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HomeMy WebLinkAbout20153830.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. 151200703 WATTENBERG FIELD, WELD COUNTY, COLORADO ) TYPE: POOLING NOTICE OF HEARING RECEIVED ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN: RECEIVED APPLICATION LANDS NOV u 3 205 Township 6 North, Range 67 West, 61h P.M. WELD COUNTY Section 26: NY2NWYs COMMISSIONERS Section 27: NY2NVz APPLICATION On October 8, 2015, Great Western Operating Company, LLC (Operator No. 10110) ("Great Western" 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 240-acre designated wellbore 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 the Kodak North FD 27-062HN Well (API No. 05-123-39384). PRIOR 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. • 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 Codell-Niobrara Formations, the Codell Formation, and 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. 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: 2015-3830 LE0..?,3 L�Z3o 3 Date: Monday, December 7, 2015 Tuesday, December 8, 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 November 23, 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 November 23, 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 O F COLORADO • By{ r ul a Murphy; �� Secretary Dated: October 29,2015 • Colorado Oil and Gas Conservation Commission Attorneys for Great Western: 1120 Lincoln Street, Suite 801 Jamie L. Jost Denver, Colorado 80203 Joseph M. Evers Website: httpi/cogcc.state.co.us _ _ Burleson LLP___ _ • _ ____ - - - -Phone: (303) 894-2100 1700 Lincoln Street, Suite 1300 Fax: (303) 894-2109 Denver, Colorado 80203 (303) 801-3200 • jjost@burlesonllp.com jevers@burlesonllp.com I Lease in lace: YES NO Q Lease# • r G0,9- Acres • Keep for Hearing utcome/Minutes File-No Action Needed 2 (151200703) )c BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE APPLICATION OF CAUSE NO. 407 GREAT WESTERN OPERATING COMPANY, LLC FOR AN ORDER TO POOL ALL DOCKET NO. INTERESTS IN AN APPROXIMATE 240-ACRE DESIGNATED WELLBORE SPACING UNIT TYPE: POOLING FOR PORTIONS OF SECTIONS 26 AND 27, TOWNSHIP 6 NORTH, RANGE 67 WEST, 6T" RECEIVED P.M., FOR THE NIOBRARA FORMATION, WATTENBERG FIELD, WELD COUNTY, OCT 1 9 2015 COLORADO WELD COUNTY APPLICATION COMMISSIONERS COMES NOW Great Western Operating Company, LLC (Operator No. 10110) (°Great Western" or "Applicant"), by its attorneys, Burleson LLP, 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 240-acre Wellbore Spacing Unit, as defined below, for the drilling of the Kodak North FD 27-062HN Well (API No. 05-123-39384) ("Well"), for the development of the Niobrara Formation on the following described lands: Township 6 North, Range 67 West, 6th P.M. Section 26: N%NW/ Section 27: NAN% 240-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 wellbore spacing units to be established. On August 8, 2011, Rule 318A was again amended to, among other things, address drilling of horizontal wells. 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 Codell-Niobrara Formations, the Codell Formation, and 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. . . 5. On July 28, 2014, the Commission entered Order No. 407- ``" 1090,'which among other things, approved Great Western Operating Company, • :1 ,t;,LLC's _request for an order to among other things: Pool all interests in an -1.1,,IC'approzimate 480-acre wellbore spacing unit established for the Application Lands, for the development and operation of the Niobrara Formation. Order No. 407-1090 does not affect this Application. 6. On March 2, 2015, the Commission entered Order No. 407- 1238, which among other things, approved the request for an order to 1) vacate the pooling provisions entered by Order No. 407-1025 for five approximate 320- acre designated wellbore spacing units established for the N%z of Section 28, Township 6 North, Range 67 West, 6th P.M., for the development and operation of the Codell and Niobrara Formations; 2) pool all interests in seven approximate 400-acre to 640-acre designated wellbore spacing units, including portions of the Application Lands, for the development and operation of the Codell and Niobrara Formations. Order No. 407-1238 does not affect this Application. 