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HomeMy WebLinkAbout20150734.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. 150300096 FORMATION, WATTENBERG FIELD, WELD ) COUNTY, COLORADO ) TYPE: POOLING NOTICE OF HEARING RECEIVED TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN: FEB 1 1 2015 APPLICATION LANDS COMMISSIONERS Township 7 North, Range 64 West, 6th P.M. Section 28: EY2 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 320-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 L-28HN well (API No. 05-123-39835). 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 LEO 2015-0734 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$ A OF C LGRADO By Jill f o;ancy, Acting Secretary 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 &Tooley, 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 l'!J NO O Lease# LEO 9 7 ai Acres / IDOGi.alt.O KO OW au`I) Keep for Hearing Outcome/Minutes File-No Action Needed 2 (150300096) ./ • RECEIVED DEC 232014 BEFORE THE OIL AND GAS CONSERVATION COMMISSIO COGCC OF THE STATE OF COLORADO IN THE MATTER OF THE APPLICATION OF ) BAYSWATER EXLORATION & PRODUCTION, ) Cause No. LLC FOR AN ORDER POOLING ALL ) INTERESTS IN THE NIOBRARA FORMATION ) Docket No. 15030096 IN A 320-ACRE WELLBORE SPACING UNIT ) LOCATED IN SECTION 28, TOWNSHIP 7 ) Type: POOLING NORTH, RANGE 64 WEST, 6TH P.M., ) RECEIVED WATTENBERG FIELD, WELD COUNTY, ) COLORADO. ) DEC 3 0 2014 APPLICATION WELD COUNTY COMMISSIONERS 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 320-acre wellbore spacing unit for E'/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: E1/z 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. (00326538.1} 1 4. Applicant drilled the Mojack L-28HN well (API# 05-123-39835), spud on or about October 25, 2014. The above-described horizontal well is 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 the well proposal 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 L-28HN well. 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 L-28HN well. 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. I 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 L-28HN well 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 well, 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. {00326538.1} 2 A. D. For such other findings and orders as the Commission may deem proper or advisable in the premises. tA Dated this Oday of December, 2014 Respectfully submitted, WELBORN SULLIVAN MECK &TOOLEY, P.C. By: Joseph C ierzchala Chelsey J. Russell Welborn Sullivan Meck &Tooley, P.C. Attorneys for Applicant 1125 - 17th Street, Suite 2200 Denver, CO 80202 303-830-2500 ipierzchala@wsmtlaw.com crussel l(c�wsmtlaw.corn Applicant's Address: 730 Seventeenth Street, Suite 610 Denver, CO 80202 Attn: Blake Leavitt, DJ Basin Landman Phone: 303-893-2503 (00326538.1} 3 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. NOTAF ,. Notary Public ---s m My Commission Expires: 742?/943)G ;cp„;•. PUBLIC ' (00326538.I) 4 I • • Exhibit A E1/2 SECTION 28-T7N-R64W MOJACK L-28HN WELL 319.90 ACRES, MORE OR LESS UNLEASED MINERAL OWNERS: LOCATION OF TRACT OMB Royalties II, LLC NE/4 410 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 Linda Pfannenstiel P.O. Box 758 13931 East Marina Drive, Unit 602 Greeley, CO 80631 Aurora, CO 80014 Donna MacKenzie Williams La Verle Londen Fountainhead Blvd #C 5608 West Yucca Street Grand Junction, CO 81505 Glendale, AZ 85304 Beverly A. Schell and Donald J. Schell John Foster 2505 17th Ave. 16 Grassmere Greeley, CO 80631 Horley, UK RH6 9UG Lois Steiner James Foster 5107 Shady Dell Trail 5925 Taylor Draper Cove Knoxville, TN 37914 Austin, TX 78759 Wallace Roy MacKenzie Jennifer Foster 20188 Klyne Street 7501 Creston Lane Corona, CA 92881 Austin, TX 78752 • {00326538.1} 5 I Cary A. Kincade Mojack Interests, LLLP 525 Jefferson St. Monte C. Faulk Pueblo, CO 81004 38375 CR 55 Eaton, CO 80615 Charles Dewey Warren 2405 Baystone Court Richard Hime Colorado Springs, CO 80921 