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HomeMy WebLinkAbout20163623.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 FORMATION, WATTENBERG FIELD, WELD COUNTY, COLORADO CAUSE NO. 407 DOCKET NO. 161200546 TYPE: POOLING NOTICE OF HEARING TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN: APPLICATION LANDS Township 1 Section 3: Section 4: Section 9: Section 10: Township 2 Section 33: Section 34: North, Range 67 West, 6th P.M. W%W% E%E14 E1AE1A W%2W'/ North, Range 67 West, SE%SE''A SW%SW% APPLICATION 6th P.M. On October 13, 2016, Kerr-McGee Oil & Gas Onshore LP, Operator No. 47120 ("Kerr- McGee" 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 720 -acre horizontal wellbore spacing unit, established for the Application Lands, for the development and operation of the Niobrara 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 JZM 30N-3HZ Well (API No. 05-123-42667) (WSU #1). 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. 2016-3623 LE03Ic1 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: DECEIVED NT/ 042016 V+rr;LU COUNTY COMMISSIONERS Date: Time: Place: December 12-13, 2016 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-daysbefore-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 November 28, 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 November 28, 2016. Pursuant to Rule 511., if the matter is uncontested, it may be approved without a hearing, Dated: October 31, 2016 Lease in Place : YES d NO Lease# LEVI 42I Acres Keep for Hearing Outcome/Minutes iie - No Action Neede� 4 C OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO Commission Attorneys for Applicant: James Parrot Jillian Fulcher Beatty & Wozniak, P.C. 216 16th Street, Suite 1100 Denver, Colorado 80202 (303) 407-4499 jparrot@bwenergylaw.com jfulcher@bwenergylaw.com 2 (161200546) BEFORE THE OIL & GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF AN APPLICATION BY KERR- MCGEE OIL & GAS ONSHORE LP FOR AN ORDER POOLING ALL INTERESTS IN AN APPROXIMATE 720 -ACRE DESIGNATED HORIZONTAL WELLBORE SPACING UNIT ESTABLISHED FOR CERTAIN PORTIONS OF SECTIONS 3, 4, 9 AND 10, TOWNSHIP 1 NORTH, RANGE 67 WEST, 6TH P.M. AND SECTIONS 33 AND 34, TOWNSHIP 2 NORTH, RANGE 67 WEST, 6TH P.M., FOR THE DEVELOPMENT/OPERATION OF THE NIOBRARA FORMATION, WATTENBERG FIELD, WELD COUNTY, COLORADO APPLICATION CAUSE NO. 407 DOCKET NO. TYPE: POOLING RECEIVED OCT 1 9 2016 WELD COUNTY COMMISSIONERS Kerr-McGee Oil & Gas Onshore LP, Operator No. 47120 ("Kerr-McGee" 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 an approximate 720 -acre horizontal wellbore spacing unit established for certain portions of Sections 3, 4,,9 and 10, Township 1 North, Range 67 West, 6th P.M. and Sections 33 and 34, Township 2 North, Range 67 West, 6th P.M., for the development and operation of the Niobrara Formation. In support of its Application, Applicant states and alleges as follows: 1. Applicant is a limited partnership 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 67 West, 6th P.M. Section 3: WAWA Section 4: E'/%EY2 Section 9: E'/%E'i4 Section 10: W'YZW%2 Township 2 North, Range 67 West, 6th P.M. Section 33: SE%SE'% Section 34: SW'ASW'Y4 Wellbore Spacing Unit ("WSU") No. 1 720 acres, more or less, Weld County, 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 an approximate 720 -acre horizontal wellbore spacing unit, comprised of the Application Lands, for the below -described well, for the production of oil, gas and associated hydrocarbons from the Niobrara Formation. Applicant notified all owners in the proposed wellbore spacing unit pursuant to Rule 318A.e.