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HomeMy WebLinkAbout20144016.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 GORN ) OPERATIONS FOR THE CODELL - NIOBRARA ) DOCKET NO. 1412-UP-364 FORMATION, WATTENBERG FIELD, WELD ) COUNTY, COLORADO RECEIVED NOTICE OF HEARING TO ALL INTERESTED PARTIES AND TO WHOM IT MAY CONCERN: NOV 1 9 2014 APPLICATION LANDS WELD COUNTY COMMISSIONERS Township 4 North, Range 67 West, 6th P.M. Section 9: W% NW'/4 APPLICATION On October 16, 2014, PDC Energy, Inc. (Operator No. 90950) ("PDC Energy" 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 established for the Application Lands, for the development and operation of the Codell-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 Gold 11- 9 DU Well (API No. 05-123-29637). 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. • 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. 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: 1 (1412-UP-364) Date: Monday, December 15, 2014 Tuesday, December 16, 2014 Time: 9:00 a.m. Place: Colorado Oil and Gas Conservation Commission 1120 Lincoln St., 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 December 1, 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 December 1, 2014. Pursuant to Rule 511., if the matter is uncontested, it may be approved without a hearing. OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO By Robert J. Frick, Secretary Dated: November 7, 2014 Colorado Oil and Gas Conservation Commission Attorneys for Applicant: 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. 1675 Phone: (303) 894-2100 Larimer Street, Suite 420 Fax: (303)894-2109 Denver, Colorado 80202 (720) 379-1812 jjost@jsenergygroup.com jevers@jsenergygroup.com Lease in Place : YES O NO Q Lease# LE c--) 4_1.7<<' Acres d 2-4 Keep for Hearing Outcome/Minutes File-No Action Needed 2 (1412-UP-364) • . I BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE APPLICATION OF CAUSE NO. PDC ENERGY, INC. FOR AN ORDER TO POOL ALL INTERESTS IN AN APPROXIMATE DOCKET NO. 80-ACRE WELLBORE SPACING UNIT IN SECTION 9, TOWNSHIP 4 NORTH, RANGE 67 WEST, 6TH P.M., FOR THE CODELL- RECEIVED NIOBRARA FORMATION, WATTENBERG FIELD, WELD COUNTY, COLORADO OCT 2 3 2014 APPLICATION WELD COUNTY COMMISSIONERS COMES NOW PDC Energy, Inc. (Operator No. 90950) ("Applicant"), by its attorneys, Jost & Shelton Energy Group, P.C., and makes this application to the Oil and Gas Conservation Commission of the State of Colorado ("Commission") for an order to pool all interests within an approximate 80-acre Wellbore Spacing Unit, as defined below, for the drilling of the Gold 11-9 DU Well, (API No. 05-123-29637) ("Well") for the development of the Codell-Niobrara Formation on the following described lands: Township 4 North, Range 67 West, 6th P.M. Section 9: WY2NWY 80-acres, more or less, Weld County, Colorado (hereinafter "Application Lands"). In support thereof, Applicant states and alleges as follows: 1. Applicant is a corporation duly authorized to conduct business in the State of Colorado, and is a registered operator in good standing with the Commission. 2. Applicant owns certain leasehold interests in 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. 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 and/or gas from the Niobrara Formation LLO (o(.o underlying certain lands, with the permitted well locations in accordance with the provisions of Order No. 407-1 and allowed downhole commingling of production from the Codell and Niobrara Formations. 5. Applicant designated the 80-acre Wellbore Spacing Unit for the production of oil, gas, and associated hydrocarbons from the Codell-Niobrara Formation pursuant to Rule 318A and notified the appropriate parties under Rule 318A. 6. Applicant, pursuant to Commission Rule 530 and/or the provisions of C.R.S. § 34-60-116 (6) and (7), hereby requests an order to pool all interests, including but not limited to, any nonconsenting interests, in the Application Lands in the Codell-Niobrara Formation underlying the following approximate 160-acre Wellbore Spacing Unit: Township 4 North, Range 67 West, 6th P.M. Section 9: W/ZNWY4 (throughout as "Wellbore Spacing Unit"). 7. Applicant requests that the Commission's pooling order be made effective as of the earlier of the date of this Application, or the date that the costs specified in C.R.S. § 34-60-116(7)(b) are first incurred for the drilling of the Well to the Codell- Niobrara Formation on the Application Lands. 