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Home My WebLink About20161380.tiff RECEIVED DEC 1 8 2015 BEFORE THE OIL AND GAS CONSERVATION COMMISSION WELD COUNTY OF THE STATE OF COLORADO COMMISSIONERS IN THE MATTER OF THE PROMULGATION ) CAUSE NO. 407 AND ESTABLISHMENT OF FIELD RULES TO ) GOVERN OPERATIONS FOR THE CODELL ) DOCKET NO. 160100036 AND NIOBRARA FORMATIONS, WATTENBERG FIELD, WELD COUNTY, ) TYPE: POOLING COLORADO NOTICE OF HEARING 1 TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN: 0)\/\ APPLICATION LANDS Township 6 North, Range 67 West, 6th P.M. C\k Section 21: 5Y NYz. NYzSY2 ection 22: SV2N1/2, N'/zS1 Wellbore Spacing Unit ("WSU") Nos. 1 and 2 APPLICATION On November 25, 2015, Extraction Oil & Gas LLC (Operator No. 10459) ("Extraction" or "Applicant') filed a verified application pursuant to §34-60-116, C.R.S., for an order to: 1) Pool all interests in two approximate 640-acre horizontal wellbore spacing units, established for the Application Lands, for the development and operation of the Codell and Niobrara Formations; 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 Diamond Valley East #12 Well (API No. 05-123-40318) (WSU #1) and the Diamond Valley East #13 Well (API No. 05-123-40317) (WSU #2). APPLICABLE RULES AND ORDERS (available online at: http://coocc.state.co.us, under"ORDERS") o 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: Dates: January 26-27, 2016 Time: 9:00 am. LE-03q LU)3gco 1 2016-1380 - 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 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 prehearing 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 OF THE STATE OF COLORADO By ulie Murphy,Secretla Dated:December 16,2015 Colorado Oil and Gas Conservation Commission Attorneys for Applicant: 1120 Lincoln Street,Suite 801 James Parrot Denver,Colorado 80203 Jillian Fulcher Website:http://cogcc.state.co.us Beatty&Wozniak,P.C. Phone:(303)894-2100 216 16th Street,Suite 1100 Fax:(303)894-2109 Denver,Colorado 80202 (303)407-4499 jparrot@bwenergylaw.com jfulcher@bwenergylaw.com 2 (160100036) BEFORE THE OIL & GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF AN APPLICATION BY • EXTRACTION OIL & GAS LLC FOR AN ORDER CAUSE NO. 407 POOLING ALL INTERESTS IN TWO APPROXIMATE 640-ACRE DESIGNATED HORIZONTAL WELLBORE DOCKET NO. To be SPACING UNITS ESTABLISHED FOR SECTIONS 21 assigned AND 22, TOWNSHIP 6 NORTH, RANGE 67 WEST, 6T" P.M., FOR THE DEVELOPMENT/OPERATION OF THE CODELL AND NIOBRARA FORMATIONS, DEC 07 2015 WATTENBERG FIELD, WELD COUNTY, COLORADO WELD COUNTY APPLICATION COMMISSIONERS Extraction Oil & Gas LLC, Operator No. 10459, ("Extraction" 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 two approximate 640-acre horizontal wellbore spacing units established for certain portions of Sections 21 and 22, Township 6 North, Range 67 West, 6th P.M., for the development and operation of the Codell and Niobrara Formations. In support of its Application, Applicant states and alleges as follows: 1. Applicant is a limited liability corporation duly authorized to conduct business in the State of Colorado, and has registered as an operator with the Commission. • 2. Applicant owns substantial leasehold interests in the below-listed lands: Township 6 North, Range 67 West, 6th P.M. Section 21: S''/4N'%, N%S'% Section 22: S''%N'%, N'/%S1,4 Wellbore Spacing Unit ("WSU") Nos. 1 and 2 640 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. Pursuant to Rule 318A., Applicant designated two approximate 640- acre horizontal wellbore spacing units, comprised of the Application Lands, for the below- described wells, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations. Applicant notified all owners in the proposed wellbore spacing units pursuant to Rule 318A.e.(5). Applicant did not receive objections to the establishment of the proposed horizontal wellbore spacing units within the 30-day response period: a. Diamond Valley East #12 Well (API No. 05-123.40318) — Niobrara Formation —WSU #1; and b. Diamond Valley East #13 Well (API No. 05-123-40317) — Codell Formation —WSU #2. The above wells are hereinafter referred to as the"Subject Wells." 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 each of WSU Nos. 1 and 2 established for the Application Lands, for the development and operation of the Codell and Niobrara Formations. 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 Wells within WSU Nos. 1 and 2. 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 each of the Subject Wells, 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 each of the Subject Wells. 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. 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 each of WSU Nos. 1 and 2 established for the Application Lands, for the development and operation of the Codell and Niobrara Formations, effective as of the earlier of the date of this Application, or the date that the 2 costs specified in §34-60-116(7)(b), C.R.S. are first incurred for the drilling of the Subject Wells within WSU Nos. 1 and 2. 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 each of the Subject Wells, are pooled by operation of statute, pursuant to §34-60-116(6) & (7), C.R.S., and made subject to the cost recovery provisions thereof, 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 each of the Subject Wells. C. For such other findings and orders as the Commission may deem proper or advisable in the premises. DATED this $day of November, 2015. Respectfully submitted, EXTRACTION OIL p&,GAS LLC By:// 2}/ _ s Parrot a� 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 ' Address of Applicant Extraction Oil & Gas LLC ATTN: Ellen Brown 370 17th Street, Suite 5300 Denver, CO 80202 3 VERIFICATION STATE OF COLORADO ) ) ss. CITY & COUNTY OF DENVER ) Jason Lowrey, Senior Landman for Extraction Oil & Gas 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. EXTRACTION OIL &GAS LLC son Lowrey Subscribed and sworn to before me this 25th day of November, 2015, by Jason Lowrey, Senior Landman for Extraction Oil & Gas LLC. Witness my hand and official seal. My commission expires: 94 a49,/ f v� LELLEN TAYLOR BROWN Notary Public } NOTARY PUBLIC STATE OF COLORADO iv NOTARY ID 4.140.5 01 44 03 31 7 5 y� NYC0,,AM1551DMEY"r1nE?AUGL':T<'2,"[T618 �„ Exhibit A Reference Map for Pooling Application Township 6 North,Range 67 West,6th P.M. Section 21: SIAN'/�, WAS'/ 'Section 22: S'/2N'/z, NY2SV2 18 17 s 16 15 14 I .,y�Q7 19 I 20 21 6N67W 22 23 30 29 23 f 27 26 • x 31 32 I 33 34 35 1 1 I I I� Hello