🛢️ ALE 2335-2BHN

KODA Resources Operating, LLC · Divide County, ND · File #42593 · Generated 2026-02-13 12:33

API: 3302301726
Target Formation: Middle Bakken
Permit Explained: Yes

📋 Permit Cycle Assessment

The permit approval (File No. 42593, dated 12/29/2025) is contemporaneously explained by multiple regulator-issued conditions and operator submissions. The permit is anchored to Commission Order No. 34629, which establishes mandatory setbacks (150' north/south, 500' east/west) within a defined 3840-acre spacing unit. The operator's well design—specifically the production liner with wet shoe and frac-out capability—provides the technical justification for the north setback variance and is cited as a stipulation condition. Site-specific aquifer status triggered a requirement for closed mud system and impermeable liner. The State Geologist's letter (same approval date) mandates sample collection protocols and 30-day submission timelines as binding operational conditions. Pre-permit anti-collision modeling (10/29/2025) documented via KLX Directional Report confirms separation factors of 0.240–0.578 against known offsets, justifying the trajectory within the spacing unit. All signals directly condition or support the approval; no gaps in contemporaneous documentation exist.

🔍 Permit Cycle Signals (5)

NDIC Field Order Info – Commission Order No. 34629 approval conditioned on setback compliance (150' north/south, 500' east/west) within defined 3840-acre spacing unit.

Direct

📄 Application for Permit for New Well – Horizontal, Stipulations section
📅 2025-12-29 (Exact confidence)

Permit approval explicitly conditions drilling on adherence to Commission-ordered setback geometry tied to spacing unit boundaries. Non-compliance voids approval.

Bakken Setback Summary Statement – north setback justified by production liner cemented in lateral with wet shoe and ability to frac out the shoe.

Supporting

📄 Application for Permit for New Well – Horizontal, Stipulations section
📅 2025-12-29 (Exact confidence)

Technical stipulation tying well design (wet shoe, frac-out capability) to regulatory setback requirement. Establishes mechanistic justification for the 150' north setback variance.

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

Direct

📄 Application for Permit for New Well – Horizontal, Stipulations section
📅 2025-12-29 (Exact confidence)

Site-specific regulatory condition triggered by aquifer presence. Requires operational modifications (closed system, liner) before drilling. Directly conditions permit approval.

Core and samples letter from State Geologist (12/29/2025) – mandates sample collection at 30' intervals (vertical/build) and 200' intervals (horizontal); submission to state library within 30 days of drilling completion.

Direct

📄 Letter from Ross Edison, State Geologist, dated 12/29/2025, re: CORES AND SAMPLES
📅 2025-12-29 (Exact confidence)

Regulator-issued operational mandate tied to permit approval date. Establishes binding timeline (30-day submission deadline) and sampling protocol that must be complied with during drilling operations.

Anti-collision avoidance modeling submitted and passed; closest approach to offset wells (Johansen 1, Kittelson A-1, Torgerson SWD 1) maintains separation factors ≥0.240 at critical TVD intervals; all offsetspass warning thresholds.

Supporting

📄 KLX Anticollision Report, 29 October 2025; Summary table and Ladder Plot
📅 2025-10-29 (Exact confidence)

Pre-permit technical submission (dated before 12/29/2025 approval) justifying well geometry and trajectory design. Demonstrates compliance with offset well avoidance requirement implicit in spacing unit definition and Commission Order 34629.

📖 Historical Context (5)

East Goose Lake-Bakken Pool definition – pool interval defined from 50 feet above top of Bakken Formation to 50 feet below top of Three Forks Formation (per permit stipulation).
📄 Application for Permit for New Well – Horizontal, Stipulations section, 'NDIC Field Order Info' · 📅 Unknown
Pool boundary definition is a structural constraint that persists for all future production, regulatory reporting, unit classifications, and unitization disputes. Any future amendments to the pool definition or spacing unit would require re-evaluation of this well's compliance.

