RECORD OF PROCEEDINGS · 10/29/2018 · 180900660, Entek GRB LLC (Operator No. 10323) Enforcement matter: Staff: Steven Mah, Enforcement Officer Subject: Pursuant to Rule 522.e.(2),

RECORD OF PROCEEDINGS

COGCC Meeting Minutes—October 29, 2018

Page 1 of 52

October 29, 2018

The Colorado Oil and Gas Conservation Commission (“COGCC” or “Commission”) met on

October 29-30, 2018, at the COGCC Office Wasatch Hearing Room at 1120 Lincoln Street, STE

801, Denver, CO 80246.

Monday, October 29, 2018

Roll Call of Commissioners:

Present:

John Benton Chair

Howard Boigon Vice Chair

Ashley Ager Commissioner

Bill Hawkins Commissioner

Kent Jolley Commissioner

Karin McGowan Commissioner

Erin Overturf Commissioner

Staff present:

Kyle Davenport Assistant Attorney General

Julie Prine Secretary

Public Comment:

The Commission heard general public comments.

Commissioner Randall arrives

Report from the Executive Director’s Office

SCORP (Statewide Comprehensive Outdoor Recreation Plan) update included economic

impact numbers; Outdoor Recreation economy contributed 62 billion to Colorado’s

economy in 2017 and consumer spending contributed 35 billion (10% of CO GDP).

Outdoor Recreation accounts for over half a million jobs in Colorado and 84 million out of

state visitors were attracted which contributed 1.25 million in state and local tax revenues.

Colorado Water Conservation Board is working with the 7 states along the Colorado River

Basin to plan for drought. This is year 19 of drought and hydrology does not indicate that

it is improving.

* Commission proceedings began at 9:00 am MDT on October 29, 2018. Time stamps provided throughout

these minutes reflect the approximate time of day that the agenda item was addressed by the Commission.

The audio recording of this Hearing can be found at https://www.youtube.com/watch?v=57zN-CaoMpo.

9:02 am

9:04 am

10:43 am

10:15 am

https://www.youtube.com/watch?v=57zN-CaoMpo



Page 2 of 52

Introduced Mike Leonard as Acting Director while Director Murphy is out on maternity

leave.

Commissioner Hawkins extends gratitude to Greg Deranleau for speaking at a water

conference exploring ways to recycle and reuse produced and flow-back water and use less

fresh water.

Commissioner Hawkins also asked about the two Comments about Form 2A in Aurora

Highlands and First Creek Ranch. Ms. Prine reports that Extraction has requested that they

are delayed so that process with stakeholders can continue. Greg Deranleau can provide

additional details if anyone is interested.

Mike Leonard would like to make a clarification regarding public comments about Conoco

Philips fire. Two weeks ago Friday, Conoco Phillips had a tank fire which was quickly put

out by the fire department and reported as required. On Sunday, they had an “upset

condition” where some liquids came in contact with an ECD (Emission Control Device)

and caused black smoke (which the fire department was called for). There was no spill.

They also had a “safety moment” companywide in the area to address concerns.

Mike Leonard would like to provide an update on the tank explosion last Saturday about 3

miles east of Briggsdale on Mallard Exploration site. Wells have not been drilled. They

were constructing a tank battery and using used tanks on the site. Workers were warned

that tanks were “hot” (vapors in the tanks) and they were to treat the tanks as if they had

fluids in them. An employee used a power tool within the proximity of the tank and that

caused the explosion. OSHA is on the scene and OGCC will cooperate with the

investigation.

Report from the Director

No Director Report

Report from the Secretary

179 applications for December cycle; continuing upward trend

Commissioners can request state emails, have paperwork available

Docket No. 180600380 payment of proceeds case – withdrawn (10/30 @4pm on agenda).

180900710 Piceance Basin order – the director and stakeholders changed some of the

language, will be an updated order provided after lunch break.

Consent agenda typos will be corrected

10/3 Minutes have been corrected

Commissioner Comments:

Commissioner Ager

o Concern based on public comment: Are Swan or Tower pads on the consent

agenda? Mr. Leonard: They are not and the Swan well was rejected for technical

reasons.

o Concern based on public comment: Is Rocky Mountain Arsenal grounds drilling

on consent agenda? Mr. Leonard: No.

10:53 am

10:55 am

10:53 am



Page 3 of 52

o Concern based on public comment: Are the 5 proposed sites in Commerce City on

the consent agenda today? Ms. Prine & Mr. Leonard: Not sure, will find out and

get back to you.

o Two hearings ago, there was public comment about an unpermitted flaring incident

at the Triple Creek site. Mr. Leonard has been in touch with Mr. Lewis who will

be here in December to speak. It will be on Staff Report.

o Is there an update on the SOGRE report? Ms. Prine states that it is still being

reviewed internally and Director Murphy will be providing a report regarding this

at the next commissioner hearing.

Commissioner Overturf asked Ms. Prine to clarify if staff was accelerating applications

due to the election and Proposition 112 (based on multiple public comments). Ms. Prine

reports that it is business as usual and notes that there are more applications and the OGCC

is fully staffed making it possible to process more in one hearing cycle that 6 months ago.

Commissioner Randall also notes that Director Murphy has directed staff to handle permits

as they would in the normal course of business without regard to the pending election or

the backlog.

Commissioner Hawkins asked if Commissioners might consider a basin-wide Order in DJ

Basin to lower number of applications in the region.

Commissioner Overturf (regarding public comment) asked about timing for upcoming

School Setback Rulemaking – scheduled for December hearing. There is still a

stakeholder meeting this Wednesday.

Approval of Minutes

Motion: Commissioner Hawkins moved to approve minutes for September 2018 hearings.

Second: Commissioner Ager

Yea: Ager, Benton, Hawkins, Jolley,

McGowan, Overturf & Randall Abstain: Boigon

Nay: None Recused: None

Result: Motion passed (7-0).

Motion: Commissioner Boigon moved to approve minutes for special October 3rd hearing

as amended.

