In a recent government meeting, the Utah Board of Oil, Gas and Mining addressed a request from Ovintiv USA Inc. for compulsory pooling of interests related to the Coliro 16-7-4-28-8-5-7H well in Duchesne County. The well, established for oil and gas production from the lower Green River Wasatch formations, has been a focal point due to the lack of response from several non-consenting owners regarding their participation in the drilling unit.

During the proceedings, representatives from Ovintiv, including legal counsel and expert advisors, outlined the necessity for compulsory pooling, citing that numerous parties had failed to respond to notices sent regarding their opportunity to lease or participate in the well. As a result, Ovintiv is seeking to declare these parties as non-consenting owners, which would allow the company to proceed with the drilling operations without their consent.

The board confirmed that the requisite notices had been published and distributed to all known parties, including the Ute Tribe and relevant federal agencies, with no objections raised against the request. The meeting also highlighted the complexities surrounding ownership claims, particularly those involving estates of deceased individuals, where probate proceedings have not been initiated or are incomplete.

Ovintiv's request includes a proposal for a 300% risk compensation award for non-consenting owners, alongside a joint operating agreement that has been deemed fair and reasonable by the board. The agreement stipulates that non-consenting owners would receive a cost-free royalty of approximately 18.93% based on the average weighted fee royalty in the drilling unit.

The board's jurisdiction over this matter is supported by Utah state regulations, and the absence of timely objections from any parties involved has led to a request for a default ruling in favor of Ovintiv. The meeting concluded with the board's acceptance of the evidence presented, paving the way for further proceedings regarding the compulsory pooling of interests in the drilling unit.