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πŸ›’οΈ AMBER 1705-4BH

KODA Resources Operating, LLC Β· Divide County County, ND Β· File #42690 Β· Generated 2026-02-13 12:33

API
3302301758
Target Formation
Middle Bakken Dolomite / Fertile Valley-Bakken Pool
Permit Explained
Yes

πŸ“‹ Permit Cycle Assessment

The permit is directly explained by contemporaneous regulatory orders and technical submissions. Commission Order No. 34405 explicitly conditions approval on setback compliance, pool definition, and aquifer-zone operational controls. The setback stipulation is further justified by the submitted directional drilling plan, which specifies a production liner cemented with a wet shoe and frac-out capabilityβ€”a non-routine completion design that supports variance from standard 150' setbacks on the north boundary. The aquifer stipulation (closed mud system, impermeable liner, perimeter berm, spill contingency) is mandatory for this location and was a pre-drill requirement. The anticollision report (dated 16 January 2026) provides technical clearance against five offset wells on the shared pad, with separation factors well above warning thresholds; this analysis is standard supporting documentation for multi-well horizontal pads. The waiver to NDIC Order No. 31973 was requested and approved implicitly, as KODA operates both the target spacing unit and the adjacent spacing unit, eliminating the third-party notification requirement. All major permit conditions are time-bound to the approval date (09/15/2026, per dirt work date) and are directly tied to either regulatory orders, site-specific technical constraints (aquifer, setback design), or standard pre-approval submissions (anticollision analysis, working interest affidavits).

πŸ” Permit Cycle Signals (5)

Commission Order No. 34405 – Approval granted with mandatory setback requirements (150' north/south, 500' east/west from spacing unit boundaries). North setback justified by production liner cemented in lateral with wet shoe and frac-out capability.
Direct
πŸ“„ Permit Information / STIPULATIONS section, page 1
πŸ“… Unknown (Missing confidence)
Setback stipulation is conditioned on specific completion design (production liner, wet shoe, frac-out shoe). This non-routine completion element directly justifies the north setback variance from standard 150' requirement.
Aquifer location stipulation requiring onsite inspection with condition for Closed Mud System (no drilling pit), impermeable liner on entire location, perimeter berm, and spill contingency plan prior to spudding.
Direct
πŸ“„ Permit Information / STIPULATIONS section, page 1
πŸ“… Unknown (Missing confidence)
Aquifer presence is a regulatory constraint that directly conditions multiple operational requirements (closed loop, containment, spill response). This is non-routine and site-specific.
Fertile Valley-Bakken Pool definition: interval from 50 feet above top of Bakken Formation to above top of Birdbear Formation. Pool boundaries are specified in permit stipulation.
Direct
πŸ“„ Permit Information / STIPULATIONS section, page 1
πŸ“… Unknown (Missing confidence)
Pool definition is mandatory stipulation that governs completion zone and fracking interval. Required by regulation for Bakken development in this field.
Anticollision analysis submitted and approved. Well design cleared against five offset wells (Amber 1704-6BH, Amber 1705-5BH, Amber 1732-10BH, Amber 1732-11BH, Amber 1733-12BH) with minimum separation factors ranging 2.088 to 21.887 sigma.
Supporting
πŸ“„ KLX Anticollision Report, dated 16 January 2026; Summary table shows all offset comparisons with warning-level analysis.
πŸ“… 2026-01-16 (Exact confidence)
Anticollision clearance is a prerequisite for horizontal well approval on multi-well pads. The report demonstrates that wellbore path does not intersect or approach offset wellbores beyond acceptable risk thresholds. This is supporting technical justification for the permit design.
Waiver request to NDIC Order No. 31973 (adjacent spacing unit notification requirement) granted implicitly via permit approval. KODA operates both the target DSU (Sections 5, 6, 7, 8, 17 & 18) and adjacent DSU (Sections 19, 20, 29, 30, 31 & 32), eliminating third-party notification obligation.
Supporting
πŸ“„ Letter dated January 22, 2026, from KODA to Permit Manager requesting waiver; Affidavit of Working Interest dated January 22, 2026 confirming 95.65% WI in target DSU and operator status in adjacent DSU.
πŸ“… 2026-01-22 (Exact confidence)
Waiver fulfills regulatory requirement to notify adjacent DSU operator of wellbore intrusion. Approval implicit in permit issuance without condition, indicating regulator accepted working interest documentation and self-operator status.

