BEFORE
THE OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
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IN THE MATTER OF THE PROMULGATION AND ESTABLISHMENT OF FIELD RULES TO GOVERN OPERATIONS FOR THE NIOBRARA AND CODELL FORMATIONS, WATTENBERG FIELD, ADAMS COUNTY, COLORADO |
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CAUSE NO. 407
DOCKET NO. 190900568
TYPE: POOLING
ORDER NO. 407-2927 |
REPORT OF THE COMMISSION
The Commission heard this matter on September 25, 2019, at the Margaret Carpenter Recreation Center, 11151 Colorado Boulevard, Thornton, Colorado, upon application for an order to subject additional parties to Order No. 407-2472, which pooled all interests within an approximate 1,280-acre drilling and spacing unit established for the below-described lands (“Application Lands”), and subjected any nonconsenting interests to the cost recovery provisions of §34-60-116(7), C.R.S., for the drilling of the Schaefer LD 13-023HN Well (API No. Pending), the Schaefer LD 13-025HNX Well (API No. Pending), the Schaefer LD 13-025HN Well (API No. Pending), the Schaefer LD 13-026HC Well (API No. Pending), the Schaefer LD 13-026HN Well (API No. Pending), the Schaefer LD 13-028HNX Well (API No. Pending), the Schaefer LD 13-029HC Well (API No. 05-001-09849), the Schaefer LD 13-029HN Well (API No. 05-001-09863), the Schaefer LD 13-030HNX Well (API No. 05-001-09864), the Schaefer LD 13-031HN Well (API No. 05-001-09866), the Schaefer LD 13-032HC Well (API No. 05-001-10254), the Schaefer LD 13-032HN Well (API No. 05-001-10255), the Schaefer LD 13-033HN Well (API No. 05-001-10253), the Schaefer LD 13-033HNX Well (API No. Pending), the Schaefer LD 13-035HC Well (API No. Pending), the Schaefer LD 13-035HN Well (API No. Pending), the Schaefer LD 13-036HN Well (API No. Pending), the Schaefer LD 13-036HNX Well (API No. Pending), the Schaefer LD 13-038HC Well (API No. Pending), and the Schaefer LD 13-038HN Well (API No. Pending) (“Wells”), for the development and operation of the Niobrara and Codell Formations:
Township 1 South, Range 67 West, 6th P.M.
Section 13: All
Section 24: All
FINDINGS
The Commission finds as follows:
1. Great Western Operating Company, LLC (Operator No. 10110) (“Great Western” or “Applicant”), as applicant herein, is an interested party in the subject matter of the above-referenced hearing.
2. Due notice of the time, place and purpose of the hearing has been given in all respects as required by law.
3. The Commission has jurisdiction over the subject matter embraced in said Notice, and of the parties interested therein, and jurisdiction to promulgate the hereinafter prescribed order pursuant to the Oil and Gas Conservation Act.
4. On April 27, 1998, the Commission adopted Rule 318A, the Greater Wattenberg Area Special Well Location, Spacing and Unit Designation Rule. The Application Lands are subject to this Rule for the Niobrara and Codell Formations.
5. On February 19, 1992 (amended August 20, 1993), the Commission entered Order No. 407-87 which, among other things, established 80-acre drilling and spacing units for production from the Niobrara and Codell Formations, with the permitted well locations in accordance with the provisions of Order No. 407-1.
6. On June 17, 2014, the Commission entered Order No. 407-1037, which established a 640-acre drilling and spacing unit for Section 24, Township 1 South, Range 67 West, 6th P.M., and authorized the drilling of up to 12 horizontal wells for production from the Niobrara and Codell, with the producing interval of the wellbores located no closer than 460 feet from the unit boundaries and no closer than 150 feet from the productive interval of any other wellbore located in the unit without exception being granted by the Director of the Commission.
