Source: http://cogcc.state.co.us/orders/orders/407/816.html
Timestamp: 2019-02-17 10:05:55
Document Index: 539932161

Matched Legal Cases: ['§34', '§34', '§34', '§ 34', '§34', '§34']

DOCKET NO. 1306-UP-93
ORDER NO. 407-816
7. On March 15, 2013, Mineral, by its attorneys, filed with the Commission pursuant to §34-60-116 C.R.S., a verified application (“Application”) for an order to pool all interests in an approximate 480-acre designated horizontal drilling and spacing unit established for the below-described lands (“Application Lands”), for the development and operation of the Codell and Niobrara Formations, effective as of the earlier of the date of the Application, or the date that any of the costs specified in C.R.S. §34-60-116(7)(b)(II) were first incurred for the drilling of the DT-Forbes 1-5-6, DT-Forbes 2-5-6, DT-Forbes 3-5-6, DT-Forbes 4-5-6, DT-Forbes 5-5-6 Wells (“Initial Wells” or “Well”), and to subject any nonconsenting interests to the cost recovery provisions of C.R.S. §34-60-116(7):
Section 5: SW¼
Section 6: S½
8. On May 24, 2013, Great Western Operating Company, LLC (“Great Western” or “Protestant”), by its Land Manager, K. Wade Pollard, CPL, filed a Protest to the Application, alleging Mineral had not provided information required by Rule 530.
9. On June 4, 2013, Mineral, by its attorneys, filed with the Commission a written request to approve the Application based on the merits of the verified Application and the supporting exhibits. Sworn written testimony and exhibits were submitted in support of the Application.
10. On June 5, 2013, Great Western and Mineral entered into an agreement whereby Great Western agreed to withdraw its Protest to the Application.
11. On June 17, 2013, Mineral requested and Commission staff granted, a continuance to the July 29, 2013 hearing.
12. Land testimony and exhibits submitted in support of the Application by Logan Richardson, Vice President of Land for Mineral Resources, showed that all nonconsenting interest owners were notified of the Application and received an Authority for Expenditure ("AFE") and offer to participate in the Wells. Further testimony concluded that the AFE sent by the Applicant to the interest owners was a fair and reasonable estimate of the costs of the proposed drilling operation and was received at least 30 days prior to the July 29, 2013 hearing date.
13. Land testimony showed Applicant complied with the elements of Rule 530 for each of the Initial Wells. For purposes of pooling and cost recovery pursuant to C.R.S. §§ 34 60-116(6), (7), Applicant requests the Commission:
14. Applicant stated it will begin drilling the Initial Wells within one year from the date of entry of this Order, by obtaining the necessary approvals and permits to drill. Failure to obtain the necessary permits shall not relieve Mineral from this requirement or extend the time period approved by this Order.
16. Mineral agreed to be bound by oral order of the Commission.
17. Based on the facts stated in the verified Application, having received no protests, and based on the Hearing Officer review of the Application under Rule 511., the Commission should enter an order to pool all interests in an approximate 480-acre designated horizontal drilling and spacing unit established for Sections 5 and 6, Township 5 North, Range 65 West, 6th P.M., for the development and operation of the Codell and Niobrara Formations.
1. Pursuant to the provisions of §34-60-116, C.R.S., as amended, of the Oil and Gas Conservation Act, all interests in the approximate 480-acre designated horizontal drilling and spacing unit established for the below-described lands, are hereby pooled, for the development and operation of the Codell and Niobrara Formations, effective as of the earlier of the date of the Application, or the date that any of the costs specified in C.R.S. §34-60-116(7)(b)(II) are first incurred for the drilling of the DT-Forbes 1-5-6, DT-Forbes 2-5-6, DT-Forbes 3-5-6, DT-Forbes 4-5-6, DT-Forbes 5-5-6 Wells:
By____________________________________ Robert J. Frick, Secretary