8. Applicant certifies that copies of this Application will be served on all persons owning an interest in the mineral estate of the tracts to be pooled within seven (7) days of the date hereof, as required by Rule 507.b(2), and that at least thirty-five (35) days prior to the hearing on this matter, each such interest owner not already leased or voluntarily pooled will be offered the opportunity to lease, or to participate in the drilling of the Well, and will be provided with the information required by Rule 530 as applicable. The list of such interested parties is attached hereto as Exhibit A. 9. That in order to prevent waste and to protect correlative rights, all interests in the Wellbore Spacing Unit should be pooled for the orderly development of the Codell-Niobrara Formation, including any nonconsenting interests therein. WHEREFORE, Applicant requests that this matter be set for hearing at the next available opportunity, that notice be given as required by law, and that upon such hearing, the Commission enter its order: A. Pooling all interests in the Application Lands and the Wellbore Spacing Unit for the development of the Codell-Niobrara Formation. B. Providing that the Commission's pooling order is made effective as of the earlier of the date of this Application, or the date that any of the costs specified in C.R.S. § 34-60-116(7)(b) are first incurred for the drilling of the Well in the Wellbore Spacing Unit to the Codell-Niobrara Formation on the Application Lands. t , 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 Well are pooled by operation of statute, pursuant to C.R.S. § 34-60-116(6) and (7), and made subject to the cost recovery provisions thereof with respect to the Well drilled to develop the Codell-Niobrara Formation in the Wellbore Spacing Unit comprising the Application Lands. D. For such other findings and orders as the Commission may deem proper or advisable in this matter. WHEREFORE, Applicant respectfully requests that this matter be set for hearing in December 2014, that notice be given as required by law, and that upon such hearing, the Commission enter its order consistent with Applicant's request as set forth above. Dated: October 16`h, 2014. Respectfully submitted: PDC Energy,,;Inc, r �a�. By: Jamb L. Jost Joseph M. Evers Jost & Shelton Energy Group, P.C. Attorneys for Applicant 1675 Larimer St., Suite 420 Denver, Colorado 80202 (720) 379-1812 Applicant's Address: PDC Energy, Inc. ATTN: Marie McCord 1775 Sherman Street, Suite 3000 Denver, CO 80203 VERIFICATION STATE OF COLORADO ) ) ss. CITY AND COUNTY OF DENVER ) Sam McClung, of lawful age, being first duly sworn upon oath, deposes and says that she is Regional Landman for PDC Energy, Inc., and that she has read the foregoing Application and that the matters therein contained are true to the best of her knowledge, information and belief. am cClung Re 'anal Landman DC Energy, Inc. Subscribed and sworn to before me this 1 day of October 2014. Witness my hand and official seal. [SEAL] 2 20(7 LAUREL J. BROWN My commission expires: t NOTARY PUBLIC STATE OF COLORADO NOTARY ID 19934009356 7vtAiuttiL My Commission Expires July 24, 2017 Notary Public r BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE APPLICATION OF CAUSE NO. PDC ENERGY, INC. FOR AN ORDER TO POOL ALL INTERESTS IN AN APPROXIMATE DOCKET NO. 80-ACRE WELLBORE SPACING UNIT IN SECTION 9, TOWNSHIP 4 NORTH, RANGE 67 WEST, 6TH P.M., FOR THE CODELL- 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 deplare that I am the attorney for PDC Energy, Inc., and that on or before the ? f'day of October 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. Jamie L. Jost Subscribed and sworn to before me this //Pay of October, 2014. Witness my hand and official seal. [SEAL] My commission expires: 9/aPA7 Notary Public w s w DANIELLE E CARROLL Notary Public State of Colorado Notary ID 20134059312 4 My Commission Expires Sep 18, 2017 EXHIBIT A Town of Johnstown Hipolito Paul Gonzales and PO Box 609 Pauline M. Gonzales Johnstown, CO 80534 23601 Blake Street Johnstown, CO 80534 Cameron Duron, Trustee&Judy Duron 366 South Parish Peggy Hernandez Johnstown, OC 80534 P.O. Box 215 Johnstown, CO 80534 Jacgnline Lafreniere 377 Maestas Stree Unknown Owners Johnstown, CO 80534 Original Dedicators of Blocks 3, 5 and 6 Purvis Addition, their Ricahrd Calderon, JT successors or