7. On June 17, 2014, the Commission entered Order No. 407-1078, which pooled the 640-acre drilling and spacing unit for Section 24, Township 1 South, Range 67 West, 6th P.M., for production from the Niobrara and Codell Formations, to accommodate the Sharp #24-3-11HC Well (API No. 05-001-09801) and the Sharp #24-3-9HC Well (API No. 05-001-09802).
8. On March 20, 2017, the Commission entered Order No. 407-1905 which, among other things, (1) amended Order Nos. 407-1037 and 407-1078 to provide that they are applicable only to the Sharp #24-3-11 HC Well (API No. 05-001-09801), that no further wells shall be drilled in the approximate 640-acre drilling and spacing unit created and pooled by Order Nos. 407-1037 and 407-1078, that the Sharp #24-3-11 HC Well shall continue to pay to the approximate 640-acre drilling and spacing unit created and pooled by Order Nos. 407-1037 and 407-1078, and that upon the plugging and abandonment of the Sharp #24-3-11 HC Well, Order Nos. 407-1037 and 407-1078 shall be deemed vacated; and (2) established an approximate 1,280-acre drilling and spacing unit for Sections 13 and 24, Township 1 South, Range 67 West, 6th P.M., and approved total of up to 23 horizontal wells within the unit, for production from the Niobrara and Codell Formations, with the productive interval of the wellbore to be located no closer than 460 feet from the unit boundaries, and no closer than 150 feet from the productive interval of any other wellbore located within the unit, without exception being granted by the Director.
9. On June 11, 2018, the Commission entered Order No. 407-2472 which, among other things, pooled all interests in the approximate 1,280-acre drilling and spacing unit established for the Application Lands for production from the Niobrara and Codell Formations, 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)(II), C.R.S., are first incurred for the drilling of the Schaefer 2413-3-15HN Well (API No. 05-001-09860).
10. On October 29, 2018, the Commission entered Order No. 407-2664 which, among other things, made Order No. 407-2472 applicable to the previously unnoticed interest owners in the approximate 1,280-acre drilling and spacing unit established for the Application Lands, for production from the Niobrara and Codell Formations, 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)(II), C.R.S., are first incurred for the drilling of the Schaefer LD 13-023HN, Schaefer LD 13-025HNX, Schaefer LD 13-025HN, Schaefer LD 13-026HC, Schaefer LD 13-026HN, Schaefer LD 13-028HNX, Schaefer LD 13-029HC, Schaefer LD 13-029HN, Schaefer LD 13-030HNX, Schaefer LD 13-031HN, Schaefer LD 13-032HC, Schaefer LD 13-032HN, Schaefer LD 13-033HN, Schaefer LD 13-033HNX, Schaefer LD 13-035HC, Schaefer LD 13-035HN, Schaefer LD 13-036HN, Schaefer LD 13-036HNX, Schaefer LD 13-038HC, and Schaefer LD 13-038HN Wells.
11. On June 25, 2019, which was at least 90 days before the Commission heard this matter, Great Western filed a verified application (“Application”) pursuant to §34-60-116, C.R.S., for an order to subject additional parties to Order No. 407-2472, which pooled all interests in the Application Lands for the development and operation of the Niobrara and Codell Formations, and subjected any nonconsenting interests to the cost recovery provisions of §34-60-116(7), C.R.S., for the drilling of the Wells.
12. The Applicant filed with the Commission a written request to approve the Application based on the merits of the Application and the supporting exhibits. Sworn written testimony and exhibits were submitted in support of the Application.
13. Land testimony and exhibits submitted in support of the Application by David Keahey, Landman for Great Western, show that the Applicant owns, or has secured the consent of the owners of, more than 45% of the mineral interest to be pooled. In addition, the land testimony and exhibits show that the owners within the unit received a reasonable offer to lease or participate at least 90 days before the hearing date, that the owners to be pooled did not elect in writing to consent to the Wells within 60 days after receiving the offer to participate, and that any unleased owners had at least 60 days to review a reasonable offer to lease but either refused it or have not yet accepted it.
