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HomeMy WebLinkAboutCO 802Conservation Order 802 Beluga River Unit Pool Rules 1. March 3, 2022 Hilcorp application for BRU pool rules 2. March 8, 2022 Notice of Public Hearing, affidavit, mail and bulk mail list 3. April 12, 2022 Transcript, Hilcorp presentation 4. 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Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2022.05.05 10:38:34 -08'00' Daniel Seamount Digitally signed by Daniel Seamount Date: 2022.05.05 10:55:27 -08'00' Jeremy Price Digitally signed by Jeremy Price Date: 2022.05.05 11:30:47 -08'00' From:Carlisle, Samantha J (OGC) To:AOGCC_Public_Notices Subject:Conservation Order 802 (Beluga River Unit) Date:Thursday, May 5, 2022 11:45:00 AM Attachments:co802.pdf THE APPLICATION OF Hilcorp Alaska, LLC for an order for classification of a new gas pool and to prescribe pool rules for development of the proposed Sterling- Beluga Gas Pool within the Beluga River Unit, Beluga River Field. Samantha Carlisle AOGCC Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907) 793-1223 From:Carlisle, Samantha J (OGC) To:Cody Terrell Subject:FW: Conservation Order 802 (Beluga River Unit) Date:Thursday, May 5, 2022 11:47:00 AM Attachments:co802.pdf Cody – please see the attached order regarding Beluga River Unit pool rules. Thank you, Samantha Carlisle AOGCC Special Assistant (907) 793-1223 From: Carlisle, Samantha J (OGC) Sent: Thursday, May 5, 2022 11:46 AM To: AOGCC_Public_Notices <AOGCC_Public_Notices@list.state.ak.us> Subject: Conservation Order 802 (Beluga River Unit) THE APPLICATION OF Hilcorp Alaska, LLC for an order for classification of a new gas pool and to prescribe pool rules for development of the proposed Sterling- Beluga Gas Pool within the Beluga River Unit, Beluga River Field. Samantha Carlisle AOGCC Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907) 793-1223 Bernie Karl K&K Recycling Inc. P.O. Box 58055 Fairbanks, AK 99711 Mailed 5/5/22 4 1 Carlisle, Samantha J (OGC) From:Benjamin Siks <bsiks@hilcorp.com> Sent:Thursday, April 14, 2022 1:12 PM To:McLellan, Bryan J (OGC) Cc:Sierra Becia; Cody Terrell; Davies, Stephen F (OGC); Roby, David S (OGC) Subject:RE: [EXTERNAL] RE: Beluga River Pore Pressure Spreadsheet Base of the proposed pool is in BRU 224-13 at 7000’ MD, 6909’ TVDss, 7000’ TVD (Beluga J7 marker), which correlates to the LOT in BRU 223-24 at ~6950’ TVD, ~7210’ MD. Below is a quick correlation panel in TVD. I said Beluga J4 in the last email, that was a typo, sorry about that. It is the J7 marker. This would make it consistent with our deep rights. 3 Ben Siks Geologist – Alaska South Central Office – 907-777-8388 Cell –----907-229-0865 bsiks@hilcorp.com From: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov>   Sent: Thursday, April 14, 2022 12:31 PM  To: Benjamin Siks <bsiks@hilcorp.com>  Cc: Sierra Becia <Sierra.Becia@hilcorp.com>; Cody Terrell <cterrell@hilcorp.com>; Davies, Stephen F (OGC)  <steve.davies@alaska.gov>; Roby, David S (OGC) <dave.roby@alaska.gov>  Subject: RE: [EXTERNAL] RE: Beluga River Pore Pressure Spreadsheet  Is the base of the proposed pool is at that depth of the J4?  Looks like about 6950’ TVD on the plot.  Bryan McLellan  Senior Petroleum Engineer  Alaska Oil & Gas Conservation Commission  333 W 7th Ave  Anchorage, AK 99501  Bryan.mclellan@alaska.gov  +1 (907) 250‐9193 From: Benjamin Siks <bsiks@hilcorp.com>   Sent: Thursday, April 14, 2022 12:29 PM  To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov>  Cc: Sierra Becia <Sierra.Becia@hilcorp.com>; Cody Terrell <cterrell@hilcorp.com>; Davies, Stephen F (OGC)  <steve.davies@alaska.gov>; Roby, David S (OGC) <dave.roby@alaska.gov>  Subject: RE: [EXTERNAL] RE: Beluga River Pore Pressure Spreadsheet  Top of Sterling A is ~3000’ TVD, base around ~3500’ TVD, where it transitions into the Beluga D (Top Beluga). The deepest LOT was in the Beluga J4, where our deep rights end. Ben Siks Geologist – Alaska South Central Office – 907-777-8388 Cell –----907-229-0865 bsiks@hilcorp.com From: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov>   Sent: Thursday, April 14, 2022 12:25 PM  To: Benjamin Siks <bsiks@hilcorp.com>  Cc: Sierra Becia <Sierra.Becia@hilcorp.com>; Cody Terrell <cterrell@hilcorp.com>; Davies, Stephen F (OGC)  <steve.davies@alaska.gov>; Roby, David S (OGC) <dave.roby@alaska.gov>  Subject: [EXTERNAL] RE: Beluga River Pore Pressure Spreadsheet  Ben,   What is the depth of the top and bottom of the Sterling and Beluga on this plot?  