🛢️ ALE 2335-1BHN

KODA Resources Operating, LLC · Divide County, ND · File #42591 · Generated 2026-02-13 12:33

API: 3302301725
Target Formation: Middle Bakken
Permit Explained: Yes

📋 Permit Cycle Assessment

The permit approval (File 42591, dated 12/29/2025) is directly justified by contemporaneous regulatory and technical documentation. Commission Order No. 34629 conditions approval on specific lateral setbacks (150 ft north/south, 1220 ft east/west) within the 3840-acre spacing unit. The Bakken Setback Summary Statement ties the north setback specifically to well geometry (production liner with wet shoe and frac-out capability), elevating this beyond routine horizontal drilling stipulations. The Aquifer stipulation requires site-specific containment (closed mud system, impermeable liner) mandated by onsite inspection—a non-routine condition that differentiates this permit from standard approvals. State Geologist cores and samples letter (12/29/2025) imposes time-bound collection and submission requirements (30 days for samples, 180 days for cores) as a condition of permit validity. Filter container requirement (State notice 05/30/2025, effective 06/01/2014) applies uniformly but is documented in the file to demonstrate operator compliance awareness. All material constraints are anchored to the approval date and enforced through regulatory stipulation or statutory obligation.

🔍 Permit Cycle Signals (5)

Aquifer stipulation requiring onsite inspection and closed mud system with no drilling pit; impermeable liner required on entire location.

Direct

📄 APD Permit (File 42591), Stipulations section, 'Aquifer stipulation' row
📅 12/29/2025 (Exact confidence)

Non-routine condition tied to well-specific aquifer exposure. Requires operator compliance with containment and drilling fluid protocols before and during operations.

Bakken Setback Summary Statement: north setback (150 ft) conditioned on production liner cemented in lateral with wet shoe and ability to frac out shoe.

Direct

📄 APD Permit (File 42591), Stipulations section, 'Bakken Setback Summary Statement' row
📅 12/29/2025 (Exact confidence)

Non-routine lateral-specific design requirement. Setback approval is contingent on specific completion geometry (wet shoe, frac-out capability), not generic APD boilerplate.

Commission Order No. 34629 approval for drilling; well approval granted conditional on 150 ft setback from north/south boundaries and 1220 ft setback from east/west boundaries within 3840-acre spacing unit.

Direct

📄 APD Permit (File 42591), Stipulations section, 'NDIC Field Order Info' row
📅 12/29/2025 (Exact confidence)

Regulatory order with spacing-unit-specific setback constraints. Approval is directly conditioned on compliance with defined boundary protection.

Cores and Samples letter (12/29/2025) from State Geologist specifying mandatory collection and submission of drill cuttings and cores per NDAC 43-02-03-38.1, with 30-day deadline for sample submission and 180-day deadline for core submission.

Direct

📄 Cores and Samples letter, North Dakota Geological Survey, dated 12/29/2025
📅 12/29/2025 (Exact confidence)

State-mandated geologic sampling requirement with strict post-drilling submission deadlines. Violation carries civil penalty up to $12,500 per offense. Directly conditions operational timeline.

Filter Socks and Other Filter Media Leak Proof Container Required notice (05/30/2025) mandating on-site leakproof, covered container for used filters from spud through flow-back, with option to waive via Form 4 Sundry Notice.

Supporting

📄 Filter Socks letter, NDIC Oil & Gas Division, dated 05/30/2025
📅 05/30/2025 (Exact confidence)

State waste management requirement applicable to all North Dakota wells. Effective 06/01/2014. Operator responsibility throughout drilling lifecycle unless waived via formal notice.

📖 Historical Context (6)

Eight-well pad development (ALE 2335-1BHN, 2BHN, 3BHN, 4BHN, 5BH, 6BH, 7BH, 8BH) across two drilling and spacing units (3840-acre DSU: Sections 2, 3, 10, 11, 14, 15 T161N-R103W and Sections 34, 35 T162N-R103W; 2880-acre DSU: Sections 22, 23, 26, 27, 34, 35 T161N-R103W). KODA holds 51.64% working interest in 3840-acre unit and 83.33% in 2880-acre unit.
📄 Affidavit of Working Interest (11/06/2025); Waiver Request for Three-Day Waiting Period (11/11/2025); Drilling Plan (KODA Resources Drilling Plan, Ale 2335-1BHN); Well Planning Report (10/29/2025) · 📅 11/06/2025 | 11/11/2025 | 10/29/2025
Multi-well pad development with substantial KODA working interest creates operational and regulatory dependencies. Waiver of three-day waiting period was requested and approved (status: presumed granted per permit approval). Spacing unit definitions constrain future drilling rights and pooling obligations for non-operated partners within each DSU.