Second: Commissioner Hawkins

Yea: Ager, Benton, Boigon, Hawkins, Jolley,

McGowan, Overturf & Randall Abstain:



General Consent Agenda:

Secretary Prine called out the following mistakes on the agenda

Group F, DN 181000737 continued to future hearing

11:09 am

11:11 am



Page 4 of 52

Group E, all following Docket Numbers should begin 1810, not 1809 as reflected in

agenda: 181000725, 181000727, 181000728, 181000730, 181000741, 181000742,

181000759, 181000760, 181000761, 181000763

Commissioner Boigon recused himself from the following:

o Group B, DN 180400317, 180600427, 181000785, 181000800 (Axis & Extraction)

o Group H, DN 181000747, 181000748 (Conoco)

o Group J, DN 180400286, 180600473 (8 North)

Commissioner Ager discloses that BP America has some applications in Group D; she does

sometimes work with BP, but not anything related to the spacing units on the consent agenda and

she is able to be impartial. No rebuttals.

Commissioner Benton recused himself from Group L, DN 181000805 (Caerus).

Motion: Commissioner Jolley moved to approve Consent Agenda Groups A-T (those with

no recusals, listed above).

Second: Commissioner Boigon

Yea:

Ager, Benton, Boigon, Hawkins,

Holton, Jolley, McGowan &

Overturf

Abstain: None



Motion: Commissioner Hawkins moves to approve Consent Agenda Group L, DN

181000805

Second: Commissioner Jolley

Yea: Ager, Boigon, Hawkins, Holton,

Jolley, McGowan & Overturf Abstain: None

Nay: None Recused: Benton


Motion:

Commissioner Hawkins to approve remaining Consent Agenda matters (DN

180400317, 180600427, 181000785, 181000800, 181000747, 181000748,

180400286, 180600473


Yea: Ager, Benton, Hawkins, Holton,

Jolley, McGowan & Overturf Abstain: None

Nay: None Recused: Boigon


Enforcement Consent Agenda:

There are no conflicts.

11:19 am



Page 5 of 52

Commissioner Ager discloses that there are multiple references to “LT Environmental” and would

like to clarify that she works for this company but has not worked on this project or with this client.

(Dockets 171200650) No rebuttals.

Commissioner Overturf asked about updating financial assurance. Commissioner Randall

responded that there should be recommendations made at the December hearing, based on

conclusions made by the stakeholder group that has been meeting on the issue.

Motion: Commissioner Hawkins moved to approve Enforcement Consent Agenda Group A


Yea: Ager, Benton, Boigon, Hawkins,

Jolley, McGowan, Overturf & Randall Abstain: None



180900660, Entek GRB LLC (Operator No. 10323) Enforcement matter:

Staff: Steven Mah, Enforcement Officer

Subject: Pursuant to Rule 522.e.(2), Staff requests approval of

a Stipulated OFV assessing a $61,330 penalty for a

violation of Rule 326 (Mechanical Integrity Testing)

at the Battle Mountain Federal #14-15 well in Moffat

County.

Staff wants to claim bond.

Commissioners are concerned that these wells are going to become orphaned and potentially

want to put a lien on the property. Also concerned about financial assurance going forward.

Motion: Commissioner McGowan moved to approve the order finding violation



McGowan, Overturf & Randall Abstain: None



Docket No. 180600394 - 2RC Operating LLC (Operator No. 10681)

Docket No. 181000770, Fortigen Resources, LLC (Operator No. 10704)

Staff: Jeremy I. Ferrin, Enforcement Supervisor

David A. Beckstrom, Assistant Attorney General


an AOC with 2RC imposing a $73,600 penalty for a

368-day violation of Rule 312.a. (COGCC Form 10.

Certificate of Clearance and/or Change of Operator).

11:40 am

11:59 pm



Page 6 of 52

Attorneys: Julia E. Rhine

Request for an order granting a waiver of the Rule 707.a. requirement for additional financial

assurance for "excess inactive wells" and granting a variance to the mechanical integrity testing

requirements of Rule 326.c.

Break: 5min

The Commission requests that the parties come back tomorrow with an alternate plan focusing

on financial assurance and commitment to report on progress at the January hearing.

Motion: Commissioner McGowan moved to approve the AOC for 2RC (180600394).

Second: Commissioner Overturf





Lunch Break/Executive Session

Motion: Commissioner Jolley moved to enter into Executive Session.

Second: Commissioner Randall





Motion: Commissioner Hawkins moved to exit into Executive Session.

Second: Commissioner McGowan





No decisions were made nor votes taken during the Executive Session.

General Hearing:

Secretary Prine read a statement by Director Murphy in support of the Noble Comprehensive

Drilling Plan (CDP).

Docket No. 180700613, Weld County

Applicant: Noble Energy, Inc. (Operator No. 100322)

1:46 pm

2:35 pm

12:22 pm pm

1:45 pm

2:30 pm



Page 7 of 52

Attorneys: Michael J. Wozniak, James Martin & Jillian Fulcher

Hearing Officer: James P. Rouse

Subject: Request for an order to among other things:

Establishing and approving a Comprehensive

Drilling Plan in accordance with the requirements

of Commission Rule 216 for the Application Lands,

for the comprehensive development and operation

of the Niobrara, Fort Hays, Codell, and Carlile

Shale formations

Motion: Commissioner Boigon moved to approve docket No. 180700613

Second: Commissioner Randall





Break: 5min

Docket No. 180900710, Delta, Garfield, Mesa, and Rio Blanco Counties

Subject: Colorado Oil and Gas Conservation Commission

staff, having coordinated with various stakeholders,

seeks an order to establish Piceance Basin drilling

and spacing requirements for the Williams Fork

Formation and Iles Formation (of the Mesa Verde

Group) in portions of Delta, Garfield, Mesa, and Rio

Blanco counties, as follows: a downhole density

equivalent to one well per ten acres, a 100-foot

downhole setback at northern and southern unit

boundaries or lease lines, a 600-foot downhole

setback at eastern and western unit boundaries or

lease lines, and no more than one multi-well pad

located in any given quarter-quarter.

