STATE OF MONTANA DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION BOARD OF OIL AND GAS CONSERVATION - NOTICE OF PUBLIC HEARING

STATE OF MONTANA

DEPARTMENT OF NATURAL RESOURCES AND CONSERVATION

BOARD OF OIL AND GAS CONSERVATION

BILLINGS, MONTANA

April 10 & 11, 2024

NOTICE OF PUBLIC HEARING

CONSERVATION AND PREVENTION OF WASTE OF OIL AND GAS

The Board of Oil and Gas Conservation of the State of Montana will hold its business meeting on Wednesday, April 10, 2024, at 2:00 p.m. in the hearing room at its office at 2535 St. Johns Avenue in Billings, Montana.

The agenda for that meeting is as follows:

1. Call to order
2. Public comment on agenda and non-agenda items
3. Approval of minutes of February 14, 2024, business meeting
4. Review of Digital Operating’s reduction in plugging liability
5. Delinquent annual UIC fees
6. Financial report
7. Bond summary & incident report
8. Docket summary
9. Gas flaring exceptions
10. Inactive well review
11. Orphan well and federal grant update
12. Staff reports
13. Other business
14. Adjourn

The Board will conduct public hearings pursuant to Chapter 11 of Title 82 of the Montana Code Annotated on the matters described below at 9:00 a.m. on Thursday, April 11, 2024, in the hearing room at its office at 2535 St. Johns Avenue in Billings, Montana.  Interested persons have the opportunity to be heard for each docket.  For more information or to request accommodation for a disability, please contact Jennifer Breton at (406) 656-0040, as soon as possible before the scheduled hearing.

Please take note that corporations, partnerships, limited-liability companies (LLCs), or any other legal entity that is not a natural person cannot appear before the Board of Oil and Gas Conservation except through an attorney licensed to practice law in the State of Montana.  Failure of a designated and duly licensed legal representative to appear at the time and place identified in this hearing notice may result in imposition of sanctions for failure to appear before the Board.

Docket 32-2024

APPLICANT:  KRAKEN OIL & GAS LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Kraken Oil & Gas LLC to amend Board Order 23-2022 to provide that operations for the drilling of a well in the overlapping temporary spacing unit comprised of all of Section 4, T27N-R57E and Sections 28 and 33, T28N-R57E, Roosevelt County, Montana must be commenced prior to April 11, 2025.  All other provisions in said order remains unchanged and in full force and effect.

Docket 33-2024

APPLICANT:  KRAKEN OIL & GAS LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Kraken Oil & Gas LLC to authorize the drilling of up to three additional horizontal Bakken/Three Forks Formation wells anywhere within the permanent spacing unit comprised of all of Sections 14 and 23, T27N-R57E, Roosevelt County, Montana, but not closer than 200’ (heel/toe setback) and 500’ (lateral setback) to the exterior boundaries thereof.

Docket 34-2024

APPLICANT:  KRAKEN OIL & GAS LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Kraken Oil & Gas LLC to create an overlapping temporary spacing unit comprised of all of Sections 5, 8, and 17, T28N-R59E, Roosevelt County, Montana, to drill a horizontal Bakken/Three Forks Formation well anywhere within said spacing unit but not closer than 200’ (heel/toe setback) and 500’ (lateral setback) to the exterior boundaries thereof, provided that operations for the drilling of said well must commence within one year of the date of the order issued by the Board.  The applicant will apply for permanent spacing within 90 days of successful well completion.

Applicant requests that Board Order 49-2018 pertaining to Sections 5 and 8, T28N-R59E be amended to clarify that said order is limited to oil and associated natural gas produced from the Bakken/Three Forks Formation from the Katie Rose 5-8 #1H well.

Applicant further requests that Board Order 323-2013 pertaining to Sections 17 and 20, T28N-R59E be amended to clarify that said order is limited to oil and associated natural gas produced from the Bakken/Three Forks Formation from the Powers Ranch 20-17 #1H well and that Order 324-2013 that authorized additional wells in that spacing unit be vacated.

Docket 35-2024

APPLICANT:  KRAKEN OIL & GAS LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Kraken Oil & Gas LLC to authorize the drilling of an additional horizontal Bakken/Three Forks Formation well anywhere within the overlapping temporary spacing unit comprised of all of Sections 5, 8, and 17, T28N-R59E, Roosevelt County, Montana, but not closer than 200’ (heel/toe setback) and 500’ (lateral setback) to the exterior boundaries thereof.

