BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE APPLICATION OF PDC
ENERGY, INC. FOR AN ORDER TO POOL ALL
INTERESTS IN TWO APPROXIMATE 400-ACRE CAUSE NO. 407
WELLBORE
DESIGNATED
HORIZONTAL
SPACING UNITS IN SECTIONS 17, 18, 19 AND 20, DOCKET NO.
TOWNSHIP 5 NORTH, RANGE 64 WEST, 6TH
P.M., FOR THE NIOBRARA FORMATION, TYPE: POOLING
COUNTY,
FIELD, WELD
WATTENBERG
COLORADO
APPLICATION
PDC Energy, Inc. (Operator No. 69175) ("PDC" or "Applicant"), submits this
application to the Oil and Gas Conservation Commission of the State of Colorado
("Commission") for an order to pool all interests in two approximate 400-acre horizontal
wellbore spacing units designated for portions of Sections 17, 18, 19 and 20, Township
5 North, Range 64 West, 6th P.M., for development and operation of the Niobrara
Formation.
In support of its Application, Applicant states and alleges as follows:
1.
Applicant is a corporation duly authorized to conduct business in the State
Colorado,
of
and is a registered operator in good standing with the Commission.
2.
Applicant owns certain leasehold interests in the below-listed lands:
Wellbore Spacing Unit("WSU") Nos. 1 and 2
Gillham 18Y-312 well(API No. 05-123-42863)
Gillham 18Y-202 well(API No. 05-123-42862)
Township 5 North, Range 64 West,6t" P.M.
Section 17: S'/zS'/2
Section 18: SE'/4SE~~4
Section 19: NE'/4NE'/4
Section 20: N'/ZN'/2
Weld County, Colorado.
These lands are collectively referred to as 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 to allow interior infill and boundary wells to be drilled and wellbore
4103616.1
spacing units to be established. On August 8, 2011, Rule 318A was again to, among
other things, address drilling of horizontal wells. The Application Lands are subject to
Rule 318A.
4.
On February 19, 1992, the Commission entered Order No. 407-87(August
20, 1993) which, among other things, established 80-acre drilling and spacing units for
the production of oil, gas and associated hydrocarbons from the Niobrara Formation
underlying certain lands, including the Application Lands, with the permitted well
locations in accordance with the provisions of Order No. 407-1.
Pursuant to Rule 318A, Applicant designated an approximate 400-acre
5.
horizontal wellbore spacing unit, WSU No. 1, within the Application Lands for the
Gillham 18Y-312 well (API No. 05-123-42863), for the production of oil, gas and
associated hydrocarbons from the Niobrara Formation. Applicant notified the
appropriate parties under Rule 318A.
6.
Pursuant to Rule 318A, Applicant designated an approximate 400-acre
horizontal wellbore spacing unit, WSU No. 2, within the Application Lands for the
Gillham 18Y-202 well (API No. 05-123-42862), for the production of oil, gas and
associated hydrocarbons from the Niobrara Formation. Applicant notified the
appropriate parties under Rule 318A.
The Gillham 18Y-312 well and the Gillham 18Y-202 well are collectively
7.
referred to as the "Subject Wells."
Acting pursuant to Commission Rule 530 and/or the provisions of § 34-608.
116 (6) and (7), C.R.S., Applicant seeks an order pooling all interests, including, but not
limited to, any non-consenting interests, in the Application Lands for the development
and operation of the Niobrara Formation.
Further, Applicant requests that any non-consenting interests with whom
9.
the Applicant has been unable to secure a lease or other agreement to participate in the
drilling of the Subject Wells be made subject to the statutory cost recovery provisions of
§ 34-60-116(6)& (7), C.R.S.
Applicant requests that the pooling order be made effective as of the date
10.
of the Application, or, as applicable, the date that the costs specified in § 34-60116(7)(b), C.R.S., are first incurred for the drilling of the Subject Wells, whichever is
earlier.