Thanks  4 Bryan McLellan  Senior Petroleum Engineer  Alaska Oil & Gas Conservation Commission  333 W 7th Ave  Anchorage, AK 99501  Bryan.mclellan@alaska.gov  +1 (907) 250‐9193 From: Benjamin Siks <bsiks@hilcorp.com>   Sent: Thursday, April 14, 2022 10:54 AM  To: McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov>  Cc: Sierra Becia <Sierra.Becia@hilcorp.com>; Cody Terrell <cterrell@hilcorp.com>  Subject: Beluga River Pore Pressure Spreadsheet  Hey Bryan, Not 100% sure who to transmit this data over to, but I know you will be looking over this data after our discussion. Please forward/share with anyone else needing to look at the data. Attached is our workup of the pore pressure / frac gradients at Beluga River in excel format, so you can see all the data and equations we have used. As you can see, original conditions follow a hydrostatic gradient fairly well and then you start to see some higher gradients with depth, ~at top Beluga G interval. The primary focus and offtake of Beluga River has been the Sterling and upper Beluga interval in the past. Much of the deeper Beluga section shows original pressure conditions and this is reflected in the 2020 and 2021 drill well rates we see by completing only the lower Beluga. As I stated in the hearing, our comingling plan for the Sterling would only take place later on in life when the lower Beluga section would be in similar pressure conditions to prevent crossflow/fracking of the shallower zones. Key Assumptions 1.Plotting our LOT’s (Dark Green Line), allows us to back calculate our Poisson ratio with depth. We have attempted to use dipole sonic in places where we have it, but the gas effect on the compressional data does not jive with our LOT’s. 2.The orange and red triangles below represent our 2020 data, which was collected via GeoTap LWD in BRU 222- 24 and BRU 212-26. We fit an average depth vs pressure slope to the data in two “sections”, upper and lower for a “most likely” prediction. 3.Not all the wells at BRU have done LOT/FIT’s in the past. We read through all the drilling reports and pulled that data out. Any questions, feel free to reach out to Sierra and myself! 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. 6 Ben Siks Geologist – Alaska South Central Office – 907-777-8388 Cell –----907-229-0865 bsiks@hilcorp.com 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. 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. 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. BRU 223‐24 LOTBRU 212‐24T LOTBRU 212‐35T LOTBRU 214‐26 LOTBRU 224‐23T LOTBRU 232‐09 LOTBRU 243‐34 LOTy = 1.2786x ‐ 160.740100020003000400050006000700080000 1000 2000 3000 4000 5000 6000 7000 8000 9000Depth TVD (Ft)Pressure (PSI)Beluga River PPFG ChartHydrostatic PressureOverburden PressureBRU 222‐24 FITBRU 241‐34T FITBRU 212‐26 FITBRU 244‐23 FITBRU 211‐26 FITBRU 232‐23 FITBRU 224‐23 FITBRU 211‐03 FITBRU 223‐24 FITBRU 212‐18 FITBRU 223‐24 LOTBRU 212‐24T LOTBRU 212‐35T LOTBRU 214‐26 LOTBRU 224‐23T LOTBRU 232‐09 LOTBRU 242‐04 LOTBRU 243‐34 LOT222‐24 RFT DATA212‐26 RFT DATALOT TrendlineFracture Pressure from LOT2020 Lower Section Pressure Avg2020 Upper Section Pressure AvgCurrent Frac PressureHistorical PressuresLinear (LOT Trendline) 3 AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 ALASKA OIL AND GAS CONSERVATION COMMISSION In the Matter of the Application of ) Hilcorp Alaska for Pool Rules for the ) Beluga River, Sterling Beluga Gas Pool. ) __________________________________________) Docket No.: CO-22-003 PUBLIC HEARING April 12, 2022 10:00 o'clock a.m. BEFORE: Jeremy Price, Chairman Jessie Chmielowski, Commissioner Daniel T. Seamount, Commissioner AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 2 1 TABLE OF CONTENTS 2 Opening remarks by Chairman Price 03 3 Testimony by Mr. Terrell 06 4 Testimony by Ms. Becia 07 5 Testimony by Mr. Siks 08 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 3 1 P R O C E E D I N G S 2 (On record - 10:00 a.m.) 3 CHAIRMAN PRICE: Good morning. We're now on 4 record. It is approximately 10:00 a.m., Tuesday, April 5 12th, 2022. This is Jeremy Price, Chairman and 6 Commissioner and with me today are Commissioner Dan 7 Seamount and Commissioner Jessie Chmielowski. This is 8 a public hearing on Docket number CO-22-003, Hilcorp's 9 application to pool rules for the Beluga River, 10 Sterling Beluga Gas Pool. 11 We've been explaining a little bit some of 12 these processes for the public folks when they're 13 online or when they're reading these transcripts 14 afterwards so I'm going to explain this really quick. 15 Pool rules are applied for under 20 AAC 25.520 for the 16 purpose of prescribing rules that differ from the 17 normal statewide rules found in 20 AAC 25 for the 18 development of a defined pool. The rules are 19 established to streamline the development of the pool 20 while still protecting correlative rights and ensuring 21 maximum recovery. 22 One of the most common rules that an operator 23 will ask for and the only one Hilcorp is applying for 24 in this instance in a pool rules application is that 25 the interval spacing requirements found in 20 AAC AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 4 1 25.055 be waived within the bounds of the pool so that 2 an operator can place wells as needed to properly 3 develop the pool without the need to apply for spacing 4 exceptions if a well will be too close to another well 5 within the pool as would be required if following 6 statewide regulations. 7 Now this hearing is being held in accordance 8 with Alaska statute 44.62 and 20 AAC 25.540 of the 9 Alaska Administrative Code. 10 Notice of the hearing was published in the 11 State of Alaska Online Notices website as well the 12 AOGCC's website and was sent through the AOGCC email 13 list serve on March 8th, 2022. The AOGCC also 14 published the notice in the Anchorage Daily News on 15 March 9th, 2022. To date AOGCC has not received any 16 public comment on the matter. 