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FIL APR 2 5 2016
ECRETARY, BOARD OF OIL, GAS a MIMNO
BEFORE THE BOARD OF OIL, GAS AND MINING DEPARTMENT OF NATURAL RESOURCES
STATE OF UTAH
IN THE MATTER OF THE REQUEST FOR AGENCY
ACTION OF CRESCENT POINT ENERGY U.S.
CORP FOR AN ORDER AUTHORIZING THE
FLARING OF GAS IN EXCESS OF THE AMOUNTS
ALLOWED UNDER UTAH ADMIN. CODE RULE
R649-3-20(I.l) FROM THE GARDNER STATE 1-26-
3-2E WELL LOCATED IN THE NE~NE~ OF
SECTION 26 IN TOWNSHIP 3 SOUTH, RANGE 2
EAST, USM, UINTAH COUNTY, UTAH
PETITIONER'S EXHIBITS
Docket No. 2016-012
Cause No. 131-145
Pursuant to Utah Admin. Code Rule R641-1 05-500, Petitioner Crescent Point
Energy _u.s. Corp ("CPE"), by and through its counsel of record, Beatty & Wozniak, P.C.,
hereby respectfully submits the following exhibits intended to be offered into evidence in
support of its Request for Agency Action ("RAA") at the May 25, 2016 hearing on this
cause:
EXHIBIT "A"- CPE's witnesses' resumes (collectively 2 pages):
• Derek Pimm -Landman • Katherine Matthews - Sr. Development Engineer
EXHIBIT "B" - General reference location plat ( 1 page).
EXHIBIT "C" - Plat reflecting location of well in subject Section 26 and mineral and leasehold ownership (1 page).
EXHIBIT "D" - Plat reflecting planned pipeline from existing pipeline to the 1-26 Well (1 page).
EXHIBIT "E" - Approval by Division for continued testing with total amounts flared not to exceed SOMMCF (3 pages).
2193.32
EXHIBIT "F" - True and correct copies of return receipts indicating, as of April 25, 2016, receipt of a copy of the RAA by all parties identified in the Certificate of Service dated April 12, 2016, on file in this cause (to be supplemented prior to hearing) (1 page).
EXHIBIT "G" - Actual Production ofthe 1-26 Well (1 page).
EXHIBIT "H" - Gas Analysis of the 1-26 Well (also previously submitted as Exhibit "2" to the RAA) (1 page).
EXHIBIT "I" - Projected Production of the 1-26 Well (1 page).
EXHIBIT "J"- Economic Evaluation including a description of the amount of gas used in lease operation (1 page).
EXHIBIT "K" - Flaring Justification (1 page).
Respectfully submitted this 251h day of April, 2016.
By:
BEATTY & WOZNIAK, P.C.
;:.; David P. Bolda 5406 W. 11000 N., Suite 103-221 Highland, UT 84003 Telephone: (801) 676-2311 Facsimile: (800) 886-6566 E-Mail: [email protected] Attorneys for Petitioner Crescent Point Energy U.S. Corp
2
Education
Derek 0. Pimm 555 171
h Street, Suite 1800, Denver, CO 80202 (303) 308-6275
Denver University - Completed - Spring 2012 -Certificate in Petroleum Land Management
University of Oklahoma- May 2009 graduation -Bachelor of Arts & Sciences in Economics -Minor in Political Science & History
Work History Crescent Point Energy U.S. Corp- Denver, CO (September 2014- Present)
Senior Sw·face Landman Responsible for acquiring Surface Use and Right-of-Way Agreements necessary for Oil and Gas operations in company's assets. Manage Surface Land team as well as brokers for company's assets in Utah, North Dakota and Colorado. Ensure community relations among Land Owners are kept in good standing as well as understanding the company's goals.
Noble Energy Inc.- Greeley, CO (January 2012 - September 2014) Lead Operations Landman - Subsequent Operations
Help coordinate and schedule recompletion and integrity operations that include setting retrievable bridge plugs, increasing cement coverage in the annulus to completely cover water aquifers, casing repairs, pumping unit installation, as well as plug & abandonment of the well for Noble Energy wells in the Wattenberg Field of the DenverJulesberg basin. Negotiate with Land Owners of Weld County, Colorado in reference to surface issues that include Surface Use Agreements and Right Of Ways, well site location, property damage, as well as ingress and egress. Communicate to multiple departments within Noble Energy, ensuring that each work over rig is moving efficiently, Land Owners were properly notified according to requirements of the State of Colorado, and handling special projects in a timely manner.