7. On July 20, 2015, the Commission entered Order No. 407- 1401, which among other things, pooled all interests in two approximate 560-acre designated horizontal wellbore spacing units, for the development and operation of the Codell and Niobrara Formations. Order No. 407-1401 does not affect this Application. 8. Applicant designated the 240-acre Wellbore Spacing Unit for the production of oil, gas, and associated hydrocarbons from the Niobrara Formation pursuant to Rule 318A and notified the appropriate parties under Rule 318A. 9. 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, including but not limited to, any non-consenting interests, in the Application Lands in the Niobrara Formation underlying the following approximate 240-acre Wellbore Spacing Unit: Township 6 North, Range 67 West, 6th P.M. Section 26: N%NW/ Section 27: N%N% (throughout as "Wellbore Spacing Unit"). 10. 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 the Well to the Niobrara Formation on the Application Lands. 11. 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 within seven (7) days of the date hereof, as required by Rule 503.e., 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, and will be provided with the information required by Rule 530 as applicable. 12. That in order to prevent waste and to protect correlative rights, all interests in the Wellbore 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 the Application Lands and the Wellbore Spacing Unit 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 the Well in the Wellbore Spacing Unit 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 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 drilled to develop the Niobrara Formation in the Wellbore Spacing Unit comprising 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 December 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: October Cr , 2015. Respectfully submitted: GREAT WESTERN OPERATING COMPANY, LLC By: c1atut ' . T3F- Ja ie L. Jost Joseph M. Evers Burleson LLP Attorneys for Applicant 1700 Lincoln St., Suite 1300 Denver, Colorado 80203 (303) 801-3200 Applicant's Address: Great Western Operating Company, LLC ATTN: Philip Zaranka 1801 Broadway, Suite 500 Denver, CO 80202 VERIFICATION STATE OF COLORADO ) )ss. CITY AND COUNTY OF DENVER Hal Writer, of lawful age, being first duly sworn upon oath, deposes and says that he is Land Manager for Great Western Operating Company, LLC, 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. Hal Writer Land Manager Great Western Operating Company, LLC Subscribed and sworn to before me this rday of October 2015. Witness my hand and official seal. CHRISTEN NICOLE JACKSON NOTARY PUBLIC STATE OF COLORADO NOTARY ID B 20134040032 [SEAL] MY COMMISSION EXPIRES JUNE 24,2017 My commission expires: (ra4 'vi Notary Public BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE APPLICATION OF CAUSE NO. 407 GREAT WESTERN OPERATING COMPANY, LLC FOR AN ORDER TO POOL ALL DOCKET NO. 151200703 INTERESTS IN AN APPROXIMATE 240-ACRE DESIGNATED WELLBORE SPACING UNIT TYPE: POOLING FOR PORTIONS OF SECTIONS 26 AND 27, TOWNSHIP 6 NORTH, RANGE 67 WEST, 6TH P.M., FOR THE NIOBRARA FORMATION, WATTENBERG FIELD, WELD COUNTY, COLORADO AFFIDAVIT OF MAILING STATE OF COLORADO ) )ss. CITY AND COUNTY OF DENVER ) I, Joseph M. Evers of lawful age, and being first duly sworn upon my oath, state and declare that I am the attorney for Great Western Operating Company, LLC, and that on or before the J'-$ day of October 2015, I 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. J ph M. Evers Subscribed and sworn to before me this 13 day of October 2015. Witness my hand and official seal. RACHEL FLEMING NOTARY PUBLIC STATE OF COLORADO NOTARY ID 20144025048 [SEAL] ;MY COMMISSION EXPIRES JUNE 24,2018 My commission expires: 314Ate 211, s1r No u lic A,. JA Exhibit A FP — Kodak North FD 27-062HN Grizzly Petroleum Company, LLC 1801 Broadway, Suite 500 Denver, CO 80202 Dynasty Royalty Company, LLC 252 Clayton St., 4th Floor Denver, CO 80206 Town of Windsor, Colorado 301 Walnut St. Windsor, CO 80550 Weld County, Colorado P.O. Box 758 Greeley, CO 80632 Hello