17 Today's hearing is being held in person, 18 telephonically and via Microsoft Teams. Folks on the 19 phone please be mindful of any background noise and 20 please mute your lines unless you're ready to speak. 21 And after the conclusion of the presentation I will ask 22 if any members of the public wish to testify when the 23 time comes. 24 If anyone requires any special accommodations 25 please contact Grace Salazar, she can be reach at 793- AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 5 1 1221 or send her a message using the Microsoft Teams 2 chat icon and she'll do her best to accommodate you. 3 Computer Matrix will be recording the hearing. 4 Upon completion and preparation of the transcript, 5 persons desiring a copy may be able to obtain it by 6 contacting Computer Matrix. 7 Before asking Hilcorp to provide their 8 presentation do any of the Commissioners have any 9 comments to make. 10 Commissioner Chmielowski? 11 COMMISSIONER CHMIELOWSKI: No. Thank you. 12 CHAIRMAN PRICE: Commissioner Seamount? 13 COMMISSIONER SEAMOUNT: I have none at this 14 time. Thank you. 15 CHAIRMAN PRICE: Folks from Hilcorp, I'll swear 16 you in at this time. If the three of you could raise 17 your right hand and if you don't mind go ahead and 18 stand. Appreciate it. 19 (Oath administered) 20 IN UNISON: I do. 21 CHAIRMAN PRICE: Thank you. Please be seated. 22 And then as we go through this process, each of you 23 that start speaking just announce who you are at the 24 mic. 25 COMMISSIONER CHMIELOWSKI: Make sure your green AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 6 1 light is on. 2 CHAIRMAN PRICE: Yeah, that too. 3 COMMISSIONER CHMIELOWSKI: Bright light. 4 CHAIRMAN PRICE: So we have Mr. Siks, Ms. Becia 5 and Mr. Terrell. Okay. If you are ready please 6 proceed with the presentation. 7 CODY TERRELL 8 called as a witness on behalf of Hilcorp Alaska, 9 testified as follows on: 10 DIRECT EXAMINATION 11 MR. TERRELL: This is Cody Terrell. I'm the 12 landman for Hilcorp and Beluga River. We applied for 13 -- Hilcorp applied for pool rules as you stated. I'll 14 start to go over a little bit on, you know, just an 15 overview of ownership for Beluga River. Most of the 16 other information in our slides will be covered by 17 Sierra and Ben. 18 Beluga River field working interest ownership. 19 Hilcorp is the operator of the field, Hilcorp owns 20 33.33 percent, a third and Chugach Electric owns the 21 other 66.67 percent working interest. Subsurface 22 ownership is mixed, it's BLM -- mostly BLM and State 23 with about 10 acres of fee land. All of the subsurface 24 is leased and all of the subsurface owners are 25 committed to the Beluga River unit agreement. And AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 7 1 there's been 22 separate AOGCC orders related to well 2 spacing over the years and that's a large reason why 3 we're applying for pool rules is to kind of reduce that 4 burden of applying for spacing exceptions every time 5 because the property lines..... 6 CHAIRMAN PRICE: Folks, I'm going to ask to 7 please mute your phones on the line, please, we're 8 getting a little feedback, some typing on the computer. 9 Thank you, folks. 10 Please go ahead. 11 MR. TERRELL: A large reason why we're applying 12 for pool rules is, you know, the property lines, you 13 know, because of some of the mixed ownership as well as 14 the high density of wells, it's just makes sense to 15 apply for pool rules. 16 And I guess the next is I'll hand off to you -- 17 one of you two. 18 SIERRA BECIA 19 previously sworn, called as a witness on behalf of 20 Hilcorp Alaska, testified as follows on: 21 DIRECT EXAMINATION 22 MS. BECIA: This is Sierra Becia, I'm the 23 reservoir engineer for Beluga River. So just some 24 general field history. It was discovered in 1962, 25 first production in 1968 and Hilcorp has been the AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 8 1 operator since 2016. The production so far is around 2 1.4 TCF from Beluga River and as you know we produce 3 from the Sterling and the Beluga. We're currently 4 producing about 30 million a day and we can contribute 5 quite a bit of the recent production to wells that have 6 been drilled recently that we've gotten spacing 7 exceptions for. 8 BEN SIKS 9 previously sworn, called as a witness on behalf of 10 Hilcorp Alaska, testified as follows on: 11 DIRECT EXAMINATION 12 MR. SIKS: Hi, my name is Ben Siks, I'm the 13 geologist that works Beluga River field for Hilcorp. 14 And I'm just going to go over a couple slides here that 15 just have a geologic overview and why we're kind of -- 16 how we're arriving at the need to downspace to target 17 specifically smaller channel sizes. 