Paschal .Energy Services- Douglas, WY (November 2010- January 2012) Field Landman
Successfully chained title while assisting with cmative and leasing efforts. rn a short time was able to gain respect from colleagues and earn a position on a review committee that was responsible for quality work turned into our client. Became a liaison to the Bureau of Land Management for the Brokerage and gained organizational skills that were needed to maintain a good relationship. Was quickly rewarded with leadership roles that helped the Brokerage achieve a common goal of great quality work after just a few months.
Colorado State Capitol - Denver, CO (20 10 Legislative Session)
Organizations
Legislative Aide Successfully managed the office of a Colorado State Representative by handling communications while interacting with walk-in constituents as well as other Representatives and political supporters. Skills gained included experience in an office environment, maintaining schedules, and professional interaction with many people.
American Association of Petroleum Landmen- AAPL (member since December 2010) Denver Association of Petroleum Landmen- DAPL (member since August 201 1)
EXIDBIT A- Docket No. 2016-012 Cause No. 131-145
WORK HISTORY 20 13-present
2009-2013
2008
2007
2006
EDUCATION 2005-2009
2001 -2005
OTHER
Katherine Matthews 555 17 Street, Suite 1800 • Denver, CO 80202 USA
CRESCENT POINT ENERGY U.S. CORP. Denver, USA Senior Development Engineer • Lead engineer for CPG's Utah properties- championed and executed a $175MM budget in 2015 • Accountable for meeting production, capital, and operating expense targets - lead a multi-disciplinary
team to meet these goals • Perform A&D evaluations for assets and competitors in the Uintah Basin, completed a $90MM deal
and have valued properties ranging from $1MM-$750MM • Provide engineering expert testimony at Utah Board of Oil and Gas hearings for initiatives such as
waterfloods and horizontal well development - have met with several Congressmen and Senators regarding Utah's oil and gas development
• Spearhead Utah's year end reserves process, provide semi-annual updates to the Board of Directors • Represent CPG at career fairs, screen resumes, interview candidates, and mentor engineering interns • Organize Denver Mission and Habitat for Humanity volunteering for the Engineering team
TALISMAN ENERGY INC. Reservoir Engineer • Optimized Chauvin 's legacy Mannville waterflood • Coordinated and evaluated year end reserves • Assessed land sale opportunities with volumetrics and numerical simulation • Mentored reservoir engineering students and represented Talisman at career fairs
Calgary, Canada
• Lead the Christmas Hamper program for two years for the North America Conventional group
TALISMAN ENERGY INC. Geology Summer Student
NEXEN INC. Summer Student
SHININGBANK ENERGY INCOME FUND LTD. Summer Student
Calgary, Canada
Calgary, Canada
Calgary, Canada
QUEEN'S UNIVERSITY Kingston, Canada Bachelor of Applied Science, Geological Engineering, First Class Honours • Dean's Scholar & Dean's Award (2006, 2007, 2008, & 2009) • Teacher's Assistant for APSC 151 , Earth Systems & Engineering (2007 & 2008) • iCon, Engineering Building Student Constable (2007-2009) • Corporate Sponsorship Manager for the Science Formal (2008) • ThankQ Student Alumni Representative, Grad Gift Coordinator (2008-2009)
HA VERGAL COLLEGE Toronto, Canada • First Soprano in the Havergal Choir (2001-2005) • Student Council and Community Council Member (2003-2005)
• Born in Canada - American and Canadian dual citizen • Successfully wrote and passed the CFA Level I examination in June 2012 • Over six years of international upstream oil and gas experience, Professional Engineer registered with
the Association of Professional Engineers and Geoscientists of Alberta
