HomeMy WebLinkAbout20150730.tiff ! Lease in Place : YES NO Q
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BEFORE THE OIL AND GAS CONSERV) Keep for Hearing Outcome/Minutes
1 OF THE STATE OF COLO File-No Action Needed
IN THE MATTER OF THE APPLICATION OF CAu�c t,.,,
VERDAD OIL & GAS CORPORATION, FOR AN
ORDER TO POOL ALL INTERESTS IN AN DOCKET NO. 150100035
APPROXIMATE 640-ACRE DRILLING AND
SPACING UNIT LOCATED IN SECTION 2, RECEIVED
TOWNSHIP 1 NORTH, RANGE 64 WEST, 6TH
P.M., FOR THE DEVELOPMENT/OPERATION JAN 1 2 2015OF THE CODELL AND NIOBRARA
FORMATIONS, WATTENBERG FIELD, WELD WELD COUNTY
COUNTY, COLORADO COMMISSIONERS
AMENDED APPLICATION
COMES NOW Verdad Oil & Gas Corporation (Operator No. 10485)
("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, as defined below, for the development of the Codell and Niobrara
Formations on the following described lands:
Township 1 North, Range 64 West, 6th P.M.
Section 2: 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 wellbore spacing units to be established. On August 8, 2011, Rule 318A was again
amended to, among other things, address the drilling of horizontal wells.
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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 January 9, 2015, Applicant concurrently filed an application
to be heard at the Commission's March hearing, requesting an order establishing
a drilling and spacing unit composed of the Application Lands, for the
development of the Codell and Niobrara Formations.
6. Applicant designated an approximate 320-acre horizontal wellbore
spacing unit for the drilling of the Pastelak 01N-64W-02-3N Well (API No. 05-123-
40319), 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.
Applicant has/will submit a sundry to approve the drilling of the Pastelak 01N-
64W-02-3N Well to the pending drilling and spacing unit composed of the
Application Lands, described above.
7. 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 Codell and Niobrara Formations
underlying the following approximate 640-acre Drilling and Spacing Unit:
Township 1 North, Range 64 West, 6th P.M.
Section 2: All
(throughout as "Drilling and Spacing Unit").
8. 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 Codell or
Niobrara Formation on the Application Lands.
9. 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.
10. That in order to prevent waste and to protect correlative rights, all
interests in each of the Drilling and Spacing Unit should be pooled for the orderly
development of the Codell and Niobrara Formations, 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 Codell and
Niobrara Formations.
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 Codell or
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 Codell or Niobrara Formation in the Drilling and 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 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.
y
Dated: January ' , 2015.
Respectfully submitted:
VERDAD O4.,& GAS CORPORATION
By: �� � � �. _ r
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:
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-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.
C.(7)
Philip W. Davis
Vice President- Land
Verdad Oil & Gas Corporation
Subscribed and sworn to before me this 9 day of January 2015.
Witness my hand and official seal.
""" RENEE WARNOCK
env r�•
[SE A' des. Notary Public.State of Texas
My Commission Expires
•.;fF• V December 16, 2018
IfIl
My commission expires: 16 Zo17-
Notary ublic
BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION OF CAUSE NO.
VERDAD OIL & GAS CORPORATION, FOR AN
ORDER TO POOL ALL INTERESTS IN AN DOCKET NO.
APPROXIMATE 640-ACRE DRILLING AND
SPACING UNIT LOCATED IN SECTION 2,
TOWNSHIP 1 NORTH, RANGE 64 WEST, 6TH
P.M., FOR THE DEVELOPMENT/OPERATION
OF THE CODELL AND NIOBRARA
FORMATIONS, 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 ap the attorney for Verdad Oil & Gas Corporation, and
that on or before the /s'Ctay of January, 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.
Jamie L. Jost
Subscribed and sworn to before me on this lay of January, 2015.
