HomeMy WebLinkAbout20151012.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. 150400228
WATTENBERG FIELD, WELD COUNTY, )
COLORADO ) TYPE: POOLING
NOTICE OF HEARING F
cCO\f E D
TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:
APPLICATION LANDS •
TownshiI3)iVorth, Rana 68, est, 6th P.M.
Section!10 S1AS'/%
Section 1 SW%SW'/4
Section 14: NW' NW'Y4
Section 15: NY2N1/2
APPLICATION
On February 12, 2014, 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 an approximate 400-acre designated horizontal wellbore
spacing unit established for the Application Lands, for the development and operation of the
Niobrara Formation; and
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 RMF
30N-15HZ Well (API No. 05-123-39206).
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 (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 Niobrara and Codell Formations, with the permitted well locations in
accordance with the provisions of Order No. 407-1.
• On July 29, 2013, the Commission entered Order No. 407-833, which established a 640-
acre drilling and spacing unit, for the production of oil, gas and associated hydrocarbons
from the Niobrara and Codell Formations.
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• On March 17, 2014, the Commission entered Order No. 407-967, which pooled all
interests in an approximate 640-acre wellbore spacing unit, for the development and
operation of the Niobrara and Codell Formations.
• On July 28, 2014, the Commission entered Order No. 407-1091, which pooled all
interests in an approximate 640-acre drilling and spacing unit, for the development and
operation of the Niobrara Formation.
• On July 28, 2014, the Commission entered Order No. 407-1093, which pooled all
interests in an approximate 640-acre drilling and spacing unit, for the development and
operation of the Niobrara Formation.
• On July 28, 2014, the Commission entered Order No. 407-1094, which pooled all
interests in an approximate 320-acre wellbore spacing unit, for the development and
operation of the Niobrara Formation.
• On October 27, 2014, the Commission entered Order No. 407-1145, which, among other
things, pooled all interests in an approximate 640-acre drilling and spacing unit
established for Section 11, Township 3 North, Range 68 West, 6`h P.M., for the
development and operation of the Niobrara and Codell Formations.
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 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
2
(150400228)
is uncontested, it may be approved without a hearing.
OIL AND GAS CONSERVATION COMMISSION
OF THE ATE O C LORADO
By
Jill Do an , Acting Secretary
Dated: March 5, 2015
Colorado Oil and Gas Conservation Commission Attorneys for Kerr-McGee:
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 Y 4$ NO0
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Acres
Keep for Hearing Outcome/Minutes
file- No Action Needed
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3
(150400228)
BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION OF CAUSE NO.
KERR-MCGEE OIL & GAS ONSHORE LP, FOR
AN ORDER TO POOL ALL INTERESTS IN AN DOCKET NO.
APPROXIMATE 400-ACRE DESIGNATED
HORIZONTAL WELLBORE SPACING UNIT
LOCATED IN SECTIONS 10, 11, 14 AND 15, RECEIVED
TOWNSHIP 3 NORTH, RANGE 68 WEST, 6TH
P.M., FOR THE DEVELOPMENT/OPERATION
OF THE NIOBRARA FORMATION,
WATTENBERG FIELD, WELD COUNTY, WELD COUNTY
COLORADO COMMISSIONERS
APPLICATION
Kerr-McGee Oil & Gas Onshore LP (Operator No. 47120) ("Kerr-McGee" 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 pooling all interests in an approximate 400-acre
designated horizontal wellbore spacing unit designated for portions of Sections 10, 11, 14
and 15, Township 3 North, Range 68 West, 6th P.M., for development and operation of the
Niobrara Formation. 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 3 North, Range 68 West, 6th P.M.
Section 10: SY2S1/2
Section 11: SW'/SW'/4
Section 14: NW'/4NWY4
Section 15: N''AN%
400-acres, more or less, Weld County, Colorado.
