HomeMy WebLinkAbout20150736.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. 150300094
FORMATION, WATTENBERG FIELD, WELD )
COUNTY, COLORADO ) TYPE: POOLING
NOTICE OF HEARING
TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:
APPLICATION LANDS RECEIVED
Township 7 North. Range 64 West, 6`" P.M. FEB 0 9 2015
Section 28: W%2 E'/2, E1/2 W1/2
WELD COUNTY
APPLICATION COMMISSIONERS
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 I-
28HN well (API No. 05-123-39826).
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
LEO
2015-0736
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,ATE LORADO
ff,cyBy L Jil a
/Dorancy, Acting Secretary
i
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 NO O
Lease# min aCa-al
Acres
Keep for Hearing utcome/Minutes
File- No Action Needed
cui,e- 61 Z- 10 15 2
(150300094)
RECEIVED
DEC 23 2014
BEFORE THE OIL AND GAS CONSERVATION COMMISSI N
COCC
OF THE STATE OF COLORADO
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. 150300094
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 2 9 2014
APPLICATION WELD 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 the W1/2E'/2 and E'/AWV2 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'A2E'Y2, EY2W'/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.
100326502.1} 1
4. Applicant drilled the Mojack I-28HN well (API# 05-123-39826), 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 I-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
I-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.
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 I-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.
{00326502.1} 2
s 4
D. For such other findings and orders as the Commission may deem proper or
advisable in the premises.
Dated this flgc of December, 2014
Respectfully submitted,
WELBORN SULLIVAN MECK &TOOLEY, P.C.
By:
Josep . erzchala
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�wsmtlaw.com
crussellwsmtlaw.com
Applicant's Address:
730 Seventeenth Street, Suite 610
Denver, CO 80202
Attn: Blake Leavitt, DJ Basin Landman
Phone: 303-893-2503
4
(00326502.1) 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 fig` day of December, 2014 by Blake
Leavitt, DJ Basin Landman for Bayswater Exploration & Production, LLC.
Witness my hand and official seal.
42-`'•NOTA F4, Notary Public
-e ,. Y t My Commission Expires: 3 I f 926/G
i.
cAj;• PUBLiC
o COI-.
(00326502.1) 4
Exhibit A
W1/2E1/2 28-T7N-R64W AND E/2W/2 28-T7N-R64W
MOJACK I-28HN WELL
320.41 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
LA VERLE LONDEN SW/4 SECTION 28
5608 West Yucca Street
Glendale, Arizona 85304
LEASED MINERAL OWNERS:
Weld County, Colorado Beverly A. Schell and Donald J. Schell
P.O. Box 758 2505 17th Ave.
