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Home My WebLink About20151014.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. 150100035 FORMATIONS, WATTENBERG FIELD, WELD ) COUNTY, COLORADO ) TYPE: POOLING AMENDED NOTICE OF HEARING TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN: RECEIVED APPLICATION LANDS i'iE L.f Township 1 North, Range 64 West. 61h P.M. WELD L r , Section 2: All X14 APPLICATION On November 24, 2014 (Amended January 12, 2015), ("Verdad" 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 designated horizontal welibore spacing unit 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 Pastelak 01N-64W-02-3N Well (API No. 05-123-40319). 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. • On February 19, 1992 (amended August 20, 1993), Order No. 407-87 established 80- acre drilling and spacing units for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations, with the permitted well locations in accordance with the provisions of Order No. 407-1. • On.D_.ecember 77, 9014, Verdad filed a Concurrent Application to vacate portions of Order No. 407-87 and established an approximate 640-acre drilling and spacing unit and approve up[ to 16 horizontal wells within the unit, for the production of oil, gas, and associated hydrocarbons from the Codell and Niobrara Formations. 1 2015-1014 LEO/g° 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: Monday, April 13, 2015 Tuesday, April 14, 2015 Time: 9:00 a.m. Place: Colorado Oil and Gas Conservation Commission 1120 Lincoln St., Suite 801 Denver. Colorado 80203 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 March 30, 2015. 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 March 30, 2015. Pursuant to Rule 511, if the matter is uncontested, it may be approved without a hearing. OIL AND GAS CO VATION COMMISSION OF T STATE COLORADO By Jill D ancy, Acting Secrets Dated: March 6, 2015 Colorado Oil and Gas Conservation Commission Attorneys for Applicant: 1120 Lincoln Street, Suite 801 Jamie L. Jost Denver, Colorado 80203 Joseph M. Evers Website: http://cogcc.state.co.us Jost& Shelton Energy group, P.C. Phone: (303)894-2100 1675 Larimer Street, Suite 420 Fax: (303) 894-2109 Denver, Colorado 80202 (720) 379-1812 jjost@jsenergygroup.com Lease in Place : YES 0 NO u jevers@jsenergygroup.com Lease# L�GI Acres ,?07 Keep for Hearing Outcome/Minutes File-No Action Needed 2 (150100035) 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 ) DOCKET NO. 150300086 NIOBRARA FORMATION, WATTENBERG FIELD, ) WELD COUNTY, COLORADO ) TYPE: SPACING NOTICE OF HEARING RECEIVED TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN: cER 1 2 ;, APPLICATION LANDS WELD COUNTY COMMISSIONER Township 1 North, Range 64 West, 6th P.M. Section 2: All APPLICATION On December 22, 2014, Verdad Oil & Gas Corporation (Operator No. 10485) ("Verdad" or "Applicant") filed a verified application pursuant to §34-60-116, C.R.S., for an order to: 1) Vacate 407-87 as it applies to the Application Lands; 2) Establish an approximate 640-acre drilling and spacing unit for the Application Lands, for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations; 3) Approve up to 16 horizontal wells within the unit; and 4) Require the productive interval of the wellbore to be located no closer than 460 feet from the unit boundaries, and no closer than 150 feet from the productive interval of any other wellbore located in the unit. 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. • On February 19, 1992 (amended August 20, 1993), Order No. 407-87 established 80- acre drilling and spacing units for the production of oil, gas and associated hydrocarbons from the Codell and Niobrara Formations, with the permitted well locations in accordance with the provisions of Order No. 407-1. 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 1 Lrciv) (150300086) 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: Monday, March 2, 2015 Tuesday, March 3, 2015 Time: 9:00 a.m. Place: Colorado Oil and Gas Conservation Commission 1120 Lincoln St., Suite 801 Denver, Colorado 80203 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 13, 2015. 