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Home My WebLink About20160935.tiff 4. RECEIVED FEB 0 3 2016 BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO WELD COUNTY COMMISSIONERS IN THE MATTER OF THE PROMULGATION AND ) CAUSE NO . 407 ESTABLISHMENT OF FIELD RULES TO GOVERN ) OPERATIONS FOR THE CODELL , NIOBRARA ) DOCKET NO . 160300129 AND SUSSEX FORMATIONS , WATTENBERG ) FIELD , WELD COUNTY , COLORADO ) TYPE : POOLING NOTICE OF HEARING TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN : APPLICATION LANDS Township 2 North, Range 66 West, 6th P . M . Section 29: SW'/4SW'/4 Section 30 : SE1ASE'/4 Section 31 : E'/7E'/2 Section 32 : W' W'/2 Township 1 North , Range 66 West, 6th P. M . Section 5: NW%NW'/a Section 6 : NE '/% NE '/a Wellbore Spacing Unit ("VVSU") Nos , 1 and 2 Township 2 North , Range 66 West, 6th P . M . Section 29 : S'ASWIA Section 32 : 1N'/2 Township 1 North, Range 66 West, 6th P. M . Section 5: N %NVV1A VvSU Nos . 3 , 4 and 5 Township 2 North , Range 66 West , 6th P . M . Section 32: W1/2 Township 1 North , Range 66 West, 6th P . M . Section 5 : NY2NW'/4 WSU No . 6 Township 2 North . Range 66 West, 6th P . M . Section 29: SE'l SW'A Section 32 : E'AW'/% Township 1 North , Range 66 West, 6th P . M . Section 5: NE1ANW% 1 - 2016935 0 LEO/ 724 ]±th 3 t WSU No. 7 APPLICATION On January 7 , 2016 , Kerr-McGee Oil & Gas Onshore LP , Operator No . 47120 (" Kerr- McGee" or "Applicant") filed a verified application pursuant to § 34-60- 116 , C . R . S . , for an order to: 1 ) Pool all interests in five approximate 480-acre horizontal wellbore spacing units , one approximate 400-acre horizontal wellbore spacing unit, and one approximate 240-acre horizontal wellbore spacing unit established for the Application Lands , for the development and operation of the Codeil arid 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 Land Fed 34C-32HZ Well (API No . 05- 123-42395) — Codell Formation (WSU No . 1 ) ; the Land Fed 34N-32HZ Well (API No . 05- 123-42396) --- Niobrara Formation (WSU No . 2) ; the Land Fed 13N - 32HZ Well (API No . 05- 123-42400) — Niobrara Formation (WSU No . 3); the Land Fed 35C- 32HZ Well (API No. 05- 123-42397 ) — Codell Formation (WSU No . 4 ) ; the Land Fed 3N-32HZ Well (API No . 05-123-42390) — Niobrara Formation (WSU No. 5) ; the Land Fed 135-32HZ (API No . 05- 123-42391 ) — Sussex Formation (WSU No . 6) and the Land 14N -32HZ Well (API No. 05- 123-42389) — Niobrara Formation — (WSU No . 7 ) ("Wells") . APPLICABLE RULES AND ORDERS (available online at : http : //coocc . 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: 1 ) the general jurisdiction granted to the Oil and Gas Conservation Commission of the State of Colorado under §34-60- 105 C . R. S . ; 2) specific powers granted pursuant to §34-60- 106 C . R . S . ; 3) the State Administrative Procedures Act at §24-4- 105 C . R . S . ; and 4) the Commission ' s Series 500 Rules at 2 CCR 404- 1 , that the Commission has scheduled the above-entitled matter for hearing on: Date : March 7-8 , 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 . 2 ( 160300129) IP 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 February 22, 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 February 22, 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 J ie Murphy , ecreta Dated : January 28, 2016 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 Lease in Place : YES e5 NO O Lease # Lteli7 ---- 1p� Acres 1 . f ( r Keep for Hearing Outcome/ Minutes File - No Action Needed Lease in Place : YES NO O Lease # E&02 Acres Keep for Hearing Outcome/ Minutes File - No Action Needed 3 ( 160300129) I BEFORE THE OIL & GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF AN APPLICATION BY KERR- MCGEE OIL & GAS ONSHORE LP FOR AN ORDER CAUSE NO . 407 P OOLING ALL INTERESTS IN FIVE APPROXIMATE 480 -ACRE DESIGNATED HORIZONTAL WELLBORE DOCKET NO . To be S PACING UNITS , ONE APPROXIMATE 400 -ACRE assigned DESIGNATED HORIZONTAL WELLBORE SPACING U NIT , AND ONE APPROXIMATE 240 -ACRE DESIGNATED HORIZONTAL WELLBORE SPACING UNIT ESTABLISHED FOR CERTAIN PORTIONS OF RECEIVED S ECTIONS 5 AND 6 TOWNSHIP 1 NORTH RANGE 66 WEST , 6TH P . M . , AND OF SECTIONS 19 , 20 , 29 , 30 , 31 AND 32 , TOWNSHIP 2 NORTH , RANGE 66 JAN ' 8 2C15 WEST , 6TH P . M . , FOR THE DEVELOPMENT/ - O OF THE CODELL , NIOBRARA AND COMMISSI0NERS'WEL® �Q� �OPERA I I NBRO SUSSEX FORMATIONS , WATTENBERG FIELD , WELD COUNTY , COLORADO APPLICATION Kerr- McGee Oil & Gas Onshore LP , Operator No . 