ORDER / CASE NO: ORDER NO. 3-2013 ORDER / NOTICE ?· order / case no: order no. 3-2013 order / notice…

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  • ORDER / CASE NO: ORDER NO. 3-2013

    ORDER / NOTICE OF

    RECOMMENDATION TYPE: SPACING

    COUNTY: HARDING

    LOCATION(S): T. 21N., R. 3E., ALL OF SECS. 3 AND 10

    T. 22N., R. 3E., W1/2 SEC. 24, W1/2 SEC. 25

    OPERATOR: CONTINENTAL RESOURCES, INC.

    DATE ORDER ISSUED: 03/19/2013

    DATE ORDER CLOSED:

    AMENDS: ORDER NOS. 2, 2-1978, 7-1983, 13-1997, AND 8-2001

    AMENDED BY:

    APPROVAL STATUS: APPROVED

    FIELD NAME: BUFFALO FIELD

    UNIT NAME:

  • DEPARTMENT of ENVIRONMENT and NATURAL RESOURCES

    PMB 2020 JOE FOSS BUILDING 523 EAST CAPITOL

    PIERRE, SOUTH DAKOTA 57501-3182

    www.state.sd.usklenr GREAT FACES. GREAT RACES

    March 20, 2013

    Lawrence Bender Fredrikson & Byron, P.A. 200 North Third Street, Suite 150 Bismarck, ND 58501-3879

    Dear Mr. Bender:

    The Department of Environment and Natural Resources received three applications from your office filed on behalf of Continental Resources, Inc., Oklahoma City, OK Oil and Gas Case Nos. 1-2013, 3-2013 and 4-2013. Because there was no intervention, Continental's applications were approved administratively by the Secretary of the Department of Environment and Natural Resources in accordance with South Dakota Codified Laws 45-9-74. Enclosed are the approved orders.

    If you have any questions regarding the orders, please feel free to contact me at 605.773.4201 or email at bob.townsendstate.sd.us. Thank you.

    Sincerely,

    Robert Townsend, Administrator Minerals and Mining Program

    Enclosures

  • STATE OF SOUTH DAKOTA DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

    BOARD OF MINERALS AND ENVIRONMENT

    IN THE MATTER OF THE APPLICATION OF CONTINENTAL RESOURCES, INC. FOR AN ORDER OF THE BOARD AMENDING BOARD ORDER NOS. 2, 2-78, 7-83, 13-97 AND 8-01 TO AMEND THE FIELD RULES FOR THE BUFFALO FIELD SO AS TO ESTABLISH A 1280-ACRE SPACING UNIT COMPRISED OF SECTIONS 3 AND 10, TOWNSHIP 21 NORTH, RANGE 3

    OIL AND GAS

    EAST, AND TO ESTABLISH A 640-ACRE

    CASE NO. 3-2013 SPACING UNIT COMPRISED OF THE W/2 OF SECTION 24 AND THE W/2 OF SECTION 25, TOWNSHIP 22 NORTH, RANGE 3 EAST, ORDER BUFFALO FIELD, HARDING COUNTY, SOUTH DAKOTA; AND ALLOW THE DRILLING OF ONE HORIZONTAL WELL TO THE RED RIVER "B" POOL ON EACH SPACING UNIT NOT LESS THAN 500 FEET TO THE SPACING UNIT BOUNDARY AND FOR OTHER RELIEF AS THE BOARD DEEMS APPROPRIATE.

    SECRETARY'S ORDER UNDER SDCL 45-9-74

    A Petition and Application of Continental Resources, Inc. ("Continental") was submitted

    to the South Dakota Board of Minerals and Environment ("Board") on January 24, 2013. The

    Board prepared and published a Notice of Opportunity for Hearing. The Board received no

    notice of intervention to said application. Therefore, pursuant to SDCL 45-9-74, SDCL 45-9-20

    through -29, ARSD 74:12:02:06, and based upon Continental's application and supporting

    documents, the Secretary makes and enters the following Order:

    Continental is the owner of an interest in the oil and gas leasehold estate in portions of

    the following described lands, Harding County, South Dakota:

  • Township 21 North. Range 3 East Section 3: All Section 10: All

    Township 22 North, Range 3 East Section 24: W/2 Section 25: W/2

    (the "Subject Lands")

    That by Board Order Nos. 2, 2-78, 7-83, 13-97, 20-97, 8-01 and 2-10, the Buffalo Field

    is comprised of the following described lands, Harding County, South Dakota:

    Township 22 North, Range 3 East Sections 13, 24, 25, 26, 33, 34, 35 and 36

    Township 22 North, Range 4 East Sections SW % of Section 2, 3, 5, 7, 8, 9, 10, W/2 of Section 11, 16, 17, 18, 19, 20, 21, 28, 29, 30, 31, 32, 33 and 34

    Township 21 North, Range 3 East Sections 1, 2, 3, 4, 9,10, 11, 12, 13, 14, 15, 16, 21, 22, 23, 24, 25, 26, 27, 28, 33, 34, 35 and 36

    Township 21 North, Range 4 East Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 and 36

    Township 21 North, Range 5 East Sections 6, 7, 17, 18, 19 and 20

    Township 20 North, Range 3 East Sections 1, 12 and the NE% of Section 13

    Township 20 North, Range 4 East Sections 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 32, 33, 34, 35 and 36

    Township 20 North, Range 5 East Sections 6, 7, 18, 19, 30 and 31

    2

  • That Continental desires to utilize the horizontal drilling technique to test and further

    develop the "B" zone of the Red River Formation, in and under the Subject Lands.