• Have testified at six Utah Oil, Gas, & Mining hearings to date - the last being December 9, 2015 (Docket No. 2015-026, Cause No. 131-141 )
~rdn~r Stet~ 12·25-3-2E Locatio1 Map UntuhCourq.~
MapC.Aied..lanu:~ry20.201S
~ Gardnef State 12-:z5.3-2E Pad * Cities and Towns
- MajorRoads
0 1.25 2.5 Miles
Minerals: State of Utah -100%
Unit WI (40 acres): Crescent Point Energy- 35% Bill Barrett Corp. - 65%
Ce Crescent Point
u !: m
~
Cp Crescent Point
Q
• i
Sundry Number : 70942 API Well Number: 43047551080000
FORM 9
STATE OF UTAH DEPARTMENT OF NATURAL RESOURCES -- -. --
DIVISION OF OIL, GAS, AND MINING 5.LEASE DESIGNATION AND SERIAL NUMBER: ML 49888
SUNDRY NOTICES AND REPORTS ON WELLS 6. IF INDIAN, ALLOTTEE OR TRIBE NAME:
Do not use this form for proposals to drill new wells, significantly deepen existing wells below current bottom-hole depth, reenter plugged wells, or to drill horizontal laterals. Use APPLICATION 7.UNIT orCA AGREEMENT NAME:
FOR PERMIT TO DRILL form for such proposals. -· - -
1. TYPE OF WELL 8. WELL NAME and NUMBER: Oil Well Gardner State 1-26-3-2E
-- - - . -2. NAME OF OPERATOR: 9. API NUMBER: CRESCENT POINT ENERGY U.S. CORP 43047551080000
3. ADDRESS OF OPERATOR: PHONE NUMBER: 9. FIELD and POOL or WILDCAT: 555 17th Street, Suite 750 , Denver, CO, 80202 720 880-3621 Ext UN DESIGNATED
4. LOCATION OF WELL COUNTY: FOOTAGES AT SURFACE: UINTAH
0840 FNL 0657 FEL --- --- ------ ··-----QTRIQTR, SECTION, TOWNSHIP, RANGE, MERIDIAN: STATE:
Qtr/Qtr: NENE Section: 26 Township: 03 .0S Range: 02.0E Meridian: U UTAH
- -. -11.
CHECK APPROPRIATE BOXES TO INDICATE NATURE OF NOTICE, REPORT, OR OTHER DATA
TYPE OF SUBMISSION TYPE OF ACTION
D ACIDIZE D ALTERCASING 0 CASING REPAIR
../ NOTICE OF INTENT
0 CHANGE T O PREVIOUS PLANS D CHANGE TUBING Approximate date work will s tart : D CHANGE WELL NAME
7/29/2015 D CHANGE WELL STATUS 0 COMMINGLE PRODUCING FORMATIONS D CONVERT WELL TYPE
0 SUBSEQUENT REPORT 0 DEEPEN 0 FRACTURE TREAT D NEW CONSTRUCTION Date of Work Completion:
0 O PERATOR CHANGE 0 PLUG AND ABANDON D PLUGBACK
0 SPUD REPORT
D PRODUCTION START OR RESUME 0 RECLAMATION OF WELL SITE D RECOMPLETE DIFFERENT FORMATION
Date of Spud: 0 REPERFORATE CURRENT FORMATION D SIDETRACK TO REPAIR WELL D TEMPORARY ABANDON
0 TUBING REPAIR ,f VENT OR FLARE D WATER DISPOSAL
D DRILLING REPORT 0 WATER SHUTOFF 0 SJ TA STATUS EXTENSION D APO EXTENSION Report Date:
D WILDCAT WEll DETERMINATION D OTHER OTHER: I. I --
12. DESCRIBE PROPOSED OR COMPLETED OPERATIONS. Clearly show all pertinent detai ls including dates, depths, volumes, etc.
The Gardner State 1-26-3-2E reported first production on Approved by the August 1, 2015. At that time, and through the present date, Utah Division of
the Gardner State 1-26-3-2E was not connected into pipeline Oil, Gas and Mining
infrastructure and as a result, produced associated gas has Date: April 18, 2016
been flared but gas production was under the 1800 MCF a \)Y\. v:_ Oevt month limit. Crescent Point Energy ("CPE") plans to build a By:
pipeline to the well , and other wells in the surrounding area, but the Gardner State 1-26-3-2E is still flaring due to lack of
federal permit approvals for the connecting pipelines. continued on attachment Please Rrl·itw Attached Conditions of Appronl
- - -. -NAME (PLEASE PRINT) PHONE NUMBER TITLE Valari Crary 303 880-3637 Drilling And Completion Tech
-·-SIGNATURE DATE N/ A 4/5 /2016
-- ---
EXHIBIT E - Docket No. 2016-012 Cause No. 131-145
RECEIVED: Apr. 05, 2016
Sundry Number : 70942 API We ll Number: 43047551 080000
Oil, G"S & MINING
The Utah Division of Oil , Gas, and Mining
- State of Utah - Department of Natural Resources
Electronic Permitting System - Sundry Not ices
Sundry Conditions of Approval Well Number 43047551080000
Operator should take all steps available to conserve or market gas that will not cause waste or create adverse impact to the well or producing reservoi r. Total flared amount should not exceed
