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Home My WebLink About20153834.tiff BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE PROMULGATION ) CAUSE NO. 407 AND ESTABLISHMENT OF FIELD RULES TO ) GOVERN OPERATIONS FOR THE CODELL ) DOCKET NO. 151200749 FORMATION, WATTENBERG FIELD, WELD ) COUNTY, COLORADO ) TYPE: POOLING NOTICE OF HEARING TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN: APPLICATION LANDS RECEIVED Tawnship_5 North, Range 65 West, 6th P.M. se�Sion 5 sW/< NOV 01 2015 Section 6: S% WELD COUNTY Wellbore Spacing Unit ("WSU") Nos. 1 and 2 COMMISSIONERS APPLICATION On October 8, 2015, Extraction Oil & Gas LLC (Operator No. 10459) ("Extraction" or "Applicant")filed a verified application pursuant to §34-60-116, C.R.S., for an order to: 1) Pool all interests in two approximate 480-acre horizontal wellbore spacing units, established for the Application Lands, for the development and operation'of the Codell and • Niobrara 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, 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 DT- Forbes C6-5-6 Well (API No. 05-123-41034) (WSU #1) and the DT-Forbes C7-5-6 Well (API No. 05-123-41028) (WSU #2). APPLICABLE RULES AND ORDERS (available online at: http://coqcc.state.co.us, under"ORDERS") O On April 27, 1998, the Commission adopted Rule 318A, the Greater Wattenberg Area Special Well Location, Spacing and Unit Designation Rule. 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, December 6, 2015 Tuesday, December 7, 2015 2015-3834 1 l t LE036 A LE0353 (6YLo0ZISl) papaaN uo!loV ON -@l!3 1 \ salnu!VN/awoulno euueaH Jo;daax seJDV #aseal I Q ON C. : aoeld u!aseal papaaN uo!1DV oN-al!d ' saw uW /awoulno&uuea}ao;daax son_ ' T#aseal Q oN ,e S3A : aDeld u!aseal , woo MelAamuanngQn Jayaln woo•nnelA6Jeuannq@lauei 664747-L047(£0L 30309 opeJolo0 'JanuaO 604Z-4769 ( 0£) :xed 0044 a;mS ';aal5 4194 943 004Z-p68 (£0£) :euogd 'O•d '>le!uzoM'9 A}leag sn•oo.elels'ao600//:dqy :a;lsgaM Jayalnd uelplr £0309 opeioloO 'ianuaO lased sower 409 a;!ns '}a0J}3 uloou!l 034 4 :lueapddy Jo;sAawouy uo!sslwwoO uo!leAJasuoO see pue no opeJolo0 91.02 '9Z jagopa0 :Plea tie}al g 'AyddnW/pry 7. 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To be SPACING UNITS ESTABLISHED FOR SECTIONS 5 assigned AND 6, TOWNSHIP 5 NORTH, RANGE 65 WEST, 6TH P.M., FOR THE DEVELOPMENT/OPERATION OF RECEIVED THE CODELL FORMATION, WATTENBERG FIELD, WELD COUNTY, COLORADO OCT 19 2015 APPLICATION COMMISCSIIONERS Extraction Oil & Gas LLC, Operator No. 10459, ("Extraction" or "Applicant"), by and through its attorneys, Beatty & Wozniak, P.C., respectfully submits this Application to the Oil and Gas Conservation Commission of the State of Colorado ("Commission") for an order pooling all interests in two approximate 480-acre horizontal wellbore spacing units established for certain portions of Sections 5 and 6, Township 5 North, Range 65 West, 6th P.M.; for the development and operation of the Codell Formation. In support of its Application, Applicant states and alleges as follows: 1. Applicant is a limited liability corporation duly authorized to conduct business in the State of Colorado, and has registered as an operator with the Commission. 2. Applicant owns substantial leasehold interests• in the below-listed lands: Township 5 North, Range 65 West, 6th P.M. Section 5: SW'/ Section 6: S'/2 Wellbore Spacing Unit ("WSU") Nos. 1 and 2 480 acres, more or less, Weld County, Colorado These lands are hereinafter referred to as the "Application Lands" and depicted in Exhibit A attached hereto. 