These lands are hereinafter 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, 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 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 29, 2013, the Commission entered Order No. 407-833,
which among other things, approves the request for an order to establish an
approximate 640-acre horizontal drilling and spacing unit consisting of Section 11,
Township 3 North, Range 68 West, 6th P.M., and approve up to twelve horizontal wells
within the unit, for the production of oil, gas, and associated hydrocarbons from the
Codell-Niobrara Formation. Order No. 407-833 does not affect this Application.
6. On March 17, 2014, the Commission entered Order No. 407-967,
which among other things, approves the request for an order to pool all interests in an
approximate 640-acre designated wellbore spacing unit established for Section 11,
Township 3 North, Range 68 West, 6th P.M., for the development and operation of the
Codell-Niobrara Formation. Order No. 407-967 does not affect this Application.
7. On July 28, 2014, the Commission entered Order No. 407-1091,
which among other things, approves the request for an order pool all interests in an
approximate 640-acre drilling and spacing unit established for the Application Lands, for
the development and operation of the Niobrara Formation. Order No. 407-1091 does
not affect this Application.
8. On July 28, 2014, the Commission entered Order No. 407-1093,
which among other things, approves the request for an order to pool all interests in an
approximate 640-acre drilling and spacing unit established for the Application Lands, for
the development and operation of the Niobrara Formation. Order No. 407-1093 does
not affect this Application.
9. On July 28, 2014, the Commission entered Order No. 407-1094,
which among other things, approves the request for an order to pool all interests in an
approximate 320-acre designated wellbore spacing unit established for the Application
Lands, for the development and operation of the Niobrara Formation. Order No. 407-
1094 does not affect this Application.
10. On October 27, 2014, the Commission entered Order No. 407-
1145, which, among other things, pooled all interests in an approximate 640-acre drilling
and spacing unit established for Section 11, Township 3 North, Range 68 West, 6th
P.M., for the development and operation of the Codell and Niobrara Formations. Order
No. 407-1145 does not affect this Application.
11. Pursuant to Rule 318A, Applicant designated an approximate 400-
acre wellbore spacing unit, comprised of the Application Lands, for the RMF 30N-15HZ
Well (API No. 05-123-39206) ("Well"), for the production of oil, gas and associated
hydrocarbons from the Niobrara Formation. Applicant notified all owners in the proposed
designated wellbore spacing unit pursuant to Rule 318A.e.(5). Applicant did not receive
objections to the establishment of the proposed designated wellbore spacing unit within
the 30-day response period.
12. 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 an approximate 400-acre
designated wellbore spacing unit designated for the Application Lands for the development
and operation of the Niobrara Formation.
13. 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
Well on the Application Lands, whichever is earlier.
14. Further, Applicant requests that any 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 Well, 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.
15. The granting of this Application is in accord with the Oil and Gas
Conservation Act, found at §34-60-101, et seg., C.R.S., and the Commission rules.
16. 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.
17. That the names and addresses of the interested parties (persons who
own any interest in the mineral estate of the tracts to be pooled, except owners of
overriding royalty interest) according to the information and belief of the Applicant are set
forth in Exhibit A attached hereto. The Applicant shall submit a certificate of service for the
Application 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 the Application Lands for the development and
operation of the Niobrara Formation, with the pooling order 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 Well on the Application Lands,
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 Well, 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 r in the premises.
DATED this ! day of February, 2015.
Respectfully submitted,
KERR-MCGEE OIL & GAS ONSHORE LP
By: -
Jamie L. Jost
Joseph M. Evers
Jost & Shelton Energy Group, P.C.
Attorneys for Applicant
1675 Larimer Street, Suite 420
Denver, Colorado 80202
jjost@jsenergygroup.com
jevers@jsenergygroup.com
Address of Applicant
Kerr-McGee Oil & Gas Onshore LP
ATTN: Nancy McDonald
1099 18th Street, Suite 1800
Denver, Colorado 80202
VERIFICATION
STATE OF COLORADO )
) ss.
