HomeMy WebLinkAbout20144005.tiff RECEIVED
BEFORE THE OIL AND GAS CONSERVATION COMMISSION'r` 2 2014
OF THE STATE OF COLORADO Wald County rib Japartment
;JrFICE
IN THE MATTER OF THE PROMULGATION AND ) CAUSE NC. /
ESTABLISHMENT OF FIELD RULES TO GOVERN )
OPERATIONS FOR THE CODELL AND NIOBRARA ) DOCKET NO. 1406-UP-134
FORMATIONS, WATTENBERG FIELD, WELD )
COUNTY, COLORADO
NOTICE OF HEARING
TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN:
APPLICATION LANDS
Township 5 North, Range 66 West, 6th P.M.
Section 10: E1/2 SE%
APPLICATION
On April 17, 2014, Synergy Resources Corporation ("Synergy" 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 80-acre drilling and spacing unit for the
Application Lands, for the development and operation of the Codell and Niobrara Formations;
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 SRC
Aims#43-10D well (API #05-123-34531).
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 December 19, 1983, Order No. 407-1 (amended March 29, 2000), among
other things, established 80-acre drilling and spacing units for the production of
oil and/or gas and associated hydrocarbons from the Codell Formation
underlying certain lands with the unit to be designated by the operator drilling the
first well in the quarter section.
• On February 19, 1992, Order No. 407-87 (amended August 20, 1993)
established 80-acre drilling and spacing units for the production of oil and/or gas
from the Codell and Niobrara Formations underlying certain lands, with the
permitted well locations in accordance with the provisions of Order No. 407-1.
Page 1 of 2
(1406-UP-1341
Lc---0304
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, June 16, 2014
Tuesday, June 17, 2014
Time: 9:00 a.m.
Place: Rifle Branch Library
Garfield County Public Library District
207 East Avenue
Rifle, CO 81650
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 June 2, 2014. 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 June 2, 2014. Pursuant to Rule 511., if the matter
is uncontested, it may be approved without a hearing, based on review of the merits of the
verified application and supporting exhibits.
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By
Robert J. Frick, Secretary
Dated: May 12, 2014
Colorado Oil and Gas Conservation Commission Attorneys for Synergy:
1120 Lincoln Street, Suite 801 Lohf Shaiman Jacobs Hyman & Feiger PC
Denver, Colorado 80203 J. Michael Morgan#7279
Website: http://cogcc.state.co.us Justin M Plaskov#45053
Phone: (303) 894-2100 950 South Cherry Street, Suite 900
Fax: (303) 894-2109 Denver, CO 80246
(303) 753-9000
(303) 753-9997 (fax)
mmorgan@lohfshaiman.com
Page 2 of 2
(1406-UP-134)
•
BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF
THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION OF ) CAUSE NO. 407
SYNERGY RESOURCES CORPORATION FOR )
AN ORDER TO POOL ALL INTERESTS WITHIN ) DOCKET NO. 1406-UP-
AN APPROXIMATE 80-ACRE DRILLING AND )
SPACING UNIT FOR SECTION 10, TOWNSHIP 5 )
NORTH, RANGE 66 WEST, 6TH P.M., FOR THE ) I�EC'�I' ,
CODELL AND NIOBRARA FORMATIONS, )
ED
WATTENBERG FIELD, WELD COUNTY, ) APR 1 6 2014
COLORADO
VERIFIED APPLICATION
COMMISSIIONERS
COMES NOW, Synergy Resources Corporation ("Synergy" or "Applicant") by its
attorneys, Lohf Shaiman Jacobs Hyman & Feiger PC, and submits its Application to the
Oil and Gas Conservation Commission of the State of Colorado, for an order pooling all
interests in an approximate 80-acre drilling and spacing unit for production of oil, gas
and associated hydrocarbons from the Codell and Niobrara Formations in certain lands
in the Wattenberg Field, Weld County, Colorado, and in support states as follows:
1. Applicant is duly organized and authorized to conduct business in the
State of Colorado.
2. Applicant owns leasehold interests in the following described lands in
Weld County, Colorado, containing approximately 80-acres (hereinafter, the "Application
Lands"):
Township 5 North, Range 66 West, 6th P.M.
