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Home My WebLink About20162691.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 CODELL AND NIOBRARA FORMATIONS, WATTENBERG FIELD, WELD COUNTY, COLORADO RECEIVED JUL 2'6 2016 WELD COUNTY COMMISSIONERS CAUSE NO. 407 DOCKET NO. 160800375 TYPE: POOLING NOTICE OF HEARING TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN: APPLICATION LANDS Township 1 North, Range 65 West. 6" P.M. Section 30: E1/2 ecS`ction 31: E'h APPLICATION On June 30, 2016, HRM Resources II, LW, Operator No. 10548 ("HRM" 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 drilling and spacing unit established for the Application Lands, for the development and operation of the Codell and Niobrara Formations; and 2) Subject any non -consenting interests to the cost recovery provisions of §3460- 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 Lehl 30-1 Well (API No. 05-123-39471), the Lehl 30-2 Well (API No. 05-123-39472), the Lehl 30-3 Well (API No. 05-123-39469), the Lehl 30-4 Well (API No. 05-123-39470), the Lehl 30-5 Well (API No. 05-123-39473), and the Lehl 30-6 Well (API No. 05-123-39468) ("Wells"). APPLICABLE 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 Welt Location, Spacing and Unit Designation Rule. • On July 18, 2016, the Commission entered Order No. 407-1756 which, among other things, established an approximate 640 -acre drilling and spacing unit for the EA of Sections 30 and 31, Township 1 North, Range 65 West, 6t' P.M., and approved up to six horizontal wells in the unit, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations. 1 2016-2691 LE C65 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: Date: Time: Place: August 29-30, 2016 9:00 a.m. Colorado Oil and Gas Conservation Commission 1120 Lincoln Street, Suite 801 Denver, CO 80203 Additional information about the hearing on this Application w which is posted on the Commission website approximately 3 In accordance with the Americans with Disabilities accommodations as a result of a disability for this hearing, p� (303) 894-2100 ext. 5139, prior to the hearing and arrangem At hearing, the Commission will consider the Applicaj its authority under the statute. Any interested party desirir file with the Commission a written protest or interventii no later than August 15, 2016. Such interested party shall the protest or Intervention to the person filing thi (cogcc.hearings_unit@state.co.us), one original and two: Commission. Anyone who files a protest or intervention prehearing conference during the week of August 15, 2 matter is uncontested, it may be approved without a hearing. OIL AND GAS C OF THE STATEEOF-COLORADO" By J Dated: July 21, 2016 Colorado Oil and Gas Conservation Commission 1120 Lincoln Street, Suite 801 Denver, Colorado 80203 Website: http://cogcc.state.co.us Phone: (303) 894-2100 Fax: (303) 894-2109 2 P� urphy, Secr tart' Attorneys for Applicant: James Martin Jillian Fulcher Beatty & Wozniak, P.C. 216 16th Street, Suite 1100 Denver, Colorado 80202 (303) 407-4499 jmartin@bwenergylaw.com jfuicher@bwenergylaw.com Lease in Place :AYES NO Q Lease # C Acres 2. (O 3 Keep for Hearing Outcome/Minutes File - No Action Needed (160800375) BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF AN APPLICATION BY HRM RESOURCES II, LLC FOR AN ORDER POOLING ALL CAUSE NO. 407 INTERESTS IN THE 640 -ACRE DRILLING AND SPACING UNIT PROPOSED FOR CERTAIN DOCKET NO. To be PORTIONS OF SECTIONS 30 AND 31, TOWNSHIP 1 assigned NORTH, RANGE 65 WEST, 6TH P.M., FOR THE DEVELOPMENT/OPERATION OF THE CODELL AND NIOBRARA FORMATIONS, WATTENBERG FIELD, WELD COUNTY, COLORADO APPLICATION RECEIVED JUL 06 2016 WELD COUNTY COMMISSIONERS HRM Resources II, L'LC; Operator No:. 10548 ("HRM" 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 (the "Commission") for an order pooling all interests in the approximate 640 -acre drilling and spacing unit pending approval for certain portions of Sections 30 and 31, Township 1 North, Range 65 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 company 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 1 North, Range 65 West, 6th P.M. Section 30: E%2 Section 31: E% 640 -acres, more or less, Weld County, Colorado These lands are hereinafter referred to as the "Application Lands." A reference map depicting the acreage comprising the Application Lands is attached hereto and marked as Exhibit A. 