Applicant certifies that copies of this Application will be served on all
11.
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 503.e., 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 Subject Wells, and will be provided with the information required by Rule 530 as
applicable.
~~
In order to prevent waste and to protect correlative rights, all interests in
12.
the Application Lands should be pooled for the orderly development of the Niobrara
Formation, including any non-consenting 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:
Pooling all interests in the Application Lands for the development and
A.
operation of the Niobrara Formation, with the pooling order made effective as of the
date of the Application, or the date that the costs specified in § 34-60-116(7)(b), C.R.S.
are first incurred for the drilling of the Subject Wells, whichever is earlier.
B.
Providing that the non-consenting 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 Subject Wells are pooled by operation of statute, pursuant to ~ 34-60116(6) & (7), C.R.S., and made subject to the cost recovery provisions thereof.
C.
For any other findings and orders as the Commission may deem proper or
advisable in this matter.
Dated: April ~,2016.
Respectfully submitted:
PD~C ENERGY, INC.
Da~i~4esli,►~ ,~
Gregory Nib~rt, Jr.
Davis Graham &Stubbs LLP
1.550 Seventeenth Street, Suite 500
Denver, Colorado 80202
(303)892-9400
Applicant's Address:
PDC Energy, Inc.
ATTN: Sam McClung
1775 Sherman Street, Suite 3000
Denver, CO 80203
3
VERIFICATION
STATE OF COLORADO
CITY AND COUNTY OF DENVER
)
ss.
)
Sam McClung, of lawful age, being first duly sworn upon oath, deposes and says
that she is a Senior 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.
~-~...
mow`
-- , ~ ~~~ ~ C:~._!~ ~-~ %`~ %cClung, Sr. Regional L rad`man
~a
PDC Energy, Inc.
Subscribed and sworn to before me this
~~
~ day of
'
' , , 2016.
Witness my hand and official seal.
[SEAL]
My commission expires:
~>
__..,
`~
KRISTIN ANN
O~g~~
NOT~i4Y P'U~LaC
~TAT~ O~ ~~t~ODO
NOTARI° ID 2013403137
My Commission ~ irea Maq 16,2097
Notary Public
BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION ) CAUSE NO. 407
AND ESTABLISHMENT OF FIELD RULES TO )
GOVERN OPERATIONS FOR THE NIOBRARA ) DOCKET NO. 160600227
FORMATION, WATTENBERG FIELD, WELD )
~ TYPE: POOLING
COUNTY, COLORADO
CERTIFICATE OF SERVICE
)
)ss.
)
STATE OF COLORADO
CITY AND COUNTY OF DENVER
Greg Nibert Jr., of lawful age, and being first duly sworn upon his oath, states
and declares:
That he is an attorney for PDC Energy, Inc., and that on or before April 14, 2016,
he 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 attached hereto.
Subscribed and sworn to before me April ~,2016.
Witness my hand and official seal.
My commission expires:
`'2i ~ ~~~ .
SUSANNE JOSLIN
NOTARY PUBLIC
STATE OF COLORADO
NOTARY ID 20094002376
EXPIRES JANUARY 21,2011
COMMISSION
MY
~~~
otar Public
4107316.1
Exhibit A
Interested Parties
PDC Energy, Inc.
1775 Sherman St., Suite 3000
Denver, CO 80203
Clifford D. Dilka
414 First St.
Kersey, CO 80644
Jim S. Rodriguez and Vicky A.
Rodriguez
P.O. Box 652
Kersey, CO 80644
Union Colony Bank
920 54th Ave Ste 100
Greeley, CO 80634
Yosemite Creek Oil and Gas, LLLP
4350 S. Monaco St., 5th Floor
Denver, CO 80237
Barry Wells, d.b.a Kersey Pizza
P.O. Box 357
Kersey, CO 80644
Ben L. Gillham
27059 County Road 51
Greeley, CO 80631
Berryman Farm Company
101 Parkview Ave.
Kersey, CO 80644
Byra F. Gillham
27059 County Road 51
Greeley, CO 80631
Cecil's Kersey Farm, LLC
1639 35th Avenue Ct.
