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Home My WebLink AboutCO 801Conservation Order 801 Pearl 2A Spacing Exception Exploration Well 1. January 29, 2022 Hilcorp application for spacing exception Pearl 2A 2. January 27, 2022 Notice of Public Hearing, affidavit, mail and bulk mail list 3. February 11, 2022 Public Comment from M. Jackinsky, AOGCC response STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF Hilcorp Alaska, LLC for a spacing exception to allow Pearl 2A well to be drilled, completed, tested and produced in the Pearl Undefined Gas Pool and the Ninilchik Beluga/Tyonek Gas Pool within 1,500 feet of a property line where the owners and landowners are not the same on both sides of the line and within 1,500 feet from the exterior boundary of the Affected Area of Conservation Order 701C. ) ) ) ) ) ) ) ) Docket Number: CO-22-001 Conservation Order 801 Pearl 2A Exploration Well Pearl Prospect near Ninilchik, AK Kenai Peninsula Borough, Alaska March 15, 2022 IT APPEARING THAT: 1. By letter dated January 26, 2022, Hilcorp Alaska, LLC (Hilcorp) requested the Alaska Oil and Gas Conservation Commission (AOGCC) approve a spacing exception to Regulation 20 AAC 25.055(d) and Rule 3(A) of CO 701C to allow Pearl 2A well to be drilled, completed, tested, and produced in the Pearl Undefined Gas Pool and Ninilchik Beluga/Tyonek Gas Pool within 1,500 feet of a property line where the owners and landowners are not the same on both sides of the line and within 1,500 feet from the exterior boundary of the Affected Area of Conservation Order 701C, Cook Inlet Basin, Kenai Peninsula Borough, Alaska. 2. Pursuant to 20 AAC 25.540, the AOGCC tentatively scheduled a public hearing for March 1, 2022. On January 27, 2022, the AOGCC published notice of the opportunity for that hearing on the State of Alaska’s Online Public Notice website and on the AOGCC’s website, electronically transmitted the notice to all persons on the AOGCC’s email distribution list and mailed printed copies of the notice to all persons on the AOGCC’s mailing distribution list. On January 30, 2022, the AOGCC published the notice in the Anchorage Daily News. 3. Hilcorp sent, by certified mail, notice of the application to all owners, landowners, and operators of all properties within 3,000 feet of the entire Pearl 2A well path and provided the notice, addresses to which the notices were delivered, and certified mail receipts to AOGCC. 4. No request for a public hearing was received. The tentatively scheduled public hearing was vacated on February 27, 2022. 5. Hilcorp’s application for revision provided sufficient information upon which to make an informed decision on its request. CO 801 March 15, 2022 Page 2 of 4 PURPOSE AND NEED FOR THIS ORDER: Well spacing regulations protect the oil and gas rights of adjacent landowners and maximize resource recovery by establishing default limits on how close, under the land's surface, oil and gas wells can be to each other and to property lines where ownership changes hands. These limits are set forth in a regulation, 20 AAC 25.055. Operators must abide by the default well spacing limits (referred to as statewide spacing requirements) unless they apply for, and obtain, an exception to those limits. Although exceptions to the default well spacing requirements are not unusual, AOGCC carefully evaluates each application, and typically grants them only when actual geologic conditions demonstrate that the proposed subsurface location of a well is necessary to reach otherwise unreachable oil or gas and that both the rights of adjacent landowners and underground drinking water can be protected. As a general matter, AOGCC does not have extensive authority over surface impacts such as noise, emissions, or construction. FINDINGS: 1. Hilcorp is operator for the proposed onshore (offshore targeted) Pearl 2A exploration well located within Kenai Peninsula Borough, on the east side of the Cook Inlet Basin near Ninilchik, Alaska: Surface Location: Section 23, T01S, R14W, S.M. X: 203,164’ Y: 2,225,767’ (100% Hilcorp WI) Well Path: Sections 14 & 23, T01S, R14W, S.M. (100% Hilcorp WI) Bottom-hole Location: Section 14, T01S, R14W, S.M. X: 203,164’ Y: 2,227,644’ (100% Hilcorp WI) Hilcorp owns 100% Working Interest (WI) in the affected oil and gas leases and is currently the operator of Ninilchik Unit. The State of Alaska owns 100% of the mineral interest in the affected lands located offshore in ADL 3384372. The remaining tracts are 100% privately owned subsurface. Hilcorp provided the tract ownership schedule for the affected tracts, which details tract ownership within 3,000’ of Pearl 2A well. 2. Pearl 2A will be drilled from the Pearl Pad, located within the Pearl field (outside of the Ninilchik Unit/Field). The bottomhole will be located within the Ninilchik Unit/Field. Pearl 2A will be the first exploration well drilled at the southern extent of the existing Ninilchik Unit/Field. It will target unproven gas reserves in the Beluga and Tyonek formations within the Pearl Undefined Gas Pool and Beluga/Tyonek Pool and is presently governed by CO 701C pool rules. Following completion of Pearl 2A well and prior to bringing the well online, Hilcorp proposes to apply to the Department of Natural Resources (DNR) to form a Unit and Initial Participating Area (PA). Hilcorp further proposes that production be allocated in accordance with DNR’s Unit and PA decision, that production only commence when a state-approved PA is in place, and that a copy of the State decision and PA allocation schedule will be provided to AOGCC prior to commencement of production. CO 801 March 15, 2022 Page 3 of 4 3. Hilcorp proposes to allocate royalties to all leased owners/landowners based on their tract allocation percentages, mineral ownership, and lease royalty shown on the approved PA allocation schedule. Hilcorp will establish and maintain, without costs to the non-participating owners/landowners, a single, interest-bearing escrow account for the non-participation owners/landowners, and will provide documentation to AOGCC that the Escrow Account has been established (see more details in Hilcorp’s Application for Spacing Exception). 