14. The land testimony and exhibits also demonstrate that the offers to lease were made in good faith, contained the contact information for a representative of the Applicant, and contained the Commission’s pooling brochure or a link to access it.
15. In addition, the land testimony and exhibits show that the offers to participate contained the Commission’s pooling brochure or a link to access it, the particular owner’s share of the total estimated drilling and completion costs for the Wells, and also the following information for each Well: the location, measured depth, true vertical depth, and lateral length, the total estimated drilling and completion cost, and the estimated spud date.
16. Land testimony showed the Applicant complied with the requirements of Rule 530 and the Act, and is entitled to the cost recovery provisions pursuant to §34-60-116(7), C.R.S., for the Wells, but did not provide testimony for any subsequent wells.
17. Granting the Application is consistent with the protection of public health, safety, welfare, the environment, and wildlife resources.
18. Great Western agreed to be bound by oral order of the Commission.
19. 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 subject additional parties to Order No. 407-2472, which pooled all interests in the Application Lands, and subjected any nonconsenting interests to the cost recovery provisions of §34-60-116(7), C.R.S., for the drilling of the Wells, for the development and operation of the Niobrara and Codell Formations.
ORDER
IT IS HEREBY ORDERED:
1. Pursuant to the provisions of §34-60-116, C.R.S., additional parties are hereby subject to Order No. 407-2472, which pooled all interests within the drilling and spacing unit established for the Application Lands, for the development and operation of the Niobrara and Codell Formations, effective as of the date the Application was filed.
2. The production obtained from the drilling and spacing unit shall be allocated to each owner in the unit on the basis of the proportion that the number of acres in such tract bears to the total number of mineral acres within the drilling and spacing unit; each owner of an interest in the drilling and spacing unit shall be entitled to receive its share of the production of the Wells located on the drilling and spacing unit applicable to its interest in the drilling and spacing unit.
3. The following working interest owner(s) did not elect to participate in the Well(s) or failed to make a timely election and are hereby deemed to be nonconsenting and subject to the penalties as provided for in §34-60-116(7), C.R.S: Martin Exploration Management Company; Anschutz Exploration Corporation; and Colorado Energy Corporation.
4. Each nonconsenting working interest owner must reimburse the consenting owners for the owner’s proportionate share of the costs and risks of drilling and operating the Well(s) from the owner’s proportionate share of production, subject to non-cost bearing interests, if and to the extent that the royalty is consistent with the lease terms prevailing in the area and is not designed to avoid the recovery of costs provided for in §34-60-116(7)(b), C.R.S., until costs and penalties are recovered as set forth in §34-60-116(7), C.R.S.