Greeley, CO 80631 Greeley, CO 80631
Donna MacKenzie Williams Lois Steiner
Fountainhead Blvd #O 5107 Shady Dell Trail
Grand Junction, CO 81505 Knoxville, TN 37914
(00326502.1) 5
Wallace Roy MacKenzie
20188 Klyne Street James Dean Carney
Corona, CA 92881 9242 Grey Cliff Drive
Germantown, TN 38139
Linda Pfannenstiel
13931 East Marina Drive, Unit 602 Michael E. Potter
Aurora, CO 80014 5705 Westbound 40 Highway
Blue Springs, MO 64015
La Verle Londen
5608 West Yucca Street Martha Brown Crouch
Glendale, AZ 85304 115 Northview Placwe
Windsor, MO 65360
John Foster
16 Grassmere Raymond G. Dewey, Jr.
Horley, UK RH6 9UG 1011 Cottonwood Place NW
Albuquerque, NM 87107
James Foster
5925 Taylor Draper Cove David E. Dewey
Austin, TX 78759 P.O. Box 126
Kersey, CO 80644
Jennifer Foster
7501 Creston Lane Mojack Interests, LLLP
Austin, TX 78752 Monte C. Faulk
38375 CR 55
Cary A. Kincade Eaton, CO 80615
525 Jefferson St.
Pueblo, CO 81004 Richard Hime
5 Briargate Place
Charles Dewey Warren Pueblo, CO 81001
2405 Baystone Court
Colorado Springs, CO 80921 Linda A. Mitchell
719 Paseo Dorado
Robbie Mae Warren Pueblo West, CO 81007
2319 West 18th Street
Greeley, CO 80634 Helen L. Cook
2124 Kechter Road
Bessie M. Dewey Fort Collins, CO 80528
1326 Country Club Road
Fort Collins, CO 80524 Leland L. McDonald
431 Topeka Avenue
Fred James Warren Leavenworth, KS 66048
4271 King Street
Denver, CO 80211 Mary Gayle McDonald
2228 Dunbar Court
Laura Lee (Carney) Elliott Longmont, CO 80501
619 South Patterson Ave.
Springfield, MO 65802
{00326502.1) 6
low
Terry J. McDonald Old West Tours
83100 Bradford Road 110 E. Center Street
Creswell, OR 97426 PMB 1989
Madison, SD 57042-2908
Lori McDonald Petersen
2920 45th Avenue Ronald Rich, Ruth M. Rich
Greeley, CO 80634 Kevin Rich and Amy Rich
28050 CR 53
Randy McDonald Eaton, CO 80615
3102 17th Avenue #3
Greeley, CO 80631 Nancy Kern
P.O. Box 496
Ted McDonald Gilcrest, CO 80623
851 W. Mulberry Street
Louisville, CO 80027 Stephen P. and Audrey Gabel
P.O. Box 717
Darene (Maloit) Wisecup Galeton, CO 806722
3634 Coffee Lane
Santa Rosa, CA 95403 Mildred Lucille Herbst
1919 68th Avenue #C230
Paula J. Mitchell Greeley, CO
325 Brentwood
Pueblo, CO 81008 Elnora L. Fox, Trustee of the Elnora
L. Fox Revocable Living Trust
Bert L. Dewey 107 North Alexander
230 Cheyenne Farmington, MO 63640
Eaton, CO 80615
Beverly A. Schell and Donald J. Schell
Tim McDonald 2505 17th Avenue
4554 Ivy Street Greeley, CO 80631
Springfield, OR 97478
Donna Williams
Vicky Mangan Fountainhead Blvd #C
5286 S. Jamaica Way Grand Junction, CO 81505
Englewood, CO 80111
Jairod Allen Estreich
JLW Investment, LLC 207 Ft. Worth Avenue
351 Glencoe Street Cleburne, TX 76031
Denver, CO 80220
Tyler Taggart-Nira
NG Resources, LLC 3004 S. Louise Avenue, Apt. #302
9896 Clairton Way Sioux Falls, SD 57106
Highlands Ranch, CO 80126
Joel Taggart-Nira
312 E. 6th
Gregory, SD 57533
{00326502.1} 7
Ezra "Butch" Marsh and Donna Marsh Royalty Russell E. and Bonnie J. Heppner
P.O. Box 306 37808 CR 53
Herrick, SD 57538 Eaton, CO 80615
Mary Vance Timothy R. Robel Revocable Trust and
1307 Swainson Road Leanne R. Robel Revocable Trust
Eaton, CO 80615 6525 West 26th Street
Greeley, CO 80634
Marlene Richter
37013 WCR 57 Keith Kammerzell & Melodie
Eaton, CO 80615 Kammerzell
26401 CR 76
David E. Dewey Eaton, CO 80516
P.O. Box 126
Kersey, CO 80644 Daniel J. Overton
26493 CR 76
Catherine Kuhlman Eaton, CO 80615
3220 County road 531
Burleson, TX 76028 Joan Taggart
312 E. 6th Street
Gregory, SD 57533
WORKING INTEREST OWNERS:
Bayswater Blenheim Holdings, LLC AND Malu Lani Oil & Gas Company, Inc.