Commissioners Benton and Jolley recuse themselves due to conflicts of interest.

The Commission heard from Stuart Ellsworth and Jane Stanczyk of the COGCC, Counsel, COO

of Laramie Energy, Michael Jewell and 2 witnesses of Terra Energy Partners (TEP). Director

Murphy worked with TEP and Laramie to find agreeable language.

3:22 pm

3:27 pm



Page 8 of 52

TEP reluctantly withdraws their protest as they feel they have been heard; 5:03 pm Record is

closed.

Motion: Commissioner Hawkins motions to approve the order with the modifications

provided by staff (version 3).

Second: Commissioner Overturf

Yea: Ager, Boigon, Hawkins, McGowan,

Overturf & Randall Abstain: None

Nay: None Recused: Benton & Jolley

Result: The motion passed (6-0).

Motion: Commissioner McGowan moves to adjourn until 9:00am, Tuesday 10/30/18



Jolley, McGowan & Overturf

Abstain: None


Result: Motion passed 7-0

5:03 pm

5:15 pm

5:20 pm



Page 9 of 52

October 29-30, 2018

The Colorado Oil and Gas Conservation Commission (“COGCC” or “Commission”) met on

October 29-30, 2018, at the COGCC Office Wasatch Hearing Room at 1120 Lincoln Street, STE

801, Denver, CO 80246.

Tuesday, October 30, 2018

Roll Call of Commissioners:

Present:

John Benton Chair

Howard Boigon Vice Chair

Ashley Ager Commissioner

Bill Hawkins Commissioner

Kent Jolley Commissioner

Karin McGowan Commissioner

Erin Overturf Commissioner

Staff present:

Julie Murphy Director

Kyle Davenport Assistant Attorney General

Julie Prine Secretary

Docket No. 181000770, Fortigen Resources, LLC (Operator No. 10704)

Attorneys: Julia E. Rhine

Subject: Request for an order granting a waiver of the Rule 707.a.

requirement for additional financial assurance for "excess inactive

wells" and granting a variance to the mechanical integrity testing

requirements of Rule 326.c.

Motion: Vice Chair Hawkins moves to approve the order as revised including slight verbal

modifications.



Jolley, McGowan & Overturf

Abstain: None



9:00 am

9:06 am



Page 10 of 52

Order No. 540-14 SWN URU Review

This is an informational update, and any decisions will be continued to January hearing. It is the

hope the mineral rights in question will be sold by then.

Order No. 535-827 Great Western Pierce South URU Review

Informational update.

General Hearings:

Docket No. 180900646 Pooling and Hearing Process Rulemaking

AAG Davenport reiterated scope of rulemaking as defined in the Notice. Secretary Prine

provided draft rules with review comments of all outstanding issues from 10/3 Special Hearing.

The Commission worked through each comment, making some amendments to rules.

Commissioner Overturf requested a separate rulemaking to update Rule 508, with stakeholder

discussions beginning in January 2019, and asked staff to report back to Commission next

March.

Roll

Call

Vote:

Does the commission agree to the following wording of Rule 530.a: “The

Commission must receive evidence that owners were tendered a reasonable offer

to lease or participate no less than sixty (60) days prior to an involuntary pooling

hearing. An application for involuntary pooling may be filed concurrently with the

sending of a reasonable offer to lease or participate.”

Yea: Ager, Hawkins, Jolley, McGowan & Overturf

Nay: Benton, Boigon Abstain: None

Result: Motion passed 5-2 Recused: None

Vote: Will the commission accept staff proposed changes of Rule 509.B.ii. Yes to leave

as is, No to make changes.

Yea: Benton, Boigon, Hawkins

Nay: Ager, Jolly, McGowan & Overturf Abstain: None

Result: Motion failed 4-3 Recused: None

Lunch

Return from Lunch, continue 180900646 Pooling and Hearing Process Rulemaking

Rule 509 redrafting.

9:33 am

9:45 am

9:08 am

12:45 pm

1:20 pm



Page 11 of 52

Commissioner Boigon leaves the room.

Motion: Commissioner Jolley moves to approve Docket 180900646 Pooling & Hearing

process rules as amended by proceedings today.

Second: Commissioner McGowan


McGowan & Overturf

Abstain: Boigon (out of the room)




Applicant: Extraction Oil & Gas, LLC

(Operator No. 10459)

Attorneys: Joseph C. Pierzchala & Geoffrey W. Storm

Hearing Officer: James P. Rouse & Michael Eden


Establish an approximate 1,280-acre drilling and

spacing unit for the Application Lands for the

production of oil, gas and associated hydrocarbons

from the Niobrara and Codell Formations, and

approve up to 22 horizontal wells within the unit.

Protested by: SRC Energy Inc.

Attorney: Brent Chicken & David Little

Commissioner Boigon returns to the room, recuses himself for conflict of interest and is

dismissed for the day.

Motion: Commissioner Hawkins moves to approve docket 180700522.



McGowan & Overturf

Abstain: None



Public Comment:

The Commission heard general public comments from those who were not able to take their turn

yesterday due to time constraints.

2:42 pm

2:43 pm

2:45 pm

2:32 pm

5:47 pm

5:48 pm



Page 12 of 52

Motion: Commissioner Hawkins moves to adjourn.



McGowan & Overturf

Abstain: None



6:00 pm



Page 14 of 52

Appendix A

Approved General Consent Orders

Group A


Applicant: PDC Energy, Inc., LLC


Attorneys: Michael T. Jewell & Courtney M. Shephard

Subject: Request for an order to among other things: Pool all

interests in an approximate 640-acre designated

horizontal wellbore spacing unit, established for the

Application Lands, for the development and

operation of the Niobrara Formation.