5. The following unleased owner(s) did not elect to participate in the Well(s) or failed to make a timely election and are hereby deemed to be nonconsenting and subject to the penalties as provided for in §34-60-116(7), C.R.S.: Brenda Montes Guzman and Humberto Montes Guzman; Tabitha Montgomery; Marandah Maes; Adam W. Paul and Caren L. Paul; Carlos Perez; Brian Kelly Draper; Jean-Paul Corriveau; Sergio Amador; Michael Trujillo; Richard J. Trujillo and Alma Trujillo; Andrew Thurber and Shannon Lemmer; Kevin A. Hinrichs and Pamela C. Hinrichs; Brenda Montes Guzman and Humberto Montes Guzman; Pedro Fernandez Uvalle and Diana Gabriela Loya; Suzette Sanchez; Raymond Saltivan; Arturo Vasquez and Rosalva Vasquez; Thomas F. Wilton; Robert E. Miller and Shawna L. Miller; Bradley Kent Dore and Shelli S. Dore; James White and Barbara M. White; Aaron Jay Lasher and Samantha Nicole Lasher as Joint Tenants; Acacia Lynn Pasco and Stacey K. Pasco as Joint Tenants; Aci Lucyle Carr; Adam Lowery and Amy Nichole Malito as Joint Tenants; Adam J. Mayhew and Kirstie R. Hastings as Joint Tenants; Adan Corrales; Adriana Ruiz Bustos and Jose R. Bustos as Joint Tenants; Ajet Zalli; Alan Nelson; Alejandro Rascon; Alexander M. Feldman and Mariana A. Rueda Amaya as Joint Tenants; Alexis L. Hilliker and Karl E. Hilliker as Joint Tenants; Allison Bailey Beard; Alonso Loya and Yadira Rojo as Joint Tenants; Amanda Olivas and Carlos Benjamin Olivas-Felix as Joint Tenants; Amilliano Contreras In Severalty; Analiz Martinez and Jose De Jesus Muniz Lara as Joint Tenants; Angelica Chacon; Anthony L. Contreras and Samantha J. Contreras as Joint Tenants; Antonio D. Marraudino and Mami Harada as Joint Tenants; Ascencion Calderon and Irene Sanchez De Calderon as Joint Tenants; Atilana Retana and Edgar L. Dearcos-Picazo as Joint Tenants; Bee Hang; Belinda L. Zessin and Kevin M. Zessin as Joint Tenants; Benjamin R. Hansford and Nicole V. Hansford as Joint Tenants; Bethany J. Adams; Bradley J. McAninch; Brandon H. Winner; Brett W. Stuart and Amanda Stuart as Joint Tenants; Brian A. Martinez; Brian D. Core; Brian R. Engle and Tawnya L. Engle as Joint Tenants; Briana Barringer and John P. Harshman as Joint Tenants; Brianna J. Charron Martinez; Byrle W. Ball; Cairo Lopez; Carlos Nicolas and Silvia Nicolas as Joint Tenants; Casey Lefever and Samantha Lefever as Joint Tenants; Casey C. Bailey and Britney L. Bailey as Joint Tenants; Charles Hernandez and Christine Hernandez as Joint Tenants; Charles Arthur Gardner Jr.; Christina Barnes and Mathew Barnes as Joint Tenants; Christine Johnson and Michael Johnson as Joint Tenants; Christopher Hicks and Hayley E. Hicks as Joint Tenants; Christopher Morales; Christopher J. Abbriano and Marites G. Abbriano as Joint Tenants; Christopher Michael Dean and Christine Marie Dean as Joint Tenants; Christopher W. Grenemyer and Casondra A. Irsik Grenemyer as Joint Tenants; Clarivel Hernandez In Severalty; Cody Pfannenstiel; Cody N. Culver and Jennifer M. Culver as Joint Tenants; Cole Bennett; Cory Christon and Jo Marlitte B. Dierforff-Christon as Joint Tenants; Dan Bicazan and Ionela Bicazan as Joint Tenants; Daniel Chan and Teresa Cervantes Ramirez and Maria G. Cervantes Tenants in Common; Daniel Preston; Daniel Antonio Talavera Jr. and Yesenia Deanna Perez Robles as Joint