4. The estimated top of Pearl Undefined Pool is 1,500’ MD. The actual TPH could easily vary from the drilling prognosis, anywhere between 1,500’ to 8,460’ MD (BHL). 5. Pearl 2A targets unproven reserves in the Beluga and Tyonek formations within the Pearl Undefined Gas Pool and within the Ninilchik Beluga/Tyonek Pool. These drilling objectives cannot be reached by conforming to applicable statewide spacing regulations because of the narrow, discontinuous, and lenticular nature of the reservoir sands and their most prospective locations on the subsurface structure. 6. If operated as required, drilling, testing, completion, and regular production of the Pearl 2A well will not cause waste or result in an increased risk of fluid movement into freshwater. CONCLUSIONS: 1. An exception to the well spacing provisions of 20 AAC 25.055 is necessary to allow drilling, completion, testing and regular production of the Pearl Undefined Gas Pool and Ninilchik Beluga/Tyonek Gas Pool in the Pearl 2A exploration gas well, in order to maximize ultimate resource recovery. 2. Granting an exception to the well spacing provisions of 20 AAC 25.055 for Pearl 2A will not result in waste or jeopardize correlative rights of adjoining or nearby owners, is based on sound engineering and geoscience principles, and will not result in an increased risk of fluid movement into freshwater. 3. No production may occur absent AOGCC approval of allocation of production. In addition, Hilcorp will establish and maintain, without costs to the non-participating owners/landowners, a single, interest-bearing escrow account for the non-participation owners/landowners, and will provide documentation to AOGCC that the Escrow Account has been established. NOW THEREFORE IT IS ORDERED: The AOGCC grants Hilcorp’s January 26, 2022, application for an exception to the well spacing provisions of 20 AAC 25.055 to allow drilling of the Pearl 2A exploration gas well within the Pearl Undefined Gas Pool and the Ninilchik Beluga/Tyonek Gas Pool. Hilcorp may proceed and must comply with all applicable laws and all other legal requirements. CO 801 March 15, 2022 Page 4 of 4 DONE at Anchorage, Alaska and dated March 15, 2022. Jeremy M. Price Daniel T. Seamount, Jr. Jessie L. Chmielowski Commissioner, Chair Commissioner Commissioner RECONSIDERATION AND APPEAL NOTICE As provided in AS 31.05.080(a), within 20 days after written notice of the entry of this order or decision, or such further time as the AOGCC grants for good cause shown, a person affected by it may file with the AOGCC an application for reconsideration of the matter determined by it. If the notice was mailed, then the period of time shall be 23 days. An application for reconsideration must set out the respect in which the order or decision is believed to be erroneous. The AOGCC shall grant or refuse the application for reconsideration in whole or in part within 10 days after it is filed. Failure to act on it within 10 days is a denial of reconsideration. If the AOGCC denies reconsideration, upon denial, this order or decision and the denial of reconsideration are FINAL and may be appealed to superior court. The appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision denying reconsideration, UNLESS the denial is by inaction, in which case the appeal MUST be filed within 40 days after the date on which the application for reconsideration was filed. If the AOGCC grants an application for reconsideration, this order or decision does not become final. Rather, the order or decision on reconsideration will be the FINAL order or decision of the AOGCC, and it may be appealed to superior court. That appeal MUST be filed within 33 days after the date on which the AOGCC mails, OR 30 days if the AOGCC otherwise distributes, the order or decision on reconsideration. In computing a period of time above, the date of the event or default after which the designated period begins to run is not included in the period; the last day of the period is included, unless it falls on a weekend or state holiday, in which event the period runs until 5:00 p.m. on the next day that does not fall on a weekend or state holiday. Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2022.03.15 15:47:44 -04'00' Jeremy Price Digitally signed by Jeremy Price Date: 2022.03.15 13:16:14 -08'00' Daniel Seamount Digitally signed by Daniel Seamount Date: 2022.03.15 14:17:14 -08'00' From:Salazar, Grace (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] AOGCC Conservation Order No. 801 (Hilcorp) Date:Tuesday, March 15, 2022 2:19:24 PM Attachments:CO 801.pdf The Alaska Oil and Gas Conservation Commission has issued the attached Conservation Order No. 801, granting Hilcorp Alaska, LLC’s request for an exception to the spacing requirements for the proposed Pearl 2A exploration well. Grace ____________________________________ Respectfully, M. Grace Salazar, Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Direct: (907) 793-1221 Email: grace.salazar@alaska.gov https://www.commerce.alaska.gov/web/aogcc/ __________________________________ List Name: AOGCC_Public_Notices@list.state.ak.us You subscribed as: grace.salazar@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/grace.salazar%40alaska.gov AOGCC 333 W 7th Avenue, Anchorage, AK 99501 TO: BERNIE KARL K&K RECLYCLING, INC. PO BOX 58055 FAIRBANKS, AK 99711 Mailed 3/15/22 gs 3 1 Carlisle, Samantha J (OGC) From:Davies, Stephen F (OGC) Sent:Thursday, February 17, 2022 3:44 PM To:mckibben.jackinsky@gmail.com Cc:Carlisle, Samantha J (OGC) Subject:LETTER REGARDING HILCORP: Pearl 2A Spacing Exception Application McKibben, My name is Steve Davies and I am a geologist with the Alaska Oi l and Gas Conservation Commission (AOGCC). The AOGCC would like to thank you for your thoughtful comments regarding Hilcorp’s application for a spacing exception order for the proposed Pearl 2A well. Our agency tries very hard to make our processes and information available to the public as clearly and easily as possible. To begin, your comments are part of the public record for this spacing exception amendment application and a copy will be forwarded to Hilcorp’s land department to make them aware of your concerns. Hopefully that will be helpful for you. The public hearing regarding Hilcorp’s spacing exception application for the Pearl 2A well is tentatively scheduled for 10 AM on March 1, 2022. The AOGCC would like to extend an invitation to you to formally request that this hearing be held as scheduled. This hearing will provide you the opportunity to listen to Hilcorp’s testimony, to express your concerns, and to ask questions about Hilcorp’s proposed operations. If you would like to request this hearing be held, please notify Grace Salazar, AOGCC’s Special Assistant, at 907‐793‐1221 or grace.salazar@alaska.gov by close of business on Thursday, February 24, 2022. Pearl 2A will classified as an exploratory well and by law nearly all information about the well will be confidential until 25 months after the well is completed, suspended, or plugged and abandoned. So AOGCC is restricted in what we can say about that well, but I will try to be a clear as possible while respecting confidentiality. By way of introduction, here is a brief description of AOGCC’s spacing exception process:  In the State of Alaska, spacing of oil and gas wells is controlled to protect the oil and gas rights of adjacent landowners and to prevent drilling of an excessive number of wells.  According to Hilcorp’s application, Pearl 2A will be a gas well. Statewide spacing requirements specify that gas wells are limited to: o one per governmental section (one square mile), o no closer than 1,500 feet from a property line where ownership of the below‐surface gas rights changes, and o no closer than 3,000 feet to another well capable of producing from the same gas pool.  Exceptions to these requirements are sometimes needed to drill wells that cannot adhere to these rules because of special geologic conditions.  In this specific case, Pearl 2A will be drilled from a pad that already exists. In the Cook Inlet Basin, reservoir sands were commonly deposited in migrating, ancient river channels, so they are generally limited in size and are often not connected with one another. According to Hilcorp’s application, Pearl 2A targets sands at a location that does not conform to statewide requirements.  AOGCC carefully evaluates every application to drill at locations such as this, granting exceptions only for wells that are necessary to discover or develop oil and gas accumulations in a safe manner that protects freshwater and the oil and gas rights of adjacent landowners. 2 Your comments list several concerns regarding Hilcorp's operations including noise, air quality, and site impacts. By state statute, the AOGCC regulates only below‐ground drilling and production activities. AOGCC's jurisdiction does not extend to noise, emissions, and other surface disturbances. Those are regulated by agencies other than the AOGCC. However, our goal is to be as helpful to you as possible, so we spent time checking the Internet and other agencies.  Regarding noise: We checked with the Alaska Department of Environmental Conservation (DEC), and they do not regulate noise. For Anchorage, Noise Ordinance AMC 15.70 regulates industrial noise sources to 80 decibels at all times. The Kenai Peninsula Borough or the local municipality likely have similar ordinances, but we have been unable to find them on the Internet. I suggest contacting the Borough and municipal offices or conducting a further search of their websites.  Regarding air quality: o AOGCC's regulations do not govern air quality. I suggest that you try contacting the Alaska Department of Environmental Conservation, Division of Air Quality to view the Air Quality Control regulations and to find additional information and agency contacts.  