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 13, 2015. Pursuant to Rule 511, if the matter is uncontested, it may be approved without a hearing. OIL AND GAS CONSERVATION COMMISSION OF TH TATE Or-qOLORADO B % ) y Jili D ancy, Acting Secretary Dated: January 29, 2015 Colorado Oil and Gas Conservation Commission Attorneys for Applicant: 1120 Lincoln Street, Suite 801 Jamie L. Jost Denver, Colorado 80203 Joseph M. Evers Website: http://cogcc.state.co.us Jost& Shelton Energy Group, P.C. Phone: (303) 894-2100 1675 Larimer Street, Suite 420 Fax: (303) 894-2109 Denver, Colorado 80202 (720) 379-1812 jjost@jsenergygroup.com jevers@jsenergygroup.com 2 (150300086) BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE APPLICATION OF VERDAD OIL & GAS CORPORATION FOR AN Cause No. ORDER TO VACATE PORTIONS OF ORDER NO. 407-87 AND ESTABLISH AN Docket No. APPROXIMATE 640-ACRE DRILLING AND SPACING UNIT AND APPROVE UP TO SIXTEEN (16) WELLS WITHIN THE 640-ACRE DRILLING AND SPACING UNIT FOR THE CODELL AND NIOBRARA FORMATIONS IN SECTION 02, TOWNSHIP 1 NORTH. RANGE 64 WEST, 6TH P.M., WATTENBERG FIELD, WELD COUNTY, COLORADO APPLICATION Verdad Oil & Gas Corporation (Operator No. 10485) ("Verdad" or "Applicant"), by and through its attorneys, Jost & Shelton Energy Group, P.C., respectfully submits this Application to the Oil and Gas Conservation Commission of the State of Colorado (the "Commission") for an order to vacate portions of Order No. 407-87 and establish an approximate 640-acre drilling and spacing unit and authorize up to sixteen (16) horizontal wells in the 640-acre drilling and spacing unit in order to recover the oil, gas and associated hydrocarbons from the Codell and Niobrara Formations underlying the below-described lands. In support of its Application, Applicant states and alleges as follows: 1. Applicant is a corporation duly organized and authorized to conduct business in the State of Colorado. 2. Applicant owns leasehold interests or holds the right to operate on the following lands (hereafter "Application Lands"): Township 1 North, Range 64 West 6th P.M. Section 2: All 640-acres, more or less, Weld County, Colorado. 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 but did not prohibit the establishment of drilling and spacing units within the Greater Wattenberg Area. 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 Niobrara Formation underlying certain lands, including the Application Lands, with the permitted well locations in accordance with the provisions of Order No. 407-1. Applicant is requesting that Order No. 407-87 be vacated only as it applies to the Application Lands. 5. The records of the Commission reflect that no wells are currently completed to the Codell or Niobrara Formation underlying Application Lands. However, Commission records reflect that Verdad is currently in the process of drilling the Pastelak 01N-64W-02-3N Well (API No. 05-123-40319) to the Niobrara Formation. 6. Applicant requests that Order No. 407-87 be vacated only as it applies to the Application Lands for the Codell and Niobrara Formations. 7. To promote efficient drainage within the Codell and Niobrara Formations underlying Application Lands, to protect correlative rights and to avoid waste, the Commission should establish an approximate 640-acre drilling and spacing unit for Application Lands. 8. That the above-proposed drilling and spacing unit will allow efficient drainage of the Codell and Niobrara Formations; will prevent waste; will not adversely affect correlative rights and will assure the greatest ultimate recovery of gas and associated hydrocarbon substances from the reservoirs. 9. That the Applicant is requesting to drill and complete up to sixteen (16) horizontal wells with the surface locations for the wells to be anywhere within the unit but no more than one (1) surface location per quarter-quarter section within the unit. unless an exception is granted by the Director or as otherwise approved by a surface owner in order to recover the oil, gas and associated hydrocarbons within the 640-acre drilling and spacing unit. There will be no adverse effect on correlative rights of adjacent owners. 10. The Applicant requests that the treated interval of the proposed horizontal wells shall be no closer than 460 feet from the boundaries of the unit (regardless of the lease lines within the unit), and not less than 150 feet from the treated interval of another well within the unit, unless an exception is granted by the Director. 11. The undersigned certifies that copies of this Application will be served on each interested party 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 at the next available opportunity, that notice be given as required by law, and that upon such hearing this Commission enter its order: A. Vacating Order No. 407-87 only as it applies to the Application Lands for the Codell and Niobrara Formations, B. Establishing an approximate 640-acre drilling and spacing unit for Section 2, Township 1 North, Range 64 West, 6th P.M. and allowing up to sixteen (16) horizontal wells in the unit in order to develop and recover the oil, gas and associated hydrocarbons from the Codell and Niobrara Formations. C. Providing that the treated interval any horizontal well shall be no closer than 460 feet from the boundaries of the unit and not less than 150 feet from the treated interval of another well within the unit, and authorizing surface locations for the wells to be anywhere within the unit but no more than one (1) surface location per quarter-quarter section, unless an exception is granted by the Director, or as otherwise approved by a surface owner. D. Finding that an approximate 640-acre drilling and spacing unit for the development of the Codell and Niobrara Formations underlying the Application Lands will prevent waste, protect correlative rights, and allow for the development of the Codell and Niobrara Formations in Section 2, Township 1 North, Range 64 West, 6th P.M. E. 