assigns PO Box 782 Johnstown, CO 80534 Frank G. Patchen and Delores C. Patchen, Joint Tenants Lorenzo Calderon, Sr. and 115 South 2nd Street Esperanza A. Calderon Johnstown, CO 80534 P.O. Box 782 Johnstown, CO 80534 Alma Holguin P.O. Box 203 Agustin Orozco and Johnstown, CO 80534 Anita Orozco, Joint Tenants Gertrude E.Johnson P.O. Box 231 1311 Walters Point Johnstown, CO 80534 Monument, CO 80132 Genoveva Maldonado and Alma Holguin Maria Maldonado P.O. Box 203 303 Maestas Street Johnstown, CO 80534 Johnstown, CO 80534 Charles R Bourland and Robert A. Derman and Renee M. Bourland, Joint Tenants Shantel E. Derman 233 South 2nd Street 321 Irish Drive Johnstown, CO 80534 Fort Collins, CO 80521 Oscar Manuel Osorio • Judith McCormick 237 S. 2nd Street 332 Maestas Street Johnstown, CO 805334 Johnstown, CO 80534 Valorie Bell Ignacia Espinoza 949 Whitman Hollow Road 374 Maestas Street LaFolette, TN 37766 Johnstown, CO 80534 Jose N. Martinez Eugene & Beverly D Kirkpatrick 1736 Lake Shore Place PO Box 157 Denver, CO 80214 Johnstown, CO 80534 Julian Aleman Manuel Lozano & Guadalupe Lozano 926 S. Sante Fe Ave. 202 East South 1st Street Pueblo, CO 81006 Johnstown, CO 80534 Arturo Perez and Ignacio &Maria Rivera Betty Joyce Perez, PO Box 213 Joint Tenants Johnstown, CO 80534 1065 Tupelo Drive Loveland, CO 80538 BMCE Inc PO Box 5363 KC Operating Company Etna, WY 83118 PO Box 950 Midland, TX 79702 Weld County Board of Comm PO Box 758 J Hiram Moore Ltd. Greeley, CO 80632-0758 Richard L Moore, Manager PO Box 842421 Kaylene Avery Dallas ,TX 75284-2421 10786 East Placita Guajira Tucson,AZ 85730 MIdM Resources LP PO Box 51570 Carma Lynn Hilliard & Midland, TX 79710-1570 Thomas Lee Hilliard 3314 Spring Mountain Court Jase Family Ltd Loveland, CO 80537 PO Box 972607 Dallas, TX 75397-2607 Vickie L Simants 909 Magnolia Bayou Blvd Holly J Engels Ocean Springs, MS 39564 605 Elm Street Milliken, CO 80543 William D Sherrets 3286 Nederland Drive Mark S &Melanie J Romero JT Loveland, CO 80538 2047 Birdie Drive Milliken, CO 80543 LaDonna Johnson PO Box 485 Elizabeth Teal, Johnstown, CO 80534 Dora Mae Teal,POA 116 E S First Jann Ertl Johnstown, CO 80534 1130 Francis Street Longmont, CO 80501 Thomas J& Catherine Martinez Angie&Daniel Quintana JT P.O. Box 545 PO Box 41 Johnstown, CO 80534 Johnstown, CO 80534 Great Western Railway Company Dale L James&Asha S Ulery PO Box 974517 303 Maestas Street Dallas, TX 75397-4517 Johnstown, CO 80534 Osborne Partnership Patrick Tovaas PO Box 606 302 Maestas St Johnstown, CO 80534 Johnstown, CO 80534 Coors Brewing Company Johnny Aguilar PO Box 4030 Suite 400 PO Box 365 Golden, CO 80402 Johnstown, CO 80534 Mayra L Carmona Christine Betty Espinoza PO Box 178 332 Maestas Street Johnstown, CO 80534 Johnstown, CO 80534-9010 Martin Urtuzuastegui & Rosarita Herrera, TIC Zeferina Venegas TIC P.O. Box 504 PO Box 94 Johnstown, CO 80534 Gill, CO 80645 Abran Herrera, TIC Jesse P &Roberta M Molinar P. O. Box 504 PO Box 252 Johnstown, CO 80534 Johnstown, CO 80534 Anna Pena, TIC Ignacio &Maria Rivera P. O. Box 504 PO Box 213 Johnstown, CO 80534 Johnstown, CO 80534 Nicholas Herrera, TIC Carol A Grine P. O. Box 504 206 Lower Redwarer Creek Rd Johnstown, CO 80534 Beulah, WY 82712 Susie Vargas, TIC Steven& Janice Grosshans JT P. O. Box 504 PO Box 698 Johnstown, CO 80534 Hudson, CO 80642 Alberto Herrera, TIC Randolph B Molinar & P. O. Box 504 Lorraine M Ornelas Johnstown, CO 80534 PO Box 473 Johnstown, CO 80534 Luz Indacochea, TIC Olivia Batista Verdugo & P. O. Box 504 Transito Batista Quinonez Johnstown, CO 80534 205 S 2nd St Johnstown, CO 80534 Kathryn Rodriquez, TIC P. O. Box 504 Ignacio & Maria Rivera Johnstown, CO 80534 PO Box 213 Johnstown, CO 80534 Daniel Herrera, TIC P. O. Box 504 Ignacio P Rivera Johnstown, CO 80534 223 S 2nd Street Johnstown, CO 80534 Abran Herrera, Jr., TIC P. O. Box 504 Maria A Rivera Johnstown, CO 80534 223 S 2nd Street Johnstown, CO 80534 Manuel G Aleman 356 Maestns St Jose A Rivera Johnstown, CO 80534 223 S 2nd Street Johnstown, CO 80534 Rigoberto& Sandra Melara TIC 673 Nelson Park Dr Gloria Louis Velasquez Trust Longmont, CO 80503 Gloria L Velasquez Ttee 980 San Adriano Ct Rick L &Norma K Rice San Luis Obispo, CA 93405 PO Box 674 Johnstown, CO 80534 Pinetree Financial Ptrs FF LTD 155 Madison St Alfred R&Mary Agnes Pargas Denver, CO 80206 201 S 2nd St Johnstown, CO 80534 Alex&Kimberly Alvarado JT 117 S Parish Ave Johnstown, CO 80534 4 Hello