18 Just in general Beluga River is a broad, 19 northeast trending anticlinal structure, it's about six 20 and a half miles long, two and a half miles wide and 21 it's set up by a thrust fault on its western side. In 22 the center of the screen there I have a type log from 23 BRU 214-26 and that shows kind of the characteristic 24 reservoirs that we target. The upper interval is the 25 Sterling interval. You have a gamma ray track in track AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 9 1 one, a resistivity track in track two and then a smooth 2 RO-B and NC track in track three. And you see a lot of 3 your classical pay in that upper sands and then as you 4 get deeper and deeper you're starting to get more 5 classic, more lithic environments influencing the 6 Beluga sands and the petrophysics just get a little bit 7 trickier so they tend to look a little bit wet. But 8 that Sterling interval is very high net to gross and 9 that's been where the dominant production has been in 10 the past and now with a lot of our recent activity 11 we've been targeting that lower net to gross Beluga 12 formation. 13 Go to the next slide, please. So the 14 depositional model..... 15 COMMISSIONER SEAMOUNT: Could you say the slide 16 number also..... 17 MR. SIKS: Yes. 18 COMMISSIONER SEAMOUNT: .....for the record. 19 Thank you. 20 MR. SIKS: We are now on slide 5. So there's 21 kind of two running depositional models that we kind of 22 carry in our minds when we're looking at the sands at 23 Beluga River. The Sterling formation is represented 24 more by the braided channel type that is on the left- 25 hand side. So these are wide channels with braided AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 10 1 systems that are coming and going quite rapidly. But 2 what these end up depositing behind them are these 3 thick, well connected sands over the course of the 4 whole structure. Now the Beluga sands are more on the 5 right-hand side where you have these meandering channel 6 belts and the sand deposition is localized to that 7 channel and can wander in a very large area and ends up 8 being very hydraulically isolated as we start stacking 9 those sands up. 10 We're going to move to slide number 6. So with 11 the focus on that Beluga formation like I said 12 previously they're dominated by an osmosing stream, 13 what I have here is one of our net sand maps on the 14 right-hand side showing our geologic model that's based 15 off of net sand that I picked in wells as well as 16 taylor currents derived from FMI logs. And I've kind 17 of put that all into a statistical model to create what 18 I think is statistically representative from what I see 19 in my well stock. And on the bottom left-hand side we 20 have an example just from an outcrop down by Ninilchik 21 of what some of these sands look like, an outcrop where 22 you have channels that are coming and going where if 23 you were to drill a well in one of those sand bodies 24 you would actually maybe think oh, these are the same 25 sands, but in reality they're hydraulically isolated by AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 11 1 these overrunning deposits. Overall the Beluga 2 formation is about 4,500 feet thick and like I said 3 previously its net to gross is quite low, you know, 15 4 to 40 percent depending on the sand specifically and 5 you are talking about rock properties, the absolute 6 best of them would be in the 100 millidarcies range, 7 but your average is probably sub 10 millidarcies on 8 each one of these sands. 9 Go to slide number 7. So with that 10 characterizing the wells -- as I go through each one of 11 the wells flagging the net sands and coming up with a 12 channel thickness in a vertical sense, utilizing a lot 13 of the channel width and channel belt width empirical 14 formations from this paper and the citation's right 15 there at the bottom. It's also included in the geo and 16 engineering report. We look at that signature from the 17 electronic log and we can come up with an empirically 18 derived number for what that channel width should have 19 been when it was deposited. And on the right-hand side 20 we're looking at bends of a thousand feet for the 21 channel size that's derived from the well logs and you 22 can see the first bend, everything under sub 1,000 feet 23 encompasses approximately 63, 64 percent of all of our 24 channel size that we've observed. And as you move up 25 to two or 3,000 you're talking all the way up in the AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 12 1 order of 90 percent of your channels are represented in 2 that sub 3,000 feet. That's really driving at us to go 3 for the downspacing from the 640 acres to the 160 acre 4 spacing. 5 So we'll go to slide number 8. So to that this 6 is just a simple cartoon showing a 640 acre square in 7 the middle and then if you were to divide that into 8 four quarters the 160 acre spacing. Now we have just a 9 set of typical channel width, let's say about 1,300 10 feet running through here, all stacked on each other 11 and if you were to drill a well on one of corner of 12 that at a -- or in the center of it as 640 acre spacing 13 you'd only effectively drain theoretically about 47 14 percent of that square. But if we were to downspace to 15 160 acre spacing, we're now driving towards recovery 16 factors in 90 percent. So that's really what we're 17 proposing to do with continued development at Beluga 18 River. 