🛢️ QUARNE 2-11-14-23 5HF

Phoenix Operating LLC · Williams County, ND · File #42640 · Generated 2026-02-13 12:33

API: 3310506782
Target Formation: Bakken
Permit Explained: Partially

📋 Permit Cycle Assessment

The permit approval is partially explained by regulatory orders and stipulations. Commission Order No. 34633 establishes setback conditions (150' N/S, 500' E/W) that directly condition approval within the 2560-acre spacing unit. The Bakken Pool definition and completion design (wet shoe with frac-out capability) support the setback stipulation. Standard operational conditions (closed mud system, shutoff devices, conductor restrictions) are specified. Pre-permit coordination with adjacent operator (Koda Resources) per Order 31848 is documented via affidavit dated 12/31/2025, addressing directional well trajectory crossing into adjacent spacing unit. However, the permit document does not reference specific geotechnical surveys, anticollision studies, or other technical justifications that would fully explain approval of this particular wellbore geometry. The Federal minerals notification (1/12/2026) post-dates the permit and raises potential unresolved coordination issues with BLM regarding Federal lease interests in the spacing unit.

🔍 Permit Cycle Signals (6)

Commission Order No. 34633 setback stipulation: 150' setback from north/south boundaries and 500' setback from east/west boundaries within 2560-acre spacing unit (Sections 2, 11, 14, 23, T159N, R103W)

Direct

📄 Page 1, STIPULATIONS section, NDIC Field Order Info
📅 Unknown (Missing confidence)

Directly conditions well geometry and bore placement approval. Setbacks are tied to specific spacing unit and directional constraints.

Production liner cemented in lateral with wet shoe and ability to frac out shoe - justifies south setback distance

Supporting

📄 Page 1, Bakken Setback Summary Statement
📅 Unknown (Missing confidence)

Technical completion design explicitly referenced to support regulatory setback approval condition.

Grenora-Bakken Pool definition: accumulation interval from 50 feet above top of Bakken to 50 feet below top of Three Forks Formation

Direct

📄 Page 1, STIPULATIONS section, NDIC Field Order Info
📅 Unknown (Missing confidence)

Pool definition is regulatory condition of approval; defines target formation boundaries for this permit.

Closed mud system with no cuttings pit; remote or automatic shutoff devices required on all equipment; conductor may only be set on permitted wells

Direct

📄 Page 1, STIPULATIONS section, Permit Review Policy and Conditions of Approval
📅 Unknown (Missing confidence)

Standard operational conditions of approval. Elevation to permit_cycle only if non-routine; these are routine Bakken horizontal drilling stipulations.

Adjacent spacing unit notice requirement per NDIC Order No. 31848: wellbore traverses through adjacent spacing unit; directional drilling/completion plan and contact information provided to Koda Resources

Supporting

📄 Affidavit dated December 31, 2025, signed by Tori Siemieniewski, Director—Bakken Regulatory
📅 2025-12-31 (Exact confidence)

Pre-permit regulatory notice demonstrating operator compliance with Order 31848. Wellbore directional plan required because well bore enters adjacent spacing unit outside target unit. This is a pre-permit procedural requirement that conditions approval.

Federal minerals coordination: BLM notification required. Email dated 1/12/2026 from NDIC (Nathaniel Erbele) to operator directing contact with BLM Dickinson office regarding potential Federal permit requirement for spacing unit encompassing Sections 2, 11, 14, 23, T159N, R103W

Unclear

📄 Email from Erbele, Nathaniel H., dated 1/12/2026 8:26 AM, subject 'Federal Minerals'
📅 2026-01-12 (Exact confidence)

NDIC permitting correspondence post-dating permit approval (Dirt Work Date 05/15/2026) but indicating Federal mineral interests in spacing unit may require separate BLM authorization. This is coordination signal, not permit justification.

📖 Historical Context (2)

Filter sock and waste disposal requirement: NDIC letter dated May 30, 2025, imposing mandatory leak-proof, covered container requirement for all filtration waste on all North Dakota oil and gas wells effective June 1, 2014, unless operator obtains waiver via Sundry Notice
📄 Letter from Mark F. Bohrer, Assistant Director, NDIC, dated May 30, 2025, subject 'Filter Socks and Other Filter Media Leak Proof Container Required' · 📅 Unknown
Standing regulatory requirement affecting operational execution. Operator must maintain on-site waste container during drilling, clean-out, completion, and flow-back. Non-compliance creates regulatory violation. Waiver option requires Sundry Notice submission; absence of such submission in file indicates operator accepted standard requirement.

NDIC Order No. 31848 — Adjacent spacing unit notification protocol requiring directional drilling/completion plan, commencement date, and operator contact for wells traversing adjacent spacing units
📄 Affidavit dated December 31, 2025, referencing NDIC Order Numbers 31848 · 📅 Unknown
Forward operational constraint: operator must maintain coordination with Koda Resources (adjacent spacing unit operator) as drilling operations commence. Plan modifications or schedule changes affecting drilling commencement date documented in affidavit must be communicated to adjacent operator. Failure to coordinate may trigger NDIC enforcement action.

🔧 Operator Pattern

Phoenix Operating LLC is developing a multi-well pad (QUARNE PAD) with at least 6 horizontal wells (1HF, FED 1HF, FED 2HF, 3HF, 4HF, 5HF) from a common location in Section 2, T159N, R103W. All wells target Bakken Formation within shared 2560-acre spacing unit. Operator demonstrates regulatory compliance via documented pre-permit coordination (adjacent operator notification per Order 31848, directional plan submission), professional survey and engineering design (UELS-prepared plats and construction drawings), and formal Federal minerals coordination request.
Well file contains: (1) Five permit applications for horizontal wells from same pad; (2) Comprehensive pad layout drawings showing multiple wellbore trajectories; (3) Affidavit of regulatory notice to adjacent operator dated 12/31/2025; (4) BLM coordination email dated 1/12/2026; (5) Professional survey certifications and engineering specifications prepared by Uintah Engineering & Land Surveying LLC.

Confidence: Medium
Permit approval (Dirt Work Date 05/15/2026) is anchored to Commission Order No. 34633 setback stipulations and Bakken Pool definition, both of which appear as regulatory conditions in the permit document itself. Pre-permit coordination with adjacent operator (Order 31848 compliance) and directional well plan submission (12/31/2025 affidavit) provide supporting documentation. However, the permit document does not cite specific technical studies (anticollision analysis, geologic risk assessment, etc.) that would typically justify non-routine horizontal well geometry. The BLM Federal minerals coordination email post-dates permit approval and raises potential unresolved jurisdictional questions. OCR quality is degraded in portions of engineering drawings but critical permit stipulation language is legible. Date of permit approval is inferred from 'Dirt Work Date 05/15/2026'; formal permit issuance date is not explicitly stated in extracted text.