Regarding site impacts: o We checked with the DEC and that department does not directly regulate surface impact and building of gravel drilling pads on state lands. You may try contacting the State of Alaska's Office of Project Management and Permitting, the Division of Mining, Land, and Water, and the Kenai Peninsula Borough Land Management Division for additional surface impact and restoration requirements. o AOGCC's regulations do not govern pipelines or surface impacts associated with pipelines. I suggest that you contact the Alaska Division of Oil and Gas, State Pipeline Coordinator’s Section as a possible source for requirements. o AOGCC’s jurisdiction regarding drill site restoration is limited to Regulation 20 AAC 25.170, Onshore Location Clearance, which requires the operating companies to remove all materials and debris from the location and to leave it in a clean and graded condition upon abandonment. AOGCC’s field inspectors conduct a final site inspection to ensure compliance with this regulation. Thank you again for your comments. Please call Dave Boyer, another AOGCC geologist, or me at 907‐793‐1238 or 907‐ 793‐1224, respectively, or email us at david.boyer2@alaska.gov or steve.davies@alaska.gov if you have any further questions or need additional information. Thank you and stay safe, Steve Davies Senior Petroleum Geologist Alaska Oil and Gas Conservation Commission (AOGCC) CONFIDENTIALITY NOTICE: This e‐mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e‐mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Steve Davies at 907‐793‐1224 or steve.davies@alaska.gov. CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. You don't often get email from mckibben.jackinsky@gmail.com. Learn why this is important From:Carlisle, Samantha J (OGC) To:Price, Jeremy M (OGC); Chmielowski, Jessie L C (OGC); Seamount, Dan T (OGC); Salazar, Grace (OGC); Ballantine, Tab A (LAW) Subject:FW: LETTER REGARDING HILCORP Date:Monday, February 7, 2022 1:31:38 PM From: McKibben Jackinsky <mckibben.jackinsky@gmail.com> Sent: Monday, February 7, 2022 1:29 PM To: Carlisle, Samantha J (OGC) <samantha.carlisle@alaska.gov> Cc: Emily Aley <emilyaley@gmail.com>; Jennifer Stinson <jendstinson@yahoo.com> Subject: LETTER REGARDING HILCORP Thank you, Samantha, for taking my call. My apology for being so emotional, but the possibility of Hilcorp spreading its efforts so that it destroys the value - both personally and financially - of this piece of long-held family land in Alaska is hugely upsetting. Following is a letter I will put in today's mail to Commissioner Price/AOGCC. I am copying my daughters, who are co-owners in the 3+ acres about which I'm writing. I look forward to hearing from you, McKibben Jackinsky February 7, 2022 Jeremy Price, Chair CommissionerAlaska Oil and Gas Conservation Commission333 West 7th Avenue, Suite 100Anchorage, Alaska 99501 Re: Hilcorp’s Application for Spacing Exception Pearl 2A Exploration Well Pearl Prospect bear Ninilchik, Alaska Dear Commissioner Price, A copy of the above-referenced application just arrived at my address and after placing acall immediately to the Alaska Oil and Gas Conservation Commission, I was directed bySamantha Carlisle to put my concerns in writing. My daughters and I own 3+ acres of land within the area being addressed. Of utmost importance to me is: (1) assurance my comments and concerns are taken intoconsideration, (2) being informed what it will take for the state to deny Hilcorp’sapplication and (3) having a decision made before my daughters and I continue withplanned work on our cabin this summer. This piece of property first came into the hands of my family when my grandfather, animmigrant from Lithuania, and my grandmother, an Alaska Native, homesteaded thisarea in the early 1900s. My father was raised here. I spent much of my childhood here. Asan adult I restored the original handhewn log home my grandparents had built for theirfamily. My daughters and I lived in that cabin during the early years of their lives. Whenmy father retired as commodore of the Alaska Marine Highway System, he lived in thishome until shortly before his death. Before leaving a decade of employment in Alaska’soil and gas industry, I built my own cabin on the 3+ acres of the homestead given to meby my father. In the years since, my daughters’ children also have sunk their roots intothis land. In short, it holds immeasurable value to my family. This is not the first time we’ve had oil and gas interests try to impact our home. Andcertainly not the first interaction with Hilcorp. When word was received that Hilcorpintended to purchase a privately owned piece bordering the homestead, and less than ahalf mile from our 3+ acres, my nephew, whose piece of the homestead does border theproperty Hilcorp intended to buy, met with the property owner and begged him not tosell. We listed all the reasons we were against it. But our arguments were in vain and hesold. Once Hilcorp made known their plans, I and neighbors wrote to the state to try and stopthe work Hilcorp was planning. We listed numerous reasons – safety, decreased landvalues, destruction of the land, etc. But to no avail. And now this. In the years since I built and lived in the cabin, the water, which was rusty but drinkablewhen I first moved in in 1998, has become unusable, leaving an oil residue on disheswhen I try to wash them. God forbid any of us consider drinking it. Can I prove oil andgas operations