Docket 36-2024

APPLICANT:  KRAKEN OIL & GAS LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Kraken Oil & Gas LLC to create an overlapping temporary spacing unit comprised of all of Sections 20, 29, and 32, T28N-R59E, Roosevelt County, Montana, to drill a horizontal Bakken/Three Forks Formation well anywhere within said spacing unit but not closer than 200’ (heel/toe setback) and 500’ (lateral setback) to the exterior boundaries thereof, provided that operations for the drilling of said well must commence within one year of the date of the order issued by the Board. The applicant will apply for permanent spacing within 90 days of successful well completion.

Applicant requests that Board Order 323-2013 pertaining to Sections 17 and 20, T28N-R59E be amended to clarify that said order is limited to oil and associated natural gas produced from the Bakken/Three Forks Formation from the Powers Ranch 20-17 #1H well and that Order 324-2013 that authorized additional wells in that spacing unit be vacated.

Applicant further requests that Board Order 30-2014 pertaining to Sections 29 and 32, T28N-R59E be amended to clarify that said order is limited to oil and associated natural gas produced from the Bakken/Three Forks Formation from the Stateline #12-2932H well and that Order 31-2014 that authorized an additional well in that spacing unit be vacated.

Docket 37-2024

APPLICANT:  KRAKEN OIL & GAS LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Kraken Oil & Gas LLC to authorize the drilling of an additional horizontal Bakken/Three Forks Formation wells anywhere within the overlapping temporary spacing unit comprised of all of Sections 20, 29, and 32, T28N-R59E, Roosevelt County, Montana, but not closer than 200’ (heel/toe setback) and 500’ (lateral setback) to the exterior boundaries thereof.

Docket 38-2024

APPLICANT:  GRAYSON MILL OPERATING, LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Grayson Mill Operating, LLC to amend Board Order 256-2013 to authorize the drilling of up to three additional horizontal Bakken/Three Forks Formation wells anywhere within the permanent spacing unit comprised of all of Sections 28 and 33, T29N-R59E, Roosevelt County, Montana, but not closer than 200’ (heel/toe setback) and 500’ (lateral setback) to the exterior boundaries thereof.

Docket 39-2024

APPLICANT:  GRAYSON MILL OPERATING, LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Grayson Mill Operating, LLC to create an overlapping temporary spacing unit comprised of all of Sections 3, 10, and 15, T28N-R59E, Roosevelt County, Montana, to drill a horizontal Bakken/Three Forks Formation well anywhere within said spacing unit but not closer than 200’ (heel/toe setback) and 500’ (lateral setback) to the exterior boundaries thereof. Applicant will apply for permanent spacing within 90 days of successful well completion.

Applicant requests that Board Order 305-2012 pertaining to Sections 3 and 10, T28N-R59E be amended to clarify that said order is limited to oil and associated natural gas produced from the Bakken/Three Forks Formation from the Stateline 5-1003H well and that Order 306-2012 that authorized an additional well in that spacing unit be vacated.

Applicant further requests that Board Order 620-2012 pertaining to Sections 15 and 22, T28N-R59E be amended to clarify that said order is limited to oil and associated natural gas produced from the Bakken/Three Forks Formation from the Stateline 3-1522H well and that Order 621-2012 that authorized an additional well in that spacing unit be vacated.

Docket 40-2024

APPLICANT:  GRAYSON MILL OPERATING, LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Grayson Mill Operating, LLC to authorize the drilling of up to three additional horizontal Bakken/Three Forks Formation wells anywhere within the overlapping temporary spacing unit comprised of all of Sections 3, 10, and 15, T28N-R59E, Roosevelt County, Montana, but not closer than 200’ (heel/toe setback) and 500’ (lateral setback) to the exterior boundaries thereof.

Docket 41-2024

APPLICANT:  GRAYSON MILL OPERATING, LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Grayson Mill Operating, LLC to create an overlapping temporary spacing unit comprised of all of Sections 22, 27, and 34, T28N-R59E, Roosevelt County, Montana, to drill a horizontal Bakken/Three Forks Formation well anywhere within said spacing unit but not closer than 200’ (heel/toe setback) and 500’ (lateral setback) to the exterior boundaries thereof. Applicant will apply for permanent spacing within 90 days of successful well completion.

Applicant requests that Board Order 106-2014 pertaining to Sections 27 and 34, T28N-R59E be amended to clarify that said order is limited to oil and associated natural gas produced from the Bakken/Three Forks Formation from the Stateline 14-3427H well and that Order 107-2014 that authorized an additional well in that spacing unit be vacated.

Applicant further requests that Board Order 620-2012 pertaining to Sections 15 and 22, T28N-R59E be amended to clarify that said order is limited to oil and associated natural gas produced from the Bakken/Three Forks Formation from the Stateline 3-1522H well and that Order 621-2012 that authorized an additional well in that spacing unit be vacated.