Tenants; Daniel W. Martinez and Justina E. Martinez as Joint Tenants; David Brewer and Krysta Brewer as Joint Tenants; David Wellhauser; David Yang and Kou Yang as Joint Tenants; David Cameron Mills; David M. Zappitello and Margaret C. Zappitello as Joint Tenants; Davis Hammond and Robert Hammond as Joint Tenants; Deborah L. Myer; Derek Lee and Lisa Lee as Joint Tenants; Derek J. Brown and Sara A. Brown as Joint Tenants; Deydamia P. Granados; Diana Chang and Dawson T. Chang as Joint Tenants; Donald Jones and Violetta Taing as Joint Tenants; Donald E. Darrow and Crystal R. Darrow as Joint Tenants; Dorothy Dee Harris; Dustin P. Eaves and Jennifer J. Eaves as Joint Tenants; Dylan Burress and Katherine Anderson as Joint Tenants; Edgardo Acosta Talavera; Eduardo Cordova; Efigenia Robles Vargas and Jorge Luis Garcia as Joint Tenants; Elloyd W. Gallegos and Esper Gallegos as Joint Tenants; Elohim F. Bustos and Elisa G. Bustos as Joint Tenants; Emeterio Vasquez Miramontes and Judith Miramontes as Joint Tenants; Eric S. Michell and Chelsea N. Gray as Joint Tenants; Ernesto Ramirez; Esmeralda Calderon; Ever Mota; Felipe G. Quintana and Maria Del Refujio Ramirez as Joint Tenants; Felix Benitez and Emelia Benitez as Joint Tenants; Frank Wilson; Frederick R. Rowland and Amelia M. Rowland as Joint Tenants; Frederico V. Mecillas Jr. and Christine C. Mecillas as Joint Tenants; Gabriela E. Carmonia-Dominguez, Jose I. Ontiveros, and Itzel B. Antonio-Dominguez as Tenants in Common; Gary W. Griffiths; Gerald Oberbeck and Misty Oberbeck as Joint Tenants; Gilbert Ornelas; Golden G. Porter; Greg Kessler; Gregory J. Gemmell and Amy L. Gemmell as Joint Tenants; Harvey H. Houston and Mary E. Houston as Joint Tenants; Henry L. Haberkamp and Marleah A. Haberkamp as Joint Tenants; Hinojos Benigno Sanchez and Amelia Sanchez as Joint Tenants; Holly Marquardt; Imelda Perez Carrillo and Michael Mendez as Joint Tenants; Immanuel Jacob Dean; Indio T. Chavez and Kenneth R. Etscheid as Joint Tenants; Irma Montes Deflores; Isaac Gamaliel Rodriguez and Briana Marie Rodriguez as Joint Tenants; Israel A. Romero and Catrina Flores as Joint Tenants; Ivan Mejia Tovar and Missett Isela Hernandez as Joint Tenants; J.C. Theisen; J. Laine Segura; Jackson Lee and Mantra Tak Ming Lee as Joint Tenants; Jacqueline Estrada; James J. Sandoval; James Walter Ballard and Charlene Marie Ballard as Joint Tenants; Jared Reese; Jared Anthony Powell; Jared L. Calver; Jason Wagner; Jason Eric Hudson and Theresa Lynn Hudson as Joint Tenants; Jason M. Parlett; Jean M. Griffith; Jeff L. Reilly and Leona M. Reilly as Joint Tenants; Jeffery Johnson and Loretta Johnson as Joint Tenants; Jennifer Doolittle; Jennifer A. Mason and Pamela A. Woodruff as Joint Tenants; Jeremy Aaron Morales; Jerome E. Jaramillo In Severalty; Jesica Willoughby; Jesse Smolak and Katie Hayes as Joint Tenants; Jesse Edward Staley and Ryan Philip Asay as Tenants in Common; Jodie S. Boen; Joe F. Archuleta and Renee M. Jo Jola as Joint Tenants; John Burrows; John B. Anderson and Jason B. Epp as Joint Tenants; John G. Flores and Alexis A. Gandarilla as Joint Tenants; John R. Cather and Diane L. Cather as Joint Tenants; John R. Hoemann; Jonathan G. Qualls and Tara N. Qualls as Joint Tenants; Jordan Wertzbaugher and Kortnie Wertzbaugher as Joint