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HomeMy WebLinkAbout20150735.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 ) DOCKET NO. 150300095 FORMATION, WATTENBERG FIELD, WELD ) COUNTY, COLORADO ) TYPE: POOLING NOTICE OF HEARING TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN: APPLICATION LANDS RECEIVED FEB 1 1 2015 Township 7 North, Range 64 West, 61h P.M. Section 28: WY2 E1/2 WELD COUNTY COMMISSIONERS APPLICATION On December 23, 2014, Bayswater Exploration & Production, LLC (Operator No. 10261) ("Bayswater" 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 160-acre drilling and spacing spacing unit established for the Application Lands, for the development and operation of the Niobrara Formation; 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 Mojack J-28HN well and the Mojack K-28HN well (API No. 05-123-39824) and (API No. 05-123- 39855). APPLICABLE 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. 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, March 2, 2015 Tuesday, March 3, 2015 1 C_.For7 2- 2015-0735 Time: 9:00 a.m. Place: Colorado Oil and Gas Conservation Commission 1120 Lincoln St., 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 February 13, 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 February 13, 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 0 -COLORADO By i t, J I orancy, Acting Se retary Dated: January 29, 2015 Colorado Oil and Gas Conservation Commission Attorneys for Applicant: 1120 Lincoln Street, Suite 801 Joseph C. Pierzchala Denver, Colorado 80203 Chelsey J. Russell Website: http://cogcc.state.co.us Welborn Sullivan Meck & Tapley, P.C. Phone: (303) 894-2100 1125 17th Street, Suite 2200 Fax: (303) 894-2109 Denver, CO 80202 (303) 830-2500 jpierzchala@wsmtlaw.com crussell@wsmtlaw.com Lease in Place : YES NO O Lease# Acres r l!) Keep for Hearin Outcome/Minutes File-No Action Needed 2 (150300095) 4 4 RECEIVED BEFORE THE OIL AND GAS CONSERVATION COMMISSION DEC 2 3 2014 OF THE STATE OF COLORADO CooCC IN THE MATTER OF THE APPLICATION OF ) BAYSWATER EXPLORATION & PRODUCTION, ) Cause No. LLC FOR AN ORDER POOLING ALL ) INTERESTS IN THE NIOBRARA FORMATION ) Docket No. 150300095 IN A 160-ACRE WELLBORE SPACING UNIT ) LOCATED IN SECTION 28, TOWNSHIP 7 ) TypR�RftI tD NORTH, RANGE 64 WEST, 6TH P.M., ) G '' VV GG WATTENBERG FIELD, WELD COUNTY, ) DEC 3 Q 2'314WELD COLORADO. ) TY APPLICATION OMMISSIIONF Bayswater Exploration & Production, LLC ("Bayswater" or "Applicant"), Operator No. 10261, by and through its attorneys, Welborn Sullivan Meck & Tooley, P.C., respectfully submits this Application to the Oil and Gas Conservation Commission of the State of Colorado ("Commission" or "COGCC") for an order pooling all interests in an approximate 160-acre wellbore spacing unit for the ME'/2 of Section 28, Township 7 North, Range 64 West, 6th P.M., Weld County, Colorado for the development and production from the Niobrara Formation. In support thereof, the Applicant states as follows: 1. Applicant is a limited liability company duly authorized to conduct business in the State of Colorado. 