HomeMy WebLinkAbout20161379.tiff BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION ) CAUSE NO. 407
AND ESTABLISHMENT OF FIELD RULES TO )
GOVERN OPERATIONS FOR THE NIOBRARA ) DOCKET NO. 160100037
FORMATION, WATTENBERG FIELD, WELD )
COUNTY, COLORADO ) TYPE: POOLING
NOTICE OF HEARING
TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN: _ - ___ - _ _
APPLICATION LANDS
Township 6 North, Range 67 West, 6th P.M. RECEIVED
Section 2 : S'YzSYz
Section 22: S1/2S1/2 DEC 2 2 2015
Section 27: NI/2N1/2
Section 28: N1/2N1/2 WELD COUNTY
COMMISSIONERS
Wellbore Spacing Unit ("WSU") No. 1
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 an approximate 640-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 Diamond
Valley East#2 Well (API No. 05-123-38566) (WSU #1).
APPLICABLE 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.
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: j t�0(ib°
Dates: January 26-27, 2016 l eD3 91
Time: 9:00 a.m. 1,E()?j�d
1 2016-1379 1 L011-el
- - --- --- -- (160100037)
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
B
,,}ulMurph`,Secrete
Dated:December 16,2015
Colorado Oil and Gas Conservation Commission Attorneys for Applicant:
1120 Lincoln Street,Suite 801 James Parrot
Denver,Colorado 80203 Jillian Fuicher
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
(160100037)
4
f.s
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 AN APPROXIMATE
640-ACRE DESIGNATED HORIZONTAL WELLBORE DOCKET NO. To be
SPACING UNIT ESTABLISHED FOR SECTIONS 21, assigned
22, 27 AND 28, TOWNSHIP 6 NORTH, RANGE 67
WEST, 6TH P.M., FOR THE
DEVELOPMENT/OPERATION OF THE NIOBRARA RECEIVED
FORMATION, WATTENBERG FIELD, WELD
COUNTY, COLORADO DEC 1 4 2015
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 an approximate 640-acre horizontal wellbore spacing unit
established for certain portions of Sections 21, 22, 27 and 28, Township 6 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 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''/4S%
Section 22: S'IAS'/z
Section 27: N'AN'%
Section 28: N14N%
Wellbore Spacing Unit ("WSU") No. 1
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 an approximate 640-
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. Diamond Valley East#2 Well (API No. 05-123-38566) — Niobrara Formation
—WSU #1;
The above 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.
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.
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 the
Subject Well, 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 the Subject Well.
C. For such other findings and orders as the Commission may deem
proper or advisable in the premises.
DATED this d3 dayof November, 2015.
Respectfully submitted,
EXTRACTION OIL &J LL
GAS LLC
bABy:
s arrot
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 25ch day of November, 2015, by
Jason Lowrey, Senior Landman for Extraction Oil & Gas LLC.
Witness my hand and official seal.
My commission expires: 93/ad/ / 90
q2
EL.LEN TAYLOR BROWN
NOTARY PUBLIC Notary Public
} STATE OF COLORADO
NOTARY ID 20144 03 31 35
% MYCUMM:SSI0NEX^2IRESAUGUST 22,2010 Sk
Exhibit A
Reference Map for Pooling Application
Township 6 North,Range 67 West,6th P.M.
Section 21: S'V2SY2
Section 22: S'Y2SY2
Section 27: N'Y2NY2
Section 28: NY2N%
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