🛢️ ALE 2335-3BHN

KODA Resources Operating, LLC · Divide County, ND · File #42594 · Generated 2026-02-13 12:33

API: 3302301727
Target Formation: Middle Bakken
Permit Explained: Yes

📋 Permit Cycle Assessment

The well file contains explicit contemporaneous documentation justifying the permit approval dated 12/29/2025. The permit is conditioned on (1) NDIC Field Order No. 34629 defining the 3840-acre spacing unit and setback geometry; (2) aquifer-triggered mandatory onsite inspection with closed mud system and impermeable liner requirement; (3) technical justification linking production liner design (wet shoe, frac-out capability) to north setback compliance; (4) post-permit geologist order (12/29/2025) specifying core and sample collection protocols with submission timelines; and (5) anticollision modeling (10/29/2025) demonstrating separation adequacy from offset wells including pad mates and regional producers. All permit-cycle signals are either regulatory orders or engineer/geologist stipulations directly conditioning the approval. No documentation gaps identified.

🔍 Permit Cycle Signals (5)

Aquifer stipulation—onsite inspection required with conditions including closed mud system and impermeable liner on entire location

Direct

📄 APPLICATION FOR PERMIT FOR NEW WELL - HORIZONTAL OIL & GAS, Stipulations section (Page 1 of APD)
📅 Relative to permit approval (Inferred confidence)

Non-routine condition tied to well location on aquifer; regulator-mandated operational constraint conditioning approval

Bakken setback summary statement—north setback based on production liner cemented in lateral with wet shoe and ability to frac out shoe

Supporting

📄 APPLICATION FOR PERMIT FOR NEW WELL - HORIZONTAL OIL & GAS, Stipulations section; Bakken Setback Summary Statement
📅 Relative to permit approval (Inferred confidence)

Explicit technical justification linking casing design to setback compliance; differentiates this approval from routine horizontal wells

NDIC Field Order No. 34629—3840-acre spacing unit defined with 150' north/south and 500' east/west setback requirements

Direct

📄 APPLICATION FOR PERMIT FOR NEW WELL - HORIZONTAL OIL & GAS, Stipulations section, NDIC Field Order Info
📅 Unknown (Missing confidence)

Regulatory order conditioning approval geometry and setbacks; pool definition and spacing unit control permit-cycle decision

Cores and samples requirement—samples to be collected from Base of Last Charles Salt at 30' intervals (vertical/build) and 200' intervals (horizontal), submitted within 30 days; cores within 180 days

Direct

📄 CORES AND SAMPLES letter dated 12/29/2025 from Ross Edison, Geologist, NDIC
📅 2025-12-29 (Exact confidence)

Post-permit geologist-issued order conditioning drilling execution and sample/core submission timelines; operational requirement tied to permit approval

Anticollision modeling submitted demonstrating well path separation from known offsets (Johansen 1, Kittelson A-1, Torgerson SWD, and sibling wells on pad)

Supporting

📄 KLX Anticollision Report, 29 October 2025; summary table shows minimum separation factors ranging 0.696–14.302
📅 2025-10-29 (Exact confidence)

Technical submission supporting directional well approval; demonstrates regulatory requirement for collision avoidance in complex spacing geometry with multiple offset wells

📖 Historical Context (5)

Surface Use Agreement executed 11/5/2025 between KODA and surface owner Albert & Michelle Metz, effective upon affidavit dated 12/18/2025
📄 AFFIDAVIT OF SURFACE USE AGREEMENT, dated 12/18/2025 · 📅 Unknown
Agreement covers injury/damage liability for drilling and completing operations; persists through operational life of wells and affects operator insurance and indemnification posture

Working interest declarations: KODA holds 51.64% WI in 3840-acre DSU (Sections 2, 3, 10, 11, 14, 15 T161N-R103W and Sections 34, 35 T162N-R103W) for ALE 2335-1/2/3/4BHN and 83.33% WI in 2880-acre DSU (Sections 22, 23, 26, 27, 34, 35 T161N-R103W) for ALE 2335-5/6/7/8BH
📄 AFFIDAVIT OF WORKING INTEREST, dated 11/6/2025 · 📅 Unknown
WI percentages determine KODA's liability share, royalty obligations, and rights to production; materially affect economic terms and regulatory compliance (spacing, drilling obligations) beyond this single well

Request for waiver of three-day waiting period and NDIC Order 31973 (adjacent spacing unit notification) granted implicitly by permit issuance; KODA self-identifies as operator of adjacent DSU
📄 Waiver request letter dated 11/11/2025; Waiver request for Order 31973 dated 11/6/2025 · 📅 Unknown
Waiver depends on KODA's dual operator status and majority interest; affects timing of construction start and inter-unit communication obligations; failure to maintain operator status or WI majority could trigger retroactive compliance exposure

Federal minerals notification from NDIC (12/22/2025) indicating spacing unit may be subject to BLM permit; operator directed to contact BLM Dickinson office
📄 Email from Nathaniel Erbele (NDIC Petroleum Engineer) to Amy Doebele, dated 12/22/2025 · 📅 Unknown
Federal permit requirement persists and conditions drilling authority; failure to obtain BLM approval could invalidate operations; operator responsibility to maintain dual compliance (State + Federal) throughout well life

Closed-loop drilling system with cuttings disposal at 13 Mile Landfill, Williston, ND specified in drilling plan; filter sock containment requirement under NDAC 43-02-03-19.2 (effective 6/1/2014)
📄 DRILLING PLAN section 4 (Drilling Fluids Program); Filter Socks letter dated 5/30/2025 · 📅 Unknown
Waste disposal and filtration compliance obligations persist through drilling, completion, and flowback phases; non-compliance subjects operator to civil penalties up to $12,500 per day under NDCC 38-08-16

🔧 Operator Pattern

KODA Resources demonstrates pad-scale development strategy with multi-well, multi-DSU coordination and majority operator control across both spacing units
Eight-well pad (ALE 2335-1BHN through 8BH) developed in coordinated filing and permitting cycle; KODA holds 51.64%–83.33% WI across both DSUs; single surface use agreement with landowner covers all wells; anticollision modeling integrates all sibling wells and regional offsets; waiver requests invoke operator self-interest; working interest affidavit filed contemporaneously for all four wells in each DSU (11/6/2025)

Confidence: High
Complete permit file includes permit application with explicit stipulations, regulator-issued orders, contemporaneous technical submissions (directional plan, anticollision report, drilling plan), post-permit geologist letter, surface agreements, working interest affidavits, and federal minerals notification. All critical conditioning signals are document-backed and dated. No OCR errors observed in key regulatory or technical sections. Permit approval date (12/29/2025) is clearly established. Permit-cycle vs. historical distinction is clean: aquifer stipulation, setback justification, Field Order 34629, cores/samples order, and anticollision modeling are all time-bound to approval; surface agreements, WI declarations, waiver requests, and federal minerals notification are historical context with ongoing operational impact.