🛢️ BILLINGSLEY 1 SWD

Firebird Services, LLC · Burke County County, ND · File #File No. 42685 · Generated 2026-02-13 12:33

API: 3301302010
Target Formation: Dakota Group (Inyan Kara Formation primary)
Permit Explained: Yes

📋 Permit Cycle Assessment

The well file contains contemporaneous documentation that directly explains and justifies the permit action. The Industrial Commission Order No. 35205, issued 2 February 2026, is the direct regulatory authorization. It rests on: (1) a formal hearing held 17 December 2025 with no public opposition; (2) findings that the Dakota Group is an exempted aquifer (TDS >10,000 ppm, confirmed by laboratory analysis dated 11/21/2025); (3) geologic certification that confining zones are free of known faults/fractures; (4) engineering certification that the well will prevent fluid movement into drinking water sources. The permit is further conditioned by four UIC Stipulations (spud notification, rat hole protocol, perimeter berm, remote shutdown devices) and a Well Fracture Analysis (dated 13 January 2026) that establishes a maximum surface injection pressure of 1,309 psi as a binding operational limit. All key pre-permit submittals (water analysis, anticollision/directional well plan, site maps, landowner notifications) are present and reference regulatory compliance with NDAC Chapter 43-02-05. The permit-cycle chain of evidence is complete and contemporaneous.

🔍 Permit Cycle Signals (5)

Industrial Commission Order No. 35205 (Case No. 32434) authorizing underground injection class II fluids into Dakota Group via Billingsley 1 SWD well, conditioned on compliance with UIC permit and NDAC Chapter 43-02-05

Direct

📄 Order of the Commission, dated 2 February 2026
📅 2026-02-02 (Exact confidence)

This is the regulatory order that directly triggered and authorized the permit. It conditions approval on receipt and compliance with the injection permit issued by the Oil and Gas Division.

Hearing held 17 December 2025 with no public opposition or written objections; findings that proposed well location injects into confined formation free of known faults/fractures and will prevent fluid movement into drinking water sources; order dated 2 February 2026

Direct

📄 Order of the Commission, Findings (1)-(10)
📅 2025-12-17 (Exact confidence)

Pre-permit hearing established factual basis for approval: no opposition, geologic safety confirmed, confining zones adequate. This is the deliberative process that conditioned the regulatory order.

Well Fracture Analysis (dated 13 January 2026) establishing maximum surface injection pressure of 1,309 psi, based on formation fracture gradient (0.8 psi/ft), specific gravity of injected fluid (1.20), and depth to Dakota top (4,681 ft). Prepared by Jared Thune, UIC Supervisor.

Supporting

📄 Well Fracture Analysis, Billingsley 1 SWD; signed by Jared Thune, UIC Supervisor, dated 01-13-2026
📅 2026-01-13 (Exact confidence)

This is a contemporaneous technical submission required by UIC regulations. The injection pressure limit (1,309 psi) directly conditions the permit and must be observed during operations. This is a structural constraint embedded in the permit.

Four UIC Stipulations appended to permit: (1) spud notification within 3 business days via Sundry Notice; (2) rat/mouse hole casing and plugging protocol; (3) perimeter berm requirement; (4) remote/automatic shutdown devices on all equipment.

Direct

📄 Permit Information, Stipulations section, page 1
📅 2026-01-19 (Exact confidence)

These are regulator-imposed operational conditions that become enforceable permit requirements. Stipulations (1) and (2) are pre-drilling requirements; (3) and (4) are facility design/operational controls tied to UIC compliance and spill prevention.

Produced water analysis (sample EM OAS 35-1 4959, collected 11/20/2025, received 11/21/2025) confirming total dissolved solids of 331,000 mg/L (far exceeds 10,000 ppm threshold for exempted aquifer status) and specific gravity of 1.20, used to calculate maximum injection pressure. Analysis completed by Pace Analytical Services.

Supporting

📄 Appendix D, laboratory report dated 12/03/2025, Analytical Results page showing TDS = 331,000 mg/L and Specific Gravity = 1.20
📅 2025-11-21 (Exact confidence)

This is a critical pre-permit technical submission. The TDS and specific gravity data directly support the regulatory finding (Order Finding 7) that the Dakota Group is an exempted aquifer, and the specific gravity is used in the fracture pressure calculation (permit-condition maximum pressure of 1,309 psi).

📖 Historical Context (4)

Company relationships: Firebird Services, LLC (permit holder/SWD operator) is a wholly owned subsidiary of Phoenix Energy One, LLC; Phoenix Operating LLC (oil wells on pad) is also a wholly owned subsidiary. Both entities share co-located facilities (tank dike, perimeter berm, injection infrastructure). Custody transfer of produced water occurs at metering point between tank battery and SWD pump skid. Affidavit of Company Relationships executed 6 August 2025.
📄 Affidavit of Company Relationships, State of Colorado, County of Denver, executed by Brandon Allen, COO of Phoenix Energy One, LLC · 📅 2025-08-06
This establishes the operational and corporate structure that will persist throughout the well's life. Clarifies liability allocation and responsibility flow if compliance issues arise on the shared pad. Indicates single corporate parent oversees both oil production and disposal operations, reducing third-party commercial disputes but requiring coordinated HSE/regulatory compliance.

