received APR 0 8 2016 COGCC BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE APPLICATION OF EXTRACTION OIL & GAS LLC FOR AN ORDER POOLING ALL INTERESTS IN THE NIOBRARA AND CODELL FORMATIONS IN FOUR APPROXIMATE 480-ACRE WELLBORE SPACING UNITS LOCATED IN SECTIONS 5 AND 6, TOWNSHIP 5 NORTH, RANGE 65 WEST, 6TH P.M., WATTENBERG FIELD, WELD COUNTY, COLORADO. ) ) Cause No. 407 ) Docket No. 160600211 ) ) Type: POOLING ) ) ) ) APPLICATION Extraction Oil & Gas, LLC ("Extraction" or "Applicant"), Operator No. 10459, by and through its attorneys, Welborn Sullivan Meek & 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 four approximate 480-acre wellbore spacing units ("WSU") covering the S1/4NW%, N1/2SW% of Section 5 and the SV2NV2, NV2SV2 of Section 6, Township 5 North, Range 65 West, 6th P.M., Weld County, Colorado for development and production from the Niobrara (WSU Nos. 1, 2, and 4) and Codell (WSU No. 3) Formations. 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 WSUs comprised of the following lands ("Application Lands"): Township 5 North. Range 65 West. 6th P.M. Section 5: Section 6: S1/2NW1/4, N1/zSW1/4 S1/2N1/2, N1/2S1/2 Weld County, Colorado. A reference map of the Application Lands is attached hereto. 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 3. 1 {00469171.2}
22
Embed
received - COGCC Home...received apr 0 8 2016 cogcc before the oil and gas conservation commission of the state of colorado in the matter of the application of extraction oil & gas
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
received
APR 0 8 2016
COGCCBEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION OF
EXTRACTION OIL & GAS LLC FOR AN ORDERPOOLING ALL INTERESTS IN THE NIOBRARAAND CODELL FORMATIONS IN FOUR
APPROXIMATE 480-ACRE WELLBORESPACING UNITS LOCATED IN SECTIONS 5AND 6, TOWNSHIP 5 NORTH, RANGE 65WEST, 6TH P.M., WATTENBERG FIELD, WELDCOUNTY, COLORADO.
)) Cause No. 407
)Docket No. 160600211)
)Type: POOLING)
)))
APPLICATION
Extraction Oil & Gas, LLC ("Extraction" or "Applicant"), Operator No. 10459, by andthrough its attorneys, Welborn Sullivan Meek & Tooley, P.C., respectfully submits this Applicationto the Oil and Gas Conservation Commission of the State of Colorado ("Commission" or "COGCC")for an order pooling all interests in four approximate 480-acre wellbore spacing units ("WSU")covering the S1/4NW%, N1/2SW% of Section 5 and the SV2NV2, NV2SV2 of Section 6, Township 5North, Range 65 West, 6th P.M., Weld County, Colorado for development and production from theNiobrara (WSU Nos. 1, 2, and 4) and Codell (WSU No. 3) Formations. In support thereof, theApplicant states as follows:
1. Applicant is a limited liability company duly authorized to conduct business inthe State of Colorado.
2. Applicant owns a leasehold interest in the WSUs comprised of the followinglands ("Application Lands"):
Township 5 North. Range 65 West. 6th P.M.Section 5:
Section 6:
S1/2NW1/4, N1/zSW1/4
S1/2N1/2, N1/2S1/2
Weld County, Colorado.
A reference map of the Application Lands is attached hereto.
Rule 318A.a.(4)D. provides, in relevant part, that where a drilling and spacingunit does not exist for a horizontal well, the horizontal wellbore spacing unit shall be comprised ofthe governmental quarter-quarter sections in which the wellbore lateral penetrates the productiveformation as well as any governmental quarter-quarter sections that are located less than fourhundred sixty (460) feet from the portion of the wellbore lateral that penetrates the productive zoneregardless of section or quarter section lines. Rule 318A.a.(4)D. further provides that a horizontal
3.
