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Home My WebLink About20153315.tiff RECEIVED SEP 2 4 2015 WELD COUNTY BEFORE THE OIL AND GAS CONSERVATION COMMISSION COMMISSIONERS 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 AND CODELL ) DOCKET NO. 150900509 FORMATIONS, WATTENBERG FIELD, WELD ) TYPE: POOLING COUNTY, COLORADO ) NOTICE OF HEARING TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN: APPLICATION LANDS Tevanshillarth, Ranee 66 West, 6th P.M. , Section 8: N'VZNW% Township 2 North, Range 66 West, 6th P.M. Section 32: S'ASW% Wellbore Spacing Unit ("WSU") Nos. 1, 2 and 3 APPLICATION On July 16, 2015, 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 interest in three approximate 477.32-acre designated horizontal wellbore spacing units established for the Application Lands, for the development and operation of the Niobrara and Codell 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, for the drilling of the FL Greens Federal 30C-5HZ well (API No. Pending) in WSU No. 1, the FL Greens Federal 30N- 5HZ well (API No. Pending) in WSU No. 2, and the FL Greens Federal 4N-5HZ well (API No. Pending) in WSU No. 3. 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 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. 2015-3315 NOTICE IS HEREBY GIVEN, pursuant to: 1) the general jurisdiction granted to the Oil and Gas Conservation Commission of the State of Colorado under Section 34-60-105, C.R.S.; 2) specific powers granted pursuant to Section 34-60-106, C.R.S.; 3) the State Administrative Procedures Act at Section 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, October 26, 2015 Tuesday, October 27, 2015 Time: 9:00 a.m. Place: Colorado Oil and Gas Conservation Commission 1120 Lincoln Street, 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 October 9, 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 October 9, 2015. 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 lie Mur hy, Se ret ry Dated: September 16, 2015 nission Attorneys for Applicant: Greg Nibert, Jr. John Jacus Eric Waeckerlin Davis Graham & Stubbs LLP / 1550 Seventeenth Street, Suite 500 Lease in Place : YES C^� NO O Denver, Colorado 80202 Lease# W., Phone: (303) 892-9400 Acres 1 Y'1Z /C/10�-tf greg.nibert@dgslaw.com Keep for Hearing Outcome/Minutes john.jacus@dgslaw.com File-No Action Needed eric.waeckerlin@dgslaw.com 2 (150900509) COM/Via BEFORE THE OIL & GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE APPLICATION OF KERR- ) $ECE!vE® MCGEE OIL & GAS ONSHORE LP FOR AN ORDER TO PQ POOL ALL INTERESTS IN THREE APPROXIMATE ) CAUSE NO. ,Jul 477.32-ACRE DESIGNATED HORIZONTAL WELLBORE ) 2 ZtJ SPACING UNITS LOCATED IN SECTIONS 5 AND 8, WELD • C O U TOWNSHIP 1 NORTH, RANGE 66 WEST, AND SECTION ) DOCKET (`�MM1SS/QnNF 32, TOWNSHIP 2 NORTH, RANGE 66 WEST, 6.114 P.M., ) xiw_ FOR THE DEVELOPMENT/OPERATION OF THE ) NIOBRARA AND CODELL FORMATIONS, WATTENBERG ) di J5-09665)9 FIELD, WELD COUNTY, COLORADO ) APPLICATION Kerr-McGee Oil & Gas Onshore LP (Operator No. 47120) ("Kerr-McGee" or "Applicant"), by and through its attorneys, Davis Graham & Stubbs LLP, respectfully submits this Application to the Oil and Gas Conservation Commission of the State of Colorado (the "Commission") for an order to pool all interests in three approximate 477.32-acre horizontal wellbore spacing units designated for portions of Sections 5 and 8, Township 1 North, Range 66 West, and Section 32, Township 2 North, Range 66 West, 6th P.M., for development and operation of the Niobrara and Codell 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: Wellbore Spacing Unit ("WSU") Nos. 1, 2 and 3 Township 1 North, Range 66 West, 6th P.M. Section 5: W1/2 / 2--)Section 8: N'/ZNW'/a ( Township 2 North, Range 66 West, 6th P.M. Section 32: S%SW'A Weld County, Colorado; These lands are hereinafter collectively referred to as 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 wellbore spacing units to be established. On August 8, 2011, 3921262.1 Rule 318A was again amended to, among other things, address drilling of horizontal wells. The Application Lands are subject to Rule 318A. 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 and Codell Formations underlying certain lands, including the Application Lands, with the permitted well locations in accordance with the provisions of Order No. 407-1. 5. Pursuant to Rule 318A, Applicant designated an approximate 477.32-acre horizontal wellbore spacing unit (WSU No. 1), comprised of the Application Lands, for the FL Greens Federal 30C-5HZ well, (API No. Pending), for the production of oil, gas and associated hydrocarbons from the Codell Formation. Applicant notified all owners in the proposed wellbore spacing unit pursuant to Rule 318A. Applicant did not receive objections to the establishment of the proposed wellbore spacing unit within the 30-day response period. 