BEFORE THE OIL AND GAS CONSERVATION COMMISSION OF THE STATE OF COLORADO IN THE MATTER OF THE VERIFIED APPLICATION OF MARATHON OIL COMPANY FOR AN ORDER ESTABLISHING DRILLING AND SPACING UNITS AND WELL LOCATION CAUSE NO: AND SETBACK RULES FOR THE DRILLING OF WELLS IN THE NIOBRARA FORMATION, ORDER NO: UNDERLYING CERTAIN LANDS LOCATED IN TOWNSHIP 10 NORTH, RANGE 68 WEST, DOCKET NO: SECTION 28; TOWNSHIP 11 NORTH, RANGE 68 WEST, SECTIONS 35 and 36, 6TH P.M., IN LARIMER COUNTY, COLORADO VERIFIED APPLICATION COMES NOW the Applicant, Marathon Oil Company, by and though its attorneys, Poulson, Odell & Peterson, LLC, and makes application to the Oil and Gas Conservation Commission of the State of Colorado for an Order establishing 640 acre drilling and spacing units and well location and setback rules applicable to the drilling and producing of gas and associated hydrocarbons from the Niobrara Formation underlying certain described lands in Larimer County, Colorado. In support thereof, Applicant states as follows: 1. That Applicant is a company duly authorized to conduct business in the State of Colorado. 2. The Applicant desires to create approximate 640 acre drilling and spacing units, and well location and setback rules, for the drilling of up to four horizontal wells to the Niobrara Formation in the following described lands located in Larimer County, Colorado: Township 10 North, Range 68 West, 6 th P.M. Section 28: ALL Township 11 North, Range 68 West, 6 th P.M. Section 35: ALL Section 36: ALL (the “Application Lands”). 3. That Applicant owns leasehold interests in all or part of those lands. A reference map is attached as Exhibit “B”. 4. The Application Lands are unspaced and subject to Commission Rule 318.a. which requires that wells drilled in excess of two thousand five hundred (2,500) feet in depth be located not less than six hundred (600) feet from the lease line, and located not less than one thousand two hundred (1,200) feet from any other producible or drilling oil or gas well when drilling to the same common source of supply, unless authorized by order of the Commission upon hearing. 5. As to the Application Lands, geological studies, and geological and engineering information obtained in the drilling and producing of wells located in the general area, demonstrate that up to four horizontal wells drilled to the Niobrara Formation may produce oil and associated hydrocarbons in economic volumes from the Niobrara Formation. 6. Applicant requests the Commission to create approximate 640 acre drilling and spacing units, for the drilling of up to four horizontal wells to the Niobrara Formation in each such drilling and spacing unit, within the Application Lands, in order to prevent waste, protect correlative rights, and assure the greatest ultimate recovery of hydrocarbons. 7. Consistent with Commission Rule 318.a., Applicant requests the following setbacks and well location rules for the drilling of up to four horizontal wells within the Niobrara Formation within the Application Lands: (a) That the surface location may be located anywhere on the Application Lands; and, (b) That the treated interval of the wellbore be located no closer than six hundred (600) feet from the boundary of the drilling and spacing unit. 8. Applicant alleges and believes that the granting