Five associated oil wells are in draft permit status on same pad (BILLINGSLEY 1-12-13 1H, 2TFH, 3H, 5H, 7H), listed in Appendix B and Appendix D. Corrective Action Statement (Appendix B) confirms 'no existing wellbores within the AOR' and 'no corrective actions required.' SWD injection sources are planned as on-pad production only; no third-party volumes accepted at this time.
📄 Appendix B (Corrective Action Statement) and Appendix D (Injected Fluid Sources); UIC Plan Section 6 (Proposed Injection Program) · 📅 Unknown - Draft status; no specific date provided
Establishes that this SWD well is purpose-built to service co-located Phoenix Operating oil wells. The injection source limitation (on-pad only, no third-party acceptance) constrains future operational flexibility and creates dependency on the oil wells' production rate. If oil wells underperform or are shut in, SWD operations may be constrained. No offset wellbore conflicts exist now, but anticollision clearance must be maintained as oil wells are drilled.

Approach Permit Process for access roads (Road 'A', 'B', 'C') has been initiated with Burke County. Submittal pending feedback from county. Road design and typical cross-sections provided; three access routes with estimated 12.5 miles total distance from Lignite, ND. Access infrastructure is prerequisite for well operations.
📄 Appendix F (Approach Permit & Traffic Flow Diagram); note dated within appendix: 'Approach Permit Process has been initiated. Submittal pending feedback required to move forward from Burke County. Submission will occur promptly upon receipt.' · 📅 Unknown - Initiated prior to permit issuance; final approval date not provided
County road permits and access right-of-way approvals are conditions precedent to drilling. Failure to obtain Burke County approach permits will prevent rig mobilization and spud. This is not a state-level regulatory requirement but a local infrastructure dependency that could delay or prevent well execution.

Freshwater well survey (affidavit dated 6 November 2025): No freshwater wells identified within 1-mile AOR despite search of North Dakota State Water Commission website and good faith outreach to area landowners. No sample or testing burden imposed. Protects against aquifer contamination liability.
📄 Appendix C (Freshwater Wells within 1-mile), Affidavit of Freshwater Wells, executed by Mark Johnson, EVP Land/Regulatory/HSE, Phoenix Operating LLC · 📅 2025-11-06
Establishes baseline: no known freshwater wells within 1-mile buffer to protect. If freshwater wells are subsequently discovered during construction or operations within the 1-mile AOR, regulatory notification and potential corrective action obligations would be triggered. The affidavit creates a documented record that due diligence was performed pre-permit.

🔧 Operator Pattern

Multi-subsidiary corporate structure with centralized parent (Phoenix Energy One, LLC) controlling both oil production (Phoenix Operating LLC) and saltwater disposal (Firebird Services, LLC). Integrated pad development strategy (multiple wells on single pad) with shared facilities and custody transfer protocols. Emphasis on subsidiary separation and clear operational boundaries despite common ownership.
Affidavit of Company Relationships clearly delineates asset ownership (Firebird retains SWD pump skid, meter, injection line) and custody transfer point (between tank battery and SWD pump). Order specifies conditions on 'receipt and compliance with injection permit' issued by Oil and Gas Division, indicating prior experience with regulatory compliance frameworks. UIC Plan Section 6 states 'Operator plans to drill a saltwater disposal well and inject into the Inyan Kara formation of the Dakota Group.' Reference to 'planned source wells' (five oil wells in draft status) indicates forward-looking development planning and pad-scale economies of scale.

Confidence: High
The file contains a complete contemporaneous regulatory chain: (1) hearing record showing no opposition and adequate notice (17 December 2025); (2) formal Industrial Commission Order with 10 findings of fact (2 February 2026); (3) contemporaneous Well Fracture Analysis establishing permit-binding pressure limits (13 January 2026); (4) supporting technical evidence (water analysis 11/21/2025, anticollision plan, directional survey, site maps); (5) mandatory UIC Stipulations tied to permit approval. All key dates are explicit and internally consistent. Pre-permit submittals (landowner notices, freshwater well affidavit, produced water sampling) are documented with execution dates, creating a clear temporal sequence. The permit was issued 19 January 2026 (dirt work date on permit); the Industrial Commission Order followed 2 February 2026 (likely post-issuance formality). No material gaps or inconsistencies detected. The file supports both the permit approval (pre-permit hearing, geologic findings, water analysis) and the structural constraints (maximum pressure, stipulations, facility design) that condition ongoing operations.