CITY AND COUNTY OF DENVER )
Nancy McDonald, of lawful age, being first duly sworn upon oath, deposes and
says that she is a Staff Landman for Kerr-McGee Oil & Gas Onshore LP, and that she
has read the foregoing Application and that the matters therein contained are true to the
best of her knowledge, information and belief.
Nancy McDonald)
Staff Landman
Kerr-McGee Oil & Gas Onshore LP
Subscribed and sworn to before me this /J day of February 2015.
Witness my hand and official seal.
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My commission expires: 3 -/5 ��0/6 ' • ova�.G;00%`.
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o��'�/SSION EXP1Ei�S
— Notary Public
BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION OF CAUSE NO.
KERR-MCGEE OIL & GAS ONSHORE LP, FOR
AN ORDER TO POOL ALL INTERESTS IN AN DOCKET NO.
APPROXIMATE 400-ACRE DESIGNATED
HORIZONTAL WELLBORE SPACING UNIT
LOCATED IN SECTIONS 10, 11, 14 AND 15, 1
TOWNSHIP 3 NORTH, RANGE 68 WEST, 6TH
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 Jost of lawful age, and being first duly sworn upon my oath, state
and declare that I am ttorney for Kerr-McGee Oil & Gas Onshore LP, and
that on or before the � day of February, 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.
(- �k
Ja ie L. Jost
Subscribed and sworn to before me on this 1yfik day of February, 2015.
Witness my hand and official seal.
My commission expires: IVNL(RACHEL FLEMING'
NOTARY PUBLJC Notar I
STATE OF COLORADO
NOTARY ID 20144025048
MY COMMISSION r-XPIRES JUNE 24,201k
Exhibit A
Interested Party List
FP-RMF 30N-15HZ
Rocky Mountain Assets Investment, James E. Hickey, A-I-F for
LLC Phyllis A. Taylor
444 Mountain Avenue P. O. Box 925
Berthoud, CO 80513 Manzanita, OR 97130
Colorado Department of Transportation James E. Hickey, A-I-F for
Property Leasing Manager James E. Hickey
4201 East Arkansas Ave., Room 212 P. O. Box 925
Denver, CO 80222 Manzanita, OR 97130
C. J. K. Ranch James E. Hickey, A-I-F for
do John Miller Daniel J. Hickey
2954 Sonata Bay Ct P. O. Box 925
Longmont, CO 80503 Manzanita, OR 97130
James E. Hickey, A-I-F for James E. Hickey, A-I-F for
Genevieve Hickey John P. Hickey
P. O. Box 925 P. O. Box 925
Manzanita, OR 97130 Manzanita, OR 97130
James E. Hickey, A-I-F for James E. Hickey, A-I-F for
Betty Killham Patrick J. Barber
P. O. Box 925 P. O. Box 925
Manzanita, OR 97130 Manzanita, OR 97130
James E. Hickey, A-I-F for James E. Hickey, A-I-F for
Colleen Bryant Daniel R. Barber
P. O. Box 925 P. O. Box 925
Manzanita, OR 97130 Manzanita, OR 97130
James E. Hickey, A-I-F for James E. Hickey, A-I-F for
Barbara K. Nessan Thomas R. Barber
P. O. Box 925 P. O. Box 925
Manzanita, OR 97130 Manzanita, OR 97130
James E. Hickey, A-I-F for James E. Hickey, A-I-F for
Gary T. Nessan Mary Alice Barber
P. O. Box 925 P. O. Box 925
Manzanita, OR 97130 Manzanita, OR 97130