Bayswater Exploration & Production, LLC P.O. Box 621128
730 17th Street Street, Suite 610 Littleton, CO 80162
Denver, CO 80202
Green Oil Energy, LLC
Lincoln Energy LLC 245 East 54th Street, Suite 5M
P.O. Box 6975 New York, NY 10022
Denver, CO 80206
Aluma Energy, LLC
W YOTEX Oil Company 245 East 54m Street, Suite 5M
Box 280969 New York, NY 10022
Lakewood, CO 80228-0969
Shoreline Energy Holdings II, Inc.
Dios Del Mar Petroleum, LLC 500, 500 —4th Avenue S.W.
P.O. Box 621128 Calgary, Alberta Canada T2P 2V6
Littleton, CO 80162
{00326502.1} 8
.t
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 320-ACRE WELLBORE SPACING UNIT ) Docket No. 150300094
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.
e_ 7,7,.z 7____:)- -
Joseph . Pierzchala
Subscribed and sworn to before me December , 2014.
Witness my hand and official seal.
c6
JOAN E NOTARY PUBLIC
H � Not ry Public (
STATE or App My commission expires: ll aol1i5
VIV 101$SMO,IW
IT
{00326502.1) 9
i
PROPOSED SPACING UNIT/APPLICATION LANDS
SECTION 28, TOWNSHIP 7 NORTH, RANGE 64 WEST, 6TH P.M.
SWSE I SESc
SWSW SESW I SEC.21.1.7N..
SEC.21.T.7N., I SEC.
21,TIN.. I R.64W. I SEC.R�W 7N.,
R64W. I 121
MOJACK I-28HN
460'BUFFER
LP N, • NE,I°
I♦ SEC.2S.?.7v..
W NENW NVVNE N.6GW.
NWN
SEC.NW1 L7N., SEC.28,T.7N.1 I SEC.E 7.78.. PROPOSED WELLBORE
8.64W. R.84W. R4w. SPACING UNIT/
i APPLICATION LANDS
�yLSWNE--
SWIM 5ENW I SES..28,T.7N.. SENE
SEC.28.1.7N.. .8 'R64w, SEC.28,T.7N.,
SEC.28,T.7R, R84W I n R.64W.
R64W, m0 2 8
f
__ - _ - ; _ _
m NWSWNESE
SEC.28,7.7N., NESW I SER.2857.75., SEC.28,1.75..
R64W SEC.28,T.7 N.. • ((:R.B4W. R84W.
8.64W. C
N
J
SESW SESE
5W$W SEC.28,1.7N., I 28, SEC.28,MN_MN_5E R64W 7N.. 6.64W. I SEC. T�.7N., R64W.
I t 1
BH
NENW NWNE SEC.33.T.7N., SEC.33,T.7N., SEC,E E.7N..
NWNW I RWW. I R84W. NENE
R64W.
SEC.33,T.7N., I
R64W.
WELL MOJACK I-28HN TO BE LOCATED 230' FNL AND 1806' FEL, SEC. 28, T7N, R64W
SURFACE LOCATION
GROUND ELEVATION=4899'
NAD83 LATITUE=40.550679°
LONGITUDE=D 104.5511692°
LANDING POINT LOCATION
NAD83
LATITUDE=40.549988°
LONGITUDE=104.554166° •
BOTTOM HOLE LOCATION
NAD83
LATITUDE=40.538029°
LONGITUDE=104.554836°
LEGEND nn
=PROPOSED WELL LP=LANDING POINT
♦ =LANDING POINT BH=BOTTOM HOLE
♦=BOTTOM HOLE
0 1000 2000
FIELD DATE: SURFACE LOCATION:
02-05-14 SCALE:1"=2000'
DRAW'ND DATE NW 1/4 NE 1/4,
12-09-14 SEC.28,T7N,R64W,6TH P.M.
ei om ie Semaes,LC:
?535Slop Clrc1 8Y: CHECKED.
Denver,CO 80221 KAD MDCA WELD COUNTY, COLORADO
Hello