19 Moving on to slide 9. That just kind of comes 20 to our recommendation. Because of the characterization 21 of these more hydrogenous fluvial deposits that we're 22 seeing, the channel widths are sub -- you know, 23 dominantly subbed at 2,000 foot. Adhering to the 24 previous rules where we have to be 3,000 feet apart at 25 our well spacing really doesn't allow us to develop and AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 13 1 we're seeing that with some of the wells that we've 2 drilled recently with spacing exceptions. And yeah, we 3 have our pool rules really fitting into what was 4 already previously defined in well 224-13, but 5 encompassing all the Sterling and Beluga formations 6 down to 7,000 feet in that well. 7 And that's it for me if there's any questions. 8 COMMISSIONER SEAMOUNT: I've a couple 9 questions. 10 MR. SIKS: Sure. 11 COMMISSIONER SEAMOUNT: I'm not sure is Ms. 12 Becia or you should answer or need to answer them. 13 First of all I was told years ago by an ARCO geologist 14 that Beluga River field has produced beyond what their 15 volumetric calculation said it should. Have you done 16 any volumetrics, total volumetrics on the field? 17 MR. SIKS: We have done total volumetrics on 18 the field, yes. 19 COMMISSIONER SEAMOUNT: Is the..... 20 MR. SIKS: And..... 21 COMMISSIONER SEAMOUNT: .....is the ARCO guy 22 wrong? 23 MR. SIKS: I think the ARCO guy's wrong, at 24 least by how we're evaluating it. The Sterling 25 interval in particular looks like it's very high AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 14 1 recovery factors, you know, upwards of 90 percent, but 2 the Beluga is where we think there's a lot of remaining 3 potential and that's kind of, you know, more in the 40 4 to 50 percent recovery factor range. 5 COMMISSIONER SEAMOUNT: Do you know what the 6 volumetric of the -- or the maturity of the coals are? 7 MR. SIKS: The coals that we've observed are 8 all sub 3,000 feet really so we're kind of deeper in 9 that window where they're overcooked in a sense, right. 10 We haven't every specifically looked at them for 11 coalbed methane there. 12 COMMISSIONER SEAMOUNT: Okay. So you think 13 they're pretty thermally mature? 14 MR. SIKS: Yes. 15 COMMISSIONER SEAMOUNT: And the present 16 production in the field's what, about 20 million a day? 17 MR. SIKS: Yeah, we're -- I think we're pushing 18 about 31, 32 million a day. 19 COMMISSIONER SEAMOUNT: Okay. Thank you. 20 MR. SIKS: Yeah. 21 COMMISSIONER CHMIELOWSKI: Do you anticipate 22 keeping your rate at about 30 million day with the 23 additional drilling or what is your forecast for 24 production at Beluga? 25 MS. BECIA: So we're currently at about 30 AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 15 1 million a day and we are hoping to drill multiple wells 2 this year and we're shooting for somewhere between 40 3 to 50 million by the end of the year. 4 COMMISSIONER CHMIELOWSKI: Great. What kind of 5 surveillance do you guys do out at Beluga, is there any 6 surveillance plan or reservoir management plan for that 7 area? 8 MS. BECIA: This is Sierra Becia. So the 9 surveillance that we do is we can look at estimate 10 reservoir pressure with our tubing pressures, shut-in 11 tubing pressures, and we also run GPT so gamma, 12 pressure, temperature, fairly often to look at which 13 zones we're producing from and what kind of pressures 14 we're seeing in our wells. And we also have standard 15 production profiles. 16 CHAIRMAN PRICE: Given your application you're 17 going to -- you're request commingling Sterling and 18 Beluga production, correct? 19 MR. SIKS: Correct. 20 CHAIRMAN PRICE: Can you speak to how you're 21 going to prevent subsurface crossflow? 22 MR. SIKS: The idea would be similar to how we 23 operate some of our other fields where we target the 24 higher pressured sands in the Beluga first and work 25 from a bottoms up approach. So really the Sterling AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 16 1 adds will only come once we have shut-in tubing 2 pressures or pressures that should behave well with the 3 Sterling interval because oftentimes those zones are 4 sub 1,000 psi remaining. So we do not want to 5 crossflow either. 6 CHAIRMAN PRICE: Thank you. 7 COMMISSIONER CHMIELOWSKI: Could you just talk 8 a little bit about the facilities out at Beluga River 9 unit, what's out there in general on location and what 10 kind of metering is out there? 