Application lands: Township 5 North, Range 64 West, 6th P.M. Section

29: NW¼, W½NE¼ Section 30: N½ Township 5

North, Range 65 West, 6th P.M. Section 25: E½NE¼
























Page 15 of 52














19: S½S½ Section 20: S½SW¼, SW¼SE¼ Section

29: N½NW¼, NW¼NE¼ Section 30: N½N½

Township 5 North, Range 65 West, 6th P.M. Section

24: SE¼SE¼ Section 25: NE¼NE¼













25: NE¼NE¼










Page 16 of 52






25: NE¼NE¼





Subject: Request for an order to among other things Pool all


















11: E½ Section 14: N½NE¼










Page 17 of 52




11: E½E½ Section 14: NE¼NE¼











12: E½W½ Section 13: NE¼NW¼











12: W½W½ Section 13: NW¼NW¼












Page 18 of 52


11: E½E½ Section 12: W½W½ Section 13:

NW¼NW¼ Section 14: NE¼NE¼ Wellbore

Spacing Unit No. 1 Barr 11i-221 Well (API No. 05-

123-45681) – Niobrara Wellbore Spacing Unit No. 2

Barr 11i-301 Well (API No. 05-123-45687) –

Niobrara Wellbore Spacing Unit No. 3 Barr 4N Well

(API No. 05-123-45686) – Niobrara Wellbore

Spacing Unit No. 4 Barr 3N Well (API No. 05-123-

45684) – Niobrara






interests in four approximate 400-acre designated

horizontal wellbore spacing units, established for the


operation of the Niobrara and Codell Formations.


12: W½ Section 13: N½NW¼ Wellbore Spacing

Unit No. 1 Barr 11L-221 Well (API No. 05-123-

45683) – Niobrara Wellbore Spacing Unit No. 2 Barr

11L-301 Well (API No. 05-123-45682) – Niobrara

Wellbore Spacing Unit No. 3 Barr 11L-401 Well

(API No. 05-123-45688) – Codell Wellbore Spacing

Unit No. 4 Barr 11L-201 Well (API No. 05-123-

45692) – Niborara







horizontal wellbore spacing unit for the development

and operation of the Niobrara Formation.


5: W½SW¼ Section 6: S½




Page 19 of 52






spacing unit for the Application Lands and approve

up to 19 horizontal wells in the proposed unit, for

production of oil, gas, and associated hydrocarbons

from the Niobrara and Codell Formations.


5: S½S½SW¼ Section 6: S½S½S½ Section 7: N½,

N½S½, S½SE¼, SE¼SW¼ Section 8: W½

Group B


Applicant: Verdad Resources LLC




Establish two approximate 640-acre drilling and

spacing units covering the Second Amended

Application Lands for production of oil, gas and

associated hydrocarbons from the Codell and

Niobrara Formations and Approve a total of eleven

(11) new horizontal wells in each unit.

Application lands: DSU No. 1 Township 1 North, Range 65 West, 6th

P.M. Section 15: E½ Section 22: E½ DSU No. 2


15: W½ Section 22: W½

Docket No. 180400317, Arapahoe County

Applicant: Axis Exploration




Establish an approximate 160-acre enhanced oil

recovery unit for the J-Sand Formation to obtain

enhanced oil production from the J-Sand Formation

from the Cavanaugh #3 well (API No. 05-005-

06523).



Page 20 of 52

Application lands: Township 4 South, Range 64 West, 6th P.M. Section

15: SW¼




Attorneys: Joseph C. Pierzchala & Stephen J. Sullivan


interests in the Application Lands underlying an

approximate 1,360-acre drilling and spacing unit for

the Application Lands, for the development and

operation of the Codell and Niobrara Formations.


33: E½ Section 34: W½ Township 1 South, Range

68 West, 6th P.M. Section 3: W½ Section 4: E½,

E½E½W½






Establish an approximate 640-acre drilling and

spacing unit for the Application Lands for the


from the Niobrara, Fort Hays, Codell, and Carlile

Formations and approve up to 16 horizontal wells

within the unit.


26: All





Subject: Request for an order to among other things: Modify

an approximate 640-acre drilling and spacing unit

established by Order No. 535-13 for the Application

Lands to include the Fort Hays, Codell, and Carlile

Formations.



Page 21 of 52


27: All

Docket No. 181000785, Adams County

Applicant: Axis Exploration, LLC



Subject: Request for an order to among other things: 1)

Modify an established 1,280-acre drilling and

spacing unit under Order No. 535-512 covering the

Application Lands for the development and

operation of the Niobrara Formation; 2) Approve a

total of up to 16 total horizontal wells within the unit.


16: All Section 17: All

Docket No. 181000800, Broomfield & Adams Counties





interests in an approximate 640-acre drilling and

spacing unit covering the Application Lands for the

development and operation of the Niobrara and

Codell Formations.

Application lands: Township 1 North, Range 68 West Section 34: E½

Township 1 South, Range 68 West Section 3: E½

Group C


Applicant: Edge Energy II, LLC




Establish two approximate 1,280-acre drilling and

spacing units for the Application Lands and approve

a total of up to 12 horizontal wells within each unit

for the production of oil, gas, and associated

hydrocarbons from the Niobrara, Fort Hays, Codell,

and Carlile Formations.



Page 22 of 52


11: All Section 14: All DSU No. 2 Township 8

North, Range 66 West, 6th P.M. Section 12: All

Section 13: All







spacing unit for the Application Lands, and approve

a total of up to 12 horizontal wells within the unit for

the production of oil, gas, and associated












a total of up to 12 horizontal wells within the unit for

the production of oil, gas, and associated






Applicant: Bayswater





spacing unit covering the Application Lands, and

approve up to ten horizontal wells within the unit, for



Page 23 of 52




26: W½NW¼ Section 27: N½ Section 28: N½

Section 29: E½NE¼







spacing unit for the Application Lands, approve up

to 16 horizontal wells within the unit.


17: S½ Section 20: All







spacing unit for the Application Lands described

below, approve up to 16 horizontal wells within the

unit, and establish well location rules, for the drilling

of wells and production of oil, gas, and associated

hydrocarbons from the Niobrara and Codell

Formations.










a total of up to 16 additional horizontal wells within



Page 24 of 52

the unit, for the production of oil, gas, and associated










an approximate 1,280-acre drilling and spacing unit

for the Application Lands to include the Fort Hays,

Codell and Carlile Formations, and to approve a total

of up to 16 horizontal wells within the unit.