Tenants; Joseph Charles Muniz Jr. and Lorie Jean Muniz as Joint Tenants; Joseph E. Dunn; Joseph P. Digiovanni; Josephine I. Carrillo; Joshua G. Norcross and Marissa D. Norcross as Joint Tenants; Joshua John Linn Broadsword; Joshua M. Gorman; Josue Gordillo and Maria S. Isais as Joint Tenants; Juan Luna; Juan F. Canales; Juan J. Felix; Julie A. Derry; Justin S. Daigle; Kara M. Duda; Karen Elizabeth Benson Montgomery and Jerry Wayne Benson Montgomery as Joint Tenants; Kathleen Trahern and Melesio Rendon De Los Santos as Joint Tenants; Kathleen Denise Cabral and Jalysa D. Cabral as Joint Tenants; Keith F. Norgren; Keith J. Rigli; Keith Phillip Gurney and Amanda Gurney as Joint Tenants; Keri A. Tiemann and Melinda G. Wainwright as Joint Tenants; Kevin Murtagh and Jennifer Gamble as Tenants in Common; Kevin R. Smith; Kobyoshi K. Ruiz and Riley Alvarez as Joint Tenants; Kolio Mintchev and Ekaterina Mintchev as Joint Tenants; Kristine E. Wilson and Diana Wilson as Joint Tenants; Kristopher C. Russell and Amanda M. Russell as Joint Tenants; Kyle G. Freeman; Lance Bross; Lance Schneider and Kristen Schneider as Joint Tenants; Lara Sue Medley; Larry C. Kay; Larry J. Floryancic and Ilo J. Floryancic as Joint Tenants; Lee A. Beckwith; Leonard L. Lind and Shawna L. Lind as Joint Tenants; Lisa L. Chester; Lisa M. Beach and Kelly R. Beach as Joint Tenants; Lisa M. Shurtleff; Loretta R.D. Maestas; Lowell B. Harris and Deborah Harris Husband and wife; Lowry A. Trujillo and Melissa Smialek-Trujillo as Joint Tenants; Luis Fajardo; Luis A. Lerma; Luis Carlos Ruiz III; Luis Ramon Garcia Vazquez and Jose Garcia Vasquez as Joint Tenants; Lynn R. Hansford; Ma Gutierrez Meja; Manuel Chairez; Manuel U. Mendoza and Dulces Granados as Joint Tenants; Marcella Perez; Maria R. Rodriguez; Maria R. Villalobosa; Mark Huerta and Elizabeth Johns as Joint Tenants; Mark E. Petri; Marnie R. Montano and Thomas A. Montano as Joint Tenants; Marshal Mason and Amber Brisco as Joint Tenants; Martin Corral Gonzalez; Mary Beth Hart; Mary M. Brown and Heide M. Brown as Tenants in Common; Maryann Sarmiento; Mathew D. Sanchez and Lisabeth C. Sanchez as Joint Tenants; Mathew Thomas Rouse and Amanda Marie Dress as Joint Tenants; Matthew Domosley, Maurice A. Cruz; Melecio Chavez and Margaret Chavez as Joint Tenants; Melissa L. Garcia and Vivia J. Garcia as Joint Tenants; Merlyn L. Kleppen; Michael Mares; Michael A. Crisler and Katherine Jean Kulesh as Joint Tenants; Michaela M. Smith; Michelle De Santiago; Monica Zuniga; Nicholas Robert Pipich and Kate Diane Pipich as Joint Tenants; Oleksii Kurylin; Patrick Wolf; Paublo Mejia Cerano; Paul F. Duval and Ann C. Duval as Joint Tenants; Paul J. Pilger; Paul K. Evans and Lena M. Evans as Joint Tenants; Pedro Avitia; Perla Villagrana; Rachel A. Monroe and Rudolph V. Monroe as Joint Tenants; Rachel Lauren Cannon and Heath Michael McQuire as Joint Tenants; Ramon Menindez and Sonia Menindez as Joint Tenants; Raul Marmolejo; Raymundo J. Gallegos; Rebecca Ann Callahan; Rebecca S. Hartt and Pinnacle Management as Tenants in Common; Rebecca S. Hartt and Pinnacle Management; Rene Duran; Rene Ruiz; Ricardo Avalos and Yazmin A. Avalos as Joint Tenants; Richard Curtis Gorham; Richard Jay Salters; Robert Earl Wiggins and Marie Antoinette Wiggins as Joint Tenants; Robert L. Montoya