(5). Applicant did not receive objections to the establishment of the proposed horizontal wellbore spacing unit within the 30 -day response period: a. JZM 30N-3HZ Well (API No. 05-123-42667) — Niobrara Formation — WSU #1. This well is hereinafter referred to as the "Subject Well." 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 No. 1 established for the Application Lands, for the development and operation of the Niobrara Formation. 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 Well within WSU No. 1. 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 Well, 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 Well. 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. 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. 2 C 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 No. 1 established for the Application Lands, for the development and operation of the Niobrara Formation, 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 Well within WSU No. 1. 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 Well, 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 Well. C. For such other findings and orders as the Commission may deem proper or advisable in the premises. DATED this / day of October, 2016. Respectfully submitted, KERR-MCGEE OIL & GAS ONSHORE LP Address of Applicant Kerr-McGee Oil & Gas Onshore LP ATTN: Rocky Kimball 1099 18th Street, Suite 1800 Denver, Colorado 80202 By: Ja`m&s Parrot Jillian Fulcher Beatty & Wozniak, P.C. Attorneys for Applicant 216 16th Street, Suite 1100 Denver, Colorado 80202 (303) 407-4499 jparrot@bwenergylaw.com jfulcher@bwenergylaw.com 3 VERIFICATION STATE OF COLORADO ) ) ss. CITY & COUNTY OF DENVER ) R.C. Kimball, Landman for Kerr-McGee Oil & Gas Onshore LP, 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. KERR-MCGEE OIL & GAS ONSHORE LP i R.C. Kimball Subscribed and sworn to before me this •1S7 t day of October, 2016, by R.C. Kimball, Landman for Kerr-McGee Oil & Gas Onshore LP. Witness my hand and official seal. My commission expires: J ;tIonci ANITA MUNKRES NOTARY PUBLIC STATE OF COLORADO NOTARY ID 20034025710 MY COMMISSION EXPIRES 08108!2010 Notary Public Exhibit A Reference Map for Pooling Application Township 1 North, Range 67 West, 6th P.M. Section 3: WAWA Section 4: E'hE%2 Section 9: E%%E'/2 Section 10: WAWA Township 2 North, Range 67 West, 6th P.M. Section 33: SE%SE'% Section 34: SW%SW% 29 23 2N67VV 27 26 25 32 33 34 35 36 5 „'-i-4 Hwy Cl 3 2 12 13 3 9 10 11 17 16 15 14 BEFORE THE OIL & GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF AN APPLICATION BY KERR- MCGEE OIL & GAS ONSHORE LP FOR AN ORDER POOLING ALL INTERESTS IN AN APPROXIMATE 720 -ACRE DESIGNATED HORIZONTAL WELLBORE SPACING UNIT ESTABLISHED FOR CERTAIN PORTIONS OF SECTIONS 3, 4, 9 AND 10, TOWNSHIP 1 NORTH, RANGE 67 WEST, 6TH P.M. AND SECTIONS 33 AND 34, TOWNSHIP 2 NORTH, RANGE 67 WEST, 6TH P.M., FOR THE DEVELOPMENT/OPERATION