🛢️ AMBER 1732-8BH

KODA Resources Operating, LLC · Divide County, ND · File #42628 · Generated 2026-02-13 12:33

API: 3302301736
Target Formation: Middle Bakken
Permit Explained: Yes

📋 Permit Cycle Assessment

The permit approval dated 1/12/2026 is justified by: (1) Aquifer presence requiring closed mud system and onsite inspection-driven stipulations; (2) Non-routine setback geometry (150' N/S, 1220' E/W) tied to completion design (wet shoe production liner with frac-out capability); (3) Perimeter berm and spill contingency prior to spud, supported by pad layout and earthwork plan; (4) Cores and samples collection mandate from State Geologist referencing NDIC Century Code 38-08-04, though drilling plan exempts operational coring; (5) Anti-collision modeling requirement satisfied by KLX report (25 November 2025) confirming safe separation from all offset wells. Permit conditions are time-bound to approval and pre-spud execution. No waiver or exceptional circumstance is documented; approval is routine for Middle Bakken horizontal development in Fertile Valley field within operator's 80.71% working interest DSU.

🔍 Permit Cycle Signals (5)

Aquifer stipulation requiring onsite inspection and closed mud system with impermeable liner on entire location

Direct

📄 Permit Approval Page 1 of 10, Stipulations section, 'Aquifer stipulation'
📅 2026-01-12 (Exact confidence)

Regulatory requirement conditioning approval tied to aquifer presence at well location. Mandates specific containment and mud handling protocols before spud.

Setback requirement stipulation: 150' north/south, 1220' east/west within 2880-acre spacing unit, contingent on wet shoe production liner cemented in lateral with frac-out capability

Direct

📄 Permit Approval Page 1 of 10, Stipulations section, 'Bakken Setback Summary Statement'
📅 2026-01-12 (Exact confidence)

Non-routine setback geometry tied explicitly to completion design (wet shoe with frac-out ability). Lateral trajectory must honor these boundaries; drilling plan confirms compliance with 150' and 1220' parameters.

Perimeter berm and spill contingency plan required prior to spudding

Direct

📄 Permit Approval Page 1 of 10, Stipulations section, 'Conditions of Approval'
📅 2026-01-12 (Exact confidence)

Pre-spud operational requirement. Drilling plan includes pad layout with 2-foot minimum berm above pad edge and earthwork specifications; spill contingency is implicit in closed mud system mandate.

Cores and samples submission requirements per NDIC Order 38-08-04: samples from Base of Last Charles Salt at 30' intervals (vertical/build), 200' intervals (horizontal); cores within 180 days; samples within 30 days to State Core Library

Supporting

📄 Cores and Samples letter dated 2026-01-12 from State Geologist Ross Edison; NDIC File No. 42628
📅 2026-01-12 (Exact confidence)

Regulatory mandate for subsurface data preservation. Drilling plan Section 5 states 'No coring is planned' and 'No samples are planned,' creating a potential compliance gap if overburden or development reveals cores/cuttings.

Anti-collision avoidance modeling required; modeling submitted on pad per KLX Directional Drilling report (25 November 2025)

Supporting

📄 Drilling Plan Section 5, Directional Planning/Anti-Collision; KLX Anticollision Report dated 25 November 2025
📅 2025-11-25 (Exact confidence)

Permit references anti-collision avoidance modeling as condition. KLX report confirms all offset wells modeled with separation factors adequate (minimum 1.976 sigma at lateral TD vs. Amber 1732-9BH). Directional survey plan specifies MWD survey intervals (100 ft vertical, 30 ft curve, 90 ft lateral) to support real-time collision avoidance.

📖 Historical Context (4)

Filter sock and waste disposal requirement per NDIC Administrative Code 43-02-03-19.2: leak-proof container with cover and placard required from spud through flow-back; disposal at authorized facility per ND Dept. Environmental Quality
📄 NDIC letter dated 30 May 2025 re: Filter Socks and Other Filter Media · 📅 2025-05-30
Forward operational constraint during drilling, completion, and flow-back phases. Operator must procure and maintain on-site container throughout well lifecycle; failure to comply triggers ND Dept. Environmental Quality enforcement. Persists post-permit approval.

Working interest affidavit: KODA 80.71% working interest in T161N-R103W Sections 22, 23, 26, 27, 34 & 35 (2880-acre DSU for Amber 1731-7BH, 1732-8BH, 1732-9BH); 95.65% in adjacent T160N-R103W Sections 5, 6, 7, 8, 17 & 18
📄 Affidavit of Working Interest dated 13 November 2025; Waiver Request for 3-Day Waiting Period dated 3 December 2025 · 📅 2025-11-13
Establishes operator control and minority-interest considerations. Enables self-notification waiver under NDIC Order 31973 (adjacent spacing unit drilling). Operational authority persists for well life; revenue and liability allocation affect future abandonment and decommissioning obligations.

Surface use agreement executed effective 7 November 2025 between KODA and surface owners Brent Andersen and Ashley Engh; affidavit dated 2 December 2025
📄 Affidavit of Fully Executed Surface Use Agreement dated 2 December 2025 · 📅 2025-11-07
Legal foundation for all surface activities, drilling operations, and reclamation. Agreement addresses damages indemnity and establishes operator's right to occupy and develop. Remains in force through well decommissioning and site restoration; breach could trigger injunction or liability.

Waiver request for three-day waiting period prior to construction filed 3 December 2025; contingent on minority interest affidavit (80.71% and 95.65% WI)
📄 Affidavit – Request for Waiver to Three-Day Waiting Period dated 3 December 2025 · 📅 2025-12-03
Acceleration mechanism for spud authorization. Waiver approval (status not confirmed in file) permits immediate rig deployment post-permit. If denied, three-day waiting period applies, delaying surface operations. Persists as operational milestone until waiver approval received.

🔧 Operator Pattern

Multi-well pad developer with majority/controlling interest in contiguous Bakken DSUs; self-notification practices and internal operator alignment (owns offset spacing unit, eliminating third-party consultation delays); proactive documentation (working interest affidavits, surface agreements, anticollision modeling prior to permit submission).
Six-well pad (Amber 1706-1BH, 1705-2BH, 1705-3BH, 1731-7BH, 1732-8BH, 1732-9BH) spanning two 2880-acre DSUs with KODA as operator in both. Waiver request for Order 31973 filed preemptively, citing self-operator status. KLX anticollision report dated 25 November 2025 (pre-permit approval) indicates early planning and vendor engagement. Surface agreements signed 7 November 2025 (prior to permit issuance), suggesting parallel permitting and land-acquisition workflow.

Confidence: High
Permit approval document (1/12/2026) explicitly lists five stipulation categories with clear regulatory anchors (NDIC Field Order, Century Code 38-08-04, aquifer requirements, Commission Order 34405). Drilling plan (25 November 2025) provides casing design, directional trajectory, and formation tops directly responsive to setback and completion stipulations. KLX anticollision report validates separation factors and survey intervals. Cores and samples letter (1/12/2026) from State Geologist establishes contemporaneous statutory requirement. All permit-cycle signals are document-sourced and time-bound to approval date or immediate pre-approval submissions. No speculative inferences required. Historical signals are regulatory background with clear forward operational impact.