprised of the following lands ("Application Lands"): Township 7 North, Range 64 West, 6th P.M. Section 27: W'/2W'/2 - Section 28: E'/2E1/2 Section 33: E1/2E1/2 Section 34: WAWA Weld County, Colorado. A reference map of the Application Lands is attached hereto. 1. Rule.318A.a.(4)D. provides, in relevant part, that where a drilling and spacing unit does not exist for a horizontal well,.the'horizontal wellbore spacing'unit shall be comprised of the governmental quarter-quarter sections in which the wellbore lateral penetrates the productive formation as well as any governmental quarter-quarter sections that are located less than four {00440778.1} 1 ONin r r,. hundred sixty (460) feet from the portion of the wellbore lateral that penetrates the:productive''zone regardless of section or quarter section lines. Rule 318A.a.(4)D. further provides that''a.horizontal wellbore spacing-unit may overlap portions of another horizontal wellbore spacing udit 'or other wellbore spacing unit designated in accordance with subsection a.(4)C. - • 2. - Applicant will drill the Mojack.P.-28HC well (API# 05-123-39829), anticipated to spud on or about March 16, 2016. The above-described horizontal well is designed to test and • produce gas and associated hydrocarbons from the Codell Formation underlying the Application Lands. 3. Pursuant to the relevant provisions of Section 34-60-116(6) & (7), C.R.S., and COGCC Rule 530, Applicant seeks an order pooling all interests in the Application Lands for the development and operation of the Codell Formation. 3. Applicant certifies that, at least 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 participate and bear costs associated with the drilling and completion of the Mojack P-28HC well. 4. 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 the Mojack P-28HC well. - • 5. The granting of this Application would be in accord with the Oil and Gas Conservation Act, found at Section 34-60-101, et seq., C.R.S., and Commission rules. 6. 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 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 date of the scheduled protest deadline for this Application, 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 Codell 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 he Mojack P-28HC well. {00440778.1} 2 • F ' 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 well, are pooled by operation of statute, pursuant to Section 34-60-116(7), C.R.S., and made subject to the• cost recovery provisions thereof: - D. , ,For such-other findings and orders as the Commission may deem proper or advisable in the premises. • Dated this 7th day of January, 2016 Respectfully submitted, WELBORN SULLIVAN MECK&TOOLEY, P.C. By: \ /1/4 '\ t .