47120 (" Kerr- McGee" 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 five approximate 480-acre designated horizontal wellbore spacing units , one approximate 400-acre designated horizontal wellbore spacing unit , and one approximate 240 -acre designated horizontal wellbore spacing unit established for certain portions of Sections of 5 and 6 , Township 1 North , Range 66 West , 6th P . M . , and of Sections 29 , 30 , 31 and 32 , Township 2 North , Range 66 West , 6th P . M . , for the development and operation of the Codell , Niobrara and Sussex Formations . In support of its Application , Applicant states and alleges as follows : 1 . Applicant is a limited partnership formed under the laws of the State of Delaware ; is a wholly owned subsidiary of Anadarko Petroleum Corporation ; is duly authorized to conduct business in the State of Colorado ; and is a registered operator in good standing with the Commission . 2 . Applicant owns substantial leasehold interests in the below- listed lands : Township 2 North , Range 66 West , 6th P . M . S ection 29 : SW1/4SW1/4 Section 30 : SE %SEA S ection 31 : EY2E �/2 j S ection 32- \MVV%/2 — 72 -S /LEO ( Township 1 North , Range 66 West , 6th P . M . S ection 5 : NW% NWY4 S ection 6 : N ESN E % A Wellbore Spacing Unit ("WSU") Nos. 1 and 2 Township 2 North, Range 66 West, 6th P.M. Section 29: S' SW'% Section 32: W'% Township 1 North, Range 66 West, 6th P.M. Section 5: N%NW'% WSU Nos. 3, 4 and 5 Township 2 North, Range 66 West, 6th P.M. Section 32: W'% - Township 1 North, Range 66 West, 6th P.M. Section 5: N%NW% WSU No. 6 Township 2 North, Range 66 West, 6th P.M. Section 29: SE%SW% Section 32: E'/AW'% Township 1 North, Range 66 West, 6th P.M. Section 5: NE'%NW'/4 WSU No. 7 These lands are hereinafter collectively 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 five approximate 480- acre horizontal wellbore spacing units, one approximate 400-acre horizontal wellbore spacing unit, and one approximate 240-acre horizontal wellbore spacing unit comprised of the Application Lands, for the below-described wells, for the production of oil, gas and associated hydrocarbons from the Codell, Niobrara or Sussex 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: 2 a. Land Fed 34C-32HZ Well (API No. 05-123-42395) — Codell Formation — WSU No. 1; b. Land Fed 34N-32HZ Well (API No. 05-123-42396) — Niobrara Formation — WSU No. 2; c. Land Fed 13N-32HZ Well (API No. 05-123-42400) — Niobrara Formation — WSU No. 3; d. Land Fed 35C-32HZ Well (API No. 05-123-42397) — Codell Formation — WSU No. 4; e. Land Fed 3N-32HZ Well (API No. 05-123-42390) — Niobrara Formation — WSU No. 5; f. Land Fed 13S-32HZ (API No. 05-123-42391) - Sussex Formation — WSU No. 6; and g. Land 14N-32HZ Well (API No. 05-123-42389) — Niobrara Formation —WSU No. 7. These 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 WSU Nos. 1 — 7 established for the Application Lands, for the development and operation of the Codell, Niobrara and Sussex Formations. 6. Applicant requests that the pooling order entered as a result of this Application be made effective as 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 No. 1 —7. 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. 3 l t 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 Nos. 1 —7 established for the Application Lands, for the development and operation of the Codell, Niobrara and Sussex Formations, with the pooling order made effective as of the date of this Application. 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 I day of January, 2016. • Respectfully submitted, KERR-MCGEE OIL & GAS ONSHORE LP By: / ( _ a J Parrot 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 Kerr-McGee Oil & Gas Onshore LP ATTN: Anita Munkres 1099 18th Street, Suite 1800 Denver, Colorado 80202 4 VERIFICATION STATE OF COLORADO ) ) ss. CITY & COUNTY OF DENVER ) Gordon R. Palmer, StaffLandman with Kerr-McGee Oil & Gas Onshore LP, 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. KERR-MCG OIL & GAS P Gordon R. Palmer Subscribed and sworn o before me this (1(1 day of January, 2016, by Gordon R. Palmer, Staff Landman for Kerr-McGee Oil &Gas Onshore LP. Witness my hand and official seal. My commission expires: U - !3-a20i 7 CHERYL SCHLEYER NOTARY PUBLIC STATE OF COLORADO 66: -) NOTARY ID 19974010482 144 MY;COMMISSION EXPIRES 08113/2017 Notary Public Exhibit A Reference Map for Pooling Application N a x 24 19 20 21 2N66W 25 30 29 23 — I 36 31 32 33 • 1 6 Hix1L4� 5 4 12 7 3 9 �- 1 N66W Hello