31: All Township 7 North, Range 61 West, 6th P.M.

Section 6: All

Group D

Docket No. 180900630, La Plata County

Applicant: BP America Production Company


Attorneys: Elizabeth Y. Spencer

Subject: Request for an order to among other things: Vacate,

as to certain parties, Order No. 112-259, which

subject all nonconsenting interests in the Application

Lands to the cost recovery provisions of § 34-60-

116(7) C.R.S., for the drilling of the Rhodes #1 Well

(API No. 05-067-09955).

Application lands: Township 34 North, Range 6 West, N.M.P.M.(SUL)

Section 6U: E½ (Lots 1 and 2) Section 7U: E½

Group E


Applicant: Kerr-McGee Oil & Gas Onshore LP


Attorneys: James Parrot, Jillian Fulcher & Jobediah Rittenhouse


interests in two approximate 720-acre designated



Page 25 of 52





25: S½S½ Section 26: SE¼SW¼, S½SE¼ Section

35: NE¼NW¼, N½NE¼ Section 36: N½N½


30: S½SW¼ Section 31: N½NW¼











7: SE¼SE¼ Section 8: SW¼SW¼ Section 17:

W½W½ Section 18: E½E½ Section 19: E½E½

Section 20: W½W½ Section 29: W½NW¼ Section

30: E½NE¼






interests in three approximate 880-acre designated





8: S½SW¼ Section 17: W½ Section 20: W½ Section

29: NW¼







Page 26 of 52







8: SE¼SW¼ Section 17: E½W½ Section 20: E½W½

Section 29: E½NW¼










Application lands: Township 1 North, Range 65 West, 6th P.M. Section 8:

S½SE¼ Section 17: E½ Section 20: E½ Section 29:

NE¼











9: S½SE¼ Section 16: E½ Section 21: E½







Page 27 of 52







9: SE¼SE¼ Section 16: E½E½ Section 21: E½E½









operation of the Codell Formation.


18: S½SE¼ Section 19: E½ Section 30: N½NE¼











18: S¼SE¼ Section 19: E½E½ Section 30: N¼NE¼










Page 28 of 52




17: SW¼SW¼ Section 18: SE¼SE¼ Section 19:

E½E½ Section 20: W½W½ Section 29: NW¼NW¼

Section 30: NE¼NE¼











7: S½SE¼ Section 18: E½ Section 19: N½NE¼

Group F

Docket No. 170700502, Garfield County

Applicant: Ursa Operating Company LLC


Attorneys: James Parrot & Jillian Fulcher


interests, including, but not limited to, any

nonconsenting interests, in the approximate 480-acre

drilling and spacing unit for the Application Lands,

proposed by the concurrent spacing application filed

by Applicant.


17: W½, W½E½


Applicant: Ephphatha, LLC





spacing unit in the Application Lands, for the



Page 29 of 52

development and operation of the Niobrara

Formation.


29: W½SW¼ Section 30: SE¼SE¼ Section 31:

NE¼NE¼ Section 32: NW¼NW¼

Docket No. 181000737, Weld County (Continued to future hearing)

Applicant: SRC Energy Inc.




interests in two approximate 733.22-acre designated





6: SW¼SW¼ Section 7: NW¼NW¼ Township 5

North, Range 67 West, 6th P.M. Section 1: S½S½

Section 2: S½S½ Section 11: N½N½ Section 12:

N½N½


Applicant: SRC Energy Inc.




interests in two approximate 742.27-acre designated





5: S½S½ Section 6: S½S½ Section 7: N½N½

Section 8: N½N½ Township 5 North, Range 67

West, 6th P.M. Section 1: SE¼SE¼ Section 12:

NE¼NE¼


Applicant: Enerplus Resources (USA) Corporation


Attorneys: James Parrot, Jillian Fulcher & Evan Bekkedahl



Page 30 of 52


Establish an approximate 1,303.58-acre drilling and

spacing unit for the Application Lands, for



Formations, and Approve the drilling of 12

horizontal wells in the proposed unit, to be drilled in

a general east/west orientation.









spacing unit established for the Application Lands,

for the development and operation of the Niobrara,

Fort Hays, Codell, and Carlile Formations.


25: E½ Section 36: E½







spacing unit established for the Application Lands,

for the development and operation of the Niobrara

and Codell Formations.









Page 31 of 52

Subject: Request for an order to among other things: Declare

Order No. 535-1027, which pooled all interests in an

approximate 640-acre drilling and spacing unit

established for the Application Lands, to be

applicable to all previously unnoticed parties.


33: S½ Section 34: S½

Group G Docket No. 181000765, Weld County










7: S¼SE¼ Section 18: E½E½ Section 19: N¼NE¼











16: S½SW¼; SW¼SE¼ Section 17: S½S½ Section

18: S½SE¼; SE¼SW¼ Section 19: N½NE¼;

NE¼NW¼ Section 20: N½N½ Section 21:

N½NW¼; NW¼NE¼







Page 32 of 52







19: N½NE¼; NE¼NW¼ Section 20: N½N½ Section

21: N½NW¼; NW¼NE¼











19: NE¼; E½NW¼ Section 20: N½ Section 21:

NW¼; W½NE¼









operation of the Codell Formation.

