HomeMy WebLinkAbout20160378.tiff 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 ) p
OPERATIONS FOR THE CODELL AND NIOBRARA ) DOCKET NO. 160100019ECEIVED
FORMATIONS, WATTENBERG FIELD, WELD
COUNTY,COLORADO ) TYPE: POOLING DEC 2 8 2015
NOTICE OF HEARING WELD COUNTY
TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN: COMMI 1ONERS
APPLICATION LANDS
Township 6 North, Range 67 West, 6th P.M.
Section 26: N/2SW/a
Section 27: NY2S'/z
APPLICATION
On November 25, 2015, Great Western Operating Company, LLC (Operator No. 10110)
("Great Western" or "Applicant"), filed a verified application pursuant to §34-60-116, C.R.S. for
an order to:
1) Pool all interests in two (2) approximate 240-acre designated horizontal wellbore
spacing units,for the development and operation of the Codell and Niobrara Formations.
2) Subject any non-consenting 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 Kodak
South FD 27-222HN Well (API No. 05-123-40805), or the Kodak South FD 27-259HC Well (API
No. 05-123-40800).
PRIOR RULES AND ORDERS
(available online at: http://cogcc.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.
• On February 19, 1992,the Commission entered Order No. 407-87 (amended August 20,
1993) which, among other things, established 80-acre drilling and spacing units for the
production of oil, gas and associated hydrocarbons from the Codell-Niobrara
Formations, the Codell Formation, and the Niobrara Formation underlying certain lands,
including the Application Lands, with the permitted well locations in accordance with the
provisions of Order No. 407-1.
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:
1
(160100064)
2016-0378
LEO 3q
Dates: January 26-27,2016
Time: 9:00 a.m.
I - - • Place: Colorado Oil and Gas Conservation Commission
i The Chancery Building
1120 Lincoln Street,Suite 801
'V Denver, CO 80203
;Additional information about the hearing on this Application will be in the Commission's Agenda,
•'I' '" • i li)ch is posted on the Commission website approximately 3 days before the hearing.
(.i
I
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
January 12,2016. 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
preheating conference during the week of January 12, 2016. Pursuant to Rule 511., if the
matter is uncontested, it may be approved without a hearing.
OIL AND GAS CONSERVATION COMMISSION
I OF THE STATE OF COLORADO
I
By
Julie u phy,Secr tary
Dated: December 112015
Colorado Oil and Gas Conservation Commission Attorneys for Great Western:
_ _ 1120 Lincoln Street,Suite 801 _ __ __ _Jamie L.Jost_ _ __ —
Denver_Colorado 302os— Zachary P. Sears
I
Burleson LLP
1700 Lincoln Street, Suite 1300
Denver, Colorado 80203
(303)801-3200
jjost@burlesonlIp.com
zsears@burlesonllp.com
I Lease in PIE : Y NO O
Lease#
Acres
K for Hearin Outcome/Minutes
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(160100064)
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BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION OF CAUSE NO. 407
GREAT WESTERN OPERATING COMPANY,
LLC FOR AN ORDER TO POOL ALL DOCKET NO.
INTERESTS IN TWO APPROXIMATE 240-
ACRE DESIGNATED HORIZONTAL TYPE: POOLING
WELLBORE SPACING UNITS FOR PORTIONS
OF SECTIONS 26 AND 27, TOWNSHIP 6
NORTH, RANGE 67 WEST, 6TH P.M., FOR THE
CODELL AND NIOBRARA FORMATIONS,
WATTENBERG FIELD, WELD COUNTY,
COLORADO
APPLICATION
COMES NOW Great Western Operating Company, LLC (Operator No.
10110) ("Great Western" or "Applicant"), by its attorneys, Burleson LLP, and
makes this application to the Oil and Gas Conservation Commission of the State
of Colorado ("Commission") for an order to pool all interests within two (2)
approximate 240-acre Wellbore Spacing Units, as defined below, for the drilling
of the Kodak South FD 27-222HN Well (API No. 05-123-40805) in WSU #1, and
the Kodak South FD 27-259HC Well (API No. 05-123-40800) in WSU #2
(collectively, the "Wells"), for the development of the Codell and Niobrara
Formations on the following described lands:
• Township 6 North, Range 67 West, 6th P.M.
Section 26: NY2SW'Y4
Section 27: N%S%
240 acres, more or less, Weld County, Colorado.
Hereinafter "Application Lands"
In support thereof, Applicant states and alleges as follows:
1. Applicant is a corporation duly authorized to conduct
business in the State of Colorado, and is a registered operator in good standing
with the Commission.
2. Applicant owns certain leasehold interests in the Application
Lands.
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.
4. On February 19, 1992, the Commission entered Order No.
407-87 (amended August 20, 1993) which, among other things, established 80-
acre drilling and spacing units for the production of oil, gas and associated
hydrocarbons from the Codell-Niobrara Formations, the Codell Formation, and
the Niobrara Formation underlying certain lands, including the Application Lands,
with the permitted well locations in accordance with the provisions of Order No.
407-1.
5. Applicant designated the two (2) 240-acre Wellbore Spacing
Units for the production of oil, gas, and associated hydrocarbons from the Codell
and Niobrara Formations pursuant to Rule 318A and notified the appropriate
parties under Rule 318A.
6. Applicant, pursuant to Commission Rule 530 and/or the
provisions of C.R.S. § 34-60-116 (6) and (7), hereby requests an order to pool all
interests, including but not limited to, any non-consenting interests, in the
Application Lands in the Niobrara Formation underlying the following approximate
240-acre Wellbore Spacing Unit for the drilling of the Kodak South FD 27-222HN
Well (API No. 05-123-40805):
Township 6 North, Range 67 West, 6th P.M.