1{00469171.2}
wellbore spacing unit may overlap portions of another horizontal wellbore spacing unit or otherwellbore spacing unit designated in accordance with subsection a.(4)C.
Applicant drilled the following wells in the Application Lands, each of which islocated in a separate WSU established pursuant to Rule 31 8A.
4.
WSU No. 1: Martinez 1-5-6 well (API# 05-123-41029), spud on or about March31, 2015. The above-described horizontal well is designed to test and produce gasand associated hydrocarbons from the Niobrara Formation underlying theApplication Lands.
(a)
WSU No. 2: Martinez 2-5-6 well (API# 05-123-41037), spud on or about March23, 2015. The above-described horizontal well is designed to test and produce gasand associated hydrocarbons from the Niobrara Formation underlying theApplication Lands.
(b)
WSU No. 3: Martinez C5-5-6 well (API# 05-123-41032), spud on or aboutMarch 11, 2015. The above-described horizontal well is designed to test andproduce gas and associated hydrocarbons from the Codell Formation underlyingthe Application Lands.
(c)
WSU No. 4: Martinez 3-5-6 well (API# 05-123-41030), spud on or aboutFebruary 20, 2015. The above-described horizontal well is designed to test andproduce gas and associated hydrocarbons from the Niobrara Formation underlyingthe Application Lands.
(d)
(collectively, the "Martinez Wells").
Pursuant to the relevant provisions of Section 34-60-116(6) & (7), C.R.S., andCOGCC Rule 530, Applicant seeks an order pooling all interests in the Application Lands for thedevelopment and operation of the Niobrara Formation in WSU Nos. 1, 2, and 4 and for thedevelopment and operation of the Codell Formation in WSU No. 3.
5.
Applicant certifies that, at least thirty-five (35) days prior to the date of thescheduled protest deadline for this Application, each owner which Applicant was able to locate, notalready leased or voluntarily pooled, will be provided with the well proposal and informationrequired by Rule 530 and tendered a reasonable offer to lease (if an unleased mineral owner), orparticipate and bear costs associated with the drilling and completion of the Martinez Wells.
6.
Applicant requests that a pooling order be entered as a result of thisApplication and that it be made effective as of the earlier of the date of this Application, or the datecosts specified in Section 34-60-1 1 6(7)(b)(ll), C.R.S., are first incurred for the drilling of each of theMartinez Wells, in or with respect to each separate WSU.
7.
The granting of this Application would be in accord with the Oil and GasConservation Act, found at Section 34-60-101, etseq., C.R.S., and Commission rules.
8.
2{00469171.2}
The names of the interested parties (persons who own an interest in themineral estate of the tracts to be pooled, except owners of overriding royalty interest) are attachedhereto and marked Exhibit A. Applicant certifies that copies of this Application will be served on alllocatable interested parties within seven (7) days of the date hereof, as required by CommissionRule 507. b(2), and that at least thirty-five (35) days prior to the date of the scheduled protestdeadline for this Application, each such owner not already leased or voluntarily pooled will beoffered the opportunity to lease, or to participate in the drilling of the respective wells, and will beprovided with the information required by Rule 530.
9.
WHEREFORE, Applicant respectfully requests that this matter be set for hearing, thatnotice be given as required by law and that upon such hearing this Commission enter its order:
Pooling all interests in the Application Lands for the development andoperation of the Niobrara Formation in WSU Nos. 1 , 2, and 4 and the Codell Formation in WSUNo. 3.
A.
Providing that the pooling order is made effective as of the date of thisApplication, or the date that the costs specified in Section 34-60-1 1 6(7)(b)(ll), C.R.S., are firstincurred for the drilling of the following wells in the following units:
Providing that the interests of any owners, with whom the Applicant has beenunable to secure a lease or other agreement to participate in the drilling of the authorized well, arepooled by operation of statute, pursuant to Section 34-60-116(7), C.R.S., and made subject to thecost recovery provisions thereof.
C.