50 MMCF (R649-3-20-3 .2).
RECEIVED : Apr. 18, 2 016
Sundry Number : 70942 API Well Number: 43047551080000
The Gardner State 1-26-3-2E reported first production on August 1, 2015. At that time, and through the
present date, the Gardner State 1-26-3-2E was not connected into pipeline infrastructure and as a
result, produced associated gas has been flared but gas production was under the 1800 MCF a month
limit. Crescent Point Energy ("CPE") plans to build a pipeline to the well, and other wells in the
surrounding area, but the Gardner State 1-26-3-2E is still flaring due to lack of federal permit approvals
for the connecting pipelines. The Gardner State 1-26-3-2E was recently re-completed and subsequent
thereto, produced gas volumes increased significantly so that it is now above the 1800 MCF per month
limit. The produced gas volumes for March 2016 was approximately 9,824.6 MCF. The expected gas
volumes for April and May, when a formal Board Request for Agency Action can be heard, are not
expected to exceed 11,000 MCF per month. CPE does not want to choke this well back as it is an
exploratory well and is meant to test and understand the productive capabilities of the area.
Additionally, as CPE recently re-completed the well, it wants to understand the contribution of the
uphole formations that were re-completed. CPE will file a Request for Agency Action by April11, 2016,
to seek approval from the Board to flare, which will be heard on May 25, 2016. However, CPE is
concerned that shutting-in the well until the date of the hearing risks a reduction of long term ultimate
recovery and possible formation damage. CPE respectfully requests approval from the Division to
temporarily flare from the Gardner State 1-26-3-2E above the 1800 MCF per month limit until the May
25, 2016 hearing date.
RECEIVED: Apr. 05, 2016
SENDER: COMPLETE THIS SECTION
• Complete items 1 , 2, and 3. Also complete item 4 if Restricted Delivery is desired.
111111111111 Ill I llllllllllll\11111111111111111
1. Article Addressed to:
¥ The State of Utah School and ~ Institutional Trust Lands Administcation
~
Attn: LaVonne J. Garrison -675 East 500 South, Suite 500 Salt Lake City, UT 84102
7015 173D DODO 4672 3316
COMPLETE THIS SECTION ON DELIVERY
A. Signature~ ~- . • ~ be-Agent
X /--..•D,.I-• ~ DAddressee
B. Receivef&-;-.! ~~ I C~i7 ~ t;r; D. Is delivery address different from item 1? 0 Yes
If YES, enter delivery address below: D No
3. Service Type 0 Certified Mail 0 Express Mall 0 Registered 0 Return Receipt for Merchandise
0 Insured Mail 0 C.O.D.
4. Restricted Delivery? (Extra Fee) 0 Yes
PS Form 3811, February 2004 Domestic Return Receipt 102595-02·M·1540 I
EXHIBIT F- Docket No. 2016-012 Cause No. 131-145
Cp Crescent Point
Gardner State 1-26-3-2E Production Chart 600.00
550.00
500.00
450.00
400.00
>: 350.00 Cll ;g
..c e 3oo.oo ,_
~ 250.00
200.00
150.00
100.00
50.00 I 1
---- --~r
l_
Randlett Operated Wells 01-26-03-02E GARDNER ST
0 .00 07/01/2015 07/29/2015 08/26/2015 09/22/2015 10/20/2015 11/17/2015 12/14/2015 01/11/2016 02/08/2016 03/06/2016
- Oil Production Gross (bbl/d)
- Oil Cut (%)
Date
- Water Production (bbl/d)
GOR (mscf/bbl)
Apr 09, 2016, 2:37PM VISAGET"
- Gas Production Gross (mcf/d)
20.00
Ci) 0 ;u
10.00 3 Ill 0 ~
~
5.00
0.00
" t: m
~
Gas Analysis GARDNER 1-26-3-2E 11-09-2015.txt Print Date Time: 11/09/2015 08:22
Analyzed By: Range Hunt Meter ID: GARDNER 1-26-3-2E
GARDNER 1-26-3-2E 11-09-2015 11-09-2015
Analysis Time: 11/09/2015 08:07 Flowing Temp.: 43 Deg. F calibration Elevation: 5060 ft
Camp
Propane Hydrogen sulfide IsoButane Butane NeoPentane IsoPentane Pentane Hexane+ Nitrogen Methane carbon Dioxide Ethane Hexane Heptane+ Heptane octane Nonane+ Nonane De cane undecane Dodecane EthanePropane + oxygen water Helium Hydrogen