Docket 42-2024

APPLICANT:  GRAYSON MILL OPERATING, LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Grayson Mill Operating, LLC to authorize the drilling of up to three additional horizontal Bakken/Three Forks Formation wells anywhere within the overlapping temporary spacing unit comprised of all of Sections 22, 27, and 34, T28N-R59E, Roosevelt County, Montana, but not closer than 200’ (heel/toe setback) and 500’ (lateral setback) to the exterior boundaries thereof.

Docket 43-2024

APPLICANT:  GRAYSON MILL OPERATING, LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Grayson Mill Operating, LLC to create an overlapping temporary spacing unit comprised of all of Sections 4, 9, and 16, T28N-R59E, Roosevelt County, Montana, to drill a horizontal Bakken/Three Forks Formation well anywhere within said spacing unit but not closer than 200’ (heel/toe setback) and 500’ (lateral setback) to the exterior boundaries thereof. The applicant will apply for permanent spacing within 90 days of successful well completion.

Applicant requests that Board Order 51-2018 pertaining to Sections 4 and 9, T28N-R59E be amended to clarify that said order is limited to oil and associated natural gas produced from the Bakken/Three Forks Formation from the Danielle 4-9 #1H well.

Applicant further requests that Board Order 317-2012 pertaining to Sections 16 and 21, T28N-R59E be amended to clarify that said order is limited to oil and associated natural gas produced from the Bakken/Three Forks Formation from the Stateline 7-2116H well and that Order 318-2012 that authorized an additional well in that spacing unit be vacated.

Docket 44-2024

APPLICANT:  GRAYSON MILL OPERATING, LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Grayson Mill Operating, LLC to authorize the drilling of up to three additional horizontal Bakken/Three Forks Formation wells anywhere within the overlapping temporary spacing unit comprised of all of Sections 4, 9, and 16, T28N-R59E, Roosevelt County, Montana, but not closer than 200’ (heel/toe setback) and 500’ (lateral setback) to the exterior boundaries thereof.

Docket 45-2024

APPLICANT:  GRAYSON MILL OPERATING, LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Grayson Mill Operating, LLC to create an overlapping temporary spacing unit comprised of all of Sections 21, 28, and 33, T28N-R59E, Roosevelt County, Montana, to drill a horizontal Bakken/Three Forks Formation well anywhere within said spacing unit but not closer than 200’ (heel/toe setback) and 500’ (lateral setback) to the exterior boundaries thereof. The applicant will apply for permanent spacing within 90 days of successful well completion.

Applicant requests that Board Order 27-2014 pertaining to Sections 28 and 33, T28N-R59E be amended to clarify that said order is limited to oil and associated natural gas produced from the Bakken/Three Forks Formation from the Stateline 8-3328H well and that Order 28-2014 that authorized an additional well in that spacing unit be vacated.

Applicant further requests that Board Order 317-2012 pertaining to Sections 16 and 21, T28N-R59E be amended to clarify that said order is limited to oil and associated natural gas produced from the Bakken/Three Forks Formation from the Stateline 7-2116H well and that Order 318-2012 that authorized an additional well in that spacing unit be vacated.

Docket 46-2024

APPLICANT:  GRAYSON MILL OPERATING, LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Grayson Mill Operating, LLC to authorize the drilling of up to three additional horizontal Bakken/Three Forks Formation wells anywhere within the overlapping temporary spacing unit comprised of all of Sections 21, 28, and 33, T28N-R59E, Roosevelt County, Montana, but not closer than 200’ (heel/toe setback) and 500’ (lateral setback) to the exterior boundaries thereof.

Docket 47-2024

APPLICANT:  GRAYSON MILL OPERATING, LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Grayson Mill Operating, LLC to create an overlapping temporary spacing unit comprised of all of Sections 1, 2, 3, 10, 11, 12, 13, 14, and 15, T28N-R59E, Roosevelt County, Montana, to drill a horizontal Bakken/Three Forks Formation well at a location proximate to the common boundary between all of Sections 2, 11, and 14, T28N-R59E and all of Sections 3, 10, and 15, T28N-R59E, with a 200’ heel/toe setback to the exterior boundaries thereof.  The overlapping temporary spacing unit shall be limited to production from the proposed horizontal well, and applicant will apply for permanent spacing within 90 days of successful well completion.

Docket 48-2024

APPLICANT:  GRAYSON MILL OPERATING, LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Grayson Mill Operating, LLC to create an overlapping temporary spacing unit comprised of all of Sections 3, 4, 9, 10, 15 and 16, T28N-R59E, Roosevelt County, Montana, to drill a horizontal Bakken/Three Forks Formation well at a location proximate to the common boundary between all of Sections 3, 10, and 15, T28N-R59E and all of Sections 4, 9, and 16, T28N-R59E, with a 200’ heel/toe setback to the exterior boundaries thereof.  The overlapping temporary spacing unit shall be limited to production from the proposed horizontal well, and applicant will apply for permanent spacing within 90 days of successful well completion.

