🛢️ ALE 2335-6BH

KODA Resources Operating, LLC · Divide County, ND · File #42588 · Generated 2026-02-13 12:33

API: 3302301722
Target Formation: Middle Bakken
Permit Explained: Yes

📋 Permit Cycle Assessment

The permit approval (File No. 42588, dated 2025-12-29) is directly explained by contemporaneous regulatory signals. Commission Order No. 34741 establishes setback geometry and spacing unit constraints that define the approved wellbore path. Aquifer presence triggers mandatory fluid containment (closed mud system, impermeable liner) and site inspection preconditions. State Geologist requirements for core and sample collection from Base of Last Charles Salt onward are binding compliance obligations tied to drilling authorization. Field Inspector notification prior to construction and conductor-setting constraint are event-based preconditions. Remote/automatic shutoff device requirement is standard safety stipulation. These signals collectively justify and condition the approval as a horizontal Bakken development well with modified drilling and containment protocols due to aquifer sensitivity.

🔍 Permit Cycle Signals (5)

Commission Order No. 34741 referenced in permit approval requiring 150' setback from north/south boundaries and 500' setback from east/west boundaries within 2880-acre spacing unit (Sections 22, 23, 26, 27, 34, 35, T161N, R103W).

Direct

📄 APD Stipulations section, NDIC Field Order Info
📅 2025-12-29 (Exact confidence)

Field order setback is the direct regulatory constraint conditioning approval geometry. South setback explicitly based on production liner design with wet shoe and ability to frac out shoe.

Aquifer stipulation: well located on aquifer; onsite inspection required; closed mud system with no drilling pit and impermeable liner required on entire location. Contact NDIC Field Inspector for site-specific stipulations.

Direct

📄 APD Stipulations section, Aquifer stipulation
📅 2025-12-29 (Exact confidence)

Aquifer proximity triggered mandatory drilling fluid containment requirements and site inspection precondition to operations. This is non-routine and differentiates approval conditions.

Remote or automatic shutoff devices required on all equipment (Permit Review Policy stipulation).

Direct

📄 APD Stipulations section, Permit Review Policy
📅 2025-12-29 (Exact confidence)

Safety device requirement is standard but included as direct permit condition.

Conductor may only be set on permitted wells; construction commencement notification required to NDIC Field Inspector Gunther Harms at 701-770-2564 prior to location construction.

Direct

📄 APD Stipulations section, Conditions of Approval and Construction Commencement Notification
📅 2025-12-29 (Exact confidence)

Pre-spud notification requirement and conductor timing constraint are condition precedents to drilling authorization.

Cores and Samples letter (12/29/2025) from State Geologist specifying sample collection from Base of Last Charles Salt at 30-ft intervals (vertical/build) and 200-ft intervals (horizontal); samples due within 30 days of drilling completion; cores due within 180 days.

Direct

📄 State Geologist letter, North Dakota Century Code Section 38-08-04 compliance
📅 2025-12-29 (Exact confidence)

Mandated sample and core collection and submission schedules are binding operational requirements tied to permit approval under ND Century Code. Non-compliance carries civil penalty up to $12,500 per offense.

📖 Historical Context (5)

Surface Use Agreement with Albert & Michelle Metz executed November 5, 2025, covering all injuries or damages from drilling, completion, and production operations for wells on Drillsite Location (NW¼NE¼, Section 23, T161N, R103W).
📄 Affidavit of Surface Use Agreement, dated December 18, 2025 · 📅 2025-11-05
Surface use agreement establishes liability and operational framework that persists through drilling, completion, and production phases. Operator is bound to indemnify surface owner for all well-related damages throughout well life.

KODA Resources holds 83.33% working interest in 2880-acre DSU (Sections 22, 23, 26, 27, 34, 35, T161N, R103W). Majority interest status qualifies operator for waiver of 3-day waiting period and permits self-authorization of adjacent-spacing drilling without Order 31973 operator notification.
📄 Affidavit of Working Interest, dated November 6, 2025; Waiver request letter dated November 11, 2025 · 📅 2025-11-06
Majority working interest status is operational prerequisite for well development strategy and influences drilling sequencing and completion strategy for the 8-well ALE 23 Pad. Ownership structure persists as constraint on operational decisions.