UnNorm %
7.81573 0 . 00000 1. 20581 2.84151 0.00534 0.75967 0.89772 0.38020 0.39517
74.47227 0.66597
10.76837 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0 . 00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
Normal %
7.79952 0.00000 1. 20331 2.83562 0.00533 0.75809 0.89586 0.37941 0 . 39435
74.31789 0.66459
10.74605 0.37941 0.00000 0.00000 0 . 00000 0 . 00000 0.00000 0.00000 0.00000 0 . 00000 0.00000 0 . 00000 0.00000 1. 74067 0.00000 0.00000
sample Type: Spot Flowing Pressure: 42 psig Location Elevation: 4783 ft
Liquids (USgal/MCF)
2.15755 0.00000 0.39538 0.89762 0.00196 0 .27838 0.32607 0.00000 0.04356
12.65068 0.11388 2.88565 0.15666 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0 . 00000 0.00000 0.00000 0.00000
Ideal Rel. Density (Btu/SCF)
196.24384 0.00000
39.13042 92.50630 0. 21316
30.33051 35.91225 0.00000 0.00000
750.61060 0.00000
190.17276 18 . 04428
0.00000 0.00000 0.00000 0.00000 0.00000 0 . 00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
0 . 11875 0.00000 0.02415 0.05691 0 . 00013 0.01888 0 . 02232 0.00000 0.00381 0.41165 0 . 01010 0.11157 0.01129 0.00000 0.00000 0 . 00000 0.00000 0 . 00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000 0.00000
Total 100 . 20776 100.00000 19 . 90741 1353.16406 0.79270 Elevation (+277ft) -0.42393
Inferior Wobbe 1506.1644 (Btu/SCF) (Btu/SCF)
compressibility 0.9957 (lbm/ft3)
Real Rel. Density 0.7927 (Btu/SCF)
Wet CV 1338.5457 (Btu/SCF) (Btu/SCF)
contract Temp. 60.0000 (deg F)
Number of Cycles 3 Atmospheric Pressure 12
Page 1
EXHIBITH
superior Wobbe 1529 . 9750
Density 0.0607
Ideal cv 1353.1641
Dry cv 1362 .1906
Contract Press. 14 . 7300 (psi a)
Connected Stream 1
Cp Crescent Point
Gardner State 1-26-3-2E Ultimate Recovery
~ 6' \2.
* 0::
a
€!XX)
5CXXl
1<XXl -1
-1 -
!'£Xl -
1 100
eo """'
i
10 -
8
GARDNER_STATE_1-26-3-2E
/ \ I
~ .
'
.. .. .. ..
Wor1<ing Forecast Parameters Phase : Oil Case Name : Case1 b : 1.2 Di : 0 .659856 A. e. qi : 107.093 bbl/d ti : 02/01/2016 te : 07/31/2060 Final Rate : 1.99862 bbl/d Cum. Prod. : 19.398 Mbbl
I Cum. Date : 02/01/2016 Resel'\eS : 107.899 Mbbl Resel'\eS Date : 07/31/2060 EUR : 127.297 Mbbl Forecast Ended By : Rate
I DB Forecast Date : 04/01/2016 Reser..e Type : None J
... .. .. . .. .. .. .. .. ~OODNER STAlE 1-26-:>21:
- roi( dltd )
CV.CDLIQ( bWd ) OICU(%)
r----r- ""T'-- -- 16
2015 Date ~' --- 17
H !:: fD
~
Gas Disposition Options
Gas Pipeline Alternatives: • Gas re-injection (storage) • Gas re-injection {EOR) • Electrical generation
~ All require extremely high capital investment ~ All would have 2-3+ years of permitting
• Lease use ~ Well produces more than the equipment requirE ~ Current production "'300 mcf/d, expected usage
mcf/d
Gas Pipeline (preferred option) : • CPG constructed riverbore in Ql 2015 • Now waiting on NEPA and various permit approvals • Six to eight week construction once approved
b
!: £D
~
Cp Crescent Point
Flaring Justification Operationa I:
• There is always a risk that when a well is shut-in it may not come back- especially with the nature of the waxy crude in the Uintah Basin.
• Additionally, shutting in wells costs capital to both shut them in (filling the annulus with scale inhibitor, etc.) and to start them back up (rig work/hot oil jobs).
Exploration: • In 2015, CPG drilled five wells east of its core property in
Randlett- the 1-26-3-2E produces from State minerals. • Since recompleting the 1-26, it is now one of the most
successful wells drilled in East Randlett- in order to understand the future potential of this acreage and the productivity of the recompleted zones, the well needs to remain on production.
• Once the pipeline is approved, CPG will tie this well in.
~
1-iii :E rl1