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 March 2015, 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 December 22, 2014. Respectfully submitted: VERDAD OIL & GAS CORPORATION By: Jamie L. Jost Joseph M. Evers Jost & Shelton Energy Group, P.C. Attorneys for Applicant 1675 Larimer St., Suite 420 Denver, Colorado 80202 (720) 379-1812 jjost@jsenergygroup.com jevers@jsenergygroup.com Applicants Address: Verdad Oil & Gas Corporation ATTN: Johnny Beecherl 5950 Cedar Springs Road, Suite 200 Dallas, TX 75235 VERIFICATION STATE OF TEXAS ) ss. CITY AND COUNTY OF DALLAS ) Philip W. Davis, of lawful age, being first duly sworn upon oath, deposes and says that he is Vice-President of Land for Verdad Oil & Gas Corporation, 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. Phili W. Davis Vice-President of Land Verdad Oil & Gas Corporation Subscribed and sworn to before me this 29—day of December 2014. Witness my hand and official seal. [SEAL] My commission expires: O - /b -30/C 0„Ill111Rlgphll �� `,,,,�VJ AR Noel//Ii�� a.,,,,;. 4 ,. � ...-.1,zs PUB.•.4- '% otary Public 4fitif J4Tf Of 5:' .. ExaaiE.O,O r BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE APPLICATION OF VERDAD OIL & GAS CORPORATION FOR AN ORDER TO VACATE PORTIONS OF ORDER NO. CAUSE NO. 407-87 AND ESTABLISH AN APPROXIMATE 640- ACRE DRILLING AND SPACING UNIT AND , DOCKET NO. APPROVE UP TO SIXTEEN (16) WELLS WITHIN THE 640-ACRE DRILLING AND SPACING UNIT FOR THE CODELL AND NIOBRARA FORMATIONS IN SECTION 02, TOWNSHIP 1 NORTH, RANGE 64 WEST, 6TH P.M., WATTENBERG FIELD, WELD COUNTY, COLORADO AFFIDAVIT OF MAILING STATE OF COLORADO ) ss. COUNTY OF DENVER ) Jamie L. Jost of lawful age, and being first duly sworn upon her oath, states and declares: That she is the attorney for Verdad Oil & Gas Corporation, and that on or before December , 2014 she 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 attached hereto. Jamie L. Jost Subscribed and sworn to before me this day of December, 2014. Witness my hand and official seal. My commission expires: v RACHEL • I NOTARY PUBLIC STATE OF COLORADO - - - .'. _ . NOTARY ID 20144025048 Notary Public 'AV COMMISSION EXPIRES JUNE 24,2018 Reference Map Verdad Oil & Gas Corporation Section 02, Township 1 North, Range 64 West, 6th P.M. 1 A y + 1 1 i t H vS' * There are no federally owned minerals within or adjacent to the Application Lands. Exhibit A Interested Parties List Verdad Oil & Gas Corporation Steven R. Giglio, devisee of Ruth Strain 5950 Cedar Springs Road, Suite 200 Giglio aka Ruth Strain Giglio Kerr Dallas, Texas 75235 1325 Belvedere Drive Baton Rouge, LA 70808 O00C America LLC 9805 Katy Freeway, Suite 500 Brian K. Heier and Kellie L. Heier Houston,TX 77024 28001 Highway 52 Keenesburg, CO 80643 Grizzly Petroleum Company, LLC 1801 Broadway, Suite 500 Paula D. Farner Denver, CO 80202 28498 County Road 14 Keenesburg, CO 80643 John M. Hefner and Kristine Hefner, tenants in common Dianne C. Becker and Carl R. Becker 8614 North Sundown Trail 215 South Dickson Street Parker, CO 80134 Keenesburg, CO 80643 Steve M. Pastelak Wilda A. Cornell 28425 Highway 52 4345 Kendall Street Keenesburg, CO 80634 Wheat Ridge, CO 80033 Kenneth L. Madsen and Lynda J. Donald Cornell Madsen, tenants in common 299 Belford Drive P.O. Box 359 Northglenn, CO 80260 Hudson, Co 80642-0359 Elizabeth Jean Redabaugh Matthew J. Madsen and Mary R. 28906 County Road 14 Madsen Keenesburg, CO 80643-9528 28170 Weld County Road 14 Keenesburg, CO 80643-9528 Barbara Reed Lewis 9665 Woodhollow Drive John Schweitzer and Marjorie Reno, NV 89521 Schweitzer 28490 County Road 14 Kevin L. Bell and Trudy K. Bell Keenesburg, CO 80643-9528 28496 County Road 14 Keenesburg, CO 80643 Shirley Jean Henry Wagy 6288 W. 3rd St. Rd. Julia Mae Pastelak Greeley, CO 80634 575 Holly Street Hudson, CO 80642 Annette Tarantino 5000 East 88th Avenue Henderson, CO 80640 Board of County Commissioners of the County of Weld 1150 O Street, P.O Box 758 Greeley, CO 80632 Layne E. Thompson and Cylene Thompson 28549 Highway 52 Keenesburg, CO 80643-9404 Sharp Energy Resources, LLC 1801 Broadway, Suite 400 Denver, CO 80202 Eastern Plains Development, LLC 28425 Highway 52 Keenesburg, CO 80643-9412 Tom Schreiner Colorado Parks and Wildlife 6060 Broadway Denver,CO 80526 Ken Kuster Colorado Department of State Health and Environment 4300 Cherry Creek Drive South Denver, CO 80246-1530 Tom Parko Weld County 1555 North 17th Street Greeley, CO 80631 Hello