OF THE NIOBRARA FORMATION, WATTENBERG FIELD, WELD COUNTY, COLORADO AFFIDAVIT OF MAILING STATE OF COLORADO ) ) ss. CITY AND COUNTY OF DENVER ) CAUSE NO. 407 DOCKET NO. TYPE: POOLING Grace Go-Hoveland, of lawful age, and being first duly sworn upon her oath, states and declares: That she is a Legal Assistant at Beatty & Wozniak, P.C., attorneys Kerr-McGee Oil & Gas Onshore LP, and on or before October &b , 2016, caused a copy of the attached Application to be deposited in the United States Mail, postage prepaid, addressed to the parties listed on Exhibit A attached hereto. Gr Subscribed and sworn to before me this �3 day of October, 2016. Witness my hand and official seal. TERESA L. PETERSON NOTARY PUBLIC STATE OF COLORADO NOTARY ID 19894002026 MY COMMISSION EXPIRES OCT.4, 2017 Notary Public EXHIBIT A INTERESTED PARTIES The names and addresses of the interested parties (persons who own any interest in the mineral estate of the tracts to be pooled, except owners of overriding royalty interest) according to the information and belief of the Applicant are set forth in this Exhibit A. ANADARKO E&P ONSHORE LLC 1099 18TH STREET, SUITE 1800 DENVER, CO 80202 C&M RESOURCES, LLC 16 SUNSET CIRCLE LONGMONT, CO 80501-5212 DCP NGL SERVICES, LP P.O. BOX 201209 HOUSTON, TX 77216-1209 SPECTRA ENERGY TRANSPORT AND TRADING COMPANY, LLC P.O. BOX 1642 HOUSTON, TX 77056 THE ESTATE OF MARIAN J. STRATTON, FKA MARIAN J. BOTTINELLI, FICA MARIAN JOHNSON BOTTINELLI 426 COFFMAN STREET, SUITE 200 ATTN: GRANT, GRANT & GOIRAN LLP LONGMONT, CO 80502-0908 MILLER FAMILY FARM, LLC 12251 WELD COUNTY RD 22 1/2 FORT LUPTON, CO 80621 CAROLYN WEBER 2885 E. MIDWAY BLVD., LOT 713 DENVER, CO 80234 KAUFFMAN LAND & DEVELOPMENT, LLC 1675 BORADWAY, SUITE 2800 DENVER, CO 80202 SUCKLA FARMS, INC. 4468 WELD COUNTY ROAD 19 FORT LUPTON, CO 80621 THE VAN DEEST FAMILY TRUST DATED MARCH 25, 2009 8486 COLORADO HIGHWAY 52 FORT LUPTON, CO 80621 THE LILY T. DROULLARD TRUST DATED NOVEMBER 16, 2015 11560 W 32ND AVENUE WHEATRIDGE, CO 80033 EVELYN V. SMITH 621 HOOVER ST FORT LUPTON, CO 80621 REBECCA M. NORRIS PO BOX 294 ERIE, CO 80621 NOLA J BURGE 7127 WELD COUNT RD 231/2 FORT LUPTON, CO 80621 MARGEE IRENE HAAKE TRUST DATED NOVEMBER 13, 2007 5387 WCR 19 FORT LUPTON, CO 80621 JUNE A. HANKS 1725 S 50TH #603 WEST DES MOINES, IA 50265 JANICE SUE OVERTON 314 COMMONS PARK DRIVE CAMARILLO, CA 93012 COLUMBINE JERSEY FARMS, INC. 80 MISTLETOE RD GOLDEN, CO. 80404 FARMERS RESERVOIR AND IRRIGATION COMPANY 80 S 27TH AVENUE BRIGHTON, CO 80601 DEBORAH Y HEIN 1324 ROXBURY CT JACKSON, MI 39211 GARY L HEIN PO BOX 290 GOLDENDALE, WA 98620 LISA C HEIN 1322 ROXBURY CT JACKSON, MI 39211 MARVIN C HEIN 5290 E YALE CIRCLE, #103 DENVER, CO 80222 RICHARD L HEIN 5290 E YALE CIRCLE, #103 DENVER, CO 80222 SARAH N HEIN, MA SARAH N STENSON 280 SOUTH 17TH AVENUE DRIVE BRIGHTON, CO 80601 STACY M HEIN 5626 COHN TERRACE LANE HOUSTON, TX 77007 TERRY A HEIN BOX 148 RAPID VIEW, SASKATCHEWAN S0M 2M0 WELD COUNTY COLORADO C/O BOARD OF COUNTY COMMISSIONERS 1150 O STREET PO BOX 758 GREELEY, CO 80632 GITTLEIN FAMILY FARMS, LLC 5820 WELD COUNTY ROAD 19 FORT LUPTON, CO 80621 NRC-CO 1, LLC 755 E. MULBERRY AVE, em FLOOR SAN ANTONIO, TX 78212 SYNERGY RESOURCES CORPORATION 1625 BROADWAY, SUITE 300 DENVER, CO 80202 Hello