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HomeMy WebLinkAbout20151016.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 NIOBRARA FORMATION, ) DOCKET NO. 150400247 WATTENBERG FIELD, WELD COUNTY, ) COLORADO ) TYPE: POOLING NOTICE OF HEARING Cf T., TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN: APPLICATION LANDS Township 7 North, Range 62 West, 6th P.M. Section 18: All APPLICATION On February 12, 2015, Bonanza Creek Operating Company, LLC (Operator No. 8960) ("Bonanza" 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, for the development and operation of the Niobrara Formation. 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 any well to the Niobrara Formation on the Application Lands. PRIOR 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 May 29, 2012, the Commission entered Order No. 407-642, which, among other things, established an approximate 640-acre drilling and spacing unit for Section 18, Township 7 North, Range 62 West, 6`h P.M., and approved up to four horizontal wells within the unit, for the production of gas and associated hydrocarbons from the Niobrara Formation. 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 2015-1016 Tuesday, April 14, 2015 Time: 9:00 a.m. Place: Colorado Oil and Gas Conservation Commission 1120 Lincoln Street, Suite 801 Denver, CO 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, based on review of the merits of the verified application and supporting exhibits. OIL AND GAS CONSERVATION COMMISSION OF THE STATE OLORADO By ({,i l.“ Jill o nc Acting Secrets Dated: March 5,2015 Colorado Oil and Gas Conservation Commission orneys 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 Lease in Place : YES5 NO Lease# Lr12310 Acres ,2 Keep for Hearing Outcome/Minutes File-No Action Needed 2 (150400247) BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE APPLICATION OF CAUSE NO. BONANZA CREEK ENERGY OPERATING COMPANY LLC, FOR AN ORDER TO POOL DOCKET NO. ALL INTERESTS IN AN APPROXIMATE 640- ACRE DRILLING AND SPACING UNIT LOCATED IN SECTION 18, TOWNSHIP 7 RECE1V: ) NORTH, RANGE 62 WEST, 6TH P.M., FOR THE DEVELOPMENT/OPERATION OF THE NIOBRARA FORMATION, WATTENBERG FIELD, WELD COUNTY, COLORADO �+WEL'DcD ' TY COM�a� :7'�K NE{ IS v. APPLICATION COMES NOW Bonanza Creek Energy Operating Company LLC (Operator No. 8960) ("Applicant"), by its attorneys, Jost & Shelton Energy Group, P.C., 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 an approximate 640-acre drilling and spacing unit, for the development of the Niobrara Formation on the following described lands: Township 7 North, Range 62 West, 6th P.M. Section 18: All 640-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. 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 weilbore spacing units to be established. On August 8, 2011, Rule 318A was again amended to, among other things, address the drilling of horizontal wells. 4. On May 29, 2012, the Commission entered Order No. 535-642, which, among other things, established an approximate 640-acre drilling and spacing unit for Section 18, Township 7 North, Range 62 West, 6th P.M., and approved up to four (4) horizontal wells within said unit, for the production of gas and associated hydrocarbons from the Niobrara Formation. 5. 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 within the drilling and spacing unit, including but not limited to, any non-consenting interests and leased mineral interests, in the Application Lands in the Niobrara Formation underlying the following approximate 640-acre drilling and spacing unit: Township 7 North, Range 62 West, 6th P.M. Section 18: All 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 C.R.S. § 34-60-116(7)(b) are first incurred for the drilling of any well to the Niobrara Formation on the Application Lands. 7. 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, including leased mineral interest owners, within seven (7) days of the date hereof, as required by Rule 507.b(2), 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 well(s), and will be provided with the information required by Rule 530 as applicable. The list of such interested parties is attached hereto as Exhibit A. 8. That in order to prevent waste and to protect correlative rights, all interests in the drilling and spacing unit should be pooled for the orderly development of the Niobrara Formation, 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 an approximate 640-acre drilling and spacing unit established on Application Lands for the development of the Niobrara Formation. 