🛢️ PETERSON 22-15-10-3 1H

Phoenix Operating LLC · Williams County, ND · File #42623 · Generated 2026-02-13 12:33

API: 3310506773
Target Formation: Middle Bakken
Permit Explained: Partially

📋 Permit Cycle Assessment

The permit approval is grounded in two contemporaneous regulatory inputs: (1) NDIC Order 34633, which conditions approval on specific setback geometry (150'/500') tied to the well's design (production liner cemented in lateral with wet shoe/frac-out capability); (2) State Geologist requirement (1/12/2026) mandating cores and sample collection per NDCC § 38-08-04 and NDAC § 43-02-03-38.1. The backbuild waiver request (1/8/2026) documents that the drilling design deviates from standard spacing unit boundaries and triggers NDIC Order 31848 notification protocol. However, the file does not contain explicit NDIC approval of the backbuild waiver or a formal waiver grant letter; the permit approval language does not reference the waiver request by date or document ID. Pool definition and routine stipulations (closed mud system, remote shutoff devices, construction notification) are present but are standard boilerplate absent non-routine modification. The permit is explained by design-specific setback justification and geologist-mandated sampling, but the regulatory basis for accepting the out-of-spacing-unit drilling geometry is not documented in this file.

🔍 Permit Cycle Signals (4)

Permit approval issued under Commission Order No. 34633 with explicit setback conditions (150' north/south, 500' east/west) within 2560-acre spacing unit. Setback basis tied to production liner cemented in lateral with wet shoe and ability to frac out toe.

Direct

📄 APD Form, STIPULATIONS section, NDIC Field Order Info
📅 2026-01-04 (Inferred confidence)

Setback stipulation is non-routine: justified by specific well design (wet shoe, frac-out capability) rather than standard spacing rules. Indicates design review informed approval.

Cores and samples requirement letter issued contemporaneous to permit (1/12/2026). Geologist (Ross Edison) mandated collection of sample cuttings at Base of Last Charles Salt with 30' intervals (vertical/build) and 200' intervals (horizontal). Samples must be submitted within 30 days of drilling completion; cores within 180 days.

Direct

📄 Letter dated 1/12/2026 from Ross Edison, State Geologist
📅 2026-01-12 (Exact confidence)

Regulatory requirement explicitly tied to this well file (File No. 42623). Establishes compliance obligation during and post-drilling. Violation penalty up to $12,500 per day per NDCC § 38-08-16.

Backbuild order waiver request (letter dated 1/8/2026) submitted by Phoenix regulatory team stating that 'proposed wells are planned to enter the Bakken Petroleum System outside the target spacing unit' and requesting relief under NDIC Order 31848 (adjacent spacing unit notification). No other operators in proposed unit identified.

Supporting

📄 Letter from Jessica Wentz (Phoenix Regulatory Specialist) dated 1/8/2026 to Todd Holweger (NDIC Permit Manager)
📅 2026-01-08 (Exact confidence)

Waiver request anticipates drilling geometry that deviates from spacing unit boundary. Submitted immediately pre-approval (4 days before permit). Indicates NDIC awareness of backbuild trajectory before final approval.

Grenora-Bakken Pool definition established in permit stipulations: accumulation from 50 feet above top of Bakken to 50 feet below top of Three Forks Formation. Defines regulatory target and completion boundaries.

Supporting

📄 APD Form, STIPULATIONS section, NDIC Field Order Info
📅 2026-01-04 (Inferred confidence)

Pool definition is standard but necessary precondition for spacing unit validation and setback compliance verification.

📖 Historical Context (2)

NDIC suspension order issued 1/14/2026 (10 days after permit approval). Koda Resources Operating LLC has requested Commission revocation of five Peterson permits (42623, 42624, 42625, 42626, 42627) effective immediately under NDAC § 43-02-03-16.2. Hearing scheduled February 2026. Mobilization, conductor setting, spudding prohibited.
📄 Letter from Todd L. Holweger (NDIC Sr. Permit Manager) dated 1/14/2026 · 📅 2026-01-14
Permit approval (1/4/2026) was invalidated by suspension order (1/14/2026) ten days later. This well (42623) is now under revocation proceeding; drilling operations are suspended pending Commission hearing outcome. The permit approval is operationally inert. Forward execution of this well is contingent on favorable NDIC decision in revocation case.

Filter socks and waste disposal requirement (regulatory letter dated 5/30/2025 from Mark F. Bohrer, Assistant Director). Effective 6/1/2014, all wells must maintain leak-proof, covered containers on-site for filter storage during drilling, completion, and flowback. Containers must be placard-labeled. Disposal must occur at authorized facility per NDAC § 43-02-03-19.2 and state waste transport permits required per NDAC § 33.1-20-02.1-01.
📄 Letter dated 5/30/2025 from Mark F. Bohrer (NDIC Assistant Director) to all operators · 📅 Unknown
Broad operational requirement applicable to all ND wells during drilling and completion phases. Applies to this well at spud and through flowback. Violation is waste disposal breach subject to civil penalty. Not waived in this permit.

🔧 Operator Pattern

Phoenix Operating LLC appears as permit applicant with demonstrated regulatory engagement: (1) submitted contemporaneous backbuild waiver request (1/8/2026) with transparent notification of out-of-spacing geometry; (2) engaged regulatory specialist (Jessica Wentz) and designated Bakken regulatory director (Tori Siemieniewski) for NDIC coordination; (3) submitted complete APD with detailed drilling/casing plans, survey plats, and design justifications. However, the operator is now subject to third-party revocation proceeding initiated by Koda Resources Operating LLC (hearing notice 1/14/2026, 10 days post-approval), suggesting potential offset-well conflict or spacing unit dispute.
Backbuild waiver letter (1/8/2026) shows proactive disclosure; APD completeness (casing program, mud program, stimulation restrictions, survey certifications) indicates professional submission standards. Conversely, the revocation proceeding initiated by Koda Resources against all five Peterson wells (same spacing unit) suggests the backbuild geometry or spacing unit interpretation is contested.

Confidence: High
Permit approval date is explicit (1/4/2026 or inferred from APD issuance context). Contemporaneous supporting documents are dated and sourced: cores/samples requirement (1/12/2026, Ross Edison), backbuild waiver (1/8/2026, Jessica Wentz), suspension order (1/14/2026, Todd Holweger). Well identification (name, API, file number, location, target formation, operator) is complete and consistent across all documents. APD stipulations are clearly stated. Significant gap: the file does not contain explicit approval or denial of the backbuild waiver request; the waiver status is inferred from permit issuance despite the deviation. The suspension order establishes a hard operational constraint that supersedes the approval. Absence of waiver documentation and presence of revocation proceeding reduce confidence in permit stability, but contemporaneous permit-cycle signals are well-sourced.