of this Application will prevent waste, protect correlative rights, and assure the greatest ultimate recovery of hydrocarbons from the reservoir. Applicant further alleges and believes that the Niobrara Formation is a common source of supply underlying the Application Lands. Moreover, the proposed 640 acre drilling and spacing units are no smaller than the maximum area that can be economically and efficiently drained by up to four horizontal wells in each drilling and spacing unit. 9. Pursuant to Rule 503(d) of this Commission, within seven (7) days of the filing of this Application, the Applicant shall submit a Certificate of Service to the Commission demonstrating that the Applicant served a copy of the Application on all persons entitled to Notice by mailing a copy thereof, first-class postage prepaid, to the last known mailing address of the interested parties. Applicant shall simultaneously submit said list of interested parties to the Commission via electronic media. WHEREFORE, Applicant respectfully requests that this matter be set for hearing in April, 2012, that notice be given as required by law, and that upon such hearing this Commission enter its order consistent with Applicant's proposals as set forth above. 2 DATED: February 16, 2012. MARATHON OIL COMPANY By: Scott M. Campbell Jeremy I. Ferrin POULSON, ODELL & PETERSON, LLC 1775 Sherman Street, Suite 1400 Denver, Colorado 80203 Telephone: (303) 861-4400 Facsimile: (303) 861-1225 3 VERIFICATION STATE OF TEXAS COUNTY OF ____________ ) ) ) ss. Benjamin Gregory Ralston, of lawful age, being first duly sworn upon oath, deposes and says that he/she is Landman for Marathon Oil Company, and that he/she has read the foregoing Application and that the matters therein contained are true to the best of his/her knowledge, information and belief. MARATHON OIL COMPANY By: Benjamin Gregory Ralston Subscribed and sworn to before me this _____ day of February, 2012. Witness my hand and official seal. My commission expires: ____________________. Notary Public 4 EXHIBIT A INTERESTED PARTIES Scott M. Campbell POULSON ODELL & PETERSON LLC 1775 Sherman, Suite 1400 Denver, CO 80203-4319 David Bauer Weld County 1111 H Street Greeley, CO 80632 Colorado Division of Wildlife 6060 Broadway Denver, CO 80216 Colorado Department of Health & Environment 4300 Cherry Creek Drive South Denver, CO 80246-1530 Tricia L. Clarke Marathon Oil Company 555 San Felipe Street PO Box 4813 Houston, TX 77056 Diamond Resources 63 Inverness Dr. East, Ste 200 Englewood, CO 80112 EOG Resources, Inc. 600 17th Street, Ste. 1000N Denver, CO 80202 Chesapeake Exploration LLC 6100 N Western Ave Oklahoma City, OK 731181044 Tracker Resource Development 1050 17th Street, Ste. 2200 Denver, CO 80265 Contex Energy Company 621 17th Street Denver, CO 80293 Bill Barrett Corporation 1099 18th Street, Ste. 2300 Denver, CO 80202 Lone Tree Energy 3 W. Dry Creek Circle Littleton, CO 80120 Prima Exploration, Inc. 100 Fillmore St., Ste. 450 Denver, CO 80206-4918 Rocket Resources 500 W. Main St., Ste. 200 Oklahoma City, OK 731022254 Bold Resources Company 6615 W Rowland Ave Littleton, CO 80128-4578 Springfield Oil Company 27619 Brook Drive Hot Springs, SD 57747 Plains Exploration & Production Company 700 Milam, Ste. 3100 Houston, TX 77002 November First Company Address