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 any well to the Niobrara Formation 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 well(s) 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 well(s) drilled to develop the Niobrara Formation in the drilling and spacing unit composing 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 April 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: February 12th, 2015. Respectfully submitted: BONANZA CREEK ENERGY OPERATING COMPANY LLC ..i Jamie L. Jost Joseph M. Evers Jost & Shelton Energy Group, P.C. Attorneys for Applicant 1675 Larimer Street, Suite 420 Denver, Colorado 80202 (720) 379-1812 Applicant's Address: Bonanza Creek Energy Operating Company LLC ATTN: Alexander Newell 410 17th Street, Suite 1400 Denver, CO 80202 VERIFICATION STATE OF COLORADO ) ) ss. CITY AND COUNTY OF DENVER ) Alexander S. Newell, of lawful age, being first duly sworn upon oath, deposes and says that he is a Landman II, Rocky Mountain Region for Bonanza Creek Energy, Inc., and that he has read the foregoing Application and that the matters therein contained are true to the best of his knowledge, information an belief 12 Alexander S. Newell, RPL Landman II, Rocky Mountain Region Bonanza Creek Energy, Inc. Subscribed and sworn to before me this I I .day of February 2015. Witness my hand and official seal. SALLY KROMER [SEAL] NOTARY PUBLIC STATE OF COLORADO NOTARY ID#20144038926 MY COMMISSION EXPIRES OCTOBER 06.2018 My commission expires: I'o —CLa — Zoi IC At.Q.....L. \ ....A---------, Nary Pu BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE APPLICATION OF CAUSE NO. BONANZA CREEK ENERGY OPERATING COMPANY LLC, FOR AN ORDER TO POOL DOCKET NO. ALL INTERESTS IN AN APPROXIMATE 640- ACRE DRILLING AND SPACING UNIT LOCATED IN SECTION 18, TOWNSHIP 7 NORTH, RANGE 62 WEST, 6T" P.M., FOR THE DEVELOPMENT/OPERATION OF THE NIOBRARA FORMATION, WATTENBERG FIELD, WELD COUNTY, COLORADO AFFIDAVIT OF MAILING STATE OF COLORADO ) )ss. CITY AND COUNTY OF DENVER ) I, Jamie L. Jost, of lawful age, and being first duly sworn upon my oath, state and declare that I am the attorney fp Bonanza Creek Energy Operating Company LLC, and that on or before the (1 th day of February, 2015, 1 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. (N ( - -7. ./1- Jamie L. Jost Subscribed and sworn to before me on this 11 `day of February, 2015. Witness my hand and official seal. My commission expires: 1ItL4. 2`1, 2 4$' . RACHEL FLEMING NOTARY PUBIJC STATE OF COLORADO Note ublic NOTARY ID 20144025048 MY COMMISSION EXPIRES JUNE 24,2018 Exhibit A Interested Party List Bonanza Creek Operating Company, LLC 410 17th Street, Suite 1400 Edwin F. Schillinger Denver, CO 80202 (Deceased) 000C America, Inc. / 00GC America,LLC Margaret M. Moore 9805 Katy Freeway, Suite 500 (Deceased) Houston,TX 77024 Mary Margaret Schillinger Red Hawk Petroleum, LLC 3304 Prospect Ave. 4125 Blackhawk Plaza Circle, #201 La Crescents, CA 91214 Danville, CA 94506 Esther E. Clark (Deceased) RJ Resources Corp. 250 W. 55th Street, 14th Floor Kathleen Jae Clark New York,NY 10019 (Address Unknown) Lulu D. Bishop Paul Edward Clark (Deceased) (Address Unknown) John Morgan Wilson Richard Schillinger 701 Poydras Street, Suite 5000 (Deceased) New Orleans, LA 70139 Ann Jenkins 408 Jennifer Circle William Wayne Wilson 10311 North Cape Fear Lane Red Oak, IA 57747 Oro Valley, AZ 85737 Robert Schillinger 959 Palm Street Arthur James Wilson, Ill Jackson, MS 39212 3596 Dillards Hill Road Union Hill, VA 24176 William H. Foss Patricia Ann Shipp (Deceased) 2511 Mt. Vernon Lena Foss Colorado Springs, CO 80909 (Deceased) Suzanne L. Byerley G. Arlene Strate 2260 Gambrell Lane (Deceased) Colorado Springs, CO 80919 Julia Morgan Wiedner Randall L. Strate m 660 Park 217 112 Street SW, Apt. H-104 Annandale, MN 55302 Everett, WA 98204 Mary Foss Schillinger Randall L. Strate (Deceased) 2525 231 'Ave. NE Sammamish, WA 98074 Kensington, CA 94707 James A. Mechler Edward Neil Freeman 472 Nixon Creek Rd. 3132 Southwest Fairview Blvd. Fredericksburg,TX 78624 Portland, OR 97205 Kathleen K. Mechler Arm Emrich 472 Nixon Creek Rd. (Deceased) Fredericksburg,TX 78624 David Emrich W.E. Freeman 100 Krameria St. (Deceased) Denver, CO 80220 Genette Walker Gary J. Emrich 6477 S. Florence Way 1570 Locust St. Englewood, CO 80111 Denver, CO 80220 Eleanor Hutchinson Donald F. Emrich (Deceased) 1203 Pine Street Philadelphia,PA 19107 Ann Emrich 810 S. Jackson St. School District RE-10 Denver, CO 80209 515 Leslie Street Briggsdale, CO 80611 David Emrich 100 Krameria St. Anadarko E&P Onshore, LLC Denver, CO 80220 1099 18th Street, Suite 1800 Denver, CO 80202 Gary J. Emrich 1570 Locust St. Dorothy E. Yellow Bird Denver, CO 80220 3108 S. Centennial Dr. Fort Collins, CO 80526 Donald F. Emrich 1203 Pine Street Anthony M. Cole Philadelphia, PA 19107 36959 Weld County Road 80 Briggsdale, CO 80611 Edward Neil Freeman 3132 Southwest Fairview Blvd. Weld County, Colorado Portland, OR 97205 1150 O Street P.O. Box 758 Norman Keith Freeman Greeley, CO 80632 (Deceased) Laurie Freeman Beverly May Pushkin 74 Norwood Ave. 1010 W. Magnolia Street Fort Collins, CO 80521 Janis May Fonda 1010 W. Magnolia Street Fort Collins, CO 80521 William J.Janssen, Trustee of the Adam J. Mueller Trust u/a May 24, 2012 —f/k/a Adam J. Mueller, Individually and as Trustee of the Adam J. Mueller Revocable Trust Agreement dated October 14, 1996 3040 North 60th Street Lincoln,NE 68507 Walter E. Kohlhoff& Debra E. Kohlhoff 37043 Weld County Road 82 Briggsdale, CO 80611 Richard Noffsinger 5662 39th Ave. West Seattle,WA 98199 Danny R. Thompson Jr., and Elizabeth R. Thompson 39775 Hwy. 392 Briggsdale, CO 80611 J. Bernie Ellis and Marcia E. Ellis 3959 Hwy. 392 Briggsdale, CO 80611 Hello