Surface Use Agreement with Albert & Michelle Metz executed 11/5/2025; affidavit dated 12/18/2025 confirms agreement covers all injuries/damages from drilling, completing, and producing operations.
📄 Affidavit of Surface Use Agreement, dated 12/18/2025 · 📅 Unknown
Surface use obligations persist for the life of the well. Surface owner has contractual recourse for operational impacts. Non-compliance could trigger injunctions or claims affecting well operability beyond permitting phase.

Working interest certification (11/6/2025): KODA holds 51.64% WI in 3840-acre DSU (Sections 2, 3, 10, 11, 14 & 15, T161N-R103W; Sections 34 & 35, T162N-R103W) and 83.33% WI in 2880-acre DSU (Sections 22, 23, 26, 27, 34 & 35, T161N-R103W).
📄 Affidavit of Working Interest, dated 11/6/2025 · 📅 Unknown
Working interest structure affects future revenue distribution, voting rights in unit operations, and responsibility for abandonment costs. Minority interest holders may have regulatory or contractual claims on operator actions. Changes to WI (farmouts, assignments) require disclosure to NDIC and may trigger re-permitting obligations.

Waiver requests submitted: (1) Waiver from NDIC Order 31973 (11/6/2025) – operator is self-justified as adjacent DSU operator; (2) Waiver of three-day waiting period (11/11/2025) – approved by implication in permit issuance.
📄 Letter from KODA to Todd Holweger re: Order 31973 waiver, 11/6/2025; Affidavit–Request for Waiver to Three-Day Waiting Period, 11/11/2025 · 📅 Unknown
Approval of waivers establishes regulatory precedent for inter-DSU drilling without third-party notice. Future wells within same pad or DSU may reference these waivers. Failure to maintain operator status in adjacent DSU could trigger requirement to reinstate third-party notification.

Federal mineral interest notification (12/22/2025, email from ND Geological Survey) – wells flagged as potentially subject to Federal permit; operator directed to contact BLM Dickinson office (701-227-7713) to ensure documentation properly filed.
📄 Email from Nathaniel H. Erbele (NDIC Petroleum Engineer, Permitting) to Amy Doebele, dated 12/22/2025 · 📅 Unknown
Federal lease or mineral ownership may co-exist within spacing unit. Failure to obtain or comply with Federal APD requirements could result in well shut-in, lease default, or civil penalties. BLM approval status is not confirmed in well file; operator must maintain separate Federal compliance record.

🔧 Operator Pattern

KODA Resources Operating, LLC is the operator of a pad-based development program (8-well ALE 23 pad) with multi-DSU footprint in Divide County, ND. Majority interest holder (51.64–83.33% WI) in two distinct spacing units. Demonstrates advance planning: coordinated surface use, pre-spud anti-collision modeling, waiver requests, directional survey protocols, and compliance certifications (working interest, surface owner agreements) submitted prior to permit issuance. All documentation executed with notarized affidavits (Denver, Colorado notary); legal representation consistent across well files.
Eight wells permitted as coordinated pad (ALE 2335-1BHN through 8BH, plus disposal well ALE 23-1 SWD); single surface location (NWNE Sec 23, T161N, R103W); integrated pad layout, rig schematic, and access road design submitted; KLX Directional modeling covers all wells simultaneously; single Surface Use Agreement covers all wells; waiver documentation references all eight wells as unified development program.

Confidence: High
Permit approval date is anchored (12/29/2025). All substantive permit conditions are explicitly stated in the Application for Permit and cross-referenced to Commission Order No. 34629. State Geologist letter and aquifer stipulation both dated 12/29/2025, confirming contemporaneity. Pre-permit technical submissions (anti-collision report 10/29/2025, drilling plan, directional surveys, casing design, wellbore trajectory) are internally consistent and cross-referenced. Regulatory conditions (setback, aquifer, cores/samples, BOP, closed systems) are standard for Bakken horizontal drilling and clearly documented. Surface use and working interest affidavits are notarized and dated within 30 days of permit issuance. No conflicting or missing documentation identified. Federal mineral notice (12/22/2025) indicates post-issuance regulatory check; no blocking issue apparent in well file.