🛢️ LOGAN FED 4-9-16 1HF

Phoenix Operating LLC · McKenzie County, ND · File #42760 · Generated 2026-04-04 15:56

API: 3305310764
Target Formation: Bakken (Middle Bakken)
Permit Explained: Yes

📋 Permit Cycle Assessment

Permit approval is directly conditioned on three regulatory mechanisms: (1) Commission Order No. 34507, which defines the 1920-acre spacing unit and setback geometry (150' N/S, 500' E/W) controlling lateral placement; (2) a non-routine wet-shoe completion design required to justify south lateral placement within the 150' setback by enabling controlled fracture initiation; and (3) a conjunctive drilling requirement mandating coordination with an offset well meeting 1220' setback from E/W boundaries. Pre-permit regulatory signals include (4) BLM notification flagging potential Federal mineral involvement requiring operator coordination with BLM Dickinson office, and (5) Order 31848 compliance evidenced by operator notice to adjacent operator (Rockport Energy Solutions) of trajectory details prior to approval. These time-bound signals explain and condition the approval granted 2026-03-12.

🔍 Permit Cycle Signals (5)

Commission Order No. 34507 cited as basis for approval and spacing unit definition (1920 acres: Sections 4, 9, 16, T145N, R98W)

Direct

📄 Permit page 1, STIPULATIONS section
📅 2026-03-12 (Exact confidence)

Regulatory order explicitly conditions permit issuance. Defines spacing unit geometry and setback obligations (150' N/S, 500' E/W) that control well trajectory approval.

Production liner cemented in lateral with wet shoe and frac-out capability required per permit condition

Direct

📄 Permit page 1, STIPULATIONS, Conditions of Approval section
📅 2026-03-12 (Exact confidence)

Non-routine completion design modification tied to setback compliance. Permits south lateral placement within 150' setback only if wet shoe allows controlled fracture initiation, reducing barrier integrity risk.

Conjunctive drilling requirement: well must be drilled in conjunction with offset well meeting 1220' setback from E/W spacing unit boundaries to justify spacing unit

Direct

📄 Permit page 2, STIPULATIONS section
📅 2026-03-12 (Exact confidence)

Conditional approval tied to interdependent well geometry. Approval conditioned on coordinated drilling with adjacent operator (inferred from multi-well pad documents). This is off-spacing drilling requiring offset constraint.

Federal permit coordination required; spacing unit may be subject to Federal mineral consent per BLM notification dated 3/11/2026

Supporting

📄 Email from Doug Jackson (NDIC), dated 2026-03-11, received pre-approval
📅 2026-03-11 (Exact confidence)

Pre-permit (one day before approval) regulatory flag indicating Federal minerals may exist within spacing unit. Approval conditioned on operator ensuring BLM documentation filed. Controls permit execution timeline.

NDIC Order 31848 compliance: Adjacent operator (Rockport Energy Solutions, LLC) notified of directional plan and trajectory entering adjacent spacing unit per affidavit dated 3/11/2026

Supporting

📄 Affidavit of Meaghan Coughlan (Sr. Regulatory Specialist), dated 2026-03-11, acknowledged 2026-03-11
📅 2026-03-11 (Exact confidence)

Pre-approval notification to adjacent operator required by regulatory order. Demonstrates operator compliance with off-spacing disclosure requirement prior to permit issuance. Enables approval of trajectory crossing into Section 16 (adjacent unit).

📖 Historical Context (5)

Multi-well pad development plan: Four horizontal wells (1HF, 2HF, 3HF, 4HF) on single surface location in Section 32 SESE with coordinated lateral trajectories across Sections 4, 9, 16 spanning 1920-acre spacing unit
📄 Well location plat, multi-well plan diagram, and pad layout sheets dated 2026-02-13, 2026-03-24 · 📅 2026-02-13
Pad configuration and conjunctive drilling commitment persist through operations. Wellbore geometry and toe locations (well 1HF terminates at 190' FNL, 660' FWL in Section 16) are locked by approved directional plan. Any deviation in casing point, TD, or completion technique within Bakken-Three Forks Petroleum System requires NDIC prior approval per permit condition. Footages and azimuth (100° magnetic bearing) constrain future sidetrack or remedial operations.

Surface use agreement executed with landowner (John & Brenda K Kostelecky JT) for surface location only; wellbores cross into adjacent federal and private lands requiring separate agreements or Federal authorization
📄 Affidavit of Surface Damage Agreement dated February 2026; Access Road Layout sheet showing land parcels in Sections 4, 5, 9 (William & Carla Fleck JT, United States of America) · 📅 2026-02-01
Surface use covers only Section 32 surface location. Well trajectories enter Federal minerals (Little Missouri National Grasslands boundary evident on access map) and private acreage (Fleck parcel in Section 5). Ongoing compliance requires BLM authorization for subsurface access and potential easement or additional surface agreements. Affects plug/abandonment strategy if wells exit bounds of initial authorization.

Closed mud system with cuttings transport to licensed facility (Select Water Solutions, LLC Special Waste Landfill, Arnegard ND) mandated per permit; no cuttings pit permitted
📄 Permit page 2, STIPULATIONS; Proposed Drilling Plan sheet · 📅 2026-03-12
Operational waste management obligation persists through drilling and cleanup. Closed system requirement and licensed facility contract are mandatory conditions affecting rig logistics, waste handling cost, and final site remediation. Failure to maintain contracted disposal creates permit violation and potential enforcement action.

Conductor restriction: Conductor may only be set on permitted wells; rat/mouse holes must be cemented to ground level and plugged with cement 4' below final grade within reasonable timeframe after rig departs
📄 Permit page 2, STIPULATIONS, Conditions of Approval · 📅 2026-03-12
Constraint on non-permitted auxiliary drilling and groundwater protection obligation. Affects well site construction schedule and interim reclamation. Applies to all holes drilled on pad, including pilot wells or test holes. Non-compliance creates groundwater contamination liability under ND rules.

Perimeter berm required surrounding entire location; minimum 2' above pad edge per pad layout
📄 Permit page 2; Pad Layout sheet dated 2026-03-24 · 📅 2026-03-12
Structural environmental control persisting through operations and into interim reclamation phase. Berm design and maintenance affect spill containment adequacy. Must be maintained during drilling, completion, and flowback operations as shown on containment volume evaluation (76,880 bbls secondary containment capacity).

🔧 Operator Pattern

Off-spacing horizontal drilling with regulatory coordination obligations and multi-well pad development strategy
Phoenix Operating executing four-well pad from single surface location in Section 32 with lateral trajectories entering adjacent spacing unit (Sections 4, 9, 16). Required advance notice to adjacent operator (Rockport Energy Solutions, LLC) per NDIC Order 31848. Demonstrated compliance with surface use agreements, Federal notification requirements, and directional engineering constraints. Closed mud system and waste management protocols indicate operational maturity in regulated ND Bakken development.

Confidence: High
Permit document is complete and contains explicit regulatory orders (Commission Order 34507, NDIC Order 31848), dated pre-approval notifications (BLM coordination 3/11/2026, operator notice 3/11/2026), and detailed directional/completion specifications tied to approval conditions. Approval date (3/12/2026) is unambiguous. No material dates are missing. Non-routine conditions (wet shoe requirement, conjunctive drilling, setback geometry) are directly stated in permit stipulations section. Pre-permit and post-submittal signals are clearly temporally sequenced and administratively sourced (NDIC engineering technician, operator regulatory specialist affidavits).