Unknown Patrick Petroleum Corporation Address Unknown Lomita Operating Address Unknown Joint Resources Company 5416 Birchman Avenue Ft Worth, TX 76107-5111 Douglas P. Haschke 1715 Whedbee Street Fort Collins, CO 80525 Steven T. Wiseman 4044 F South Carson Way Aurora, CO 80014 Charles W. Wiseman Address Unknown Bernardine Kirchhof 5011 Elsby Avenue Dallas, TX 75209 David Anthony Kirchhof 327 East Newman Avenue Arcadia, CA 91006 Centennial Farms 164 East 11th Avenue Broomfield, CO 80020 Ruth F. Gates 1607 Payton SW Des Moines, IA 50315 Gary Theodore Heiser 230 41st Avenue Greeley, CO 80634 Deborah Shepardson 392 County Road 145 Carpenter, WY 82054 Leonard William Gates 3205 Morey Court Loveland, CO 80537-9019 Roy Wayne Gates 352 Audrey Drive Loveland, CO 80537 Jay Sherman Phipps 205 Sierra Vista Drive Loveland, CO 80537-7365 Darrel G. St. Clair Address Unknown Jacob Hardy St. Clair 533 Park Avenue Lewistown, ID 82501 Jarrett Zachary St. Clair 533 Park Avenue Lewistown, ID 82501 Theodore Heiser 1902 22nd Street Greeley, CO 80631 Frank Knowlton 1127 13th Avenue Greeley, CO 80631 McMahon Energy Partnership, LP 4545 S. Monaco St., #144 Denver, CO 80237 Tofte Energy Partners, Limited P.O. Box 4221 Casper, WY 82604 Buffalo Royalties, LLC 9591 E. Orchard Dr. Greenwood Village, CO 80111 Plains Exploration Company 700 Milam St., #3100 Houston, TX 77002 Moran Family Minerals Trust P.O. Box 5825 Denver, CO 80217 Frank W. Will Winegar 370 17th Street, #3210 Denver, CO 80202 Betty Sue Eagleson 227 S. Broadleigh Road Columbus, OH 43209 M.W. MacDougall 2820 Everest St. Denver, CO 80 Joy Schaefer Henry PO Box 177 Bonsall, CA 92003 Janice A. Satrom 58 Sloping Hills Cove Grand Forks, ND 58201 H.C. Spoor Jr. Houston, TX Address Unknown Max Van Hall Address Unknown Rachel V.H. Needham 6784 E Cedar Avenue Denver, CO 80224 Maxine Strickland 1378 Jasmine St. Denver, CO 80220 Marie Shultz 2219 Etiwanda Street Dan Diego, CA 92107 Harry Kilian 3822 Wickensham Lane Houston, TX 77027 2 Karl L. Kilian Heir of Harry Kilian 1511 Branard Street Houston, TX 77006 N.C. Ginther 1714 Esperson Bldg Houston, TX 77002 W.L. Ginther 1714 Esperson Bldg Houston, TX 77002 Fay’s Trust PO Box 27361 Houston TX 77227-7361 Ivan Leroy Holt II PO Box 2410 Edmond, OK 73083 Hazel Owens Route 4, Box 67 Frankford, WV 24938 Roderick L. Suter 185 St. James Place Brooklyn, NY 10038 Velma Sites Brackenrich Vega Route 4, Box 99 Frankford, WV 24938 Marvin S. Bowes Estate Route 4 PO Box 63-A Frankford, WV 24938 A. Macy Smith 412 Cotton Exchange Bldg. Houston, TX 77002 C.J. Thibodeaux Cotton Exchange Bldg. Houston, TX 77002 Judy Schaefer Puett 34397 Whispering Oaks Ridge Manor, FL 33525 JC Petroleum Royalty Unit LLC PO Box 922 Delhi, La 71232 Louis Pulaski Address Unknown Dan J. Pulaske 2929 Post Oak Road Houston, TX 77056 First Presbyterian Church 5300 Main Street Houston, TX 77004 Johnny Mitchell 622 Bank of Commerce Bldg. Houston, TX 77004 Cimarron Minerals LLC PO Box 1600 San Antonio, TX 78296 George A. Butler Address Unknown J.A. Gray Address Unknown Rex E. Hudson Address Unknown Gerald Rauch Address Unknown Leonard Rauch Address Unknown Veda Mae Glesby Address Unknown W.C. DeArman Address Unknown A.I. Axelrod Address Unknown A.I. Lack Address Unknown H.W. Krakower Address Unknown Abe Weingarten Address Unknown N.M. Feld