Section 10: E'/ASE'/4
3. On February 19, 1992, the Commission issued Order 407-87, which,
among other things, established the Application Lands as an 80-acre drilling and
spacing unit for production of oil, gas and assorted hydrocarbons from the Codell and
■ Niobrara Formations.
4. Applicant has drilled and completed the SRC Aims #43-10D (API #05-123-
34531) well (the "Well") on the Application Lands to the Codell and/or Niobrara
Formations on an 80-acre unit composed of the Application Lands.
5. Applicant has been unable to obtain consent to voluntary pooling by all
interest owners in the Application Lands. As a result, Applicant requests that all
interests in the unit composed of the Application Lands be involuntarily pooled pursuant
to C.R.S. §34-60-116, and consenting parties be allowed to recover from any
1 grb 4414 LI'da-1 4
003014
1. g2 ACS
non-consenting owner's share of production the penalty costs provided in C.R.S.§
1 34-60-116 (7) of the Colorado Oil and Gas Conservation Act.
6. The names and addresses of those persons who own any interest in the
mineral estate in the Application Lands, exclusive of overriding royalty interests,
according to the information and belief of the Applicant are set forth on Exhibit A.
Copies of this Verified Application shall be served on all such owners within seven (7)
days of the date of this Application, as required by Commission Rule 503.e.
7. At least thirty (30) days prior to the hearing on this Application, the
Applicant will have sent all owners listed on Exhibit A, who have not previously
consented to lease or otherwise participate in the drilling and completion of the Well, an
Authority for Expenditures (AFE) and/or supporting documents which contain all
information required by Commission Rule 530.b., and in case of unleased mineral
owners, an offer to lease which is reasonable based on the factors listed in Commission
Rule 530.c. The Applicant shall also agree to first comply with the requirements of Rule
530.b and c with respect to any subsequent well in the pooled unit, prior to applying the
cost recovery provisions of said statute.
8. Applicant anticipates that one or more of such owners will refuse or fail to
respond to such offer to lease and/or to participate in the drilling, completion and
operation of such Well, and shall be deemed non-consenting parties under Commission
Rule 530.b and c.
9. An order of the Commission pooling all interests in the unit for production
from the Codell and Niobrara Formations shall therefore be necessary in order to afford
each owner of an interest in the unit the opportunity to recover and receive its just and
equitable share of the oil and/or gas from the common source of supply underlying the
unit.
10. The granting of the requested order would not be prejudicial to the owners
in the unit and would protect correlative rights.
11. The requested pooling order should be effective as of the date that costs
specified by C.R.S. §34-60-116(7)(b) were first incurred by Applicant for the drilling of
either of the Well.
REQUEST FOR HEARING AND ORDER
WHEREFORE, Synergy prays that this matter be set for hearing on June 16 or
17, 2014, Notice of said Hearing be given as required by law, if no protests are timely
received the matter be considered pursuant to Rule 511(b), and the Commission enter
an Order pooling all interests in the Application Lands with respect to production of the
Codell and Niobrara formations and that such pooling Order:
2
(1) be upon terms and conditions which are just and reasonable and
afford to the owner of each interest the opportunity to recover or receive, without
unnecessary expense, his just and equitable share of oil and gas;
(2) provide that production obtained from the pooled tract be allocated
to each owner therein on the basis of the proportion that the number of mineral
acres held by each owner in the drilling unit bears to the total number of mineral
acres within the drilling unit;
(3) provide that with respect to the Well the consenting parties be
allowed to recover from any non-consenting owner's share of production the
penalty costs as provided in C.R.S. § 34-60-116 (7)(b); and
(4) require the operator to provide each non-consenting interest owner
in the Unit with monthly statement of costs incurred together with the quantity of
oil and gas produced and proceeds realized, pursuant to C.R.S. §34-60-116(8).
RESPECTFULLY SUBMITTED this /6 day of April, 2014.
