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HomeMy WebLinkAbout20151013.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. 150400225 WATTENBERG FIELD, WELD COUNTY, ) COLORADO ) TYPE: POOLING NOTICE OF HEARING TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN: APPLICATION LANDS Township (North, Ranq 66 West, 6th P.M. Section 1: -- —SW/4SW/ Section 2: E/� 4 E Section 11: EY2E'/Z Sectidi 12: W'/M1/2 J1.. / f t ' l~--� �+`.' APPLICATION On February 12, 2015, 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 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 Griswold 26N-11 HZ Well (API No. 05-123-40923). PRIOR 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. • 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 Codell and Niobrara Formations, with the permitted well locations in accordance with the provisions of Order No. 407-1. • On December 15, 2014, the Commission entered Order No. 407-1188, which, among other things, pooled all interests in two approximate 400-acre designated horizontal 1 2015-1013 L CIO(5r welibore spacing units established for the Application Lands, for the development and operation of the Codell and Niobrara Formations. Order No. 407-1188 does not affect this Application. 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 is uncontested, it may be approved without a hearing. OIL AND GAS CONSERVATION COMMISSION OF TH TATE OLORADO By Jill rio ancy, Acting Secr-tary 2 (150400225) 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 : YES e NO O Lease#LL_CC ((" Acres j L.) 1 Keep for Hearing Outcome/Minutes File-No Action Needed 3 (150400225) 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 1, 2, 11 AND 12, TOWNSHIP 1 NORTH, RANGE 66 WEST, 6TH P.M., FOR THE DEVELOPMENT/OPERATION OF THE NIOBRARA FORMATION, WATTENBERG FIELD, WELD COUNTY, COLORADO 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 1, 2, 11 and 12, Township 1 North, Range 66 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 1 North, Range 66 West,6th P.M. Section 1: SWASW% Section 2: SEV4SEY Section 11: E'/=E% Section 12: W'/2WY2 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 December 15, 2014, the Commission entered Order No. 407- 1188, which, among other things, pooled all interests in two approximate 400-acre designated horizontal wellbore spacing units established for the Application Lands, for the development and operation of the Codell and Niobrara Formations. Order No. 407- 1188 does not affect this Application. 6. Pursuant to Rule 318A, Applicant designated an approximate 400- acre wellbore spacing unit, comprised of the Application Lands, for the Griswold 26N- 11 HZ Well (API No. 05-123-40923) ("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. 7. 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. 8. 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. 9. 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. 10. 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. 11. 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. 12. 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 in the premises. DATED this day of February, 2015. Respectfully submitted, KERR-MC EE OIL & GAS ONS ORE LP / / Ja 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: Tom Yaley 1099 18th Street, Suite 1800 Denver, Colorado 80202 VERIFICATION STATE OF COLORADO ) ) ss. CITY AND COUNTY OF DENVER ) Tom Yaley, of lawful age, being first duly sworn upon oath, deposes and says that he is Staff Landman for Kerr-McGee Oil & Gas Onshore LP, 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. Tom Yaley ' 7 Staff Landman Kerr-McGee Oil & Gas Onshore LP Subscribed and sworn to before me this (I'th day of February 2015. Witness my hand and official seal. RACHEL MARIE CRUZ NOTARY PUBLIC STATE OF COLORADO [SEAL] NOTARY ID 20124066688 MY COMMISSION EXPIRES 10/17/1016 My commission expires: l /1719-61.6 Not. • 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 1, 2, 11 AND 12, TOWNSHIP 1 NORTH, RANGE 66 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 amitib9 attorney for Kerr-McGee Oil & Gas Onshore LP, and that on or before the it-tray 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. i , dil&-' ( --7):fr Jamie L. Jost Subscribed and sworn to before me on this 1 day of February, 2015. Witness my hand and official seal. My commission expires: gyp!(&ia.DI CHARLOTTE LAWLESS 4 NOTARY PUBL3C73 STATE OF COLORADO Notary Publi NOTARY ID 20144O23899 MY COMMISSION EXPIRES JUNE 16,2018 Exhibit A Interested Party List Kerr-McGee Oil & Gas Onshore LP & Russell L. Long and Anna Faye Long, Anadarko E&P Onshore LLC JT 1099 18th Street, Suite 1800 Route 2, Box 7C Denver, CO 80202 Gravette, AR 72736 Synergy Resources Company Mekusuky Oil Company, LLC 20203 Hwy 60 PO Box 816 Platteville, CO 80651 Wewoka, OK 74884 Weld County, Colorado, a political Mary Lou Elliot subdivision of the State of Colorado 106 Rose Marie 915 10th Street Hearne, TX 77859 Greeley, CO 80632 Martin Brothers, LLC Damon Harvey 17050 Eagle Street 5802 Shady Lane Fort Lupton, CO 80621 Amarillo, TX 79109 Faye E. Harvey Diane Dunn 1820 Holly Lane 2 Carrington Court Pampa, TX 79065 Bay City, TX 77414 Deborah Joy McQuitty 3309 S. Ash Perryton, TX 79070 Hello