Application lands: Township 4 North, Range 67 West, 6th P.M. Section 19:

S½NE¼; N½SE¼; SE¼NW¼; NE¼SW¼ Section

20: S½N½; N½S½ Section 21: S½NW¼; N½SW¼;

SW¼NE¼; NW¼SE¼







Page 33 of 52







7: SE¼SW¼; SW¼SE¼ Section 18: E½W½;

W½E½ Section 19: E½W½; W½E½











7: S½SE¼ Section 18: E½ Section 19: E½











7: SW¼SE¼ Section 18: W½E½ Section 19: W½E½










Page 34 of 52




7: SE¼SE¼ Section 18: E½E½ Section 19: E½E½











7: SE¼SE¼ Section 8: SW¼SW¼ Section 17:

W½W½ Section 18: E½E½ Section 19: E½E½

Section 20: W½W½

Group H


Applicant: Nickel Road Operating, LLC


Attorneys: Jamie L. Jost & Kelsey H. Wasylenky



spacing unit for Sections 16 and 17, Township 7

North, Range 65 West, 6th P.M., and allowing up to

24 new horizontal wells in the unit in order to

efficiently and economically develop and recover the

Codell and Niobrara Formations in the unit.




Applicant: Confluence DJ LLC







Page 35 of 52

spacing unit and approve up to 27 horizontal wells

within the unit, for the production of oil, gas, and

associated hydrocarbons from the Niobrara and

Codell Formations.


6: All Township 7 North, Range 65 West, 6th P.M.

Section 1: All


Applicant: Crestone Peak Resources Operating LLC





spacing unit, and allow up to eight horizontal wells

within the unit for the development and operation of

the Niobrara and Codell Formations, and Authorize

one new well pad within the unit.


19: E½ Section 30: E½ Section 31: E½


Applicant: ConocoPhillips Company



Subject: Request for an order to among other things: Approve

an additional four horizontal wells, for a total of up

to nine.




Applicant: ConocoPhillips Company



Subject: Request for an order to among other thingsApprove

an additional seven horizontal wells, for a total of up

to eleven.



Page 36 of 52




Applicant: Noble Energy, Inc.




interests, including but not limited to any non-

consenting interests and any party failing to fulfill its

election, in ten designated horizontal Wellbore

Spacing Units established for the Application Lands

for the development and operation of the Codell and

Niobrara Formations.

Application lands: WSU #1: Emmy State H25-718 (API No. 05-123-

46967) (Niobrara) Township 3 North, Range 65

West, 6th P.M. Section 13: SE¼SE¼ Section 24:

E½E½ Section 25: E½E½ Section 36: NE¼NE¼

400-acres, more or less, Weld County, Colorado.

WSU #2-3: Emmy State H25-724 (API No. 05-123-

46969) (Niobrara) Emmy State H25-731 (API No.

05-123-46971) (Niobrara) Township 3 North, Range

65 West, 6th P.M. Section 13: S½SE¼ Section 24:

E½ Section 25: E½ Section 36: N½NE¼ 800-acres,

more or less, Weld County, Colorado. WSU #4:

Emmy State H25-738 (API No. 05-123-46972)

(Niobrara) Township 3 North, Range 65 West, 6th

P.M. Section 13: SW¼SE¼ Section 24: W½E½

Section 25: W½E½ Section 36: NW¼NE¼ 400-

acres, more or less, Weld County, Colorado. WSU

#5 - 6 Emmy State H25-744 (API No. 05-123-46970)

(Niobrara) Emmy State H25-751 (API No. 05-123-

46977) (Niobrara) Township 3 North, Range 65

West, 6th P.M. Section 13: SE¼SW¼, SW¼SE¼

Section 24: E½W½, W½E½ Section 25: E½W½,

W½E½ Section 36: NE¼NW¼, NW¼NE¼ 800-

acres, more or less, Weld County, Colorado. WSU

#7: Emmy State H25-757 (API No. 05-123-46974)

(Niobrara) Township 3 North, Range 65 West, 6th

P.M. Section 13: SE¼SW¼, SW¼SE¼ Section 24:

E½W½, W½E½ Section 25: E½W½, W½E½

Section 36: NE¼NW¼ 760-acres, more or less,

Weld County, Colorado. WSU #8: Independence

D30-711 (API No. 05-123-47706) (Codell)



Page 37 of 52


17: SW¼SW¼ Section 18: SE¼SE¼ Section 19:

E½E½ Section 20: W½W½ Section 29: W½W½

Section 30: E½E½ Section 31: NE¼NE¼ Section

32: NW¼NW¼ 800-acres, more or less, Weld

County, Colorado. WSU #9: Independence D30-718

(API No. 05-123-47707) (Niobrara) Township 3

North, Range 64 West, 6th P.M. Section 17:

SW¼SW¼ Section 18: SE¼SE¼ Section 19: E½E½

Section 20: W½NW¼ Section 30: E½E½ Section 31:

NE¼NE¼ 520-acres, more or less, Weld County,

Colorado. WSU #10: Independence State D30-784

(API No. 05-123-47687) (Niobrara) Township 3

North, Range 64 West, 6th P.M. Section 18:

SW¼SW¼ Section 19: W½W½ Section 30: W½W½

Section 31: NW¼NW¼ Township 3 North, Range

65 West, 6th P.M. Section 13: SE¼SE¼ Section 24:

E½E½ Section 25: E½E½ Section 36: NE¼NE¼

Group I


Applicant: Mallard Exploration, LLC





spacing unit, and approve up to 16 new wells in the

unit, for the production of oil, gas, and associated


Formations.







Subject: Request for an order to among other things: Amend

Order No. 535-69 which established an approximate

640-acre drilling and spacing unit established for

Section 33, Township 8 North, Range 59 West, 6th

P.M., for the production of oil, gas and associated



Page 38 of 52

hydrocarbons from the Niobrara Formation, to add

the Fort Hays, Codell and Carlile Formations.


33: All






reduced productive interval setbacks of not less than

300 feet from the boundaries of the approximate 640-

acre drilling and spacing unit.


25: All


Applicant: GMT Exploration Company LLC




Establish an approximate 1,287.89-acre drilling and

spacing unit, and approve up to ten horizontal wells

in the unit in order to efficiently and economically

develop and recover the oil, gas and associated

hydrocarbons from the Niobrara Formation.



Docket No. 181000791, Elbert County









hydrocarbons from the Niobrara Formation in the

unit.