Greeley, CO 80634
Daniel Solis and Alice Solis, as joint
tenants
Rt. 2, Box 239
Claremore, OK 74017
David Popham and Sandra K. Popham,
as joint tenants
P.O. Box 471
Kersey, CO 80644
Dennis D. Klein
24488 Hwy 34
Greeley, CO 80631
Edward Bruce Dunn
366 Lafrenz Lane
Silt, CO 81652
George G. Vaught, Jr.
P.O. Box 13557
Denver, CO 80201
Hoshiko Minerals LLC
P.O. Box 119
Kersey, CO 80644
Housing Authority of the Town of Kersey
P.O. Box 117
Kersey, CO 80644
Irene Bond and Donald Bond, as joint
tenants
26421 County Road 388
Kersey, CO 80644
Janet K. Schmidt
24250 County Road 58
Greeley, CO 80631
John Allen Duell
P.O. Box 201148
Denver, CO 80220
K B Oil Tools, LLC
P.O. Box 240
Kersey, CO 80644
Karen Lynn Dilka
P.O. Box 1711
Richmond, KY 40475
Katherine Hayden
13517 S. Burton Rd.
Mayer, AZ 86333
Kathleen Diane Dunn Hayden
132 Agate Avenue
Balboa Island, CA 92662
Kelly A. Davies
27088 WCR 51
Greeley, CO 80631
Landon Cogburn
P.O. Box 84
Kersey, CO 80644
Larry E. Anderson and Patricia E.F.
Anderson, as joint tenants
253 Narrows Drive
Birmingham, AL 35242
Linda S. Cantrell
25488 Hwy 34, P.O. Box 480
Kersey, CO 80644
Nancy E. Akin and David L. Akin,
Trustees of the Nancy E. Akin Living
Trust dated April 30, 2015
2880 Hunter Glen Rd.
Monument, CO 80132
Paul McCulliss
P.O. Box 3248
Littleton, CO 80161
Rex L. Hopkin
P.O. Box 306
Kersey, CO 80644
Richard O. Kennedy and Joan C.
Kennedy, as joint tenants
P.O. Box 835
Kersey, CO 80644
William G. Hayden, III
1227 9th Avenue, Suite 2
Greeley, CO 80634
William G. Hayden, IV
c/o Payless Shoe Source
340 Walnut Street
Redwood City, CA 94063
BEFORE THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
IN THE MATTER OF THE PROMULGATION
AND ESTABLISHMENT OF FIELD RULES TO
GOVERN OPERATIONS FOR THE NIOBRARA
FORMATION, WATTENBERG FIELD, WELD
COUNTY, COLORADO
) CAUSE NO. 407
)
) DOCKET NO. 160600227
)
~ TYPE: POOLING
SUPPLEMENTAL AFFIDAVIT OF MAILING
STATE OF COLORADO
CITY AND COUNTY OF DENVER
)
)ss.
)
Greg Nibert Jr., of lawful age, and being first duly sworn upon his oath, states
and declares that he is an attorney for PDC Energy, Inc., and that on or before April 20,
2016, he caused a copy of the above referenced Application to be deposited in the
United States Mail, postage prepaid, addressed to the party listed below:
First National Bank
f/k/a Union Colony Bank
PO Box 578
Ft. Collins, CO 80522
Subscribed and sworn to before me April ~~,2016.
Witness my hand and official seal.
,~._
.-~
St3SANNE J03LIN
NOTARY PUBL~
STAt'~ C3~ COI,E~21t00
NgtARY ID 20094002376
MY COMMISSION EXPIRES JANUARY 21,2011
~ ~~ y~ y"?~
o ry Public
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