Docket 49-2024

APPLICANT:  GRAYSON MILL OPERATING, LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Grayson Mill Operating, LLC to create an overlapping temporary spacing unit comprised of all of Sections 22, 23, 24, 25, 26, 27, 34, 35, and 36, T28N-R59E, Roosevelt County, Montana, to drill a horizontal Bakken/Three Forks Formation well at a location proximate to the common boundary between all of Sections 23, 26, and 35, T28N-R59E and all of Sections 22, 27, and 34, T28N-R59E, with a 200’ heel/toe setback to the exterior boundaries thereof.  The overlapping temporary spacing unit shall be limited to production from the proposed horizontal well, and applicant will apply for permanent spacing within 90 days of successful well completion.

Docket 50-2024

APPLICANT:  GRAYSON MILL OPERATING, LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Grayson Mill Operating, LLC to create an overlapping temporary spacing unit comprised of all of Sections 21, 22, 27, 28, 33, 34, T28N-R59E, Roosevelt County, Montana, to drill a horizontal Bakken/Three Forks Formation well at a location proximate to the common boundary between all of Sections 21, 28, and 33, T28N-R59E and all of Sections 22, 27, and 34, T28N-R59E, with a 200’ heel/toe setback to the exterior boundaries thereof.  The overlapping temporary spacing unit shall be limited to production from the proposed horizontal well, and applicant will apply for permanent spacing within 90 days of successful well completion.

Docket 51-2024

APPLICANT:  GRAYSON MILL OPERATING, LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Grayson Mill Operating, LLC to create an overlapping temporary spacing unit comprised of all of Sections 20, 21, 28, 29, 32, and 33, T28N-R59E, Roosevelt County, Montana, to drill a horizontal Bakken/Three Forks Formation well at a location proximate to the common boundary between all of Sections 20, 29, and 32, T28N-R59E and all of Sections 21, 28, and 33, T28N-R59E, with a 200’ heel/toe setback to the exterior boundaries thereof.  The overlapping temporary spacing unit shall be limited to production from the proposed horizontal well, and applicant will apply for permanent spacing within 90 days of successful well completion.

Docket 52-2024

APPLICANT:  PHOENIX OPERATING LLC – ROOSEVELT COUNTY, MONTANA

Upon the application of Phoenix Operating LLC to create a temporary spacing unit comprised of all of Sections 21, 28, and 33, T30N-R59E, Roosevelt County, Montana, to drill a horizontal Bakken/Three Forks Formation well anywhere within said spacing unit but not closer than 200’ (heel/toe setback) and 500’ (lateral setback) to the exterior boundaries thereof.  Applicant will apply for permanent spacing within 90 days of successful well completion. Applicant requests placement on the Default Docket.

Docket 53-2024

APPLICANT:  PHOENIX OPERATING LLC– ROOSEVELT COUNTY, MONTANA

Upon the application of Phoenix Operating LLC to authorize the drilling of up to two additional horizontal Bakken/Three Forks Formation wells anywhere within the temporary spacing unit comprised of all of Sections 21, 28, and 33, T30N-R59E, Roosevelt County, Montana, but not closer than 200’ (heel/toe setback) and 500’ (lateral setback) to the exterior boundaries thereof.  Applicant requests placement on the Default Docket.

Docket 23-2024

9-2024 FED

Continued from February 2024

Application has been continued to the June 2024 hearing

APPLICANT:  CONTINENTAL RESOURCES INC – ROOSEVELT COUNTY, MONTANA

Upon the application of Continental Resources Inc to create an overlapping temporary spacing unit comprised of all of Sections 13, 24, and 25, T28N-R57E, and all of Sections 18, 19, and 30, T28N-R58E, Roosevelt County, Montana, to drill a horizontal Bakken/Three Forks Formation well therein at any location not further than 500’ from the common boundary between all of Sections 13, 24, and 25, T28N-R57E, and all of Sections 18, 19, and 30, T28N-R58E with a 200’ heel/toe setback to the exterior boundaries thereof, provided that operations for the drilling of said well must commence within one year of the date of the order issued by the Board. The overlapping temporary spacing unit shall be limited to production from the proposed horizontal well, and applicant will apply for permanent spacing within 90 days of successful well completion.

BOARD OF OIL AND GAS CONSERVATION
_____________________________________

Jennifer Breton, Program Specialist