and Mae E.L. Montoya as Joint Tenants; Rory P. Richards and Rebekah R. Richards as Joint Tenants; Russell C. Brandt and Maria I. Yslas-Brandt as Joint Tenants; Saida Rose Montoya and Luis Chaparro III as Joint Tenants; Samuel L. Basehar; Sarah Depew; Sarah Markel; Saroj Joshi and Jaya Joshi as Joint Tenants; Saul Guerrero Jr. and Vanessa Guerrero as Joint Tenants; Scott M. Lehmann and Alexandra Garone as Joint Tenants; See Lor; Sendy M. Gonzales; Sergio Gutierrez; Sergio Jimenez; Shantelle Fern Degenhart; Sharon M. Russell and Gregory A. Russell as Joint Tenants; Sheila Hernandez and Raylin Martinez as Joint Tenants; Sherri J. Heck and David S. Heck as Joint Tenants; Sidney Boondieng Tay-Tse; Stacy D. Dixon and Kevin C. O'Farrell as Joint Tenants; Stephanie Troutt; Stephen Andrew Cerf and Jonathan D. Cerf as Joint Tenants; Stephen W.R. Grady and Alysia R. Grady as Joint Tenants; Sterritt R. Fuller III and Tonia J. Fuller as Joint Tenants; Steve Blackwell and Rebecca Blackwell as Joint Tenants; Steve W. Darracott; Steven C. Johnson and Annette T. Johnson as Joint Tenants; Steven J. Tuite and Kayla Tuite as Joint Tenants; Steven T. Little and Christene M. Little as Joint Tenants; Susan J. McCauley; Susan J. Stiernagle; Swasti Panigrahi; Tasha M. Martinez and David A. Portales as Joint Tenants; Thomas J. Vipond; Tian Ming Shi; Tiffany E. Kerr and Thomas E. Ragland as Joint Tenants; Timothy L. Gonwa and Patricia M. Gonwa as Joint Tenants; Tory D. Larson and Elicia M. Larson as Joint Tenants; Travis Earl Marque; Trenton Vanner; Uriel Ivan Mata; Victor Ramirez and Maria M. Ramirez as Joint Tenants; Wenselao Mercado and Alicia Mercado as Joint Tenants; William Certain, Desirae Certain, and Terri Certain as Joint Tenants; William Lindekugel; William D. Lucero; Willie G. Walker III and Judy Walker as Joint Tenants; Zachary A. Reece and Regina A. Reece as Joint Tenants; Zachary J. McElvain and Meagan N. McElvain as Joint Tenants; Zachary James Frank; 965 Platte River Blvd LLC; A and L Inc.; Ah4r Co3 LLC; American Homes 4 Rent Properties Five LLC; American Homes 4 Rent Properties Nine LLC; American Homes 4 Rent Properties One LLC; APM Holdings LLC; Arcturus LLC; Bailey Company; Bar JP Holdings LLC; Barbara B. Licona Life Estate and Tara R. Licona Grantee Beneficiary; Beliveau Holdings LLC; Brighton Leadership Academy, a Colorado Non-profit Corporation; Bromley 132 LLC; Carlos G. Rodriguez, MD, LLC; Certificate Holders of CWABS 2003-05, Bank of New York as Trustee; Clayton R. Taylor and Doris Taylor Bypass Trust, Doris Taylor, Trustee; CSH 2016-1 Borrower LLC; DJC LLC; Edon Investments LLC; Encore Property Group LLC; Fearless Brighton, a Colorado Non-profit Corporation; Federal National Mortgage Association AKA Fannie Mae; Fusaro LLC; GMAC Mortgage LLC; GSAMP Trust 2005-HE4 Deutsche Bank National Trust Company, as Trustee; Han Chun Inc.; Holders of the Accredited Mortgage Loan Trust 2005-2 Asset Backed Notes, Deutsche Bank National Trust Company, as Indenture Trustee; HSA Bedrock LLC; Indenture Relating to IMH Assets Corp., Collateralized Asset-Backed Bonds Series 2005-4, Deutsche Bank National Trust Company, as Indenture Trustee; JC Holdings Living Revocable Trust, dated April 7, 2017; Jimmar Real Estate LLC; JPL Investments LLC; Lois L. Fretter Trust; Long Beach