Witness my hand and official seal. /
My commission expires: egOn.
a&t,a/
Notary ublic
g DANIELLE E CARROLL
Notary Public
State of Colorado
6 Notary ID 20134059312
My Commission Expires Sep 18, 2017
Exhibit A
Interested Party List
Verdad Oil & Gas Corporation Paula D. Farner
5950 Cedar Springs Road, 28498 County Road 14
Suite 200 Keenesburg, CO 80643
Dallas, Texas 75235
Dianne C. Becker and
OOGC America LLC Carl R. Becker
9805 Katy Freeway, Suite 500 215 South Dickson Street
Houston, TX 77024 Keenesburg, CO 80643
Grizzly Petroleum Company, LLC Wilda A. Cornell
1801 Broadway, Suite 500 4345 Kendall Street
Denver, CO 80202 Wheat Ridge, CO 80033
John M. Hefner and Kristine Hefner, Donald Cornell
tenants in common 299 Belford Drive
8614 North Sundown Trail Northglenn, CO 80260
Parker, CO 80134
Elizabeth Jean Redabaugh
Steve M. Pastelak 28906 County Road 14
28425 Highway 52 Keenesburg, CO 80643-9528
Keenesburg, CO 80634
Barbara Reed Lewis
Kenneth L. Madsen and Lynda J. 9665 Woodhollow Drive
Madsen, tenants in common Reno, NV 89521
P.O. Box 359
Hudson, Co 80642-0359 Kevin L. Bell and Trudy K. Bell
28496 County Road 14
Matthew J. Madsen and Keenesburg, CO 80643
Mary R. Madsen
28170 Weld County Road 14 Julia Mae Pastelak
Keenesburg, CO 80643-9528 575 Holly Street
Hudson, CO 80642
John Schweitzer and
Marjorie Schweitzer Annette Tarantino
28490 County Road 14 5000 East 88th Avenue
Keenesburg, CO 80643-9528 Henderson, CO 80640
Shirley Jean Henry Wagy Board of County Commissioners of
6288 W. 3rd St. Rd. the County of Weld
Greeley, CO 80634 1150 O Street, P.O Box 758
Greeley, CO 80632
Steven R. Giglio, devisee of
Ruth Strain Giglio aka Layne E. Thompson and Cylene
Ruth Strain Giglio Kerr Thompson
1325 Belvedere Drive 28549 Highway 52
Baton Rouge, LA 70808 Keenesburg, CO 80643-9404
Brian K. Heier and Kellie L. Heier Sharp Energy Resources, LLC
28001 Highway 52 1801 Broadway, Suite 400
Keenesburg, CO 80643 Denver, CO 80202
Eastern Plains Development, LLC
28425 Highway 52
Keenesburg, CO 80643-9412
Tra . .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 RECEIVED
SIXTEEN (16) WELLS WITHIN THE 640-ACRE
DRILLING AND SPACING UNIT FOR THE DEC 3 0 2014
CODELL AND NIOBRARA FORMATIONS IN
SECTION 02, TOWNSHIP 1 NORTH, RANGE WELD COUNTY
64 WEST, 6TH P.M., WATTENBERG FIELD, COMMISSIONERS
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
I
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.
J
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.
J
DATED December 22, 2014.
Respectfully submitted:
VERDAD OI & GAS CORPORATION
By: atCL-e--•
_._
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
Applicant's Address:
Verdad Oil & Gas Corporation
ATTN: Johnny Beecherl
5950 Cedar Springs Road, Suite 200
Dallas, TX 75235
I
I
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,22-day of December 2014.
Witness my hand and official seal.
[SEAL]
My commission expires: 1�- 16 -�i Y
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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,,141s the attorney for Verdad Oil & Gas Corporation, and that on or before
December , 2 14 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 22 day of December, 2014.
Witness my hand and official seal.
My commission expires: limit 2141 20lr
RACHEL FLEMIN(i
NOTARY PUBLIC
STATE OF COLORADO
NOTARY ID 20144025048 Nota lic
5JY COMMISSION EXPIRES JUNE 24,2018
I
. .
•
Reference Map
Verdad Oil & Gas Corporation
Section 02, Township 1 North, Range 64 West, 6th P.M.
34 2N64W 35 36
3 2 1
1 N64W
Hwy S? HMI-S2 Hwy SI
10 11 12
*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
OOGC 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
I
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, CD 80246-1530
Tom Parko
Weld County
1555 North 17th Street
Greeley, CO 80631
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