2. Applicant owns a leasehold interest in the following lands ("Application Lands"): Township 7 North, Range 64 West, 6th P.M. Section 28: W'/2E'/2 Weld County, Colorado. A reference map of the Application Lands is attached hereto. 3. Rule 318A.a.(4)D. provides, in relevant part, that where a drilling and spacing unit does not exist for a horizontal well, the horizontal wellbore spacing unit shall be comprised of the governmental quarter-quarter sections in which the wellbore lateral penetrates the productive formation as well as any governmental quarter-quarter sections that are located less than four hundred sixty (460) feet from the portion of the wellbore lateral that penetrates the productive zone regardless of section or quarter section lines. Rule 318A.a.(4)D. further provides that a horizontal wellbore spacing unit may overlap portions of another horizontal wellbore spacing unit or other wellbore spacing unit designated in accordance with subsection a.(4)C. (00326534.1) 1 4. Applicant drilled the Mojack J-28HN well (API# 05-123-39824) and the Mojack K-28HN well (API#05-123-39855), both spud on or about October 25, 2014. The above-described horizontal wells are designed to test and produce gas and associated hydrocarbons from the Niobrara Formation underlying the Application Lands. 5. Pursuant to the relevant provisions of Section 34-60-116(6) & (7), C.R.S., and COGCC Rule 530, Applicant seeks an order pooling all interests in the Application Lands for the development and operation of the Niobrara Formation. 6. Applicant certifies that, at least 35 days prior to the date of the scheduled protest deadline for this Application, each owner which Applicant was able to locate, not already leased or voluntarily pooled, will be provided with well proposals and information required by Rule 530 and tendered a reasonable offer to lease (if an unleased mineral owner), or participate and bear costs associated with the drilling and completion of the Mojack J-28HN and Mojack K-28HN . :, wells. : 7. Applicant requests that a pooling order be entered as a result of this Application and that it be made effective as of the earlier of the date of this Application, or the date costs specified in Section 34-60-116(7)(b)(II), C.R.S., are first incurred for the drilling of the Mojack J-28HN and Mojack K-28HN wells. 8. The granting of this Application would be in accord with the Oil and Gas Conservation Act, found at Section 34-60-101, et seq., C.R.S., and Commission rules. 9. The names and addresses of the interested parties (persons who own an interest in the mineral estate of the tracts to be pooled, except owners of overriding royalty interest) are attached hereto and marked Exhibit A. Applicant certifies that copies of this Application will be served on all locatable interested parties within seven (7) days of the date hereof, as required by Commission Rule 507.b(2), and that at least thirty-five (35) days prior to the date of the scheduled protest deadline for this Application, each such owner not already leased or voluntarily pooled will be offered the opportunity to lease, or to participate in the drilling of the respective wells, and will be provided with the information required by Rule 530. 