are to blame? Of course not. You know the battle that would take. But Ihave no doubt that is behind the dramatic decline in the water’s quality. This is a seismically sensitive area, with earthquakes happening at increasing frequency.Can Hilcorp ensure their drilling will have no impact on this sensitivity? No. As a reporter for Kenai Peninsula newspapers (Peninsula Clarion, Homer Tribune andHomer News) and a freelance journalist, I often covered stories about Alaska’s oil and gas industry. When Enstar and the City of Homer partnered to bring natural gas toHomer, my coworkers and I worked to cover every step of the project so help people stayinformed, informing them of public meetings, areas being included in the work, etc. Themost telling story for me came from property owners bordering the well pad where thegas would come from. Their way of life was hugely disrupted by what happened next totheir home. Eager to escape the disruption, they explored opportunities to sell theirhome, but were told that because of their new neighbor, they wouldn’t be able to get outwhat they invested in it and so their still there. After retiring as a reporter, I met with others who have property neighboring other wellsites and was told repeatedly about deafening noise, impact on air qualitys, the constantlights, the traffic, the vibrations, the disappearance of wildlife, the lack of respect andrudeness, the inability to get anyone in the oil and gas industry, the Kenai Peninsulaborough, or the state to take complaints seriously. And as they sought out options tomove away from the area, a last resort for each one, they were told how the value of theirproperties had dramatically decreased. A compilation of those stories, as well as a proand con look at the impact of oil and gas in Alaska, is in my book, “Too Close To Home?”published in 2016 by Hardscratch Press. I am putting a copy of that book in today’s mailaddressed to you. After Hilcorp’s last attempt to lease the property my daughters and I own, I met withtheir landman and expressed our desire to NOT have them as neighbors. He couldn’tunderstand our refusal to sign the offered lease, asserting that Hilcorp would be “asunobtrusive as possible.” This is a company not known for being unobtrusive. The ownerhas pushed a develop-Alaska policy to the extent that employees have been amazinglygifted for helping achieve the milestones that were set. One year, as reported publically,each employee was given a $100,000 bonus and Hilcorp was recognized for being anexemplary employer. I cannot argue that they are a large player in Alaska’s oil and gas industry, which meansthey have a significant impact on Alaska budget. But Hilcorp is neither an exemplaryemployer nor neighbor. Their noncompliances have brought fines more than once. Theirleaks in the inlet were deplorable. Their lack of safety concerns has caused injuries andnear deaths to employees. Their behavior with regard to neighboring property ownershas been shameful. Their presence in the state may mean more dollars and cents in statecoffers, but at a price others have had to pay. If you have the power to do so, DO NOT allow Hilcorp to expand its activity on the PearlPad. If this is not within your power, who can say “no”? I look forward to hearing from you. Sincerely, McKibben Jackinsky P.O. Bo 39894Ninilchik, Alaska 99639Phone: 907-399-4926Email: mckibben.jackinsky@gmail.com Cc: Cody T. Terrell, Landman, Hilcorp Jennifer Stinson, daughter and co-owner of Ninilchik property Emily Aley, daughter and co-owner of Ninilchik property 2 Notice of Public Hearing and Comment Period STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RE: Docket No. CO-22-001, Hilcorp’s Spacing Exception Application for Pearl 2A Well Hilcorp Alaska, LLC (Hilcorp) by letter dated January 26, 2022, filed an application to the Alaska Oil and Gas Conservation Commission (AOGCC) for an exception to the spacing requirements of 20 AAC 25.055 to allow Pearl 2A well to be drilled, completed, tested and produced in the Undefined Gas Pool and the Ninilchik Beluga/Tyonek Gas Pool within 1,500 feet of a property line where the owners and landowners are not the same on both sides of the line, and within 1,500 feet from the exterior boundary of the Affected Area of Conservation Order 701C. Well spacing regulations protect the oil and gas rights of adjacent landowners and maximize resource recovery by establishing default limits on how close, under the land's surface, oil and gas wells can be to each other and to property lines where ownership changes hands. These limits are set forth in a regulation, 20 AAC 25.055. Operators must abide by the default well spacing limits unless they apply for, and obtain, an exception to those limits. Although exceptions to the default well spacing requirements are not unusual, AOGCC carefully evaluates each application, and typically grants them only when actual geologic conditions demonstrate that the proposed subsurface location of a well is necessary to reach otherwise unreachable oil or gas and that both the rights of adjacent landowners and underground drinking water can be protected. As a general matter, AOGCC does not have extensive authority over surface impacts such as noise, emissions, or construction. This notice does not contain all the information filed by Hilcorp. To obtain more information, visit the AOGCC Events