Section 26: N'%SW/
Section 27: NIAS%
(throughout as "WSU #1").
7. 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 C.R.S. § 34-60-116(7)(b) are first incurred for the drilling of the
Well to the Niobrara Formation in the WSU#1, on the Application Lands.
8. Applicant, pursuant to Commission Rule 530 and/or the
provisions of C.R.S. § 34-60-116 (6) and (7), hereby requests an order to pool all
interests, including but not limited to, any non-consenting interests, in the
Application Lands in the Codell Formation underlying the following approximate
240-acre Wellbore Spacing Unit for the drilling of the Kodak South FD 27-259HC
Well (API No. 05-123-40800):
r/
Township 6 North, Range 67 West, 6th P.M.
Section 26: N'%SW%4
Section 27: N%ZS%
(throughout as "WSU #2").
9. 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 C.I .S. § 34-60-116(7)(b) are first incurred for the drilling of the
Well to the Codell Formation in the WSU#2, on the Application Lands.
10. Applicant certifies that copies of this Application will be served
on all persons owning an interest in the mineral estate of the tracts to be pooled
within seven (7) days of the date hereof, as required by Rule 503.e., and that at
least thirty-five (35) days prior to the hearing on this matter, each such interest
owner not already leased or voluntarily pooled will be offered the opportunity to
lease, or to participate in the drilling of the Wells, and will be provided with the
information required by Rule 530 as applicable.
11. That in order to prevent waste and to protect correlative
rights, all interests in the Wellbore Spacing Units should be pooled for the orderly
development of the Codell and Niobrara Formations, including any non-
consenting interests therein.
WHEREFORE, Applicant requests that this matter be set for
hearing at the next available opportunity; that notice be given as required by law,
and that upon such hearing, the Commission enter its order:
A. Pooling all interests in the Application Lands and the
Wellbore Spacing Units for the development of the Codell and Niobrara
Formations.
B. Providing that the Commission's pooling order is made
effective as of the earlier of the date of this Application, or the date that any of the
costs specified in C.R.S. § 34-60-116(7)(b) are,first incurred for the drilling of the
Wells in WSU #1 or WSU #2 in the Wellbore Spacing Units to the Codell and
Niobrara Formations on the Application Lands.
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 Wells are pooled by operation of statute, pursuant to C.R.S. § 34-
60-116(6) and (7), and made subject to the cost recovery provisions thereof with
respect to the Wells drilled to develop the Codell and Niobrara Formations in the
Wellbore Spacing Units comprising the Application Lands.
D. For such other findings and orders as the Commission may
deem proper or advisable in this matter.
WHEREFORE, Applicant respectfully requests that this matter be
set for hearing in January 2016, that notice be given as required bylaw, and that
upon such hearing, the Commission enter its order consistent with Applicant's
request as set forth above. C
Dated: November 25, 2015.
Respectfully submitted:
GREAT WESTERN OPERATING COMPANY,
LLC l/
By: _"/ d
aie L. Jost
Zachary P. Sears
Burleson LLP
Attorneys for Applicant
• 1700 Lincoln St., Suite 1300
Denver, Colorado 80203
(303) 801-3200
Applicant's Address:
Great Western Operating Company, LLC
ATTN: Hal Writer
1801 Broadway, Suite 500
Denver, CO 80202
VERIFICATION
STATE OF COLORADO )
CITY AND COUNTY OF DENVER ) ss.
Steve Stacy, of lawful age, being first duly sworn upon oath, deposes and
says that he is the Senior Vice President Land for Great Western Operating
Company, LLC, and that he has read the foregoing Application and that the matters
therein contained are true to the best of his knowledge, information and belief.
Steve
Senior Vice President Land
Great Western Operating Company, LLC
Subscribed and sworn to before me this ay of November 2015.
Witness my hand and official seal.
CHRISTEN NICOLE JACKSON
[SEAL] NOTARY PUBLIC iI
STATE OE COLORADO
NOTARY 032013¢40082 MY COMMISSION EXPIRES JUNE 2A 2
My commission expires: (0--D406F1--
Notary Public
' i
•
BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION OF CAUSE NO. 407
GREAT WESTERN OPERATING COMPANY,
LLC FOR AN ORDER TO POOL ALL DOCKET NO.
INTERESTS IN TWO APPROXIMATE 240-
ACRE .DESIGNATED HORIZONTAL TYPE: POOLING
WELLBORE SPACING UNITS FOR PORTIONS
OF SECTIONS 26 AND 27, TOWNSHIP 6
. NORTH, RANGE 67 WEST, 6TH P.M., FOR THE
CODELL AND NIOBRARA . FORMATIONS,
WATTENBERG FIELD, WELD COUNTY,
COLORADO
AFFIDAVIT OF MAILING
STATE OF COLORADO
)ss.
CITY AND COUNTY OF DENVER )
I, Zachary P. Sears of lawful age, and being first duly sworn upon my oath,
state and declare that I am the attorney for Great Western Operating Company,
LLC, and that.on or before the /t day of December 2015, I 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 to the Application.
Z hary P. Sears.
Subscribed and sworn to before me this 2S day of November 2015.
• Witness my hand and official seal. RACHEL FLEMING
NOTARY PUBLIC
STATE OF COLORADO
NOTARY ID 2014402504S
[SEAL] DMMISSION EXPIRES JUNE 24,2018
My commission expires: JU+12 04, 2° '
Not -Public
f
Exhibit A
FP - Kodak South FD 27-222HN, 27-259HC
Grizzly Petroleum Company, LLC
1801 Broadway, Suite 500
Denver, CO 80202
Dynasty Royalty Company, LLC
1700 Broadway, Suite 650
Denver, CO 80290
Weld County, CO
P.O. Box 758
Greeley, CO 80632
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