Mortgage Loan Trust 2005-WL2, Deutsche Bank National Trust Company, as Trustee; Magnum 1391 Mallard Lane LLC; MARM 2004-9, JP Morgan Chase Bank, NA f/k/a JP Morgan Chase Bank as Trustee; Michael J. Sorensen Revocable Trust U/A 4/10/2018; MLMI Trust Series 2006-RMI, LaSalle Bank National Association, as Trustee; Moon Gulch LLC; Norman C. Frazier and Kathleen A. Frazier Living Trust; Pensco Trust Company LLC, Custodian FBO Marybell Trujillo IRA; Pert Maxima LLC; Platte River Blvd LLC; PNC Bank NA; Private Mortgage Insurance Corp; RLI Management, Inc., IS Exchange LLC, and Long-Brighton Plaza, LLC as Tenants in Common; S U S Brighton LTD; Secretary of Veteran's Affairs, an officer of the United States of America; SRP Sub LLC; SWAY 2014-1 Borrower LLC; SWH 2017-1 Borrower LP; Tatonka Humming LLC; United States of America, US Bank National Association as Trustee; WGM RE Colorado LLC; and Your Road Home LLC.
6. Any nonconsenting unleased owner shall be deemed to have a landowner's royalty, proportionate to each owner’s record title interest, of:
a. for a gas well as defined in the Commission Regulations, 13% until the consenting owners recover, only out of each nonconsenting owner's proportionate 87% share of production, the costs specified in §34-60-116(7)(b), C.R.S.;
b. for an oil well as defined in the Commission Regulations, 16% until the consenting owners recover, only out of each nonconsenting owner's proportionate 84% share of production, the costs specified in §34-60-116(7)(b), C.R.S.
After recovery of the costs specified in §34-60-116(7)(b), C.R.S., each unleased nonconsenting mineral owner owns its proportionate 8/8ths share of the Wells, surface facilities, and production, and is liable for its proportionate share of further costs as if the nonconsenting owner had originally agreed to the drilling.
7. The operator of the Wells shall furnish the nonconsenting owners with a monthly statement of all costs incurred, together with the quantity of oil and gas produced, and the amount of proceeds realized from the sale of production during the preceding month.
8. A nonconsenting owner is immune from liability for costs arising from spills, releases, damage, or injury resulting from oil and gas operations on the drilling and spacing unit.
9. The operator shall not use the surface owned by a nonconsenting owner without the nonconsenting owner’s permission.
10. Nothing in this order is intended to conflict with §34-60-116, C.R.S. Any conflict that may arise shall be resolved in favor of the statute.
IT IS FURTHER ORDERED:
1. The provisions contained in the above order shall become effective immediately.
2. The Commission expressly reserves its right, after notice and hearing, to alter, amend or repeal any and/or all of the above orders.
3. Under the State Administrative Procedure Act, the Commission considers this Order to be final agency action for purposes of judicial review within 35 days after the date this Order is mailed by the Commission.
4. An application for reconsideration by the Commission of this Order is not required prior to the filing for judicial review.
ENTERED this 27th day of September, 2019, as of September 25, 2019
OIL AND GAS CONSERVATION COMMISSION
OF THE STATE OF COLORADO
By____________________________________
Mimi C. Larsen, Secretary