The permit approval is contemporaneously explained by Commission Order No. 34326 conditions and the applicant's February 9, 2026 backbuild waiver submission. The 500'/150' setback stipulation is the direct regulatory anchor. The permit conditions the lateral trajectory to specific maximum coordinates and requires the wet shoe completion design to justify the relaxed east setback. The pre-permit waiver letter addresses off-spacing drilling and adjacent-unit coordination, confirming Phoenix Energy's dual operator status eliminates third-party notice requirements. All material permit restrictions and geometric allowances are tied to documented regulatory orders, technical design specifications (wet shoe), and pre-permit operator certifications dated within 3 days of approval.
Permit Cycle Signals (4)
Commission Order No. 34326 condition: 500' setback from north/south boundaries and 150' setback from east/west boundaries within 1920-acre spacing unit (Sections 25, 26, 27, T162N, R95W). Approval conditioned on all well bore portions not isolated by cement respecting these setbacks. (2026-02-12)
Commission Order 34326 is the direct regulatory anchor for this permit approval. The setback stipulation conditions the lateral trajectory and completion geometry. Production liner cemented in lateral with wet shoe and ability to frac out shoe is explicitly tied to enabling the 150' east setback.
Production liner cemented in lateral with wet shoe and ability to frac out shoe. This technical specification directly justifies the 150' east setback allowance stated in the permit stipulation. (2026-02-12)
The wet shoe design is the technical basis for relaxing the east setback from standard. Permit explicitly states this relationship: 'The east setback is based on a production liner cemented in the lateral with a wet shoe and the ability to frac out the shoe.'
Backbuild Order Waiver submission dated February 9, 2026 (3 days pre-approval). Operator Phoenix Energy notifies NDIC that wells are proposed to enter Bakken Petroleum System outside target spacing unit, and that Phoenix Energy is operator of adjacent spacing units requiring notification per NDIC Order Nos. 31848 & 31973. Waiver letter states no additional notification necessary and commitment to safe operations. (2026-02-09)
Pre-permit correspondence addressing off-spacing drilling and adjacent unit coordination. Timely submission (3 days before approval) and operator's self-certification that no third-party notification is required supports permit issuance timing. Demonstrates compliance path for adjacent-unit crossing.
Spacing unit justification requirement: 'In order to justify the spacing unit, this well must be drilled in conjunction with a well that meets a 1220' setback from the north and south spacing unit boundaries.' Maximum legal coordinates specified: 4392' south and 386' west at 7" casing point; 4387' south and 15170' east at Total Depth. (2026-02-12)
Directional drilling geometry constraint tied to spacing unit compliance. The specified maximum coordinates limit lateral extent and condition the 1920-acre spacing geometry. This is a non-routine constraint differentiating this horizontal approval from standard Bakken drilling.
Historical Non-Routine Signals (3)
Filter sock and filter media disposal requirement: effective June 1, 2014, North Dakota Administrative Code Section 43-02-03-19.2 mandates covered, leak-proof, placard-labeled container on-site beginning spud through completion/flow-back. Operator must maintain disposal documentation per DEQ solid waste permit requirements. (2014-06-01)
Standing operational requirement (pre-2026) persisting into execution phase. Operator acknowledgment on APD Page 9 confirms understanding. Non-compliance risk extends beyond permit issuance through production cleanup.
Closed mud system with no cuttings pit requirement. All drill cuttings collected in metal containers at surface and hauled to licensed facility (Smoky Butte Environmental LLC, Fortuna, ND). (Pre-2026 (regulatory standard))
Operational constraint affecting drilling phase waste management. Closure of cuttings pit requires third-party hauling contract compliance and DEQ authorization of disposal facility. Persistent obligation through well completion.
Diesel-based compound prohibition in hydraulic stimulation. Operator certifies via APD Section 5 (Stimulation) that compounds with CAS Registry Numbers 68334-30-5 (diesel fuels), 68476-34-6, 68476-30-2, 68476-31-3, and 8008-20-6 (kerosene) will not be used. (Pre-2026 (regulatory standard, likely tied to groundwater protection))
Completion-phase constraint. Fracture design must exclude specified diesel fuels. Affects vendor fluid selection and certification. Persists through well completion operations.
Historical Operator Profile
Total Wells:N/A
Active Wells:N/A
Notable Patterns:None identified
Confidence Assessment
Level: High Rationale: Permit file contains complete APD dated 2/12/2026 with all required regulatory stipulations, operator assertions, and technical specifications. Commission Order No. 34326 is explicitly referenced as the approval basis. Pre-permit backbuild waiver letter dated 2/9/2026 provides supporting documentation for off-spacing drilling and adjacent-unit coordination. Directional drilling plan and survey are contemporaneous (dated 2/4–2/7/2026). Setback and trajectory constraints are clearly tied to specific regulatory conditions. No material dates are missing or ambiguous. OCR quality is sufficient for substantive analysis.