11 MR. SIKS: We have heating separators, pad 12 separators, pad compression. There's -- I think 13 there's 13 pads at Beluga River if I'm -- I might be 14 incorrect in that statement, I'm not totally sure. And 15 then a lot of the wells have individual wellhead 16 meters, some of them are twinned and that's usually -- 17 and we have them master metered leaving the field as 18 well so we can see what our overall field rate is. 19 MS. BECIA: And just to add to that. So we 20 measure our gas rate from our well continuously and 21 then water rates will get -- we'll test once a month to 22 get the water rate. 23 COMMISSIONER CHMIELOWSKI: And following up on 24 the question about crossflow. Does Hilcorp have 25 information on the pore pressure gradient across the AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 17 1 Sterling and Beluga zone? 2 MR. SIKS: Originally they were all within the 3 same hydrostatic pore pressure and then as we drill and 4 continue to get new wells we've been running RFTs to 5 get pressure stations in each one of the sands so then 6 we can kind of forecast what ones are depleted and what 7 ones are at original conditions. But there's been no 8 evidence of any overpressure. 9 COMMISSIONER CHMIELOWSKI: Okay. Thanks. 10 CHAIRMAN PRICE: I want to ask a question that 11 you might not be able to answer. I was just curious 12 why an operator -- previous operators -- which you 13 probably can't speak to, but I'm curious what your 14 thoughts are. Why would an operator go through 20 some 15 odd spacing exceptions and not apply for pool rules? 16 MR. SIKS: I don't know. Off the top of my 17 head I would say we had -- in the past these 18 completions were very complex and multiple gravel 19 packs, multiple sliding sleeves and the rates that they 20 were getting maybe didn't necessarily -- they didn't 21 need to do the in-field spacing and once these wells 22 died out, when you're making 20 to 50 million a day on 23 each one of these wells, now we're targeting individual 24 sands that make 5 million a day on a per sand bases, 25 right, and we're not trying to commingle. And that AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 18 1 would be my guess, yeah. 2 CHAIRMAN PRICE: Thanks. Questions from 3 Commissioners? 4 (No comments) 5 CHAIRMAN PRICE: Folks on the line, we were 6 going to take a 15 minute break here and talk with 7 senior staff. Before we do I want to give you the 8 opportunity to provide any testimony. If you would 9 like to testify at this time please unmute your line 10 and if you're having trouble with being heard just send 11 a note on the Teams chat icon to Grace Salazar. We'll 12 wait a second here to see if anybody wants to testify. 13 (No comments) 14 CHAIRMAN PRICE: Okay. Hearing no one 15 volunteering testimony, the other quick thought I'll 16 make is if you -- if the public has questions they 17 would like AOGCC to ask please send those go Grace 18 Salazar and again just use the chat Teams icon or leave 19 a message on the number I gave you earlier. 20 With that we'll be back in 15 minutes. So 21 about 10:35. 22 (Off record) 23 (On record) 24 CHAIRMAN PRICE: Okay. We're back in session, 25 the time is 10:30. Just a few follow-up questions. AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 19 1 I'll take the first one. Can you run through some of 2 your -- the timing of your four wells, when you expect 3 to drill your next well and..... 4 MR. SIKS: Yes. We should be drilling end of 5 May time frame. So we're starting to barge all of the 6 equipment over right now. And then we'll be drilling 7 them back to back. So May, June, July is kind of when 8 I expect to drill all four in a row. 9 CHAIRMAN PRICE: Okay. Thank you. 10 MR. SIKS: Yeah. 11 COMMISSIONER CHMIELOWSKI: Part of your 12 application is to consider the Sterling and Beluga as 13 one pool. So the question is why should AOGCC consider 14 them as one pool when they're so different 15 geologically? 16 MR. SIKS: It's really more from a production 17 standpoint. When we're, you know, sub 1 million a day 18 producing out of the Beluga at lower pressures later in 19 life adding that Sterling might give us a chance to 20 kind of resurrect the well without having to abandon 21 that Beluga formation all together. 22 COMMISSIONER CHMIELOWSKI: And the AOGCC has a 23 request for some data. We would like to ask for the 24 pore pressure and frac gradient curves across the 25 Sterling and Beluga. So how long would that take you AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 20 1 to provide and we can keep the record open? 2 MR. SIKS: It should be fairly quickly. It's 3 just poisson ratio curves and calculators. Yeah, I 4 should be able to get that to you within a week. 5 COMMISSIONER CHMIELOWSKI: Okay. So you want 6 to say a week, week from today, close of business? 7 MR. SIKS: Sure. 8 COMMISSIONER CHMIELOWSKI: Okay. 9 CHAIRMAN PRICE: That's fine with your timeline 10 as well for -- your drilling in May, late May you said? 11 MR. SIKS: Yes. 12 CHAIRMAN PRICE: Okay. 13 COMMISSIONER CHMIELOWSKI: So I'll just say for 14 the record that would be Tuesday, April 19th, 5:00 p.m. 15 we'll close the record? 16 MR. SIKS: Okay. 17 COMMISSIONER CHMIELOWSKI: Okay. 18 CHAIRMAN PRICE: Okay. Grace, any questions 19 online? 20 (No comments) 21 CHAIRMAN PRICE: Okay. Any questions from 22 Commissioners? 23 COMMISSIONER CHMIELOWSKI: No. thank you. 24 COMMISSIONER SEAMOUNT: No. 25 CHAIRMAN PRICE: Did you guys want to add AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 21 1 anything before we close? 2 (No comments) 3 CHAIRMAN PRICE: All right. For now we're 4 adjourned. 