6. Pursuant to Rule 318A, Applicant designated an approximate 477.32-acre horizontal wellbore spacing unit (WSU No. 2), comprised of the Application Lands, for the FL Greens Federal 30N-5HZ well, (API No. Pending), for the production of oil, gas and associated hydrocarbons from the Niobrara Formation. Applicant notified all owners in the proposed wellbore spacing unit pursuant to Rule 318A. Applicant did not receive objections to the establishment of the proposed wellbore spacing unit within the 30-day response period. 7. Pursuant to Rule 318A, Applicant designated an approximate 477.32-acre horizontal wellbore spacing unit (WSU No. 3), comprised of the Application Lands, for the FL Greens Federal 4N-5HZ well, (API No. Pending), for the production of oil, gas and associated hydrocarbons from the Niobrara Formation. Applicant notified all owners in the proposed wellbore spacing unit pursuant to Rule 318A. Applicant did not receive objections to the establishment of the proposed wellbore spacing unit within the 30-day response period. 8. The FL Greens Federal 30C-5HZ well, the FL Greens Federal 30N-5HZ well and the FL Greens Federal 4N-5HZ well are hereinafter collectively referred to as the "Subject Wells." 9. Acting pursuant to the applicable Colorado Statutes and Commission Regulations, Applicant seeks an order pooling all interests, including, but not limited to, any non-consenting interests and leased mineral interests, in three approximate 477.32-acre horizontal wellbore spacing units designated for the Application Lands for the development and operation of the Niobrara and Codell Formations. 10. Applicant requests that the pooling order entered as a result of this Application be made effective as of the date of this Application, or, as applicable, 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 in WSU Nos. 1, 2 and 3, whichever is earlier. 11. Further, Applicant requests that any non-consenting interests with whom the Applicant has been unable to secure a lease or other agreement to participate in the drilling of the Subject Wells, be pooled by operation of statute, pursuant to § 34-60-116(6) & (7), C.R.S., and made subject to the cost recovery provisions thereof. 2 12. 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. 13. Applicant requests that relief granted under this Application be effective on oral order by the Commission, and Applicant hereby agrees to be bound by said oral order. 14. Applicant certifies that copies of this Application will be served on the interested parties (persons who own any interest in the mineral estate of the tracts to be pooled, except owners of overriding royalty interest) within seven (7) days of the date hereof, as required by Rule 507.b.(2). The Applicant shall submit a certificate of service for the Application, along with the names and addresses of the interested parties according to the information and belief of the Applicant, 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 three approximate 477.32-acre designated horizontal wellbore spacing units established for the Application Lands, for the development and operation of the Niobrara and Codell Formations, with the pooling order 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 in WSU Nos. 1, 2, and 3, whichever is earlier. B. Providing that the non-consenting 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 pooled by operation of statute, pursuant to § 34-60-116(6) & (7), C.R.S., and made subject to the cost recovery provisions thereof. C. For such other findings and orders as the Commission may deem proper or advisable in the premises. 3 DATED this 1 l.0 day of July, 2015. Respectfully submitted, KERR-MCGEE OIL & GAS ONSHORE LP By: Y Greg Nibe J . John Jacus Eric Waeckerlin Davis Graham & Stubbs LLP 1550 17th Street, Suite 500 Denver, Colorado 80202 greg.nibert@dgslaw.com john.jacus@dgslaw.com eric.waeckerlin@dgslaw.com Address of Applicant Kerr-McGee Oil & Gas Onshore LP Attention: Will Vaughan 1099 18th Street, Suite 1800 Denver, Colorado 80202 4 VERIFICATION STATE OF COLORADO ) ) ss. CITY AND COUNTY OF DENVER ) Will Vaughan, of lawful age, being first duly sworn upon oath, deposes and says that he is a Senior Landman for Kerr-McGee Oil & Gas Onshore LP, 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. ill Vaughan'—Senior Landman Kerr-McGee Oil& Gas Onshore LP Subscribed and sworn to before me this /f h day of July, 2015. Witness my hand and official seal. Ik I f�r per ;o/`�" i Z�f, :oi,t, [SEAL] • ......• G r e '‘%, SPATE G,,...0- lc co AtAtss�o\' My commission expires: 3-/s' -Z076, 4a • Uv Notary Public A-1 Hello