� / • Joseph C.w7c4la Chelsey J. Russell Welborn Sullivan Meck &Tooley, P.C. Attorneys for Applicant • 1125 - 17th Street, Suite 2200 • Denver, CO 80202 303-830-2500 jpierzchala@wsmtlaw.com • crusse l l(a�wsmtlawicom • Applicant's Address: 730 Seventeenth Street, Suite 610 Denver, CO 80202 Attn: Blake Leavitt, DJ Basin Landman Phone: 303-893-2503 • {00,140773.1} 3 a t VERIFICATION STATE OF COLORADO )- ) ss. CITY& COUNTY-OF DENVER Blake Leavitt, DJ Basin Landman with Bayswater Exploration & Production, 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. BAYSWATER EXPLORATION & PRODUCTION, LLC Blake Leavitt, DJ Basin Landman Subscribed- and sworn to before me this 7th day of January, 2016 by. Blake Leavitt, DJ Basin Landman for Bayswater Exploration & Production, LLC: Witness my hand and official seal. TOM BLYTH � ry Public —' NOTF1ECOLRY AD M Commission Expires:STATE OF COLORADO' Y P -- / 3/-I Notary O 20104027061 My Coamiss;on Expires 07/23/2018 (00440773.1) 4 7 EXHIBIT A 1 Ownership: Mojack P-28HC Township 7 North,Range 64 West Section 27:W/2W/2 Section 28:E12912 Section 33:E12E12 Section 34:Wf2W/2 Containing 64052 acres,more or less 1 UNLEASED•OIL-AND GAS INTERESTS, ' .. '. sTREST -- . - cma7arevd ,:.." Country Bob McDonald 90360 Shadows Drive Springfield.OR 97478 Rick McDonald 90360 Shadows Drive Springfield,OR 97478 Nola Kari 90360 Shadows Drive Springfield,OR 97478. Elnora Fox 107 N Alexander Farmington,MO 63640 '2 NONCONSENTING WIOWNERS I;'., .. ./. ''".• sTREST• .' r,' -....'-. r' , •. cgtsTATEZIP - ✓' Country,c. Welco Operating.LLC 1120 Lincoln SL Suite 1605 Denver,CO BD203 WYOTEX Oil Company PO Box 260969 Lakewood,CO 80226 Alpha Energy Group,LLC 245E 54th St.Suite SM New York,NY 10022 Green Oil Enemy,LLC 245 E 54th St.,Suite 5M New York.NY 10022 Aluma Energy,LLC 245 E 54th St.,Suite 5M New York,NY 10022 Shoreline Energy Holdings II,Inc. 300.116-8th Avenue SW Calgary,AB T2P103 Canada Noble Energy,Inc. 1625 Broadway,Suite 2000 Denver,CO 80202 Lilts Energy,Inc.flk/a Recovery Energy,Inc. 1900 Grant Street.Suite 720 Denver,CO 80203 . Grizzly Petroleum Company.LLC 1801 Broadway,Suite 500 _ _ Denver,CO 80202 _ -- •3...1 CONSENTING WI;OWNERS ,.:'1;:-.1:17-:;:::!;;,,. :.,STREET „_? , i_. , 1`j ,, cloysrATEZIP ,, ';z Country Bayswater Exploration&Production,LLC 730 17th St.Suite 610 Denver,CO 60202 Bayswater Blenheim Holdings LLC 730 17th St.Suite 610 Denver,CO 80202 Bayswater Blenheim Holdings II,LLC 730 17th St.Suite 610 Denver,CO 80202 OMB Royalties II,LLC 410 7th Street,Suite 11550 Denver,CO 80202 l'cj,ROYALTy,OWNERSF r .47 sTREST - _d._. girt 3inievP .. _ Country,•l`i;. Anadarko E&P Onshore LLC 1099 18th Street Denver,CO 80202 Anadarko Land Corp. 1099 18th Street Denver,CO 80202 Bed L.Dewey 230 Cheyenne Eaton,CO 80615 Bessie M.Dewey 1326 Country Club Road Fad Collins,CO 80524 Beverly A.Schell and Donald J.Schell,joint tenants 2505 17th Ave. Greeley.CO80631 Carol A.Tveitmoe 9155 Ellis Way Arvada,CO 80005 Cary A.Kincede 525 Jefferson SL Pueblo,CO 81004 Centennial Mineral Holdings,LLC ' 5950 Cedar Springs Road,Suite 200 Dallas,TX 75235 Charles Dewey Warren 2405 Baystone Court Colorado Springs,CO 80921 Darene(Malait)Wisecup 3634 Coffee Lane Santa Rosa,CA 95403 David E.Dewey R0:Box 126 . Kersey,CO 80644 Donna MacKenzie Waliams . . 