5 (Off record - 10:41 a.m.) 6 (END OF PROCEEDINGS) 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 AOGCC 4/12/2022 ITMO: APPLICATION OF HILCORP AK Docket No. CO-22-003 329 F Street, Ste. 222., Anch. AK 99501 Fax: 907-243-1473 Email: sahile@gci.net Computer Matrix, LLC Phone: 907-227-5312 Page 22 1 TRANSCRIBER'S CERTIFICATE 2 I, Salena A. Hile, hereby certify that the 3 foregoing pages numbered 02 through 22 are a true, 4 accurate, and complete transcript of proceedings in 5 Docket No.: CO-22-003, transcribed under my direction 6 from a copy of an electronic sound recording to the 7 best of our knowledge and ability. 8 9 _______________ _______________________________ 10 DATE SALENA A. HILE, (Transcriber) 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Beluga River Pool Rules ApplicationAOGCC PresentationApril 12, 2022Ben Siks (Geologist)Ben Siks (Geologist)Sierra Becia (Reservoir Engineer)rra Becia (Reservoir EngineCody Terrell (Landman)By Grace Salazar at 8:34 am, Apr 12, 2022 22222•Working Interest Ownership•Hilcorp Alaska, LLC (Operator) = 33.33%•Chugach Electric = 66.67%•Subsurface Ownership•Federal Lands (BLM) = ~25.8%•State of Alaska Lands = ~74.12%•Fee Lands = 0.12%•Lands Leased = 100% of “Affected Area”•All subsurface lands committed to the Beluga River Unit Agreement•22 separate AOGCC orders since field discovery related to well spacingBeluga River Field Overview 33333•Discovered in 1962•First production 1968•Hilcorp took Operatorship in April 2016Field HistoryField Cumulative Production:•1.4 TCF,7.0 MMBW, •Sterling & Beluga Pay Zones•Normal pressureCurrent production rate: •~30 MMCFD, 800 BWPD•13 gas wells on production•14 gas wells shut-in•2 Water Disposal wells online 44444Geologic Overview•Beluga River is a broad north-northeast trending fault propagation fold, bounded to the west by a steeply dipping reverse fault•The gas field produces from two Tertiary aged formations:•The high net-to-gross aged Sterling Formation•The low net-to-gross aged Beluga Formation•The stratigraphic interval is dominated by fluvial processes in a rapidly subsiding basin. •Numerous interbedded coals source the biogenic gas.•98 mapped pay sands at BRU in the Sterling and BelugaBeluga River Sterling B StructureSterling A,B,CBeluga D,E,FBeluga G,H,I,J 55555Depositional Model 66666Beluga Formation• Dominated by anastomosing meandering streams• Distal to source area (East / North-East)• ~4500’ gross thickness• Rock quality parameters (NtG, Phi, and Perm) decrease with depth• 15-40% NTG• 12-28% PHI• 0.1-100 mD Perm666666666666666666666666666666666666666666666666666666666Channel incision into overbank deposits in the Lower Sterling Formation located south of Ninilchik Beach at approximately N 60:044544 / W -151:675209. Beluga E Net Sand Map 77777Beluga Reservoir CharacterizationChannel Width and Channel Belt Width empirical equations from Bridge and Tye 2000, Interpreting the dimensions of ancient fluvial channel bars, channels, and channel belts from wireline-logs and cores: AAPG Bulletin, vol 84, n.8, p.1205-1228. • New unlimited spacing pool rules would allow development of the dominant channel sizes (sub 2000’) 88888640 vs 160 Acre Spacing Impact 99999Recommendation1. Characterization of the fluvial depositional systems at Beluga River show that the majority of fluvial channel widths are between 100 and 2000' wide2. Strictly adhering to the rules specified under 20 AAC 25.055 would fail to effectively produce the remaining gas in the Beluga River Field’s structure. 3. Moving to unlimited spacing would allow Hilcorp to down space well placement from current ~640 to ~160 acre spacing, effectively targeting the Beluga formation in particular4. It is recommended that field wide Pool Rules define the Beluga River Gas Pool as the interval from the top of the Sterling A formation defined in BRU 224-13 at 3345’ MD, 3252’ TVDss, 3345’ TVD, to the top of the Beluga J7 formation at 7000’ MD, 6909’ TVDss, 7000’ TVD. 2 Notice of Public Hearing and Comment Period STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RE: Docket No. CO-22-003 Hilcorp Alaska, LLC (Hilcorp), by letter dated March 3, 2022, requested the Alaska Oil and Gas Conservation Commission (AOGCC) establish pool rules for the Beluga River – Sterling/Beluga Gas Pool. Pool rules are applied for under 20 AAC 25.520 for the purpose of prescribing rules, that differ from the normal statewide rules found in 20 AAC 25, for the development of a defined pool. The rules are established to streamline the development of the pool while still protecting correlative rights and ensuring maximum recovery. One of the most common rules that an operator will ask for, and the only one Hilcorp is applying for in this instance, in a pool rules application is that the interwell spacing requirements found in 20 AAC 25.055 be waived within the bounds of the pool so that an operator can place wells as needed to properly develop the pool without the need to apply for spacing exceptions if a well would be too close to another well within the pool as would be required if following statewide regulations. A pool is an underground