Page 39 of 52


8: All Section 9: All Section 10: W½







spacing unit for Sections 12, 13 and the N½ of 24,

Township 6 South, Range 65 West, 6th P.M., and

approve up to ten horizontal wells in the unit in order

to efficiently and economically develop and recover

the oil, gas and associated hydrocarbons from the

Niobrara Formation in the unit.


12: All Section 13: All Section 24: N½










hydrocarbons from the Niobrara Formation in the

unit.



Group J


Applicant: 8 North LLC


Attorneys: Robert A. Willis






Page 40 of 52

up to 20 horizontal wells within the unit, for the



Formations.




Applicant: 8 North LLC


Attorneys: Robert A. Willis


Establishing an approximate 1,600-acre drilling and

spacing unit for the Application Lands, and

authorizing the drilling of 12 horizontal wells within

the proposed unit, for the production of oil, gas and

associated hydrocarbons from the Codell, Fort Hays,

Carlile, and Niobrara Formations.

Application lands: Township 10 North, Range 59 West, 6th P.M.

Section 9: All Section 16: All Section 21: N½

Group K Docket No. 181000779, Weld County






spacing unit for the Application Lands and approve

up to 16 horizontal wells in the proposed unit, for




1: All Section 2: All Section 3: E½E½E½

Group L







Page 41 of 52



spacing unit for the Application Lands; 2) Approve

up to 17 horizontal wells within the unit.


11: S½ Section 14: All Section 23: All





Subject: Request for an order to among other things1)

Establish an approximate 947.16-acre drilling and

spacing unit for the Application Lands; 2) Approve



2: All Section 11: N½

Docket No. 181000708, Arapahoe County

Applicant: Bison Oil & Gas, LLC II




Modify Order No. 535-253 to be specific to the

Slickrock 2-17-11-60 ST Well; and 2) Modify an

approximate 1,280-acre drilling and spacing unit the

Application Lands to include the Fort Hays, Codell,

and Carlile Formations, and to approve a total of 17

horizontal wells within the unit, for the production of

oil, gas, and associated hydrocarbons from the

Niobrara, Fort Hays, Codell, and Carlile Formations.









Page 42 of 52











Subject: Request for an order to among other things: Allow

the productive interval of each authorized well

within the unit to be located no closer than 300 feet

from the unit boundary, but maintain the setback

between the productive interval of the authorized

wellbores at 100 feet.



Docket No. 181000805, Garfield County

Applicant: Caerus Piceance LLC



Subject: Request for an order to among other things: Remove

the downhole limitation of four wells per

governmental quarter-quarter section only as to the

Application Lands and maintaining all other portions

of the orders including the allowance of the

equivalent of one well per 10 acres for production of

gas and associated hydrocarbons from the Williams

Fork Formation

Application lands: Certain lands in Townships 5 and 6, Ranges 95

through 97 West, 6th P.M., Garfield County,

Colorado, as more particularly described on the

attached Exhibit A to Notice of Hearing.







Page 43 of 52

Subject: Request for an order to among other things: Amend

Order No. 535-51 to include the Ft. Hays, Codell,

and Carlile Formations in the established 1,280-acre

drilling and spacing unit for the Niobrara Formation

and to allow an additional 16 horizontal wells in the

unit for a total of up to 17 horizontal within the unit

for the production of oil, gas, and associated







Page 44 of 52


Applicant: Bayswater Exploration & Production, LLC





spacing unit covering the Application Lands, and

approve up to twenty-six horizontal wells within the

unit, for production of oil, gas, and associated


Formations.


25: All Section 26: E½E½ Township 7 North, Range

65 West, 6th P.M. Section 30: All






Order No. 535-963 only as to the well setbacks such

that the treated interval of each authorized wellbore

be located no closer than 300 feet from the unit

boundary, and no closer than 100 feet from the

productive interval of any other wellbore located

within the drilling and spacing unit, unless an

exception is granted by the Director.








an approximate 640-acre drilling and spacing unit

established by Order No. 535-1 for the Application

Lands to include the Fort Hays, Codell, and Carlile

Formations.



Page 45 of 52


36: All








a total of up to 16 additional horizontal wells within

the unit, for the production of oil, gas, and associated





Group M




Attorneys: Jillian Fulcher, James Martin & Jobediah

Rittenhouse


Establish four drilling and spacing units for portions

of Sections 13, 24, 25, 26, 35, and 36, Township 3

North, Range 64 West, 6th P.M., and for Sections 19

and 30, Township 3 North, Range 63 West, 6th P.M.,

and approve up to 15 horizontal wells within

proposed Drilling and Spacing Units (“DSU”) Nos.

6, 7, 8, and 9, for the production of oil, gas, and

associated hydrocarbons from the Niobrara, Fort

Hays, Codell, and Carlile Formations.

Application lands: Sections 13, 24, 25, 26, 35, and 36, Township 3

North, Range 64 West, 6th P.M., and for Sections 19

and 30, Township 3 North, Range 63 West, 6th P.M


Applicant: Confluence DJ LLC





Page 46 of 52


Establish two approximate 640-acre stand-up drilling

and spacing units, and approve the drilling of up to

12 horizontal wells within each drilling and spacing

unit, for the production of oil, gas, and associated


Formations.


5: W½ Section 8: W½ Township 1 South, Range 65

West, 6th P.M. Section 5: E½ Section 8: E½

Docket No. 181000758, Archuleta County

Applicant: Red Willow Production Company


Attorneys: Michael J. Wozniak & Jillian Fulcher


Confirming that the plan for unit operations (Order

No. 112-283 ) has been approved in writing by those

owners of at least eighty percent (80%) of the

production or proceeds that will be credited to

interests which are free of costs and by those owners

who will be required to pay at least eighty percent

(80%) of the costs of the unit operation.

Application lands: Township 32 North, Range 4 West, N.M.P.M.

