Spacing Applications Reach into Broadlands and McKay Landing, Anthem Highlands “Doughnut Hole”

On 7/13, Extraction filed 6 spacing applications with the COGCC which are currently scheduled to be heard on 9/11 & 9/12 in Durango.  In addition to the timing of the filing, another surprise was that the “South” spacing applications reach further south in Broomfield than expected.

As you can see on the overview and detail maps below, Extraction’s “South” spacing applications now reach south of 144th, into The Broadlands and McKay Landing.  This means that Extraction is seeking permission from the COGCC to drill into that space.  Extraction does not have to specify in the spacing applications the locations of the pads where the wells will be sited to access these minerals, nor does Extraction have to state when they will drill for these minerals.  Horizontal drilling technology can currently reach about 2 miles from the pad.

In an additional change from previously published Extraction plans, most of Anthem Highlands was not included in the spacing applications.  It is unknown what this means for mineral owners in Anthem Highlands. Extraction has not provided an explanation for this unexpected omission.  At the 7/25 CCOB Council meeting, CCOB Attorney William Tuthill referred to Anthem Highlands as in “limbo” in a “doughnut hole” on Extraction’s spacing application.  

On 8/2, the City published an overview document titled “Information on Spacing Unit Applications with COGCC.”  At the 8/8 City Council Study Session, City Council will consider protesting the Extraction and Crestone spacing applications and a preview document can be found here

Background:  What is a Spacing Application?

Spacing applications are the mechanism by which operators request that COGCC assign a designated space to said operator.  If the application is approved, the operator is the only operator that can drill into that space.

After spacing is approved, and to begin drilling, the operator next must file a drilling permit application (Form 2A).  Form 2A is more detailed and requires the operator to provide an exact plan, including the precise number of wells that will be drilled.  If there are non-consenting mineral owners in the space, the operator would also need to request a forced pooling order before they could commence drilling.

Pending Spacing Applications re Broomfield

The maps below show the areas that are covered by the pending spacing applications in Broomfield as of 7/21/17.  If you want to read the actual spacing applications please follow the links to the City and County of Broomfield website:

Extraction Apps : https://drive.google.com/drive/folders/0BxAJnoFWbi4RaGNoN1BUbnFwdUk

Crestone App: https://www.broomfield.org/DocumentCenter/View/23864

Maps

Spacing Applications Filings Overview Map July2017 (1)

Legend for detail maps – 

Detail maps include proposed well counts and the number of legacy wells that Extraction has agreed to plug and abandon in the space.

Detail map of No. 1 spacing application – Sheridan South- Spruce Meadows, Country Meadows, McKay Landing

Detail map of No. 2 spacing application – Lowell North – Anthem Ranch

Detail map of No. 3 spacing application – Lowell South – Wildgrass, Holy Family, Broadlands

Detail map of No. 4 Huron North

Detail map of No. 5 Huron South

Detail map of No. 6 United

Detail map of No. 7 Coyote South   (Filed by Extraction earlier in unincorporated Weld County but Broomfield was listed as an interested party)