🛢️ ALE 1534-1BHN

KODA Resources Operating, LLC · Divide County, ND · File #42622 · Generated 2026-02-13 12:33

API: 3302301735
Target Formation: Middle Bakken
Permit Explained: Yes

📋 Permit Cycle Assessment

The permit approval on 2026-01-12 is directly explained by contemporaneous regulatory directives and compliance documentation. The aquifer stipulation and north setback condition arise from site-specific hydrogeology and well geometry submitted in the drilling plan (dated 2025-11-04). The directional drilling plan with anticollision analysis and the Order 31973 waiver request (dated 2025-11-06) directly justify approval of the wellbore design and eliminate third-party notification burden. The operator's certification of majority working interest and executed surface use agreement (dated 2025-10-14 and reaffirmed 2026-01-05) establish prerequisite standing. Core and sample collection requirements (issued 2026-01-12 by State Geologist) are conditioned upon this specific permit approval and specify submission protocols tied to drilling completion. All major permit conditions and stipulations are rooted in contemporaneous pre-permit or time-of-approval technical and legal documentation.

🔍 Permit Cycle Signals (5)

Aquifer stipulation requiring onsite inspection and site-specific conditions (closed mud system, impermeable liner on entire location)

Direct

📄 APD Permit Page 1, Stipulations section, 'Aquifer stipulation'
📅 2026-01-12 (Exact confidence)

Non-routine geotechnical constraint tied to well location hydrology; requires field inspection before drilling operations commence. Directly conditions approval and execution.

North setback (150' from north/south boundaries) conditioned on production liner cemented in lateral with wet shoe and ability to frac out shoe

Direct

📄 APD Permit Page 1, Stipulations, 'Conditions of Approval'
📅 2026-01-12 (Exact confidence)

Non-routine setback justification tied to specific completion design (wet shoe frac-out). Waiver of standard closure requirement if technical conditions fail.

Directional drilling plan with anticollision analysis submitted; waiver requested for Order 31973 (adjacent spacing unit notification) because operator is same for both DSUs

Supporting

📄 KODA letter dated 2025-11-06 to Todd Holweger, NDIC; Anticollision Report dated 2025-11-04
📅 2025-11-06 (Exact confidence)

Anticipatory regulatory compliance document (Order 31973 waiver request) supporting permit approval. Establishes that wellbore traverses adjacent DSU and that operator control eliminates third-party notification requirement.

Core and sample collection requirements issued by State Geologist (sample collection from Base of Last Charles Salt, 30' intervals vertical/build, 200° intervals horizontal; submission within 30 days of drilling completion)

Direct

📄 Letter from Ross Edison, Geologist, ND DMR, dated 2026-01-12, referencing NDCC 38-08-04 and NDAC 43-02-03-38.1
📅 2026-01-12 (Exact confidence)

Mandatory geologic documentation requirement contemporaneous with permit issuance; compliance is regulated penalty-backed obligation ($12,500/day). Explains submission requirements tied to permit approval.

Surface Use Agreement executed effective 2025-10-14; operator certified majority working interest (51.64% Ale 1534-1BHN DSU; 83.33% Ale 1534-5BH DSU)

Supporting

📄 Affidavit of Surface Use Agreement signed by Aly Schuster (dated 2026-01-05); Affidavit of Working Interest signed by Jason McLaren (dated 2025-11-06)
📅 2025-10-14 (Exact confidence)

Pre-permit landowner agreement and working interest certification required for permit approval. Establishes operator standing and surface rights before drilling authorization.

📖 Historical Context (2)

Filter sock and waste containment requirement (North Dakota Administrative Code 43-02-03-19.2) mandating leak-proof, covered containers on-site from spud through flow-back, with disposal at authorized facilities
📄 Letter dated 2025-05-30 from Mark F. Bohrer, Assistant Director, NDIC, distributed industry-wide · 📅 2014-06-01
Regulatory obligation persists across well lifecycle; operator must maintain on-site containment during drilling, completion, and flow-back operations. Non-compliance carries $12,500/day penalty. Forward operational constraint requiring vendor coordination and facility access.

East Goose Lake-Bakken Pool definition established (interval from 50 feet above top of Bakken to 50 feet below top of Three Forks) via Commission Order 34629
📄 APD Permit Page 1, Stipulations section, 'NDIC Field Order Info' · 📅 Unknown
Pool definition is regulatory baseline for spacing, commingling, and production allocation across all wells in unit. Persists independently of this permit and affects future well conversions, transfers, and regulatory reporting.

🔧 Operator Pattern

KODA Resources Operating, LLC demonstrates operational competence and regulatory coordination within multi-well pad development. Operator maintains majority working interest across both DSUs (51.64%–83.33%), has secured surface use agreements with surface owner (Jerry & Cecilia Raum), and proactively requested regulatory waivers (Order 31973) to streamline permitting on same-operator pad.
Working interest affidavit (2025-11-06) documents KODA control of both Ale 1534-1BHN (51.64% WI) and Ale 1534-5BH (83.33% WI); surface use agreement executed 2025-10-14 with surface owner; directional drilling plan and anticollision analysis submitted 2025-11-04 demonstrating technical planning; waiver request for Order 31973 dated 2025-11-06 shows proactive regulatory engagement.

Confidence: High
Permit approval date is explicitly stated as 2026-01-12. All major permit-cycle signals (aquifer stipulation, setback condition, core/sample requirements, working interest certification, surface agreement) are traceable to contemporaneous documents (within 60 days of permit) with exact or inferred dates. Directional drilling plan, anticollision analysis, and Order 31973 waiver request are all dated within permit cycle and explicitly cited or incorporated into permit conditions. No material gaps in documentation chain. Historical context signals are clearly segregated as non-permit-explaining and forward-operative. OCR quality is sufficient to extract regulatory citations, dates, and condition language without ambiguity.