reservoir containing, or appearing to contain, a common accumulation of oil or gas. Absent an order to the contrary, the statewide rules found in 20 AAC 25 govern development of oil or gas pools. However, sometimes an operator will apply to the AOGCC for an order to establish pool rules to govern a specific pool. Pool rules typically define the vertical and map extent of a particular pool and establish rules that modify the statewide requirements to enable more efficient operations while providing an equally effective means of protecting underground freshwater, protecting correlative rights, and conducting safe and environmentally sound operations. One of the more commonly requested rules — and the only one that the operator is applying for in this instance — is that the default well spacing requirements found in 20 AAC 25.055 be waived within the interior boundaries of the pool so that wells can be placed as needed to efficiently develop the pool, rather than being placed in a less efficient pattern that meets the standard spacing requirements of statewide regulations. However, any spacing exception rule would only apply to well spacing within the defined bounds of the pool and would not apply to property line offset requirements in place to protect correlative rights of offset owners. A spacing exception—with the opportunity for public comment and a public hearing—will still be required if the operator wishes to drill an oil well within 500 feet of the exterior boundary of an oil pool or a gas well within 1,500 feet of the exterior boundary of a gas pool. 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, April 12, 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 7th Avenue, Anchorage, AK 99501. The audio call-in information is (907) 202-7104 conference ID no. 514 540 14#. 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., April 8, 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 April 8, 2022. To comment on Hilcorp’s application, please file your comments by 4:30 p.m., April 8, 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 April 8, 2022. Jeremy M. Price Chair, Commissioner Jeremy Price Digitally signed by Jeremy Price Date: 2022.03.08 09:15:30 -09'00' From:Salazar, Grace (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] AOGCC Notice of Public Hearing and Comment Period Date:Tuesday, March 8, 2022 10:10:45 AM Attachments:Public Notice.pdf The Alaska Oil and Gas Conservation Commission has issued the attached Notice of Public Hearing and Comment Period regarding Hilcorp Alaska, LLC’s application to establish pool rules for the Beluga River – Sterling/Beluga Gas Pool. 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 1 By Grace Salazar at 10:40 am, Mar 03, 2022 From:Cody Terrell To:Salazar, Grace (OGC) Cc:Davies, Stephen F (OGC); Roby, David S (OGC); McLellan, Bryan J (OGC); Jim Shine Subject:RE: [EXTERNAL] RE: Beluga River Field - Pool Rules Application Submittal Date:Friday, March 4, 2022 11:43:57 AM Grace, Below are the tracking numbers from the Certified letters sent out for the Beluga River Pool Rule Application. 7021 0950 0001 6325 7141 S&E Foster Properties, Inc. 7021 0950 0001 6325 7127 Cook Inlet Region, Inc. 7021 0950 0001 6325 7158 Chugach Electric Association 7021 0950 0001 6325 7110 State of Alaska Dept of Natural Resources 7021 0950 0001 6325 7134 Bureau of Land Management 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, March 3, 2022 10:41 AM To: Cody Terrell <cterrell@hilcorp.com> Cc: Davies, Stephen F (OGC) <steve.davies@alaska.gov>; Roby, David S (OGC) <dave.roby@alaska.gov>; McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov>; Jim Shine <jshine@hilcorp.com>; Benjamin Siks <bsiks@hilcorp.com>; Sierra Becia <Sierra.Becia@hilcorp.com>; Vanessa Hughes <vhughes@hilcorp.com> Subject: [EXTERNAL] RE: Beluga River Field - Pool Rules Application Submittal Received, thank you. Grace ____________________________________ Respectfully, M. Grace Salazar, Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 Direct: (907) 793-1221 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. Email: grace.salazar@alaska.gov https://www.commerce.alaska.gov/web/aogcc/ From: Cody Terrell <cterrell@hilcorp.com> Sent: Thursday, March 3, 2022 10:39 AM To: Salazar, Grace (OGC) <grace.salazar@alaska.gov> Cc: Davies, Stephen F (OGC) <steve.davies@alaska.gov>; Roby, David S (OGC) <dave.roby@alaska.gov>; McLellan, Bryan J (OGC) <bryan.mclellan@alaska.gov>; Jim Shine <jshine@hilcorp.com>; Benjamin Siks <bsiks@hilcorp.com>; Sierra Becia <Sierra.Becia@hilcorp.com>; Vanessa Hughes <vhughes@hilcorp.com> Subject: Beluga River Field - Pool Rules Application Submittal Hi Grace, Please see the attached Application for Beluga River Field Pool Rules submitted by Hilcorp Alaska, LLC. The certified mailouts are being sent out now and I will forward the tracking numbers to you ASAP. The signed copy of this application has been sent to your office via courier. If you have any questions please let me know, thank you. 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. 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