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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