704 Fountainhead Blvd&C Grand Junction,CO 81505 Double Arrow Energy Company 7415 South 170th Street Omaha.NE 68136 Double Arrow Ranch Trust uta dated October 26,2000.John Robert 7415 South 170th Street Omaha,NE 68136 Christiansen,Trustee Edith A.Christiansen 7415 South 170th Street Omaha,NE 68136 Fred James Warren 4271 King Street Denver,CO 80211 • Gail A.Pippin 5605.Crescent Avenue Independence,MO 64053 Helen L.Cook 2124 Knitter Road Fort Collins,CO 80528 James Dean Camey 9242 Grey Cliff Drive Germantown,TN 38139 ' James Foster 5925 Taylor Draper Cove Austin,TX 78759 Jennifer Foster 7501 Creston Lane Austin.TX 78752 JLW Investment.LLC 351 Glencoe Street Denver,CO 80220 John Foster 7501 Creston Lane Austin,TX 78752 Larry Lang 8054 Moore St. Arvada.CO 80005 Linda L.Dobbins -• L619 South Patterson Ave Springfield.MO 65802 LaVerle Lander • 5608 West Yucca Street Glendale,AZ 85304 Leland L.McDonald . .. 431 Topeka Avenue Leavenworth,KS 66048 Linda A.Mitchell 719 Paseo Dorado Pueblo West,CO 81007 Linda Pfennenstiel 13931 East Marina Drive.Unit 602 Aurora,CO 60014 Lois E.Steiner 5107 Shady Dell Trail Knoxville,TN 37914 Lori McDonald Petersen 2920 45th Avenue Greeley,CO 80634 Martha Brown Crouch 115 Nmthview Place Windsor,MO 65360 Mary Gayle McDonald 2228 Dunbar Court Longmont,CO 80501 Michael E.Potter 5705 Westbound 40 Highway Blue Springs,MO 64015 Mojack Interests.LLLP 38375 CR 55 Eaton.CO 80615 Nancy Kern P.O.Box 496 Gilcrest,CO 80623 NG Resources.LLC 9896 Clairton Way Highlands Ranch,CO 80126 Old West Tours 110 E.Center Street,PMB 1989 Madison,SD 57042-2908 —Paula J.Mitchell - 3258rentwood _Pueblo,CO 81008 _ Randy McDonald 3102 17th Avenue%3 Greeley,CO 80631 Raymond G.Dewey.Jr. 1011 Cottonwood Place NW Albuquerque.NM 87107 Richard Mime 5 Briargate Place Pueblo,CO 81001 Robbie Mae Warren 2319 West 18th Street Greeley,CO 80634 Tartan's Teed Hand Ranch.LLC 36254 County Road 55 Eaton,CO 80615 Ted McDonald 851 W.Mulberry Street Louisville.CO 80027 Terry J.McDonald 63100 Bradford Road Creswell,OR 97426 Tim McDonald 4554 Ivy Street Springfield,OR 97478 Troy E.Richter and Traci C.Richter,joint tenants 36392 County Road 55 Eaton,CO 80615 Vicky Mangan 5286 5.Jamaica Way Englewood CO 80111 Wallace Roy MacKenzie 20188 Klyne Street Corona,CA 92881 Weld County,Colorado P.O.Box 758 Greeley,CO 80631 . t PROPOSED 318A.e. SPACING UNIT SECTION 28,TOWNSHIP 7 NORTH,RANGE 64 WEST,6TH P.M. SEC,27:W2W2,SEC.28:E2E2 SEC.33: E2E2,SEC.34:W2W2 = �rv. I - 121- i1OJACKcP,28HC aax. 2- 46O BUFFER LP NW NE u R-..• I PROPOSED I ��t+.-- __-- �WELLBORE �s - a.I SPACING UNIT I sect iIN.. --W secv. r<. I I28__ R�w. 27w' I _ Y -A.w HHH - a.w. ' w �w. 1 SENW I s n.«w.U.. ,r �Exe— 8 33xr., 1 r"7. 34 WISE ' = I • •I s _ ss I s,.... , snx. res+w, I W, BH L4 R.o.W a.,w 3J WELL MOJACK P-28HC TO BE LOCATED 230'FNL AND 1680'FEL,SEC.28,T7N,R64W SURFACE LOCATION GROUND ELEVATION=4901' NAD83 LEGEND LATITUDE=40.550687° LONGITUDE=104.551239° 0=PROPOSED WELL LP=LANDING POINT A=LANDING POINT BH=BOTTOM HOLE LANDING POINT LOCATION -, =BOTTOM HOLE NAD83 LATITUDE=40.550141° LONGITUDE=104.545837° r:i1a1t. FIELD DMIi, 000iOIIL0191104 BOTTOM HOLE LOCATION 0 10 0 0 20 0 0 02-05-14 NAD83 0009109 0110, NW 1/4 NE 1/4, LATITUDE=40.523751° 08-14-15 SEC.28.T7N,R64W,6TH P.M. LONGITUDE=104.546334° IS]ib:7i".u'BY: [MEERi0: SCALE:1".2000' Bm�e. �zzl SNC I WDW- WELD COUNTY.COLORADO Hello