🛢️ ALE 1534-5BH

KODA Resources Operating, LLC · Divide County, ND · File #42621 · Generated 2026-02-13 12:33

API: 3302301734
Target Formation: Middle Bakken
Permit Explained: Yes

📋 Permit Cycle Assessment

The permit approval is conditioned and explained by five non-routine permit-cycle signals: (1) an aquifer presence requiring onsite inspection and closed mud system with impermeable liner (direct regulatory stipulation); (2) setback requirements justified by completion design (wet shoe, frac-out capability); (3) mandatory cores and samples collection per state statute, with 30–180 day shipping deadlines; (4) anti-collision analysis dated 11/4/2025 confirming clearance of offset wells with level 3 warning for Ale 1534-1BHN; and (5) a waiver to Order 31973 based on operator control of both target and adjacent spacing units. The well's horizontal geometry (24,164 ft MD, 15,495 ft lateral) and multi-section spacing unit (2,880 acres) are explained by directional design and working interest consolidation. The permit approval on 1/12/2026 is time-bound to completion of these pre-drilling justifications and conditions.

🔍 Permit Cycle Signals (5)

Aquifer stipulation requiring onsite inspection and closed mud system with no drilling pit and impermeable liner on entire location. Additional site-specific stipulations may be added at Field Inspector discretion.

Direct

📄 APD Stipulations section, page 1 of 10
📅 2026-01-12 (Exact confidence)

Aquifer presence is a non-routine environmental constraint conditioning approval. Operator must contact NDIC Field Inspector Gunther Harms (701-770-2564) prior to location construction for site-specific conditions. This is a direct regulatory stipulation tied to well geometry and location risk.

Setback requirement: 150' from north & south boundaries, 500' from east & west boundaries within the 2880-acre spacing unit (Sections 22, 23, 26, 27, 34, 35, T161N, R103W). South setback is based on production liner cemented in lateral with wet shoe and ability to frac out shoe.

Direct

📄 APD Stipulations section, page 1 of 10
📅 2026-01-12 (Exact confidence)

Setbacks are tied to completion design (wet shoe, frac-out capability) and spacing unit geometry. The south setback justification references specific well design features, elevating this beyond routine boilerplate.

Cores and samples requirement per North Dakota Century Code Section 38-08-04: samples to be collected from Base of Last Charles Salt at 30' intervals (vertical/build) and 200' intervals (horizontal); samples to be shipped within 30 days; cores within 180 days. Violation subject to civil penalty up to $12,500 per day.

Direct

📄 CORES AND SAMPLES letter dated 1/12/2026 from State Geologist
📅 2026-01-12 (Exact confidence)

Regulatory mandate from State Geologist conditioning drilling operations. Non-compliance carries statutory penalty. This is a direct operational and post-drilling obligation tied to permit approval.

Anti-collision analysis completed 11/4/2025. KLX Directional Drilling report confirms wellbore path clears offset wells (Ale 15-1 SWD, Ale 1534-1BHN, Honker 15-34, L. Kittelson 3) with separation factors ranging from 1.87 to >15. Ale 1534-1BHN shows minimum level 3 warning at MD 8478.3 with separation factor 1.870.

Supporting

📄 KLX Anticollision Report dated 11/4/2025, Summary table, page 2
📅 2025-11-04 (Exact confidence)

Anti-collision modeling is a pre-permit technical submission required by North Dakota spacing and directional drilling rules. The report documents clearance of adjacent wellbores and identifies one approach-warning (Ale 1534-1BHN at TVD 8358', SF 1.870) which is a Level 3 threshold. This analysis directly supports approval of the non-standard spacing unit configuration.

Request for waiver to NDIC Order 31973 (adjacent spacing unit notification requirement). KODA is operator of both the target spacing unit (Sections 22, 23, 26, 27, 34, 35, T161N, R103W) and the adjacent spacing unit into which the wellbore enters (Sections 2, 3, 10, 11, 14, 15, T161N, R103W and Sections 34, 35, T162N, R103W). Waiver request dated 11/6/2025.

Supporting

📄 KODA letter dated 11/6/2025 re: Order 31973 waiver; Waiver affidavit dated 11/14/2025
📅 2025-11-06 (Exact confidence)

The well's directional geometry requires it to enter an adjacent spacing unit. This triggers Order 31973 notification obligation. KODA's self-waiver (as operator of both units) is a permit-cycle justification for non-standard well configuration. Affirmed by affidavit of working interest (51.64% in DSU 1, 83.33% in DSU 2) dated 11/6/2025.

📖 Historical Context (3)

Surface Use Agreement executed effective 10/14/2025 between KODA and Jerry & Cecilia Raum (surface owners). Affidavit of Surface Use Agreement dated 1/5/2026 confirms execution.
📄 Affidavit of Surface Use Agreement dated 1/5/2026 · 📅 2025-10-14
Surface agreement is a pre-condition to drilling operations and remains in effect throughout well life. Any breach or modification affects operator liability and lease continuity.

Filter socks and waste disposal requirements per North Dakota Administrative Code Section 43-02-03-19.2 (effective 6/1/2014). Operator must maintain leakproof, covered containers for filter disposal on-site during drilling, cleanout, completion, and flowback.
📄 NDMC letter dated 5/30/2025 re: Filter Socks and Other Filter Media · 📅 2025-05-30
Standing regulatory obligation for all wells. Non-compliance subject to enforcement. Affects waste management plan and operational procedures throughout drilling and completion phases.

Federal permit notification. Spacing unit (Sections 22, 23, 26, 27, 34, 35, T161N, R103W) may be subject to federal minerals. Operator directed to contact BLM Dickinson office (701-227-7713) to ensure proper federal documentation filed.
📄 Email from Todd L. Holweger, NDIC, dated 1/7/2026 · 📅 2026-01-07
Federal mineral royalty and compliance obligations may attach to the well depending on federal parcel status in spacing unit. Failure to obtain federal permits or comply with federal requirements could result in operational shutdown or liability. Forward-looking obligation.

🔧 Operator Pattern

KODA Resources Operating, LLC demonstrates consolidated operatorship and working interest consolidation across multiple spacing units in the Daneville field. The company holds 51.64% WI in the northern DSU (Sections 2, 3, 10, 11, 14, 15, T161N, R103W; Sections 34, 35, T162N, R103W) and 83.33% WI in the target DSU (Sections 22, 23, 26, 27, 34, 35, T161N, R103W), enabling self-waiver of Order 31973 notification. Well design reflects operational maturity: multi-stage hydraulic frac, plug-and-perf completion, MWD surveying with 30–90 ft intervals, and full anti-collision analysis.
Affidavit of Working Interest (11/6/2025); APD drilling plan specifying lateral stimulation, tie-back frac string backup, and directional design; anti-collision report with offset well clearance analysis; surface use agreement executed on schedule.

Confidence: High
File contains complete permit issuance package (APD dated 1/12/2026, approval letter, stipulations), comprehensive pre-permit technical submissions (KLX anti-collision report, directional drilling plan, well location plat, pad layout, casing design), regulatory correspondence (State Geologist cores/samples letter, NDIC aquifer stipulation, BLM federal minerals notification), and operator affidavits (surface use agreement, working interest, Order 31973 waiver). All key permit-cycle signals are documented with specific dates, well geometry, and regulatory citations. No material gaps in contemporaneous explanation of permit approval. Historical context is clearly bounded and does not conflate with permit-cycle signals.