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 Cretaceous Age Formations from the base'of the Dakota Formation to the surface. Rule 318A. supersedes all prior Commission drilling and spacing orders affecting well location and density requirements of Greater Wattenberg Area wells. On December 5, 2005, Rule 318A. was amended, among other things, 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, among other things, to address drilling of horizontal wells. The Application Lands are subject to certain aspects of this rule for the Codell and Niobrara Formations. 4. On May 19, 2016, HRM filed an application to establish an approximate 640 -acre drilling and spacing unit for the Application Lands, and authorize the drilling of up to six (6) horizontal wells within the proposed unit, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations. The application is set to be heard at the July 18, 2016 COGCC hearing as Docket No. 160700298. 5. Pursuant to Docket No. 160700298, Applicant plans to drill the below - described wells within the Application Lands, for the production of oil, gas and associated hydrocarbons from the Niobrara or Codell Formation: a. Lehl 30-1 Well (API No. 05-123-39471); b. Lehl 30-2 Well (API No. 05-123-39472); c. Lehl 30-3 Well (API No. 05-123-39469); d. Lehl 304 Well (API No, 05-123-39470); e. Lehl 30-5 Well (API No. 05-123-39473) ;.and f. Lehl 30-6 Well (API No. 05-123-39468). These wells are collectively referred to hereinafter 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 in the Application Lands, for the development and operation of the Niobrara and Codell 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 any of the Subject Wells. 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 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 any of the Subject Wells. 8. 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. 2 9. 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. 10. That 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 Exhibit B attached hereto. The Applicant shall submit a certificate of service for the Application within the seven days 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 the Application Lands, for the development and operation of the Codell and Niobrara Formations, with the pooling order 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 any of the Subject Wells. 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 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 any of the Subject Wells. C. For such other findings and orders as the Commission may deem proper or advisable in the premises. DATED this 30 day of June, 2016. Respectfully submitted, HRM RESOURCES II, LLC By: Jamey Martin Jillian Fulcher Beatty & Wozniak, P.C. Attorneys for Applicant 216 16th Street, Suite 1100 Denver, Colorado 80202 (303) 407-4499 jmartin@bwenergylaw.com jfulcher@bwenergylaw.com Applicant's Address: HRM Resources II, LLC ATTN: Dan Kelly 410 171h Street, Suite 1100 Denver, CO 60202 VERIFICATION STATE OF COLORADO CITY & COUNTY OF DENVER ) ss. Dan Kelly, Chief Operating Officer for FIRM Resources II, 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. HRM RESOURCES II, LLC Dan Kelly d4o Subscribed and sworn to before me this &Z31 day of June, 2016, by Dan Kelly, Chief pperating Officer for HRM Resources II, LLC. Witness my hand and official seal. My commission expires: I O- D q- I 1 al.OC2--ce OSIA'49-0-1^-) TERESA L. PETERSON NOTARY PUBLIC STATE OF COLORADO NOTARY ID 19894002026 MY COI I,USSI0W EXPIRES 0CT.4, 2017 Notary Public • EXHIBIT A Reference Map for Pooling Application Township 1 North, Range 65 West, 6th P.M. Section 30: E1/2 Section 31: E'/ 7 1NG5W 23 24 19 10 21 V66W 26 25 0 29 28 J5 36 / 32 33 2 1 6 5 1GGSW 4 1$66N = Application Lands EXHIBIT B INTERESTED PARTIES , The names and addresses of the and belief of the Applicant are set forth in Edmunson Land, LLC P.O. Box 932 Brighton, CO 80601 Amelia Henkel Martin f/k/a Amelia Henkel 18539 WCR 4 Brighton, CO 80601 Wayne Henkel a/k/a Wayne L. Henkel 9804 Riverbend Dr, No. 102 Bothell, WA 98011 Kathleen Henkel Jackson f/k/a Kathleen S. Henkel f/k/a Kathleen Henkel 13620 NE 