Address Unknown J.E. Leicher Address Unknown Martin Nadelman Address Unknown J.S. Oshman Address Unknown 3 Joe Darsky Address Unknown Dave Deison PO Box 1177 Weatherford, TX 76086 Joe Weingarten Address Unknown Irving Alexander Address Unknown Dean M. Myers Address Unknown Betty Ann Sud Address Unknown Rheba Joan Spiner Address Unknown Morris Rauch Address Unknown Mary Ann Satriano 1261 S Monaco Parkway Denver, CO 80224 Christopher Lynn Satriano 1261 S Monaco Parkway Denver, CO 80224 Pamela Jean Quint 4462-½ Utah Street San Diego, CA 92116 Claudia Lea Satriano 956 12th St. Imperial Beach, CA 91932 Cynthia Lou Satriano 12008 Phoenix Ave N.E. 4F Albuquerque, NM 87112 Kelly R. Hacker Estate c/o David W. Pehr 501 Turnpike Drive Westminster, CO 80031 Jencks Farms, Inc. 1522 64th Avenue Greeley, CO 80634 Robinson Interests I, Ltd 5005 Riverway, Suite 200 Houston, TX 77056 Heirs of Wayne Woodrow Alsdorf 6921 Magnolia Commerce City, CO 80022 Heirs of John B. Richmond 22116 Michale Street Canoga Park, CA 91304 Heirs of Lawrence Larson Address Unknown Heirs of Ellen Larson Richmond Address Unknown Heirs of Earnest Larson Address Unknown Heirs of Lois Fancher Address Unknown Gwendolyn Larson Bambrick 304 Niagara Street Welland, ON L3C 1KT CANADA Richard C. Larson Address Unknown Jeanette Lawson Morris Address Unknown Heirs of Lorna Larson Brown PO Box 1163 Steamboat Springs, CO 80477 John Eric Sealander 1839 15th Street, Apt. 451 San Francisco, CA 94103 4 Norman Lennard Sealander 4508 Bucknell Drive Knoxville, TN 37938 Sarah Irene Sealander 211 B Street Yuba, CA 95991 Charles C. Meyer Address Unknown Louis P. Foster 514 S Cedar St Yuma, CO 80759 Roy L. Foster 2349 County Road, Unit #41 Yuma, CO 80759 Milton W. Klingenberg 4217 Fernbrook Dr. Loveland, CO 80538 Charline Lamont 21 Highland Street Lamar, CO 81052 Kenneth Allen Ross 45341 CR 68 Briggsdale, CO 80611 Shannon Gayaldo 901 Rogue River Drive Eagle Point, OR 97524 Verlyn L. Wilhelm PO Box 182 Elbert, CO 80106 Devona Hartmeister 5673 Johnson Street Arvada, CO 80002 Stanley Bond 12286 W Ohio Place Lakewood, CO 80228 Shirley Brungardt 1233 S Eaton St Lakewood, CO 80232 Carol Malone 19836 W. 57th Avenue Golden, CO 80403 Donita Marie Reed 861 Bishop Creek Rd. Jacksonville, OR 97530 Barry Belisle 216 W Court Street Woodland, CA 95695 Bradley A. Belisle 3160 Meridian Road Colorado Springs, CO 80929 Colorado Land Services LLC 1051-D West Highway 34 Loveland, CO 80537 Juanita L. Chapman 18243 Kingsbury Northridge, CA 91326 Alberta F. Chapman 176 Nelson Drive Tyrone, PA 11686 Arthur Anderson Address Unknown Violet Butler Address Unknown Colorado Land Services 5411 Gunbarrel Circle Longmont, CO 80503-8603 Hilda M. Donnell Address Unknown Hilma E. Gustafson Address Unknown Edwin M. Jones Oil Company 404 Milam Building San Antonio, TX 782051661 William C. Berglund Address Unknown Donald D. Berglund Address Unknown Byran N. Berglund Address Unknown Don F. Tobin 1530 Milam Building San Antonio, TX 78205 5 Don F. Tobin Jr. dba Tobin Oil Properties 14101 West Highway 290 Austin, TX 78737-9330 Imogene & Harold Herndon Chari c/o Frost Nat’l Bank & Trust Oil & Gas T-6 P.O. Box 1600 San Antonio, TX 782961400 Imogene & Harold Herndon Chari c/o Mary Ann Swierc 115 East Travis, #1242 San Antonio, TX 78205 Elmer A. Kiel c/o Elmer A. Kiel III 2045 