LOHF SHAIMAN JACOBS HYMAN & FEIGER
PC
By: .r
is el or #7279
usti PI ko 45053
950 South Cherry Street, Suite 900
Denver, Colorado 80246
(303) 753-9000
(303) 75-9997 (fax)
mmorgan@lohfshaiman.com
Address of Applicant:
Synergy Resources Corporation
20203 Highway 60
Platteville, CO 80651
3
• i
EXHIBIT "A"
TO APPLICATION OF SYNERGY RESOURCES CORPORATION
Applicant: Synergy Resources Corporation
20203 Highway 60
Platteville, CO 80651
Applicant's Attorney: J. Michael Morgan, Esq.
Lohf Shaiman Jacobs Hyman & Feiger PC
950 South Cherry Street, Suite 900
Denver, CO 80246
Local Government Designee: Tom Parko
Weld County
1555 North 17th Street
Greeley, CO 80631
Interested Parties in the E1/2SE1/4 of Section 10, Township 5 North, Range 66 West
Leased Mineral Owners:
Aims College Campus Planned Michael R Blaylock
Community Association and Mary Ann Peden
5401 W. 20th Street 1505 47th Avenue
Greeley CO 80632 Greeley CO 80634
Aims Junior College District Mitch E Wagy and Melody J Wagy JT
5401 W 20th Street 106 N 55th Avenue
Greeley CO 80632 Greeley CO 80634
City of Greeley Weld County Board of Commissioners
1000 10th Street 1150 'O' Street
Greeley CO 80631 PO Box 758
Greeley CO 80632 11054
Marcus Johnson
5273 Reef Court William D Elder & Sandra M Elder
Windsor CO 80528 1501 47th Avenue
Greeley CO 80634
Unleased Owners
Morgan Earl Bentley Edna Carlson
3950 W 12th Street #34 1730 20th Avenue
Greeley CO 80634 Greeley CO 80631
4
Leasehold Owners:
Synergy Resources Corporation
20203 Highway 60
Platteville, CO 80651
FEI Energy Fund LLC
1707 61st Avenue, Unit 101
Greeley, CO 80634
Wyotex Drilling Ventures LLC
PO Box 280969
Lakewood CO 80228-0969
5
VERIFICATION
STATE OF COLORADO
ss.
COUNTY OF WELD )
The undersigned, of lawful age, having been first sworn upon his oath, deposes and states
that:
1. He is Ron Morgenstern, Vice President - Land & Business Development of the Applicant,
Synergy Resources Corporation, and that he maintains an office at 20203 Highway 60, Platteville,
CO 80651.
2. He has read the within Application of Synergy Resources Corporation, is familiar with
the facts set forth therein, and states that said facts are true and correct to the best of her
knowledge and belief.
Further Affiant sayeth not.
Subscribed and sworn to before me this day of April, 2014.
Witness my hand and official seal.
My commission expires:
Notary Public
AFFIDAVIT OF MAILING
STATE OF COLORADO )
ss.
CITY & COUNTY OF DENVER )
J. Michael Morgan, of lawful age and being first duly sworn upon his oath, states and
declares:
That he is the attorney for Synergy Resources Corporation in the above-captioned matter.
On April 16, 2014, he caused a copy of the attached Verified Application to be deposited in the
United States Mail, postage prepaid, addressed to the parties listed on Exhibit A to said
Application.
J. 'c ae o
Subscribed and sworn to before me this 16th day of April, 2014.
Witness my hand and official seal.
My commission expires: 3/S -olc
. Notary Public
SHARON
FOt.F
CLERK TO THE BOARD
PHONE: (970) 336-7215, EXT. 5226
'� X861 y FAX: (970) 352-0242
1150 O STREET
P.O. BOX 758
11TrE \ GREELEY, COLORADO 80632
st—
V GouNT
TO: Stephanie Arries
FROM: Karla Ford
DATE: April 17, 2014
RE: COGCC Application - Synergy Resources Corporation
LEGAL: E1/2 SE1/4 Section 10, Township 5, Range 66
We currently show that we have a lease for 1.82 acres in this S/T/R. The Lease file is LE0304. This
particular company does list that we are a Leased Mineral Owner on page 4.
RCvc'1 4- 1(0- 14
Lease in Place : YES NO O
Lease# LEO3O&
Acres 1- 8 2+
Keep for Hearing Outcome/Minutes
File-No Action Needed
L O3ot/
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