webpage (https://www.commerce.alaska.gov/web/aogcc/Events.aspx) or contact the AOGCC’s Special Assistant, Grace Salazar, via email at grace.salazar@alaska.gov. A public hearing on the matter has been tentatively scheduled for Tuesday, March 1, 2022, at 10:00 a.m. The hearing, which may be changed to full virtual in the event of COVID-19 health and safety concerns, will be held in the AOGCC hearing room located at 333 West 7 th Avenue, Anchorage, AK 99501. The audio call-in information is (907) 202-7104 conference ID no. 140 716 787#. Anyone who wishes to participate remotely using MS Teams video conference should contact Ms. Salazar at least two business days before the scheduled public hearing to request an invitation for the MS Teams. Please note, the hearing will be held if AOGCC receives written request by 4:30 p.m., February 18, 2022, indicating a significant degree of public interest. If a request for a hearing is not timely filed, the AOGCC may consider the issuance of an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1221 or visit the AOGCC Events webpage after February 18, 2022. To comment on Hilcorp’s application, please file your comments by 4:30 p.m., February 28, 2022, at the AOGCC address given above or via email at aogcc.customer.svc@alaska.gov or the State of Alaska Public Notices System (https://aws.state.ak.us/OnlinePublicNotices/). Individuals or groups of people with disabilities who require special accommodations to comment or participate in the hearing should contact Ms. Salazar at (907) 793-1221, no later than February 28, 2022. Jeremy M. Price Chair, Commissioner Jeremy Price Digitally signed by Jeremy Price Date: 2022.01.27 11:52:30 -09'00' 1 CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. From:Cody Terrell To:Salazar, Grace (OGC) Cc:Davies, Stephen F (OGC); Benjamin Siks; Frank Roach Subject:Pearl 2A Spacing Exception Application Date:Wednesday, January 26, 2022 10:04:47 AM Attachments:Pearl 2A Spacing Exception Application 1-26-22.pdf Hi Grace, See the attached application for spacing exception for Hilcorp’s proposed Pearl 2A exploration well located near Ninilchik Alaska. The certified mailouts to landowners within 3,000’ are getting processed and I will send tracking numbers to you as soon as I get them from the bulk mailing company. Regards, Cody T. Terrell | Landman | Hilcorp Alaska, LLC O: 907-777-8432 | C: 713-870-4532 | cterrell@hilcorp.com 3800 Centerpoint Dr., Suite 1400 | Anchorage | Alaska | 99503 This email may contain confidential and / or privileged information and is intended for the recipient(s) only. In the event you receive this message in error, please notify me and delete the message. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that the onward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. By Grace Salazar at 10:06 am, Jan 26, 2022 CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. From:Cody Terrell To:Salazar, Grace (OGC) Cc:Boyer, David L (OGC) Subject:RE: [EXTERNAL] RE: Pearl 2A Spacing Exception Application Date:Friday, January 28, 2022 11:36:38 AM Hi Grace, See the tracking numbers below: ORDER SUMMARY SENT TO: Pearl 2A Spacing Exception Application 1-26- 22.pdf Gailan B. Johnson and Carol Lane-Johnson, PO Box 39108, Ninilchik AK 99639-0108, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193329 Pearl 2A Spacing Exception Application 1-26- 22.pdf Carolee Pickett, 5336 Holly Loop SE, Turner OR 97392, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193374 Pearl 2A Spacing Exception Application 1-26- 22.pdf Cynthia L. Baganov, P. O. Box 2789, Homer AK 99603, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193398 Pearl 2A Spacing Exception Application 1-26- 22.pdf Danny L. Martin, 2250 NW 114th Ave, Unit 1P, PTY-14423, Miami FL 33192, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193381 Pearl 2A Spacing Exception Application 1-26- 22.pdf Darwin E. and Kaye A. Waldsmith Trust, PO Box 39309, Ninilchik AK 99639, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193404 Pearl 2A Spacing Exception David B. Charbonnier, 804 Madison Street, SINGLE SIDED CERTIFIED ELECTRONIC Application 1-26- 22.pdf Petaluma CA 94952, United States RETURN RECEIPT Tracking Information 92148901324734001548193411 Pearl 2A Spacing Exception Application 1-26- 22.pdf David W. Smith, PO Box 39690, Ninilchik AK 99639, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193435 Pearl 2A Spacing Exception Application 1-26- 22.pdf Edward Lee Maki, 505 Jamestown Ct, Frankfort KY 40601-1341, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193466 Pearl 2A Spacing Exception Application 1-26- 22.pdf Emily Long, PO Box 39187, Ninilchik AK 99639, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193459 Pearl 2A Spacing Exception Application 1-26- 22.pdf Estate of Doime U. Wesen, , United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Pearl 2A Spacing Exception Application 1-26- 22.pdf Gale R. Graham, 1668 Oro Dam Blvd W 67, Oroville CA 95965-4155, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193473 Pearl 2A Spacing Exception Application 1-26- 22.pdf Gary Wade Jackinsky, P.O. Box 39127, Ninilchik AK 99639, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193480 Pearl 2A Spacing Exception Application 1-26- 22.pdf George R. Maki, Jr., 681 Cassidy Drive, Durango CO 81303, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193503 