The Woods Circle Barnhart, MO 63012-1297 Marian N. Harwell 4001 N. New Braunfels Ave, Apt 1500 San Antonio, TX 782096305 Lindsay Production & Royalties 112 East Pecan St, Ste 500 San Antonio, TX 778205 Archer Pearl Energy, LLC 134 Cardinal San Antonio, TX 78205 T.J. Dorsey 404 Milam Building San Antonio, TX 78205 Leon Esterling 1170 Kingston St Aurora, CO 80010 Richard Ellis Esterling Address Unknown Clarence Columbus Gross 178 Macoon Road Kansas City, KS 64116 Jack W. Gross 7472 West 1800 Road Parker, KS 66072 Kerr-McGee Oil & Gas Onshore 1099 18th Street, Ste. 600 Denver, CO 80202 Violettia F. Butler 20765 E Valley Blvd. Walnut, CA 91789 Suzanne Davis, LP 1101 Butternut Abilene, TX 79602 R.J. St. Germain Address Unknown Edwin M. Jones Oil Company 115 E Travis St. San Antonio, TX 782051661 Fred W. Shields & Company, GP 115 E Travis St, Ste 1442 San Antonio, TX 78205 Fred W. Shields & Company, GP 550 W Texas Ave., #1120 Midland, TX 79701-4212 Fred W. Shields & Company, GP 1442 Milam Building San Antonio, TX 78205 JH Smith Jr. 1984 Trust 806 Main St., Ste 1560 Houston, TX 77002 William Smith Jr. 1984 Trust 806 Main St., Ste. 1560 Houston, TX 77002 Nordan Trust 112 E Pecan, Ste. 500 San Antonio, TX 78205 Sempra Energy Production Company 8235 Douglas Ave., Ste. 525 Dallas, TX 75225 6 R.O. Dreher 3055 S Milwaukee Circle Denver, CO 80210-6757 RJ & CS St. Germain Partnership PO Box 1889 Wimberley, TX 78676 Diane H. Smith Trust PO Box 58 Aspen, CO 81612 Louise H. Davis Trust 3810 S Terwilliger Blvd Tulsa, OK 74105 Lucile W. Hays Family Limited PO Box 1108 Nantucket, MA 02554 Elaine W. Fiske Family Limited PO Box 190 Sherborn, MA 01770 Virginia Howe Smith Trust 7549 N Tatum Paradise Valley, AZ 852533377 Priscilla Davis Gravely 3510 St. Johns Dr. Dallas, TX 75205 Georgi Davis Duwe 6802 Rock Ledge Cove Austin, TX 78731 Sidney Roger Davis 4501 Spicewood Springs Rd, Ste. 1018 Austin, TX 78759 Floyd Hugh Davis 22301 Hamilton Pool Road Dripping Springs, TX 78620 Floyd Hugh Davis HCO 4, Box 26 Dripping Springs, TX 78620 Virginia Ann Smith Foss 806 Main Street Houston, TX 77002 Judith Lynn Smith Mendoza Jennifer E. Smith 806 Main Street, Ste. 1560 806 Main Street, Ste. 1560 Houston, TX 77002 Houston, TX 77002 Jeffrey B. Smith 1200 North Central Ave Modesto, CA 95351 Gregory C. Smith 1157 Cypress Ave. Hermosa Beach, CA 90254 Frederick W. McCoy Jr. Trust PO Box 11215 St. Louis, MO 63105 Mona Vivian McLaughlin 2425 Whitney Avenue Independence, MO 64057 Avis Tyree 2425 Whitney Avenue Independence, MO 64057 Heirs of Flossie Mae Tomlinson Address Unknown Ray A. Gross 3936 Sand Springs Road Tulsa, OK 74063 Lorena May Gross 869 Julian St Denver, CO 80204 Buford Gross Route 6, Box 145 Lake Station Tulsa, OK 74127 Gentry Donald Gross 1015 Newton Avenue Kansas City, KS 66111 7 6 5 12 9 15 16 22 32 Legend COLORADO Key Map 6N 60W 6N 61W 6N 62W 34 33 NAD 83, NAD 27, US FT 1:100,000 Proposed Spacing - April App UTM Zone 13N, NAD 27 Existing Spacing Orders 0 0.25 0.5 Miles 1 April, 2012 Application for Niobrara Drill Spacing: 6N 61W, SECT 5 6N 61W, SECT 6 6N 61W, SECT 9 6N 61W, SECT 12 6N 61W, SECT 15 6N 61W, SECT 16 6N 61W, SECT 22 6N 61W, SECT 32 6N 61W, SECT 33 6N 61W, SECT 34 CO&G Commission Application for Drill Spacing - Niobrara Weld County, CO DSU_Application_Apr_2012_CV.mxd 2/16/2012