5 Briargate Place Pueblo, CO 81001 Robbie Mae Warren 2319 West 18th Street Linda A. Mitchell Greeley, CO 80634 719 Paseo Dorado Pueblo West, CO 81007 Bessie M. Dewey 1326 Country Club Road Helen L. Cook Fort Collins, CO 8052.4 2124 Kechter Road Fort Collins, CO 80528 Fred James Warren 4271 King Street Leland L. McDonald Denver, CO 80211 431 Topeka Avenue Leavenworth, KS 66048 Laura Lee (Carney) Elliott 619 South Patterson Ave. Mary Gayle McDonald Springfield, MO 65802 2228 Dunbar Court Longmont, CO 80501 James Dean Carney 9242 Grey Cliff Drive Terry J. McDonald Germantown, TN 38139 83100 Bradford Road Creswell, OR 97426 Michael E. Potter 5705 Westbound 40 Highway Lori McDonald Petersen Blue Springs, MO 64015 2920 45th Avenue Greeley, CO 80634 Martha Brown Crouch 115 Northview Placwe Randy McDonald Windsor, MO 65360 3102 17th Avenue #3 Greeley, CO 80631 Raymond G. Dewey, Jr. 1011 Cottonwood Place NW Ted McDonald Albuquerque, NM 87107 851 W. Mulberry Street Louisville, CO 80027 David E. Dewey P.O. Box 126 Darene (Maloit) Wisecup Kersey, CO 80644 3634 Coffee Lane Santa Rosa, CA 95403 {00326538.1} 6 I t Paula J. Mitchell 325 Brentwood NG Resources, LLC Pueblo, CO 81008 9896 Clairton Way Highlands Ranch, CO 80126 Bert L. Dewey 230 Cheyenne Old West Tours Eaton, CO 80615 110 E. Center Street PMB 1989 1 Tim McDonald Madison, SD 57042-2908 4554 Ivy Street Springfield, OR 97478 Ronald Rich, Kevin Rich and Amy Rich 28050 CR 53 Vicky Mangan Eaton, CO 80615 5286 S. Jamaica Way Englewood, CO 80111 Nancy Kern P.O. Box 496 JLW Investment, LLC Gilcrest, CO 80623 351 Glencoe Street Denver, CO 80220 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 54m Street, Suite 5M I 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 (00326538.1) 7 BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE APPLICATION OF ) BAYSWATER EXLORATION & PRODUCTION, ) LLC FOR AN ORDER POOLING ALL ) Cause No. (� INTERESTS IN THE NIOBRARA FORMATION ) „a0- IN A 320-ACRE WELLBORE SPACING UNIT ) Docket No. 1503 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. Joseph CiZrzchala Subscribed and sworn to before me December 2014. Witness my hand and official seal. JOAN E.HOOVER fnt._ �i� NOTARY PUBLIC STATE OF COLORADO Notary Public 0“FIDO, NOTARY 10 19944011557 My commission expires: AtiY COMMASSION MIRES AUGUST 17 2018 (00326538.1) 8 9-.i PROPOSED SPACING UNIT/APPLICATION LANDS SECTION 28, TOWNSHIP 7 NORTH, RANGE 64 WEST, 6TH P.M. 5WSC SEC V.T.7^E, 5ESN SESW TSEC.21.7.7a. 5E5E R. W. SEC.22T.7N.. SEC.21.7711. I R.6°W. SEC.21.'.711.. Roc W. I 10.64W, 121 IIOJACK 29HN 22 460'BUFFER r •LP I N.VNN 'RENA fIENE s=C.„T.7,1. SEC.27.7.7N..PROPOSED WELLBORE NEVJNS I SEC. .T.7N.. item.MNM N 233 SPACING UNIT/ SEC.2&UN_ SEG _ 28.1.7, I 11M W. R.6.W. R6iN: 1 APPLICATION LANDS i --1 I- I SWIM SAW SEC.27.T.TN.. 55NW I SEihv SEC.R.I. ,7N. I SERE SEC. 3.T.7eL, R.E-+W. SEC.27.7.7N.. SEC.28.T.flt. I nI I R.EIW. ^^ P.64W. I R69W 2 8 0 // - 7NJEE �I HESS. WSW NES- -W NEW { SEC.28.5.7N, SEG 27,T.iN., SC.27.MN.. SEC.28,T.7Y_ SE RWW.7N.. ,�•I R.61W. R61W. R.E1ri. 7,61177. I 6, - I SAVE SEES SWSW SE>W SESW SEC.24.1.711. I I SEC.e8.T.7N.. SEC.27.1.7,.. SEC.V.T,7N, SEC.28,T.7N. 7.62 N. R,5iW. R.81W, R.S4W. R64W. I BH✓ 1 �- ' NVINW SEE--31. 7N. I WNW I I NENN I SE ft.WY/.7 V.• I NtNE REMW. SEC.51.7.7N.. I SEC 13.W\Y771. I I SEC.R,61W,TY.. I R.&IW. L _ _ i33- , J34 I J WELL MOJACK L-28HN TO BE LOCATED 230' FNL AND 1752'FEL, SEC. 28,T7N, R64W SURFACE LOCATION GROUND ELEVATION=4900' NAD83 LATITUDE=40.550682° LONGITUDE=104.551498° LANDING POINT LOCATION NAD83 LATITUDE=40.550054° LONGITUDE=104.550596° BOTTOM HOLE LOCATION NAD83 LATITUDE=40.538106° LONGITUDE=104.551267° LEGEND • =PROPOSED WELL LP=LANDING POINT A =LANDING POINT BH=BOTTOM HOLE +=BOTTOM HOLE 0 1000 2000 .,....''' FIELD EAU SC1FAEE ECCAEION•il ., 02-05-1a SCALE:1"=2000' 6RARI8c 0.7E NW 1/4 NE 1/4, 11.17' '111 12-09-14 SEC.28,T7N,R64W.6TH P.M. hrxr ' 2:7.615W, 75i56n2351W BY EI:ECKEO Cerxs.00 R1 KAD I MDCA WELD COLIN Y,COLORADO r Hello