🛢️ QUARNE 2-11-14-23 4HF

Phoenix Operating LLC · Williams County, ND · File #42639 · Generated 2026-02-13 12:33

API: 3310506781
Target Formation: Bakken Formation
Permit Explained: Partially

📋 Permit Cycle Assessment

Permit approval is conditioned by Commission Order No. 34633 (setback geometry within 2560-acre spacing unit) and Grenora-Bakken Pool definition. Both regulatory instruments are directly referenced in permit stipulations and explain the spatial constraints imposed. Adjacent spacing unit notification under Order 31848 and federal minerals coordination requirement (BLM notification 1/12/2026) establish pre-permit stakeholder and regulatory coordination completed by operator prior to approval. However, the well file does not contain explicit pre-permit technical justifications (anticollision analysis, directional survey data, or waiver requests) that would directly justify why this specific well geometry or location was approved over alternatives. Permit approval appears anchored to compliance with existing Commission Orders rather than novel technical submissions or regulatory waivers.

🔍 Permit Cycle Signals (4)

Commission Order No. 34633 setback stipulation: well bore not isolated by cement must be no closer than 150' from north/south boundaries and 500' from east/west boundaries within 2560-acre spacing unit (Sections 2, 11, 14, 23, T159N, R103W)

Direct

📄 Permit Information - STIPULATIONS section, NDIC Field Order Info
📅 Unknown (Missing confidence)

Commission Order 34633 directly conditions this permit approval by establishing mandatory setback geometry tied to the multi-section spacing unit. Setback justification tied to production liner cemented in lateral with wet shoe and ability to frac out shoe.

Grenora-Bakken Pool definition issued under NDIC Field Order: accumulation of oil and gas found in interval from 50 feet above top of Bakken Formation to 50 feet below top of Three Forks Formation

Direct

📄 Permit Information - STIPULATIONS section, NDIC Field Order Info
📅 Unknown (Missing confidence)

Pool definition directly conditions permit by establishing vertical formation boundaries for this well's target and regulatory classification. Required for spacing unit and offset well protection determinations.

Federal minerals notification letter (1/12/2026) from NDIC Petroleum Engineer Nathaniel Erbele to operator referencing BLM Dickinson office coordination requirement for Quarne Fed wells and spacing unit (Sections 2, 11, 14, 23, T159N, R103W)

Supporting

📄 Email dated 1/12/2026 from nherbele@nd.gov to jwentz@phoenixenergy.com
📅 2026-01-12 (Exact confidence)

Identifies federal mineral involvement in spacing unit that may trigger separate BLM permit requirement. Establishes pre-permit or concurrent federal coordination obligation affecting this permit's operational footprint.

Adjacent spacing unit notification under NDIC Order 31848: operator required to notify Koda Resources (adjacent operator) with directional drilling plan, formation tops, casing design, cementing details, and approximate drilling start date prior to wellbore traversing adjacent spacing unit

Supporting

📄 Affidavit of Tori Siemieniewski, Director — Bakken Regulatory, dated 12/31/2025, notarized 1/31/2026
📅 2025-12-31 (Exact confidence)

Order 31848 compliance documentation shows operator has notified adjacent spacing unit operator (Koda Resources) of directional plan. Establishes pre-permit stakeholder coordination requirement tied to wellbore trajectory crossing boundaries.

📖 Historical Context (3)

Five-well pad development (QUARNE 1 SWD, QUARNE FED 2-11-14-23 1HF, 2HF, and QUARNE 2-11-14-23 3HF, 4HF, 5HF) from single surface location in Lot 4, Section 2, T159N, R103W with staggered FWL positions (1195' to 1345' FWL, 30' increments)
📄 Well Location Plat, Surface Hole Footage Table; Pad Layout Engineering Drawings · 📅 Unknown
Multi-well pad configuration commits operator to coordinated spacing unit management and simultaneous or near-sequential drilling operations across five wellbores, each with directional paths into Bakken Formation. Pad infrastructure (containment, flare stack, access roads, utilities) is sized for this full development. Any subsequent well performance issues or spacing constraint violations will affect all pad wells.

Wet shoe completion design with ability to frac out toe in production liner cemented in lateral, as stated in Bakken Setback Summary Statement
📄 Permit Information - STIPULATIONS section, Bakken Setback Summary Statement; Casing Design Detail (Well Schematic) · 📅 Unknown
Wet shoe design with frac-out capability is the technical foundation for setback compliance under Order 34633. Establishes production completion methodology that must be maintained during drilling and completion phases. Any deviation from wet shoe design or frac-out execution will trigger non-compliance with setback stipulation and may require permit amendment.

Filter socks and filter media disposal requirement per North Dakota Administrative Code Section 43-02-03-19.2, effective 6/1/2014, requiring leak-proof, covered, placarded container on-site from spud through flowback operations
📄 NDIC letter dated 5/30/2025 from Mark F. Bohrer, Assistant Director, Oil and Gas Division · 📅 2025-05-30
Waste management requirement persists for all drilling, completion, and flowback phases. Operator must maintain compliant filtration waste container throughout well lifecycle. Non-compliance exposes operator to enforcement action and prevents well from reaching authorized disposal. Affects operational timeline and contractor compliance obligations.

🔧 Operator Pattern

Multi-well pad operator with federal mineral coordination experience and regulatory compliance documentation practices
Phoenix Operating LLC submitted coordinated federal minerals notification (Erbele email 1/12/2026), completed adjacent spacing unit operator notification under Order 31848 (affidavit 12/31/2025), and engineering designs with detailed casing/completion specifications and pad infrastructure supporting five-well development. Operator demonstrated awareness of BLM permit coordination requirement and proactive stakeholder notification prior to permit issuance.

Confidence: Medium
Permit approval is anchored to existing Commission Orders (34633, 31848) and pool definitions that are clearly documented in permit stipulations. Federal minerals coordination and adjacent operator notification are evidenced by email and affidavit dated within six weeks of permit issue. However, the file lacks pre-permit technical submissions (anticollision, directional surveys, wellbore trajectory analysis) that would provide granular justification for this specific well's approval. Critical dates (permit approval date, drilling commencement notification requirement completion date) are not explicitly stated. The well file content appears incomplete—no standalone APD engineer review, no geologist report, no specific waiver requests. Assessment of permit-cycle explanation relies on secondary inference from stipulations and regulatory orders rather than primary permit justification documents.