Section 7: E/2; E/2W/2; Lots 1 and 2 (W/2NW/4);

Lots 3 and 4 (W/2SW/4) Section 8: S/2 Section 17:

All Section 18: Lots 1 and 2 (W/2NW/4); Lots 3 and

4 (W/2SW/4); NE/4; E/2NW/4; E/2SW/4; SE/4

Section 19: Lots 1and 2 (W/2NW/4); Lots 3, 4, 5, and

6 (S/2); NE/4; E/2NW/4 Section 20: N/2; Lots 1, 2,

3, and 4 (S/2) Township 32 North, Range 5 West

Section 11: All Section 12: All Section 13: All

Section 14: All Section 15: All Section 23: N/2; Lots

1, 2, 3, and 4 (S/2) Section 24: N/2; Lots 1, 2, 3, and

4 (S/2)









Page 47 of 52


the drilling of up to 23 horizontal wells within the

proposed unit, for the production of oil, gas, and

associated hydrocarbons from the Niobrara, Fort

Hays, Codell, and Carlile Formations.


32: All Section 33: W½ Township 2 North, Range 63

West, 6th P.M. Section 4: W½ Section 5: All






Establish one approximate 1,236.44-acre drilling and

spacing unit, one approximate 1,235.60-acre drilling

and spacing unit, and one approximate 1,280-acre

drilling and spacing unit (each, a “DSU”) for the

Application Lands, and approve the drilling of up to

15 horizontal wells within each proposed unit, for the



Formations.

Application lands: Drilling and Spacing Unit (“DSU”) No. 1 Township

3 North, Range 64 West, 6th P.M. Section 31: All


6: All DSU No. 2 Township 2 North, Range 64 West,

6th P.M. Section 7: All Section 18: All DSU No. 3



Group N


Applicant: Great Western Operating Company, LLC





spacing unit established for the N½ of Section 34,

Township 1 North, Range 66 West, 6th P.M., for the


Codell Formations.



Page 48 of 52


34: N½







spacing unit established for the S½ of Section 21,

Township 1 North, Range 66 West, 6th P.M., for the


Codell Formations.


21: S½






an additional five horizontal wells, for a total of up

to 26 horizontal wells within an approximate

1,244.37-acre drilling and spacing unit established

by Order No. 407-1842, for the production of oil,

gas, and associated hydrocarbons from the Niobrara

and Codell Formations.














Page 49 of 52


4: W½E½, E½W½ Section 9: W½E½, E½W½

Section 16: W½E½, E½W½ Section 21: NE¼NW¼,

NW¼NE¼





Subject: Request for an order to among other thingsSubject

additional parties to Order No. 407-1843, which

pooled all interests in a 1,244.37 drilling and spacing

unit, for the development and operation of the Codell

and Niobrara Formations.







Subject: Request for an order to among other things: Subject


pooled all interests in a 906.46 drilling and spacing

unit established for Section 5 and the E½ of Section

6, Township 1 South, Range 66 West, 6th P.M., for

the development and operation of the Codell and

Niobrara Formations.


5: All Section 6: E½





Subject: Request for an order to among other things: Subject


pooled all interests in a 1,280 drilling and spacing

unit, for the development and operation of the Codell

and Niobrara Formations.



Page 50 of 52



Group O

Docket No. 180900629, La Plata County

Applicant: Catamount Energy Partners LLC



Subject: Request for an order to among other things: Vacate

Order No. 112-280, which pooled all interests in the

approximate 663-acre drilling and spacing unit

established for the Application Lands and in the

Morales 34-6-6U #2 well (API No. 05-067-09991),

for the development and operation of the Fruitland

Coal Seams.

Application lands: Township 34 North, Range 6 West, N.M.P.M.

(S.U.L.) Section 6U: Lots 1 and 2 Section 7U: E/2

Group P


Applicant: Upland Exploration, LLC


Attorneys: John F. Shepherd, P.C. Janet N. Harris Tina R. Van

Bockern




North, Range 64 West, 6th P.M., for the production

of oil, gas and associated hydrocarbons from the

Codell, Carlile, Fort Hays and Niobrara Formations;

3) Approve up to 16 new horizontal wells in the

approximate 1,280-acre unit.


Section 3: All Section 10: All


Applicant: Upland Exploration, LLC


Attorneys: John F. Shepherd, P.C. Janet N. Harris Tina R. Van

Bockern



Page 51 of 52




North, Range 64 West, 6th P.M., for the production

of oil, gas and associated hydrocarbons from the

Codell, Carlile, Fort Hays and Niobrara Formations;

2) Approve up to 16 new horizontal wells in the

approximate 1,280-acre unit.


Section 14: All Section 23: All



Page 52 of 52

Appendix B

Approved Enforcement Consent Orders

Group A

Docket No. 171200650, Western Gas Resources, Inc. (Operator No. 26400)



an AOC with WGR imposing a $15,110 penalty for

a 483-day violation of Rule 1004 (Final Reclamation

of Well Sites and Associated Production Facilities).

Docket No. 180400298, PDC Energy Inc. (Operator No. 69175)



an AOC with PDC imposing a $94,650 penalty for a

237-day violation of Rule 909 (Site Investigation,

Remediation, and Closure) and a 175-day violation

of Rule 1004.a. (Final Reclamation of Well Sites and

Associated Production Facilities).

Docket No. 180600376, TOP Operating Company (Operator No. 39560)

Staff: Mimi C. Larsen, Assistant Attorney General


an AOC with TOP imposing a $621,110 penalty for

an 80-day violation Rule 324A.b. (Pollution), 478-

day violation of Rule 603.f. (Statewide equipment,

weeds, waste, and trash requirements), 307-day

violation of Rule 905.b. (Closure of Pits, and Buried

or Partially Buried Produced Water Vessels), 168-

day violation of Rule 906.a. (Spills and Releases),

and 54-day violation of Rule 1004.a. (Final

Reclamation of Well Sites and Associated

Production Facilities) at the Rider #1 Well in Boulder

County.

Documents

RECORD OF PROCEEDINGS · 10/29/2018 · 180900660, Entek GRB LLC (Operator No. 10323) Enforcement matter: Staff: Steven Mah, Enforcement Officer Subject: Pursuant to Rule 522.e.(2),