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. Pursuant to Rule 318A., Applicant, or Applicant's predecessor in interest, designated two approximate 480-acre horizontal wellbore spacing units, • comprised of the Application Lands, for the below-described wells, for the production of oil, gas and associated hydrocarbons from the Codell Formation. All owners in the proposed wellbore spacing units were notified pursuant to Rule 318A.e.(5). Applicant did not receive objections to the establishment of the proposed horizontal wellbore spacing units within the 30-day response period: a. DT-Forbes C6-5-6 Well (API No. 05-123-41034) — Codell Formation —WSU #1; and b. DT-Forbes C7-5-6 Well (API No. 05-123-41028) — Codell Formation —WSU #2. These wells are hereinafter referred to as the "Subject Wells." 5. Acting pursuant to the relevant provisions of §34-60-116(6) & (7), C.R.S., and Rule 530., Applicant seeks an order pooling all interests, including, but not limited to, any nonconsenting interests, in each of WSU Nos. 1 and 2 established for the Application Lands, for the development and operation of the Codell Formation. 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 §34-60-116(7)(b), C.R.S. are first incurred for the drilling of the Subject Wells within WSU Nos. 1 and 2. 7. Further, Applicant requests 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 each of the Subject Wells, are made subject 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 the costs specified in §34-60-116(7)(b), C.R.S. are first incurred for the drilling of each of the Subject Wells. 8. 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. 9. 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. 10. The undersigned certifies that copies of this Application will be served on each interested party as required by Rule 507 within seven (7) days of the filing hereof, 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 each of WSU Nos. 1 and 2 established for the Application Lands, for the development and operation of the Codell Formation, effective as of the earlier of the date of this Application, or the date that the costs specified in 2 r §34-60-116(7)(b), C.R.S. are first incurred for the drilling of the Subject Wells within WSU Nos. 1 and 2. B. 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 each 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, effective as of the earlier of the date of the Application, or the date the costs specified in §34-60- 116(7)(b), C.R.S. are first incurred for the drilling of each of the Subject Wells. C. For such other findings and orders as the Commission may deem proper or advisable in the premises. DATED this 6 day of October, 2015. Respectfully submitted, EXTRACTION OIL & GAS LLC By: J� Jam s Parrot Jillian Fulcher Beatty &Wozniak, P.C. Attorneys for Applicant 216 16th Street, Suite 1100 Denver, Colorado 80202 (303) 407-4499 jparrot@bwenergylaw.com jfulcher@bwenergylaw.com Address of Applicant Extraction Oil & Gas LLC ATTN: Jesse Schmidt 370 17th Street, Suite 5300 Denver, CO 80202 3 VERIFICATION STATE OF COLORADO ) ) ss. CITY& COUNTY OF DENVER ) Allyson Vistica, Land Manager for Extraction Oil & Gas LLC, upon oath deposes and says that she has read the foregoing Application and that the statements contained therein are true to the best of her knowledge, information and belief. EXTRACTION OIL & GAS LLC Allyson(Jistica Subscribed and sworn to before me this 15\v\ day of October, 2015, by Allyson Vistica, Land Manager for Extraction Oil & Gas LLC. Witness my hand and official seal. My commission expires: c \ (9-ON/ tq ) ELLEN TAYLOR BROWN 1\ STATE OF COLOLRlADO Notary Public NOTARY ID 20144033135 MY COMMISSION PJRES AUGUST 22,2015 Exhibit A Reference Map for Pooling Application Township 5 North, Range 65 West, 6th P.M. Section 5: SW% Section 6: S7/ 6N6YJ 35 36 31 32 33 34 2 1 6 5 4 3 HAD/14 I •' �r 1 12 7 3 a 9 10 9 4 13 IS 16 15 '4 ling 14 51I651/V Hello