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. B. Providing that the pooling order is made effective as of the date of this Application, or the date that the costs specified in Section 34-60-116(7)(b)(II), C.R.S., are first incurred for the drilling of the Mojack J-28HN and Mojack K-28HN wells on the Application Lands, whichever is earlier. 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 authorized wells, {00326534.1} 2 are pooled by operation of statute, pursuant to Section 34-60-116(7), C.R.S., and made subject to the cost recovery provisions thereof. D. For such other findings and orders as the Commission may deem proper or advisable in the premises. Dated this day of December, 2014 Respectfully submitted, WELBORN SULLIVAN MECK&TOOLEY, P.C. By: Joseph C. P' rzchala Chelsey J. Russell Welborn Sullivan Meck &Tooley, P.C. Attorneys for Applicant 1125 - 17th Street, Suite 2200 Denver, CO 80202 303-830-2500 jpierzchala(a.wsmtl aw.corn crussell@wsmtlaw.com Applicant's Address: 730 Seventeenth Street, Suite 610 Denver, CO 80202 Attn: Blake Leavitt, DJ Basin Landman Phone: 303-893-2503 (00326534.1) 3 isor• Milk mini • VERIFICATION STATE OF COLORADO ) ss. CITY & COUNTY OF DENVER ) Blake Leavitt, DJ Basin Landman with Bayswater Exploration & Production, LLC, upon oath deposes and says that he has read the foregoing Application and that the statements contained therein are true to the best of his knowledge, information and belief. BAYSWATER EXPLORATION & PRODUCTION, LLC Blake Leavitt, DJ Basin Landman Subscribed and sworn to before me this I day of December, 2014 by Blake Leavitt, DJ Basin Landman for Bayswater Exploration & Production, LLC. Witness my hand and official seal. y 7:/?O/- G ✓/ ♦ 4 : L'j \\IOTA/?}, :�, Notary Public �, / :m My Commission Expires: ,.J ,� 1/ du/ ;tr PUBLIC •' .. USP `•• (00326534.1) 4 A 1 Exhibit A W1/2E1/2 SECTION 28-T7N-R64W MOJACK J-28HN AND K-28HN WELLS 160.01 ACRES, MORE OR LESS UNLEASED MINERAL OWNERS: LOCATION OF TRACT OMB Royalties II, LLC NE/4 SECTION 28 410 17th Street, Suite 1150 Denver, CO 80202 BOB MCDONALD NE/4 SECTION 28 90360 Shadows Drive Springfield, Oregon 97478 RICK MCDONALD NE/4 SECTION 28 90360 Shadows Drive Springfield, Oregon 97478 NOLA KARI NE/4 SECTION 28 90360 Shadows Drive Springfield, Oregon 97478 LEASED MINERAL OWNERS: Weld County, Colorado Wallace Roy MacKenzie P.O. Box 758 20188 Klyne Street Greeley, CO 80631 Corona, CA 92881 Donna MacKenzie Williams Linda Pfannenstiel Fountainhead Blvd #C 13931 East Marina Drive, Unit 602 Grand Junction, CO 81505 Aurora, CO 80014 Beverly A. Schell and Donald J. Schell La Verle Londen 2505 17th Ave. 5608 West Yucca Street Greeley, CO 80631 Glendale, AZ 85304 Lois Steiner John Foster 5107 Shady Dell Trail 16 Grassmere Knoxville, TN 37914 Horley, UK RH6 9UG {00326534 I} 5 Raymond G. Dewey, Jr. James Foster 1011 Cottonwood Place NW 5925 Taylor Draper Cove Albuquerque, NM 87107 Austin, TX 78759 David E. Dewey Jennifer Foster P.O. Box 