Pearl 2A Spacing Exception Glen Thomas and Dianne Thomas, PO Box SINGLE SIDED CERTIFIED ELECTRONIC Application 1-26- 22.pdf 1083, Moore Haven FL 33471, United States RETURN RECEIPT Tracking Information 92148901324734001548193510 Pearl 2A Spacing Exception Application 1-26- 22.pdf Glenn R. Edwards and Carolyn M. Edwards, PO Box 39064, Ninilchik AK 99639, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193534 Pearl 2A Spacing Exception Application 1-26- 22.pdf James D. Elledge, 20504 Philadelphia Way, Eagle River AK 99577, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193527 Pearl 2A Spacing Exception Application 1-26- 22.pdf James D. and Diane S. Elledge, 20504 Philadelphia Way, Eagle River AK 99577-8496, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193558 Pearl 2A Spacing Exception Application 1-26- 22.pdf Janet M. and Robert C. Clucas, 72880 Sterling Highway, Clam Gulch AK 99568, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193565 Pearl 2A Spacing Exception Application 1-26- 22.pdf Janusz Naumiuk and Taisa Naumiuk, 3 Elmwood Terrace, Edison NJ 08817, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193619 Pearl 2A Spacing Exception Application 1-26- 22.pdf Jason V. Jackinsky, PO Box 744, Palmer AK 99645-0744, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193626 Pearl 2A Spacing Exception Application 1-26- 22.pdf Jennifer Long, PO Box 39187, Ninilchik AK 99639, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193640 Pearl 2A Spacing Exception Application 1-26- 22.pdf John L. and Nancy E. Stengl, North 12003 Cedar Road, Birnamwood WI 54414-8737, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193657 Pearl 2A Spacing Exception Application 1-26- 22.pdf Joy Ward, P. O. Box 3414, Kenai AK 99611, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193664 Pearl 2A Spacing Exception Application 1-26- 22.pdf Judith Ballentine, PO Box 9, Veguita NM 87062, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193688 Pearl 2A Spacing Exception Application 1-26- 22.pdf Kenneth E. and Brenda M. Noonan, h/w, 1 Kollar Road, Willington CT 06279, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193718 Pearl 2A Spacing Exception Application 1-26- 22.pdf Kenneth E. Noonan, 1 Kollar Road, Willington CT 06279, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193701 Pearl 2A Spacing Exception Application 1-26- 22.pdf Larry M. Rozak, PO Box 1179, Homer AK 99603, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193732 Pearl 2A Spacing Exception Application 1-26- 22.pdf Lela Joy Thatcher, 2020 Muldoon Rd, Unit 241, Anchorage AK 99504-3685, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193756 Pearl 2A Spacing Exception Application 1-26- 22.pdf Mathew Byler, PO Box 39308, Ninilchik AK 99639, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking 92148901324734001548193763 Information Pearl 2A Spacing Exception Application 1-26- 22.pdf McKibben Jackinsky, PO Box 39187, Ninilchik AK 99639, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193794 Pearl 2A Spacing Exception Application 1-26- 22.pdf Michael Roy Smith, 1121 Burnt Ridge Road, Troy ID 83871, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193787 Pearl 2A Spacing Exception Application 1-26- 22.pdf Patrick L. Pearl, 2705 Range Avenue, Apt 109, Santa Rosa CA 95403, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193800 Pearl 2A Spacing Exception Application 1-26- 22.pdf Redford Johnathan Turner, IV, P. O. Box 141, Clam Gulch AK 99568, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193817 Pearl 2A Spacing Exception Application 1-26- 22.pdf Richard Lee & Jeannie Lou Johnson, 454 Camelot Dr, Anchorage AK 99508, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193848 Pearl 2A Spacing Exception Application 1-26- 22.pdf Risa A. Jackinsky, 4014 Ben Walters Lane, Apt. C8, Homer AK 99603, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193855 Pearl 2A Spacing Exception Application 1-26- 22.pdf Ronald Ray Albright, P.O. Box 39391, Ninilchik AK 99639, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193862 Pearl 2A Spacing Exception Application 1-26- Sharon Culhane Living Trust, 5331 Bishops Castle Circle, Anchorage AK 99516, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT 22.pdf Tracking Information 92148901324734001548193879 Pearl 2A Spacing Exception Application 1-26- 22.pdf Shawn M. and Myrle Wilson, 8312 N Highlander Loop, Palmer AK 99645-8016, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193916 Pearl 2A Spacing Exception Application 1-26- 22.pdf Shawn W. Jackinsky, Jr., PO Box 15282, Fritz Creek AK 99603, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193930 Pearl 2A Spacing Exception Application 1-26- 22.pdf Stephen Walter Jackinsky, 138 NE 106 St., Miami FL 33138, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193947 Pearl 2A Spacing Exception Application 1-26- 22.pdf Robert Flygenring and Cheryl King, 926 W 80TH AVE, Anchorage AK 99518, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193961 Pearl 2A Spacing Exception Application 1-26- 22.pdf Thomas P. Brady, 7760 McClure Circle, Anchorage AK 99507-6231, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193978 Pearl 2A Spacing Exception Application 1-26- 22.pdf Thomas James and Deborah Ann Bandelow, 8000 Little Dipper Ave, Anchorage AK 99504, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193985 Pearl 2A Spacing