πŸ“– Historical Context (4)

Filter socks and other filter media must be stored in leak-proof, covered, placard-marked containers on-site during all filtration operations, with disposal only at authorized facilities per NDAC 43-02-03-19.2.
πŸ“„ NDIC Letter dated May 30, 2025, to all operators re: Filter Socks and Other Filter Media Leak Proof Container Required. Β· πŸ“… Unknown
This is a statewide operational requirement effective June 1, 2014, that persists through well execution. Operator must maintain compliant filtration waste management during drilling, completion, and flow-back phases. Non-compliance creates enforcement exposure.
Surface Use Agreement executed with surface owners (Brent Andersen and Ashley Engh) effective November 7, 2025, covering all injuries and damages to surface property from operations on the Drillsite Location.
πŸ“„ Affidavit of Fully Executed Surface Use Agreement, signed by Aly Schuster (Senior Landman), dated January 22, 2026. Β· πŸ“… Unknown
Surface agreement establishes operator liability framework and property protection obligations throughout well life. Provides evidence of landowner consent and defines scope of operational disturbance and reclamation obligations that extend beyond drilling into completion and production phases.
Multi-well pad development structure: six wells (Amber 1705-4BH, 1705-5BH, 1704-6BH, 1732-10BH, 1732-11BH, 1733-12BH) across two 2880-acre DSUs and two 4800-acre LINE WELL DSUs. KODA holds 80–96% working interest in all DSUs.
πŸ“„ Affidavit of Working Interest dated January 22, 2026; Well Proximity Map (TOPO C); Pad layout sheets showing all six well locations and infrastructure. Β· πŸ“… Unknown
Operator majority control across all drilling and spacing units eliminates inter-DSU disputes and simplifies unitization and revenue allocation. This ownership structure enables joint operations and access road planning but also concentrates liability for the entire pad footprint on KODA. Infrastructure sharing (production pad, access road, facilities) creates operational and environmental dependencies that persist through completion and production.
Aquifer present at location. Site-specific inspection and stipulations required. Closed mud system with no drilling pit and impermeable liner mandatory on entire location.
πŸ“„ Permit STIPULATIONS section, Aquifer stipulation; drilling plan confirms closed-loop system use during all drilling operations and cuttings disposal at 13 Mile Landfill, Williston, ND. Β· πŸ“… Unknown
Aquifer proximity creates ongoing environmental compliance obligation. Closed mud system requirement restricts drilling methodology and disposal options. Any deviation from closed-loop approach requires waiver. Aquifer protection is enforced through NDAC rules and carries long-term monitoring/reporting obligations if spill or exceedance occurs.

πŸ”§ Operator Pattern

KODA Resources operates majority-interest horizontal development in Bakken/Fertile Valley field with multi-well pad strategy and integrated infrastructure. Demonstrates regional consolidation and working-interest concentration across multiple spacing units.
Six-well pad development; 80–96% WI across all four spacing units (two 2880-acre primary DSUs, two 4800-acre LINE WELL DSUs); all wells planned for simultaneous completion from shared surface facilities; single surface use agreement with landowner covering entire pad footprint; executed waiver to third-party notification obligation, indicating previous regulatory familiarity.
Confidence: High
Permit file contains explicit regulatory orders (Commission Order No. 34405), dated technical submissions (drilling plan, anticollision report, wellbore trajectory), executed legal documents (surface use agreement, working interest affidavits), and regulatory correspondence (waiver request and NDIC guidance letter). All permit-cycle signals are time-anchored to pre-approval dates (January 2026) or embedded in the permit stipulations themselves. Aquifer location and related operational controls are clearly documented. No material gaps in causal chain between permit conditions and underlying site-specific or regulatory justifications. Historical context (surface agreement, filter management, aquifer presence, operator consolidation) is supported by contemporary correspondence and affidavits.