126 7501 Creston Lane Kersey, CO 80644 Austin, TX 78752 Mojack Interests, LLLP Cary A. Kincade Monte C. Faulk 525 Jefferson St. 38375 CR 55 Pueblo, CO 81004 Eaton, CO 80615 Charles Dewey Warren Richard Hime 2405 Baystone Court 5 Briargate Place Colorado Springs, CO 80921 Pueblo, CO 81001 Robbie Mae Warren Linda A, Mitchell 2319 West 18th Street 719 Paseo Dorado Greeley, CO 80634 Pueblo West, CO 81007 Bessie M. Dewey Helen L. Cook 1326 Country Club Road 2124 Kechter Road Fort Collins, CO 80524 Fort Collins, CO 80528 Fred James Warren Leland L. McDonald 4271 King Street 431 Topeka Avenue Denver, CO 80211 Leavenworth, KS 66048 Laura Lee (Carney) Elliott Mary Gayle McDonald 619 South Patterson Ave. 2228 Dunbar Court Springfield, MO 65802 Longmont, CO 80501 James Dean Carney Terry J. McDonald 9242 Grey Cliff Drive 83100 Bradford Road Germantown, TN 38139 Creswell, OR 97426 Michael E. Potter Lori McDonald Petersen 5705 Westbound 40 Highway 2920 45th Avenue Blue Springs, MO 64015 Greeley, CO 80634 Martha Brown Crouch Randy McDonald 115 Northview Placwe 3102 17th Avenue #3 Windsor, MO 65360 Greeley, CO 80631 (00326534.1} 6 Ted McDonald Vicky Mangan 851 W. Mulberry Street 5286 S. Jamaica Way Louisville, CO 80027 Englewood, CO 80111 Darene (Maloit) Wisecup JLW Investment, LLC 3634 Coffee Lane 351 Glencoe Street Santa Rosa, CA 95403 Denver, CO 80220 Paula J. Mitchell NG Resources, LLC 325 Brentwood 9896 Clairton Way Pueblo, CO 81008 Highlands Ranch, CO 80126 Bert L. Dewey Old West Tours 230 Cheyenne 110 E. Center Street Eaton, CO 80615 PMB 1989 Madison, SD 57042-2908 Tim McDonald 4554 Ivy Street Ronald Rich, Kevin Rich and Amy Rich Springfield, OR 97478 28050 CR 53 Eaton, CO 80615 Nancy Kern P.O. Box 496 Gilcrest, CO 80623 WORKING INTEREST OWNERS: Bayswater Blenheim Holdings, LLC Bayswater Exploration & Production, LLC Malu Lani Oil & Gas Company, Inc. 730 17th Street Street, Suite 610 P.O. Box 621128 Denver, CO 80202 Littleton, CO 80162 Lincoln Energy LLC Green Oil Energy, LLC P.O. Box 6975 245 East 54th Street, Suite 5M Denver, CO 80206 New York, NY 10022 WYOTEX Oil Company Aluma Energy, LLC Box 280969 245 East 54tn Street, Suite 5M Lakewood, CO 80228-0969 New York, NY 10022 Dios Del Mar Petroleum, LLC Shoreline Energy Holdings II, Inc. P.O. Box 621128 500, 500 — 4th Avenue S.W. Littleton, CO 80162 Calgary, Alberta Canada T2P 2V6 (00326534.1} 7 BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE APPLICATION OF ) BAYSWATER EXPLORATION & PRODUCTION, ) LLC FOR AN ORDER POOLING ALL ) Cause No. INTERESTS IN THE NIOBRARA FORMATION ) IN A 160-ACRE WELLBORE SPACING UNIT ) Docket No. 1503XXXXX LOCATED IN SECTION 28, TOWNSHIP 7 ) NORTH, RANGE 64 WEST, 6TH P.M., ) Type: POOLING WATTENBERG FIELD, WELD COUNTY, ) COLORADO. ) AFFIDAVIT OF MAILING STATE OF COLORADO § CITY AND COUNTY OF DENVER § I, Joseph C. Pierzchala, of lawful age, and being first duly sworn upon my oath, state and declare: That I am the attorney for Bayswater Exploration & Production, LLC and that on or before December 29, 2014, 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. Josep . Pierzchala