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HomeMy WebLinkAbout20160373.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 ) OPERATIONS FOR THE CODELL AND NIOBRARA ) DOCKET NO. 160100065 FORMATIONS, WATTENBERG FIELD, WELD ) COUNTY, COLORADO ) TYPE: POOLING NOTICE OF HEARING TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN: - RECEIVED APPLICATION LANDS Township 6 North, Range 67 West, 61h P.M. DEC 2 8 2t- Section 26: S'/2SW1A �U Section 27: Sy S�/z_ 185x$ � 1pi,a 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 27-379I-IN Well (API No. 05-123-40821), or the Kodak South FD 27-339HC Well (API No. 05-123-40806), PRIOR RULES AND ORDERS (available online at: http://coacc.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 (160100065) 2016-0373 lib 23°1 r, Dates: January 26-27,2016 Time: 9:00 a.m. 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 1 114/60V1Julie u .hy, Secrbtary Dated: December'^, 2015 0^r^•^a^^" ^^c•M^^^^^• "�..-no mmission Attomeys for Great Western: Jamie-L.Jost— -- _ _ -- Zachary P.Sears Burleson LLP 1700 Lincoln Street,Suite 1300 Denver, Colorado 80203 (303) 801-3200 jjost@burlesonllp.com zsears@burlesonllp.com Lease in Place: YES t(1 NO O Lease ft t' pr{ Acres • 2 Keep for Hearing Outcome/Minutes File-No Action Needed RAC 3'/"237-1-(o 2 _ 1 (160100065) G 1Y 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 27-379HN Well (API No. 05-123-40821) in WSU #1, and the Kodak South FD 27-339HC Well (API No. 05-123-40806) in WSU #2 (collectively, the 'Wells"), for the development of the Codell and. Niobrara Formations on the following described lands: Township 6 NoS}l, Range 67 West, 6th P.M. Section 26: S''/SW/ Section 27: SY2S% 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. LED 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 v 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 27-379HN Well (API No. 05-123-40821): Township 6 North, Range 67 West, 6th P.M. Section 26: . SYZZSW% Section 27: S%S% • (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 27-339HC Well (API No. 05-123-40806): 0 Township 6 North, Range 67 West, 6th P.M. Section 26: SIASW/ Section 27: S%S% (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.R.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 by law, and that upon such hearing, the Commission enter its order consistent with Applicant's request as set forth above. Dated: November Z5 , 2015. 2015. Respectfully submitted:: • GREAT WESTERN OPERATING COMPANY, LLC By: J ie L. Jost achary 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 ) ss. CITY AND COUNTY OF DENVER } 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 is Steve Stacy 1/ Senior Vice President Land Great Western Operating Company, LW Subscribed and sworn to before me this allay of November 2015. Witness my hand and official seal. 'CHRISTEN NICOLE JACKSQN [SEAL] NOTARY PUBLIC STATE OF COLORADONOTARY ID*20134040032 MY COMMISSION EXPIRES JUNE 24 e' • My commission expires: (Q---a4a)NN- Notary Public 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, 6T" 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 ['J 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. Nary P. Sears Subscribed and sworn to before me this, day of November 2015. Witness my hand and official seal. RACHELFLEMING NOTARY PUBLIC STATE OF COLORADO. NOTARY ID 20144025048 • [SEAL] MY COMMISSION EXPIRES JUNE 24,2018 My commission expires: JfN Z��� 2018" • No lic Exhibit A FP—Kodak South FD 27-379HN, 27-339HC 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 Hello