    Continental has requested that the Board amend its prior orders, including without

    limitation of Board Order Nos. 2, 2-78, 7-83, 13-97 and 8-01 to amend the field rules for the

    Buffalo Field so as to establish a 1280-acre spacing unit comprised of Sections 3 and 10,

    Township 21 North, Range 3 East, and to establish a 640-acre spacing unit comprised of the W/2

    of Section 24 and the W/2 of Section 25, Township 22 North, Range 3 East, Buffalo Field,

    Harding County, South Dakota; and allow the drilling of one horizontal well to the Red River

    "B" Pool on each spacing unit not less than 500 feet to the spacing unit boundary.

    Use of the horizontal drilling technique to test and further develop the "B" zone of the

    Red River Formation will increase the ultimate recovery of the reservoir in a manner which will

    prevent waste, protect correlative rights and prevent the drilling of unnecessary wells.

    IT IS THEREFORE ORDERED

    A. That the Board amend the field rules for the Buffalo Field so as to establish a 1280-

    acre spacing unit comprised of Sections 3 and 10, Township 21 North, Range 3 East, and to

    establish a 640-acre spacing unit comprised of the W/2 of Section 24 and the W/2 of Section 25,

    Township 22 North, Range 3 East, Buffalo Field, Harding County, South Dakota, and allow the

    drilling of one horizontal well to the Red River "B" Pool on each spacing unit not less than 500

    feet to the spacing unit boundary.

    B. This Order amends prior orders of the Board concerning the above described land,

    including without limitation Order Nos. 2, 2-78, 7-83, 13-97 and 8-01.

    3

  • C. That all portions of previous orders of the Board, if any, which are not specifically

    amended by this Order remain in full force and effect until further order of the Board or

    Secretary.

    D. That upon filing all required further information and forms with the Department of

    Environment and Natural Resources, a drilling permit may be issued for a horizontal oil and gas

    well on each proposed spacing unit, as requested above.

    Dated and signed this 19th day of March 2013.

    Steven M. Pirner Secretary Department of Environment and Natural Resources

    4

  • RECEIVED MAR 1 1 2013

    DEPT OF ENVIRONMENT & NATURAL RESOURCES - RAPID CITY Fredrikson

    & BYRON, P.A.

    March 7, 2013

    Mr. Robert Townsend Administrator Minerals and Mining Program Department of Environment and Natural Resources 2050 West Main, Suite #1 Rapid City, SD 57701

    RE: CASE NO. 3-2013 Continental Resources, Inc.

    Dear Mr. Townsend:

    Please find enclosed herewith an Affidavit of Service by Mail with attached list of persons notified, the green certified return receipts, and any envelopes which were returned as being undeliverable, in regard to the captioned matter.

    If you should have any questions, pl e advise.

    LAWREN ENDER

    LB/leo

    Enclosure

    cc: Ms. Christi Wood (w/o enc.) Via Email 5337389_1.doc

    Attorneys & Advisors

    Fredrikson & Byron, P.A.

    main 701.221.4020

    200 North Third Street, Suite 150

    fax 701.221.4040

    Bismarck, North Dakota www.fredlaw.corn

    58501-3879

    MEMBER OF THE WORLD SERVICES GROUP OFFICES:

    A Worldwide Network of Professonal Servree Provedets Minneapolis / Bismarck / Des Moines / London / Monterrey, Mexico / Shanghai

  • STATE OF SOUTH DAKOTA

    RECEIVED MAR 1 1 2013

    DEPT OF ENVIRONMENT & NATURAL. RESOURCES - RAPID CITY

    DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES

    BOARD OF MINERALS AND ENVIRONMENT CASE NO. 3-2013

    IN THE MATTER OF THE APPLICATION OF CONTINENTAL RESOURCES, INC. FOR AN ORDER OF THE BOARD AMENDING BOARD ORDER NOS. 2, 2-78, 7-83, 13-97 AND 8-01 TO AMEND THE FIELD RULES FOR THE BUFFALO FIELD SO AS TO ESTABLISH A 1280-ACRE SPACING UNIT COMPRISED OF SECTIONS 3 AND 10, TOWNSHIP 21 NORTH, RANGE 3 EAST, AND TO ESTABLISH A 640-ACRE SPACING UNIT COMPRISED OF THE W/2 OF SECTION 24 AND THE W/2 OF SECTION 25, TOWNSHIP 22 NORTH, RANGE 3 EAST, BUFFALO FIELD, HARDING COUNTY, SOUTH DAKOTA; AND ALLOW THE DRILLING OF ONE HORIZONTAL WELL TO THE RED RIVER "B" POOL ON EACH SPACING UNIT NOT LESS THAN 500 FEET TO THE SPACING UNIT BOUNDARY AND/OR SUCH FURTHER AND ADDITIONAL RELIEF AS THE BOARD DEEMS APPROPRIATE.

    AFFIDAVIT OF SERVICE BY MAIL

    STATE OF NORTH DAKOTA ) ) ss.

    COUNTY OF BURLEIGH

    Stephanie Sweet, being first duly sworn, deposes and says that on the 5th day of February, 2013, she served the attached:

    NOTICE OF OPPORTUNITY FOR HEARING; and PETITION AND APPLICATION OF CONTINENTAL RESOURCES, INC.

    by placing a true and correct copy thereof in an envelope addressed as follows:

    See attached Exhibit A

  • StephaqiieSweet

    and depositing the same, with postage prepaid, certified mail, return receipt requested, in the United States mail at Bismarck, North Dakota.

    Subscribed and sworn to before me this 5th day of February, 2013.

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