13th Street, #23-5 Bellvue, WA 98005 Farmers Reservoir and Irrigation Company 80 South 27th Avenue Brighton, CO 80601 Public Service Company of Colorado Tax Service Department P.O. Box 1979 Denver, CO 80201 State of Colorado, Department of Highways 4201 E. Arkansas Ave. Denver, CO 80222 Rearden Minerals, LLC 5914 W Courtyard Dr, Ste 200 Austin, TX 78730 George G. Vaught, Jr. P.O. Box 13557 Denver, CO 80201-3557 Paul L. McCulliss P.O. Box 3248 Littleton, CO 80161-3248 interested parties according to the information this Exhibit B. Edward G. Lutz 3132 20th Ave. Ct. Greeley, CO 80631 Carey J. Powell f/k/a Carey J. Rochelle 1919 Park Drive Loveland, CO 80538 David John Rochelle P.O. Box 101 Hudson, CO 80642 Lisa Marie Fiest 8200 W 20th Street, Apt E-106 Greeley, CO 80634-8470 Stanley W. Dreyer 7414 Spring Village Dr, Apt 506 Springfield, VA 22150 Stanley W. Dreyer & Sharron Dreyer 7414 Spring Village Dr, Apt 506 Springfield, VA 22150 Calvin W. Dreyer 7693 Tardes Drive Scottsdale, AZ 85255 Kenneth L. Dreyer 3812 Grandview Drive Phoenix, AZ 85053 Calvin W. Dreyer & Kenneth Dreyer Devisees of Wilma Dreyer & heirs et al. 7693 Tardes Drive Scottsdale, AZ 85255 Doralyn Swisher 18844 Riverside Drive Sonoma, CA 85476 Weld County, Colorado c/o Board of County Commissioners 915 10th Street Greeley, CO 80631 Perkins Land & Livestock III, LLC P.O. Box 267 Unionville, MO 63565 BNSF Railway Company c/o Blaine Bilderback 1301 Lou Menk Drive GOB -3W Fort Worth, TX 76131-2830 Verdad Oil & Gas Corporation 5950 Cedar Springs Rd, Ste 200 Dallas, TX 75235 Encana Oil & Gas (USA) Inc. 730 17th Street, Ste 1700 Denver, CO 80202 Robert S Pirtle P.O. Box 1310 Tyler, TX 75710 Kay Dreyer, Individually and as PR of the Estate of Donald M Dreyer P.O. Box 503 Brighton, CO 80601 Public Service Company of Colorado 1800 Larimer Street, Ste 1400 Denver, CO 80202 Town of Lochbuie 703 Weld CR 37 Lochbuie, CO 80603 Swan Exploration, LLC 8100 E Maplewood Ave, Ste 240 Greenwood Village, CO 80111 Noble Energy, Inc. 1625 Broadway, Ste 2200 Denver, CO 80202 HRM Resources II, LLC 410 17th St. Denver, CO 80202 BEFORE THE OIL & GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF AN APPLICATION BY HRM RESOURCES II, LLC FOR AN ORDER POOLING ALL INTERESTS IN THE 640 -ACRE DRILLING AND SPACING UNIT ESTABLISHED FOR CERTAIN PORTIONS OF SECTIONS 30 AND 31, TOWNSHIP 1 NORTH, RANGE 65 WEST, 6TH P.M., FOR THE DEVELOPMENT/OPERATION OF THE CODELL AND NIOBRARA FORMATIONS, WATTENBERG FIELD, WELD' COUNTY, COLORADO STATE OF COLORADO AFFIDAVIT OF MAILING ) ss. CITY AND COUNTY OF DENVER ) Grace Go-Hoveland, of lawful age, and being first duly sworn upon her oath, states and declares: CAUSE NO. 407 DOCKET NO. To be assigned That she is a Legal Assistant at Beatty & Wozniak, P.C., attorneys for HRM Resources II, LLC, and on or before July 7, 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 B. Gjlace Go- vela' W Subscribed and sworn to before me this 3u day of June, 2016. Witness my hand and official seal. TERESA L. PETERSON NOTARY PUBLIC STATE OF COLORADO NOTARY ID 19894002026 MY COMMISSION EXPIRES QUA, 2017 Notary Public Karla Ford From: Sent: To: Cc: Subject: Attachments: Karla, Janet Paul <jpaul@hrmres.com> Thursday, July 28, 2016 7:23 AM Karla Ford Jill Fulcher Emailing - OGL Weld County CO 02-09-1987.PDF OGL Weld County CO 02-09-1987.PDF Jill Fulcher at Beatty & Wozniak forwarded me your email concerning what rights Weld County might have in connection with our recent application filed with the COGCC pooling the E/2 of Sections 30 & 31-T1N- R65W. I've attached the relevant Oil and Gas Lease which is currently owned by HRM Resources II, LLC and held by production from the Marguerite B. Lehl A-2 well situated in the NE/4 of Section 30-T1N-R65W. Since we took over operations of the well from Enervest Operating in late 2013, Weld County Board of Commissioners has received $63.64 in revenues paid in December, 2014 & December, 2015 since Weld County is in minimum suspense. I trust this is the information you need. If you have any further questions, please do not hesitate to contact the undersigned at the below noted phone number. Janet Paul, Landman HRM Resources II, LLC 1410 17th Street, Suite 1600, Denver CO 80202 P 303-996-8743 I F 303-893-6892 I jpaul@hrmres.com 1 Hello