File #42720 | KODA Resources Operating, LLC | Divide County
API
3302301770
Target Formation
Bakken (Middle Bakken Dolomite)
Permit Explained
Yes
Permit Cycle Assessment
The permit approval dated 2026-02-18 is conditioned on five distinct regulatory and operational factors: (1) production liner design with wet shoe and fracture capability, justified by setback geometry within the 2880-acre spacing unit per Commission Order 34405; (2) aquifer-triggered environmental controls (closed mud system, impermeable liner, remote shutoff, perimeter berm, spill plan) as site-specific requirements; (3) early commencement waiver supported by documented majority working interest affidavit; (4) anti-collision modeling completed and filed pre-permit to clear multi-well pad geometry; and (5) Order 31973 waiver granted in advance because KODA operates both the target DSU and the adjacent DSU entered by the lateral. All material permit-conditioning submissions predate approval and are explicitly referenced or incorporated into the approval record. No gaps exist between approval date and documented operational/technical justification.
Permit Cycle Signals (5)
Commission Order No. 34405 setback stipulation tied to production liner cemented with wet shoe and ability to frac out shoe (2026-02-18)
Non-routine cement design (wet shoe with fracout capability) is explicitly conditioned by the setback stipulation, directly justifying the 150' north/south and 500' east/west setbacks within the 2880-acre spacing unit.
Aquifer location stipulation requiring closed mud system, impermeable liner, remote/automatic shutoff devices, perimeter berm, and spill contingency plan prior to spudding (2026-02-18)
Well location on aquifer is a direct trigger for heightened environmental controls; these are not routine boilerplate but site-specific conditions mandated by groundwater protection policy.
Waiver granted for early commencement of operations (waiver based on supplied affidavit - NE) (2026-02-18)
Explicit waiver permitting operations to commence before the standard 3rd business day waiting period. Affidavit of working interest (dated 2026-01-26) demonstrates KODA majority interest in adjacent DSU, justifying waiver eligibility.
Anticollision modeling completed and Level 3 warning clearance achieved for Amber 1732-10BH and Amber 1733-12BH (closest approaches 1.981 and 1.984 separation factors) (2026-01-15)
Multi-well pad geometry required quantified anti-collision analysis to support directional drilling approval. Level 3 warnings noted but separation factors calculated and filed pre-permit, conditioning the lateral design and spacing.
NDIC Order 31973 waiver requested and implicitly granted for wellbore entry into adjacent spacing unit (Sections 5, 6, 7, 8, 17 & 18, T160N, R103W) by same operator KODA (2026-01-22)
Directional drilling plan crosses into adjacent spacing unit; waiver justified because KODA is majority operator of both DSUs (80.71% in target, controls adjacent). Exempts operator from adjacent DSU notice requirements.
Historical Non-Routine Signals (3)
Filter sock and filtration waste container requirement (NDIC directive dated 2026-05-30, effective June 1, 2014) mandates covered, leak-proof, placard-marked container on-site from spud through completion/flow-back (N/A)
Ongoing operational compliance obligation extending from spud through production phase; non-compliance triggers solid waste permitting violations under ND Administrative Code 43-02-03-19.2 and 33.1-20-02.1-01. Operator must coordinate with ND Department of Environmental Quality for waste transport.
Multi-well pad development plan includes six wells (Amber 1705-4BH, 1705-5BH, 1704-6BH, 1732-10BH, 1732-11BH, 1733-12BH) sharing single infrastructure; future wells (Well #1, Well #2) and SWD facility planned on same pad (N/A)
Sustained operational constraint: future permitting and drilling operations on this pad must account for existing completed wells, shared containment systems (5,172 BBLs primary + 306,379 BBLs secondary), access road coordination, and directional trajectories already filed in anticollision database. Each new well requires anti-collision re-analysis.
Surface Use Agreement executed dated 2026-11-07 (effective) between KODA and surface owners Brent Andersen and Ashley Engh covering all six wells on the pad (N/A)
Establishes baseline indemnification and damage liability framework for all drilling, completing, and producing operations on the drillsite location. Agreement terms persist through well life and reclamation; any surface impacts or disputes must be resolved within agreement parameters.
Historical Operator Profile
Total Wells:N/A
Active Wells:N/A
Notable Patterns:None identified
Confidence Assessment
Level: High Rationale: Complete permit file with dated submissions, explicit regulatory orders, completed technical analysis (anti-collision, drilling plan, surveys), executed surface agreements, and working interest documentation. Permit approval authority (Nathaniel Erbele, Petroleum Engineer) and approval date (2026-02-18) are documented. All stipulations, waivers, and conditions are clearly stated in permit text with cross-references to supporting pre-permit filings. No material dates are missing or contradictory. KLX anticollision report is dated 2026-01-15 (pre-permit); drilling plan and surveys dated 2026-01-15; working interest/waiver affidavits dated 2026-01-22 and 2026-01-26 (all pre-approval). Aquifer stipulation and environmental controls are tied to site-specific conditions documented in permit approval record.