Anti-collision modeling (KLX Anticollision Report, November 5, 2025) documents minimum separation factors and closest-approach distances to offset wells (ALE 2335-1BHN through -8BH, ALE 23-1 SWD, and Johansen 1, Kittelson A-1, Torgerson SWD 1). Ale 2335-5BH shows Level 3 warning at TD (separation factor 1.766); Ale 2335-2BHN shows tightest lateral approach (separation factor 2.267).
📄 KLX Anticollision Report, Offset Summary table and Ladder Plot · 📅 2025-11-05
Anti-collision clearances establish geometric constraints on actual drilling execution. Tight separations (Ale 2335-5BH, Ale 2335-2BHN) require high-precision directional control and geosteering discipline throughout lateral. MWD survey intervals (100 ft vertical, 30 ft curve, ~90 ft lateral) are calibrated to these proximity risks. Violations could trigger inter-well communication or mechanical interference during completion.

Drilling plan (KODA Drilling Plan, dated per KLX report 11/5/2025) specifies 15,412-ft lateral length, KOP at MD 8023.3 ft (TVD 7889.5 ft), lateral build from 12° to 89.63° inclination with turn rates 2.00–12.00°/100 ft, wet-shoe liner cement with ability to frac out toe. MWD used from surface to TD; no coring planned; open-hole log waiver planned.
📄 KODA Drilling Plan, Evaluation Program section; Well Planning Report · 📅 Unknown
Directional design parameters (build rate, azimuth turn, lateral length) are fixed by spacing unit geometry and offset well positions. Wet-shoe liner design and frac-out capability are tied to completion strategy and production risk management. Open-hole log waiver (pending Sundry) affects post-drill petrophysical uncertainty and completion placement confidence.

Filter socks/filtration system containment required on-site from spud through completion/flow-back (May 30, 2025 NDIC letter). Operator must maintain leak-proof, covered container placard'd 'filters only'; alternative waiver available if no filtration system used.
📄 NDIC letter, May 30, 2025, re: Filter Socks and Other Filter Media · 📅 2025-05-30
Filter containment requirement is standing operational mandate for all wells spud after June 1, 2014. Failure to maintain compliant container during drilling and completion phases triggers waste-management violation. Applies throughout drilling and cleanout/completion.

🔧 Operator Pattern

KODA Resources Operating, LLC demonstrates majority or significant working interest control in multi-well pad development (ALE 23 Pad, 8 wells across two DSUs). Operator maintains directional drilling partnerships (KLX Directional) with detailed anti-collision and well-planning protocols. Operator secures executed surface use agreements prior to permit approval and proactively requests regulatory waivers (3-day waiting period, Order 31973 adjacent-spacing notification) based on majority interest standing.
83.33% WI in 2880-acre DSU (ALE 2335-5BH through -8BH); 51.64% WI in 3840-acre DSU (ALE 2335-1BHN through -4BHN). Surface use agreement executed 11/5/2025, prior to permit approval 12/29/2025. Waiver requests submitted 11/6–11/11/2025. Directional scope and anti-collision modeling completed 11/5/2025, in advance of permit cycle. All affidavits (working interest, surface use, pending surface use) dated November 2025, indicating coordinated pre-permit preparation.

Confidence: High
Permit approval date is explicit (12/29/2025). Contemporaneous regulatory letters (State Geologist 12/29/2025, NDIC Field Order via APD Stipulations) are direct and unambiguous. Commission Order 34741 setback requirements and aquifer stipulation are clearly stated in permit. Drilling plan, well-planning report, and anti-collision modeling are dated 11/5/2025, within permit cycle window. Surface use agreement and affidavits are dated 11/5–11/18/2025, establishing pre-permit precedent. No contradictions or missing dates within permit cycle documentation. Historical context (working interest, surface use, anti-collision constraints, directional design) is supported by signed affidavits and technical reports with clear signatures and notary seals.