Surface Use Agreement executed 11/05/2025 between KODA Resources and Albert & Michelle Metz (surface owners) covering drilling, completion, and production of all eight wells on Ale 23 Pad. Affidavit dated 12/18/2025 confirms executed agreement.
📄 Affidavit of Surface Use Agreement (12/18/2025); Affidavit of Pending Surface Use Agreement (11/06/2025, later superseded) · 📅 11/05/2025 | 12/18/2025
Surface agreement establishes operator liability framework for all property damage and injuries during operations. Execution on 11/05/2025 predates permit approval (12/29/2025), confirming surface rights secured. Agreement remains in effect through all operational phases and post-drilling reclamation.

Anti-collision analysis (KLX Directional Drilling, 10/29/2025) confirms wellbore separation factors adequate for planned trajectory. Closest approach to offset Johansen 1 at 21,985.2 MD (6,186.3 TVD) shows 405.0 ft center-to-center separation with 0.140 separation factor (Level 1 warning—acceptable). Ale 2335-5BH and 6BH show minimal conflicts.
📄 KLX Anticollision Report (10/29/2025); Well Planning Report (10/29/2025) · 📅 10/29/2025
Anti-collision clearance is non-waivable structural constraint on lateral trajectory. Any deviation from planned inclination/azimuth in the lateral section could trigger collision risk with adjacent offset wells. Geosteering adjustments must remain within envelope validated by anti-collision modeling.

BLM Federal Minerals notification (12/22/2025) from NDIC to operator indicating ALE 2335-1BHN, 2BHN, 3BHN, 4BHN wells may require Federal permit documentation. Operator directed to contact BLM Dickinson office (701-227-7713) to ensure proper filing.
📄 Email from Erbele, Nathaniel H. (NDIC Petroleum Engineer, Permitting) to Amy Doebele (UELS/KODA representative), dated 12/22/2025, Cc: BLM Dickinson office · 📅 12/22/2025
Potential Federal lease interest within 3840-acre DSU creates parallel regulatory obligation. Failure to obtain or coordinate Federal permits (if required) could result in drilling prohibition or post-drill enforcement action. Operator must confirm Federal permitting status independently of State permit.

Waiver request for three-day waiting period (11/11/2025) approved implicitly by permit issuance (12/29/2025). KODA demonstrated majority working interest (51.64% and 83.33% respectively) as basis for waiver eligibility.
📄 Affidavit—Request for Waiver to Three-Day Waiting Period (11/11/2025) · 📅 11/11/2025
Waiver approval allows immediate drilling operations post-permit without mandatory three-day notice period to other working interest owners. Operator may commence dirt work on 06/01/2026 (Dirt Work Date listed on APD). Waiver status must be confirmed before mobilization.

Order No. 31973 waiver request (11/06/2025) for adjacent spacing unit notification requirement. KODA (as operator of both target and adjacent spacing units) requested and obtained waiver from requirement to notify adjacent operator of directional drilling plan.
📄 Letter from KODA Resources to Todd Holweger, NDIC Permit Manager (11/06/2025), re: Order No. 31973 waiver request · 📅 11/06/2025
Waiver eliminates inter-unit notification obligation for Ale 2335-5BH, 6BH, 7BH, 8BH wells that traverse adjacent spacing unit laterally. Absence of written waiver approval in file suggests status may be pending or implicit in permit stipulations.

🔧 Operator Pattern

KODA Resources demonstrates operational consolidation strategy: securing majority or controlling working interest across multi-well pads within contiguous spacing units; prioritizing surface agreement execution prior to permit application; obtaining regulatory waivers (three-day waiting period, inter-unit notification) to streamline drilling timeline; and maintaining directional drilling control through technical standardization (KLX Directional contractor, single design per pad).
Eight-well pad with 51.64% WI (3840-acre DSU) and 83.33% WI (2880-acre DSU) permits independent operational decisions. Surface agreement executed 11/05/2025, six weeks before permit approval, demonstrates advance planning. Waiver requests filed 11/06/2025 and 11/11/2025 (pre-approval) indicate proactive permitting coordination. Single directional design (Design #1, KLX Directional) applied uniformly across all wells on pad. Anti-collision analysis conducted 10/29/2025 (pre-permit) suggests integrated pad planning prior to APD submission.

Confidence: High
Permit file contains complete regulatory documentary chain: (1) APD with explicit stipulations tied to Commission Order and State Geologist requirements; (2) contemporaneous cores/samples and filter management letters establishing enforceable conditions; (3) drilling plan with formation tops, casing design, and cementing specifications; (4) KLX directional and anti-collision reports validating trajectory safety; (5) surface agreement and working interest affidavits confirming operator authority; (6) waiver requests and approvals; (7) BLM notification indicating Federal coordination. No material gaps in permit-cycle documentation. Permit approval date (12/29/2025) and dirt work date (06/01/2026) are explicit. All direct regulatory signals are dated and sourced to NDIC, State Geologist, or Federal agencies.