🛢️ ALE 2335-7BH

KODA Resources Operating, LLC · Divide County, ND · File #42589 · Generated 2026-02-13 12:33

API: 3302301723
Target Formation: Middle Bakken
Permit Explained: Yes

📋 Permit Cycle Assessment

The permit approval is justified by: (1) NDIC Field Order No. 34741, which defines setback boundaries and casing design constraints specific to the 2880-acre spacing unit and non-routine wet-shoe completion; (2) regulator-imposed aquifer stipulation requiring closed mud system and impermeable liner, conditioned on onsite inspection before construction; (3) anti-collision modeling demonstrating wellbore path clearance from 8 adjacent offset wells on the ALE 23 pad, with separation factors exceeding Level 2 thresholds for most critical offsets (Ale 2335-6BH: 1.920 SF); and (4) geologist-issued cores and samples directive establishing evaluation program parameters. Surface use agreement executed 12/18/2025 (affidavit dated same date) satisfies operator authorization requirement. Directional drilling plan and casing design are contemporaneous technical submissions supporting geometry approval. All permit stipulations are time-bound to the approval anchor date (12/30/2025) and operationally binding.

🔍 Permit Cycle Signals (5)

Aquifer stipulation with onsite inspection requirement conditioning permit approval; closed mud system and impermeable liner required on entire location.

Direct

📄 APD Permit Page 1, Stipulations section
📅 2025-12-30 (Exact confidence)

Non-routine operational constraint tied directly to well location hydrogeology. Regulator-imposed condition binding on drilling operations.

NDIC Field Order No. 34741 defines setback geometry (150' north/south, 500' east/west) within 2880-acre spacing unit and specifies production liner cemented with wet shoe and ability to frac out.

Direct

📄 APD Permit Page 1, Stipulations (NDIC Field Order Info and Bakken Setback Summary)
📅 2025-12-30 (Exact confidence)

Regulator order conditions casing design and cement program specific to this well geometry and spacing unit boundary risk. Non-standard wet-shoe completion tied to setback constraint.

Anti-collision avoidance modeling submitted on pad; directional survey plan with MWD geosteering intervals specified (100 ft vertical, 30 ft build, ~90 ft lateral).

Supporting

📄 Drilling Plan Section 5 (Evaluation Program); KLX Anticollision Report dated 10/29/2025
📅 2025-10-29 (Exact confidence)

Technical submission demonstrating offset well clearance and wellbore path justification. Anticollision report shows separation factors and closest-approach analysis to 8 adjacent wells on pad, with minimum separation factor of 1.920 (Ale 2335-6BH). Supports permit geometry approval.

Geologist-issued cores and samples directive (12/30/2025) requiring sample collection from Base of Last Charles Salt at 30' intervals (vertical/build) and 200' intervals (lateral); samples to state library within 30 days of drilling completion.

Direct

📄 North Dakota Geological Survey letter dated 12/30/2025 from Ross Edison, Geologist
📅 2025-12-30 (Exact confidence)

Regulator-mandated evaluation program conditioning operations. Time-bound requirement tied to drilling completion milestone.

Construction commencement notification requirement: operator must contact NDIC Field Inspector Gunther Harms (701-770-2564) prior to location construction.

Direct

📄 APD Permit Page 1, Stipulations (Construction Commencement Notification)
📅 2025-12-30 (Exact confidence)

Explicit procedural gate tied to aquifer location designation. Regulator retains right to impose site-specific conditions post-approval.

📖 Historical Context (4)

Waiver from NDIC Order 31973 (adjacent spacing unit notification) granted implicitly through permit approval. KODA Resources is operator of both drilling and spacing units (3840-acre DSU in Sections 2, 3, 10, 11, 14 & 15 T161N-R103W and Sections 34 & 35 T162N-R103W; and 2880-acre DSU in Sections 22, 23, 26, 27, 34 & 35 T161N-R103W).
📄 Letter from Aly Schuster, KODA, dated 11/06/2025; Affidavit of Working Interest dated 11/06/2025 (51.64% in northern DSU; 83.33% in southern DSU) · 📅 Unknown
Operator control of both spacing units removes inter-unit notification obligation and supports pad development strategy. Working interest percentages establish operator authority for all 8 wells on ALE 23 pad.

Three-day waiting period waiver approved (implicit in 12/30/2025 permit). KODA requested waiver on 11/11/2025 citing majority working interest and operational efficiency for 8-well pad development.
📄 Affidavit—Request for Waiver to Three-Day Waiting Period, dated 11/11/2025, with acknowledgment by Notary Public 11/14/2025 · 📅 Unknown
Permits construction commencement immediately upon inspector notification (contingent on aquifer site inspection). Accelerates pad development timeline for all wells.

Filter sock and solid waste disposal requirement (NDAC 43-02-03-19.2): leak-proof container on location during spud, cleanup, completion, and flowback. Operator must maintain container effective 06/01/2014 forward.
📄 ND DMR letter dated 05/30/2025 from Mark F. Bohrer, Assistant Director, Oil and Gas Division · 📅 Unknown
Ongoing operational requirement for waste management throughout drilling and completion phases. Not waived for this well. Non-compliance carries civil penalty up to $12,500 per day.

Federal permit coordination for wells within spacing unit. NDIC email from Nathaniel Erbele (12/22/2025) to operator advising that ALE 2335-5BH, 6BH, 7BH, and 8BH may be subject to Federal permit in 2880-acre DSU; operator directed to contact BLM Dickinson office (701-227-7713).
📄 Email from N. Erbele (nherbele@nd.gov) dated 12/22/2025 14:22 UTC · 📅 Unknown
Federal minerals coordination required post-permit approval. Operator must secure BLM clearance before drilling. Unresolved federal permit status creates execution risk.

🔧 Operator Pattern

KODA Resources Operating, LLC is majority or sole operator of a contiguous 8-well pad development with coordinated directional drilling across two spacing units. Company demonstrates capacity for large-scale multi-well permitting, anti-collision planning, and regulatory compliance across state/federal jurisdictions.
Working interest: 51.64% in northern 3840-acre DSU (4 wells: ALE 2335-1BHN through 4BHN); 83.33% in southern 2880-acre DSU (4 wells: ALE 2335-5BH through 8BH). Single pad layout with shared facilities, access road, and containment system (313,790 BBL secondary capacity). Surface use agreement executed with single landowner (Albert & Michelle Metz) for all 8 wells. Directional design by KLX shows sophisticated survey intervals and geosteering capability (MWD from surface to TD with 100 ft vertical, 30 ft build, ~90 ft lateral intervals).

Confidence: High
File contains complete, contemporaneous permit-cycle documentation: (1) explicit NDIC Field Order defining setback geometry and casing constraints; (2) State Geologist directive on samples/cores dated same day as permit approval; (3) aquifer stipulation with construction gate; (4) anti-collision report with dated submission (10/29/2025) prior to permit approval; (5) surface use agreement affidavit dated 12/18/2025, within 12 days of permit approval. No material gaps in permit justification. Federal minerals coordination flag (12/22/2025) is post-approval and does not retroactively invalidate state permit, but creates forward-looking execution contingency. All dates are stated explicitly in source documents; no inferred dates. Directional drilling plan, casing design, and cementing program are fully specified. Anticollision analysis provides quantified separation factors and identifies closest-approach well (Ale 2335-6BH at 1.920 SF, Level 3 warning at TD), supporting geometry approval rationale.