D. For such other findings and orders as the Commission may deem proper oradvisable in the Application Lands.
3{00469171.2}
Dated this "7^day of April, 2016Respectfully submitted,
WELBORN SULLIVAN MECK & TOOLEY, P.C.
ZBy:Joseph C. PipzchalaChelsey J. RussellWelbom Sullivan Meek & Tooley, P.C.Attorneys for Applicant1 1 25 - 1 7th Street, Suite 2200Denver, CO 80202
370 17th Street, Suite 5300Denver, CO 80202Attn: Drew Stout, Land TechPhone: 720.557.8325
4{00469171.2}
VERIFICATION
STATE OF COLORADO )) ss.
CITY & COUNTY OF DENVER )
Drew Stout, Land Tech with Extraction Oil & Gas, LLC, upon oath deposes and says that hehas read the foregoing Application and that the statements contained therein are true to the best ofhis knowledge, information and belief.
EXTRACTION OIL & GAS, LLC
Drew Stout, Land Tech
Subscribed and sworn to before me this ^ day of April, 2016, by Drew Stout, LandTech for Extraction Oil & Gas, LLC.
Witness my hand and official seal.
AUyson VtoticaNOTARY PUBLIC
STATE OF COLORADO Notary PublicMy Commission ExpiresMdLiH I 1 2-0 If*)
N87-5l'54Tvl2THfl 9S-' A A ^ A AN67-5Y'54-w|718A RA-N87*36'0B!Ttf 2186^7'NM236'08V 218X6?!
BEGIN IhORIZONTALCOMPLETION ZONE
DT- MARTINEZ 1-5-6
N§5 48 19-w ?22.7 fiR, NB8-3H'17-W|2671.04'XX /
V— :— ^ x '^ /N8(T57 05 "W 4 in a yn' ¦_lN86*57jQ5"W x y—— ^ ^
,
IaDT- MARTINEZ 2-5-6
/JL .
n
f m. 'IDT—MARTINEZ C5-5-6DT- MARTINEZ 3-5-6
460' TYPICAL
' / / /% T v3
- /.//
I /A /
V/// / I' \*
//A /3' \*
a /
)-¦*
SECTION 6 T5N R65W 4<.A .
SECTION 5 T5N R65W <*-.2
sI5
|X
1_&-A«
5a
I /SUNLAMP RYNEARSONi & ASSOCIATES
LEGEN|)Proposed Spacing Unit Exhibit
Downtown Directional Project
Martinez
£ ALIQUOT CORNER
@ BOTTOM HOLE
B COMPUTED FROMGLO RECORDS
SECTION"LINEQUARTER~SECTION UNE
SIXTEENTH UNE
UNION COLONYCORNER4715 Innovation Drive 970.226 0342 j P
Fort Collins, CO 80525 970.226 0879 I F
www.LRA-lnc.comA COMPUTED AUQUOT
CORNER FROMMONUMENTACCESSORIES
%&
drawn by date7/26/14
Id surface - locationNW/4 NE/4 SEC 5 T5W R65W
protect - taak number0211012.02-502
book end pagecogcc
43259!% NDB
I P«th\ttenlemePA Enaineering\021 1012.02\DRAW1NGS\EXHIBIT5\021 l6l2-02PSUE- MARTINEZ.dwa J
BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION OF
EXTRACTION OIL & GAS LLC FOR AN ORDER
POOLING ALL INTERESTS IN THE NIOBRARAAND CODELL FORMATIONS IN FOUR
APPROXIMATE 480-ACRE WELLBORE
SPACING UNITS LOCATED IN SECTIONS 5AND 6, TOWNSHIP 5 NORTH, RANGE 65
WEST, 6TH P.M., WATTENBERG FIELD, WELD
COUNTY, COLORADO.
))) Cause No. 407
)) Docket No. 160600211
)) Type: POOLING
))
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 anddeclare:
That I am the attorney for Extraction Oil & Gas, LLC and that on or before April 13, 2016, Icaused a copy of the attached Application to be deposited in the United States mail, postageprepaid, addressed to the parties listed on Exhibit A to the Application.