James E. Hickey, A-I-F for Welker Farms, LLC
Theresa June Racicot 1329 Cedar Avenue
P. O. Box 925 Boulder, CO 80304
Manzanita, OR 97130
William C. Sears
James E. Hickey, A-I-F for P.O. Box 1087
Debra Ann Michalson Laporte, CO 80535
P. O. Box 925
Manzanita, OR 97130 Gordie Parenteau
PO BOX 731 Stn. Main
James E. Hickey, A-I-F for Saskatoon, Saskatchewan
Rita Jean Becken CANADA 57K 3L7
P. O. Box 925
Manzanita, OR 97130 Linda A. Kelly
133 1ST Street
James E. Hickey, A-I-F for Mead, CO 80542
Elizabeth Ruth Alexander
P. O. Box 925 Larry G. Smith and Jo E. Smith
Manzanita, OR 97130 127 1ST Street— P.O. Box 653
Mead, CO 80542
Town of Mead
PO Box 626 Cory E. Ciaranello
Mead, CO 80542 P.O. Box 473
Mead, CO 80542
Great Western Railway of Colorado,
L.L.C. Patricia Daniels
252 Clayton Street, 4th Floor 142 Dillingham Ave
Denver, CO 80202 Mead, CO 80542
Agfinity, Incorporated Laura Lebon
P.O. Box 338 P.O. Box 283
Eaton, CO 80615 Mead, CO 80542-0283
Boulder Scientific Company Keith J. Ames
PO Box 548 7075 Brigadoon Dr
Mead, CO 80542 Longmont, CO 80503
Mead Sanitation District Mary Susan Emmons and
PO Box 626 Joseph William Emmons
Mead, CO 80542 P. O. Box 523
Mead, CO 80542
Shane S. Knott
P.O. Box 321 Rachel A. Kear and Roger D. Marquez
Mead, CO 80542 PO Box 601
Mead, CO 80542
Ernest Jasmund and Helen Jasmund, Michael L. Herron and Christine J.
Trustees Herron
202 2nd Street— P.O. Box 732 109 1ST Street
Mead, CO 80542 Mead, CO 80542
Kevin J. Kaminski Carole A. Davis
141 2ND Street 134 2ND Street
Mead, CO 80542 Mead, CO 80542
Weld County, Colorado Joan Sheley
Esther Gesick, Deputy Clerk 1321 Aspen Street
915 10th St. Longmont, CO 80504
Greeley, CO 80621
Charles D. Griffith and Debra L. Griffith
Debra L. Johnson 102 2ND Street
242 Dillingham Ave. Mead, CO 80542
Mead, CO 80542
Dale F. Tennal
Ruben Zavala and Frances Zavala 232 2ND Street
1343 Mount Evans Drive Mead, CO 80542
Longmont, CO 80504
Mary J. Colmere
Lorma Lue Sterkel 411 4111 Street
125 2N° Street Chugwater, WY 82210
Mead, CO 80542
James L. Lohr
Deedre Lynn Gantenbein 2688 Grace Way
109 2ND Street Mead, CO 80542
Mead, CO 80542
WCR 34 & HWY 25-220 LLC
Michael P. Mukina and Kerry Sue 8800 N. Gainey Center Drive, Suite 225
Mukina Scottsdale, AZ 85258
109 2ND Street
Mead, CO 80542 Dorothy I. Burch Estate
Attn: Catherine A. Digregorio
Gravitas — 241 Welker, LLC P.O. Box 511
15395 E County Line Road Frederick, CO 80530
Berthhoud, CO 80513
Burch Family, LLLP
Shirley M. Angel Attn: Catherine A. Digregorio
206 3RD STREET P.O. Box 511
Mead, CO 80542 Frederick, CO 80530
Kerr-McGee Oil & Gas Onshore LP
1099 18th Street, Suite 1800
Denver, CO 80202
Encana Oil & Gas (USA) Inc.
370 17th Street, Suite 1700
Denver, CO 80202
Synergy Resources Corporation
20203 Highway 60
Platteville, CO 90651
Grizzly Petroleum Company, LLC
1801 Broadway, Suite 500
Denver, CO 80202
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