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Board approves Key Rock Energy repooling of Honey Camp No. 1; small interest owner asks for guidance
Summary
Key Rock Energy LLC asked the board to modify Honey Camp No. 1 pooling after title reviews; the board approved naming Key Rock operator and the repooling adjustments. A small working-interest owner asked staff for assistance understanding his election and protections.
Key Rock Energy LLC told the General Gas Roll Board on July 15 that it had recalculated ownership and sought a repooling order for the Honey Camp No. 1 production unit; the board approved the application and named Key Rock as operator.
Aaron Davis, a senior project engineer at Key Rock Energy LLC, testified under oath that the unit was originally pooled by board order on Feb. 28, 2024, with a supplemental order entered June 11, 2024, and that those orders are on record in the Dickinson County Circuit Court. Davis said Key Rock conducted a title review after those orders and identified changes in ownership, including additional heirs to a tract identified in the application. He said Key Rock has since purchased leases covering 55.71% of the unit and that the company seeks to pool the unit to 100% and to apply the revised royalty and allocation calculations in its filing.
A member of the public, Mark Stuckey, identified himself as a small interest owner in the Honey Camp unit and said he wanted to “retain or elect for a working interest” and requested assistance from the board and staff in understanding the election process and how to protect his interest. Another attendee identified as Marsh Cookie (described in the record as a French heir) thanked the board for the repooling because prior notice had not reached some heirs and said the repooling provided an opportunity to participate as a working interest owner.
Davis said the unit size after modification is 794.4937 acres, the well depth is 536 (feet), estimated remaining reserves are about 380,000,000 MCF, and the reported historical development cost for a referenced well was $195,646. He said Key Rock was asking the board to modify the prior pooling order, to allow a voluntary portion of the pool to be resolved by the applicable parties, and to name Key Rock as operator; he also said Key Rock had offered the same lease terms that had been offered to intervest (as stated in the filing).
Board members asked clarifying questions about the changed tract ownership and acreage. The board voted to grant Key Rock’s request as presented. On record, the roll call showed the members called answering “yes,” and the board approved the repooling application and related requests. Board staff reminded the public that division staff are available to guide small interest owners through election and participation procedures.
The board did not adopt changes to statewide pooling rules; the action applied only to the Honey Camp No. 1 unit as presented in Key Rock’s application.