Subscribed and sworn to before me DecemberaL, 2014. Witness my hand and official seal. cmniorta_i , JOAN E.HOOVER NOTARY PUBUC Notary Public �� fp STATE OF COLORADO My commission expires: ( t0 NOTARY ID 19944011557 MY COMMISSION EXPIRES AUGUST 17,2018 ;0326534 1; 8 PROPOSED SPACING UNIT/APPLICATION LANDS SECTION 28, TOWNSHIP 7 NORTH, RANGE 64 WEST, 6TH P.M. SESc SEC.21.N T.TN.. I S'E R.T,aw.7Y.. I SEC!;'.1 T.TIL. S_ "".. R.6W7. I 21 I 460'BUFFER—.i....... I —MOJACK J-28W4 LP 0+�� cN HEWN &FC:tt'1N WNWNwNE a.6W/. SEC 28 T.1lL. SEC.2e.2.7N., c.28 Y.7u_ PROPOSED WELLBORE Rww. a`6a'11— R.6J\T. SPACING ION APPLICATION LANDS SEWN °WIE SENT Swt4W SEC.28.T.7N., EC. T.TN.. SEC Ta T.1N. SEC Ze.T.TN.. +01. 48.1477, R64W. 486 W. 2^ 14 N_V. !1 1TWS= NESE !WSW _ _C.28.T.7N_ SEC.29,1,711., ^uEC 28.T.7N.. SEC. T.7lL. S R.6iW. R6aw. Rww, a.6iv. N SWSE &ESE SWSW SESW C.28. .75. SEC 23.1.7N.. SEC 28.1.17.4. 3EC.28.T.7N.. R6J v' MAW. RAM. R.S8W. BH Neu% NWNW T I NINNE I «C.a7, SEC.33.-.7N., I u WT SEC.33.TTi, R64W. R5sW. I SEC.33.T.7lLI NWW. , R64W. I WELL MOJACK J-28HN TO BE LOCATED 230' FNL AND 1788' FEL, SEC. 28,T7N, R64W SURFACE LOCATION GROUND ELEVATION=4899' NAD83 LATITUDE=40.550680' LONGITUDE=104.551627° LANDING POINT LOCATION NAD83 LATITUDE=40.550010° LONGITUDE=104.552976' BOTTOM HOLE LOCATION NAD83 LATITUDE=40.538054' LONGITUDE=104.553646° LEGEND • =PROPOSED WELL LP=LANDING POINT ♦ =LANDING POINT BH=BOTTOM HOLE =BOTTOM HOLE 0 '000 2000 ??E%.,r FIELU U?(E ;UEFA(( LO(A1iCx 02-05-14 SCALE:1'=2000' DRAWING A't NW 1/4 NE 1/4, 12-09-14 SEC.28.T7N.R64W,6TH P.M. 87 ':ILLS,LLC• D 4�p Qd[ er: CeD A WELD COUNTY,COLORADO osier,C0;S�I KAD MDCA PROPOSED SPACING UNIT/APPLICATION LANDS SECTION 28, TOWNSHIP 7 NORTH, RANGE 64 WEST, 6TH P.M. SESW T.7N..T .21. SEC.21.5 T.7N., ' R.WW. I .21.7 SEC,21.1.711. SEC.21.7.711.. 11.64W. RWVl, I 211 R64W. 460'BUFFER I MOJACK K-28HN I NE11E NNW' A LP'I SEC.29.T.711., NW NWNE R64W. SEC.23.7.714. SEC.m T.TN.. PROPOSED WELLBORE R 64Y:. R.6<W, SEC,29.T.7 1.. Y,'•v4W SPACING APPUCATION ION LANDS s=,6v —IiWNE` .1C SEC.24 7.714., S_G 26.T.7 L'y7 25656 SNMN R64W. 64W O SEC.26.T.T7L SEC.a.T.71L. I R.64W. R.64W, 28 I - - - - 14313W NESW 11W3c O I NC_C _ SEC.2B. •T.7R.. S=CI24 T.7 I.' SEC.28.1.111, S=C 26.T.TR. R.64W. R64W. R64W. 054W. N I I SWSE SNSW SESW SEC,29.r.71.. SESE 64W SEC.25.T.711 SEC.29,T.711.. SEC,28.T.7,4.. R, . R64W R64W. R.64W. BH 3 31 NENE 11VMW I SEC.33,T.IN I SEC.33,T.iN., SEC.33.1.714.. 66NW I R.WW. I N.64W. 0.643.'. SEC.13.7.711.. R.54W. I WELL MOJACK K-28HN TO BE LOCATED 230' FNL AND 1770' FEL, SEC. 28,T7N, R64W SURFACE LOCATION GROUND ELEVATION=4900' NAD83 LATITUDE=40.550681" LONGITUDE=104.551562' LANDING POINT LOCATION NAD83 LATITUDE=40.550032° LONGITUDE=104.551786' BOTTOM HOLE LOCATION NAD83 LATITUDE=40.538080' LONGITUDE=104.552457' N LEGEND • =PROPOSED WELL LP=LANDING POINT♦ =LANDING POINT BH=BOTTOM HOLE *=BOTTOM HOLE 6 1060 2660 r. 02-05L14[ IU!23[[ [6:su6R: SCALE:1"=2000' p� 060',1166 021E NW 114 NE 1/4, 3rr= 1. 12-09-14 SEC.28,T7N,R64W,6TH P.M. • r.4an reL a�nxs,id:• T535 NIT 6 Deer.02"221 KAD MDCA WELD COUNTY,COLORADO Hello