Exception Application 1-26- 22.pdf Walter L. Wilson, 91 Good Times Drive, Las Cruces NM 88005, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548194012 Pearl 2A Spacing SINGLE Exception Application 1-26- 22.pdf Wendy Jacqueline Seaman, 12 Haven Dr., Petaluma CA 94952, United States SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548194036 Pearl 2A Spacing Exception Application 1-26- 22.pdf Brandon Levi & Melissa Lancaster, P. O. Box 1397, Anchor Point AK 99556, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548194050 Pearl 2A Spacing Exception Application 1-26- 22.pdf Darlene M. Rozak, 1134 S Magnolia Ave, Yuma AZ 85364, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548194081 Pearl 2A Spacing Exception Application 1-26- 22.pdf Michael S. and Cheryl B. Sutton, PO Box 39214, Ninilchik AK 99639, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548194074 Pearl 2A Spacing Exception Application 1-26- 22.pdf Ninilchik Point View LLC, PO Box 39309, Ninilchik AK 99639, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548194104 Pearl 2A Spacing Exception Application 1-26- 22.pdf No More FYI, LLC, c/o Shari Wulf 10672 Kenai Spur Hwy, Ste 112, PMB 289, Kenai AK 99611, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548194111 Pearl 2A Spacing Exception Application 1-26- 22.pdf Arthur D. Reina, 240 Birch Banks Rd., Sagle ID 83860, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548194135 Pearl 2A Spacing Exception Application 1-26- 22.pdf Gary Andes and Marna Andes, c/o Andes Pool Supply 23 Perry Ave, Biggs CA 95917, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548194166 Pearl 2A Spacing Exception Application 1-26- 22.pdf State of Alaska, c/o Unit Manager 550 West 7th Avenue, Ste. 1100, Anchorage AK 99501, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548194173 Pearl 2A Spacing Exception Application 1-26- 22.pdf Cook Inlet Region, Inc., Attn: Land 725 E. Fireweed Lane, Suite 800, Anchorage AK 99503, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548194180 Pearl 2A Spacing Exception Application 1-26- 22.pdf Theodore W. Rozak Living Trust, c/o Larry M. Rozak PO Box 1179, Homer AK 99603, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548194203 Pearl 2A Spacing Exception Application 1-26- 22.pdf Gloria Ann Ropelato, aka Gloria Ann Millet 3954 W. 1400 S., Ogden UT 84401-9062, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548194227 Pearl 2A Spacing Exception Application 1-26- 22.pdf Ember A. Jackinsky, aka Joshua Jackinsky, 3700 Sharon Gagnon LN, Anchorage AK 99508-4656, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548194241 Pearl 2A Spacing Exception Application 1-26- 22.pdf Estate of George R. Lindholm, P.O. Box 39570, Ninilchik AK 99639, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548194258 Pearl 2A Spacing Exception Application 1-26- 22.pdf Gailan B. Johnson, 6710 Elmore Road Possible bad address (certified mail unclaimed), Anchorage AK 99507, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548194272 Pearl 2A Spacing Exception Application 1-26- 22.pdf John D. McCombs and Deidre E. McCombs, PO Box 39087, Ninilchik AK 99639, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193312 Pearl 2A Spacing Exception Application 1-26- 22.pdf Mercy A. Shelton, PO Box 2260, Homer AK 99603, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193305 Pearl 2A Spacing Exception Application 1-26- 22.pdf Stephen M. and Theresa Wackowski, 103 Ryans Way, Yorktown VA 23693, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193299 Pearl 2A Spacing Exception Application 1-26- 22.pdf Tim and Kristine Moerline, P.O. Box 298, Kasilof AK 99610, United States SINGLE SIDED CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001548193336 Regards, Cody T. Terrell Landman Hilcorp Alaska, LLC Direct: 907-777-8432 Cell: 713-870-4532 This email may contain confidential and / or privileged information and is intended for the recipient(s) only. In the event you receive this message in error, please notify me and delete the message. From: Salazar, Grace (OGC) <grace.salazar@alaska.gov> Sent: Thursday, January 27, 2022 2:36 PM To: Cody Terrell <cterrell@hilcorp.com> Cc: Boyer, David L (OGC) <david.boyer2@alaska.gov> Subject: [EXTERNAL] RE: Pearl 2A Spacing Exception Application Hi Cody, As discussed yesterday, hearing is tentatively scheduled for March 1. Please remember to send us the certified mail outs. Thank you. Grace ____________________________________ Respectfully, CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. M. Grace Salazar, Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Direct: (907) 793-1221 Email: grace.salazar@alaska.gov https://www.commerce.alaska.gov/web/aogcc/ From: Cody Terrell <cterrell@hilcorp.com> Sent: Wednesday, January 26, 2022 10:04 AM To: Salazar, Grace (OGC) <grace.salazar@alaska.gov> Cc: Davies, Stephen F (OGC) <steve.davies@alaska.gov>; Benjamin Siks <bsiks@hilcorp.com>; Frank Roach <Frank.Roach@hilcorp.com> Subject: Pearl 2A Spacing Exception Application Hi Grace, See the attached application for spacing exception for Hilcorp’s proposed Pearl 2A exploration well located near Ninilchik Alaska. The certified mailouts to landowners within 3,000’ are getting processed and I will send tracking numbers to you as soon as I get them from the bulk mailing company. Regards, Cody T. 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