Department of Commerce, Community, and Economic Development
Alaska Oil and Gas Conservation
Commission
HOME
EVENTS
DATA
Data List
Drilling
Production
Orders
Data Miner
Document Search
REPORTS
Reports and Charts
Pool Statistics
FORMS
LINKS
Links
Test Notification
Data Requests
Regulations
Industry Guidance Bulletins
How to Apply
ABOUT US
History
Staff
HELP
Loading...
The URL can be used to link to this page
Your browser does not support the video tag.
Home
My WebLink
About
CO 803
Conservation Order 803 Paxton 5 Spacing Exception Ninilchik Sterling Field Beluga Undefined Gas Pool 1.May 17, 2022 2.May 25, 2022 Hilcorp application for spacing exception to drill Paxton 5 Notice of public hearing affidavit, mail, and bulk mail 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 drill, test, and produce the Paxton 5 well in an Undefined 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 pursuant to 20 AAC 25.055(d). ) ) ) ) ) ) ) ) ) ) ) Docket Number: CO-22-005 Conservation Order 803 Paxton 5 Development Gas Well Ninilchik Sterling/Beluga Undefined Gas Pool Ninilchik Unit Ninilchik Field Kenai Peninsula Borough, Alaska September 8, 2022 IT APPEARING THAT: 1. By letter received May 4, 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) to allow Paxton 5 well to be drilled, tested, completed, and produced in an Undefined 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. 2. Pursuant to 20 AAC 25.540, the AOGCC tentatively scheduled a public hearing for June 21, 2022. On May 18, 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 May 20, 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 Paxton 5 well path and provided the notice, addresses to which the notices were delivered, and U.S. Postal Service tracking information for each certified electronic mailing return receipt to AOGCC. 4. No request for a public hearing was received. The tentatively scheduled public hearing was vacated on June 17, 2022. 5. Hilcorp’s application provided sufficient information upon which to make an informed decision on its request. 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. CO 803 September 8, 2022 Page 2 of 3 FINDINGS: 1. Hilcorp is operator for onshorePaxton 5 gas development well located within Kenai Peninsula Borough on the east side of the Cook Inlet Basin near Ninilchik, Alaska: Surface Location: 801’ FNL, 2,990’ FEL, Section 13, T01S, R14W, S.M. Well Path: Section 13, T01S, R14W, S.M. Bottom-hole Location: 287’ FNL, 2282’ FEL, Section 13, T01S, R14W, S.M Hilcorp owns 100% Working Interest (WI) in the affected oil and gas leases and is currently the operator of Ninilchik Unit. Private landowners own 100% of the mineral interest in lands affected by Paxton 5, which are currently under lease by Hilcorp. Hilcorp provided the tract ownership schedule for Ninilchik Unit. 2. Paxton 5 was drilled in November 2013 and targeted gas reservoirs within the Ninilchik Beluga/Tyonek Gas Pool, which is defined in CO 701C. However, Hilcorp now proposes to perforate, test, complete, and regularly produce gas reserves from discontinuous, fluvial channel sands that lie shallower than the top of the Ninilchik Beluga/Tyonek Gas Pool. These shallow channel sands are governed by statewide spacing regulation 20 AAC 25.055. 3. Hilcorp’s proposed perforations will be located within 1,500 feet of a property line where owners or landowners are not the same on both sides of the line. 4. Hilcorp’s proposed perforations in Paxton 5 target unproven reserves within the Sterling and Beluga Formations. These reserves 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. 5. Following successful testing and completion of Paxton 5 in the Sterling/Beluga Undefined Gas Pool, Hilcorp will submit to the Alaska Department of Natural Resources, Division of Oil and Gas (DNR/DOG), a request to produce Paxton 5 as a Tract Operation. Hilcorp will allocate production in accordance with DNR/DOG’s approved Tract Operation. Regular production from the Sterling/Beluga Undefined Gas Pool will not begin until after a Tract Operation is approved by DNR. 6. If operated as required, perforating, testing, completing, and regularly producing Paxton 5 will not cause waste or increase risk of fluid movement into freshwater. CONCLUSIONS: 1. An exception to the well spacing provisions of 20 AAC 25.055 is necessary to allow perforation, testing, completion, and regular production of the Sterling/Beluga Undefined Gas Pool in the Paxton 5 development gas well in order to maximize ultimate resource recovery. 2. Granting an exception to the well spacing provisions of 20 AAC 25.055 for Paxton 5 for the Sterling/Beluga Undefined Gas Pool 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. NOW THEREFORE IT IS ORDERED: The AOGCC grants Hilcorp’s May 4, 2022, application for an exception to the well spacing provisions of 20 AAC 25.055 to allow perforating, testing, completion, and regular production of the Paxton 5 development gas well within the Sterling/Beluga Undefined Gas Pool. No regular production may occur from the Sterling/Beluga Undefined Gas Pool in Paxton 5 absent DNR/DOG’s Tract Operation approval and AOGCC approval of allocation of production. Hilcorp must comply with all applicable laws and all other legal requirements. CO 803 September 8, 2022 Page 3 of 3 DONE at Anchorage, Alaska and dated September 8, 2022. Daniel T. Seamount, Jr. Jessie L. Chmielowski 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. Dan Seamount Digitally signed by Dan Seamount Date: 2022.09.08 15:34:54 -08'00' Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2022.09.08 16:50:31 -08'00' 1 Prysunka, Anne E (OGC) From:Carlisle, Samantha J (OGC) <samantha.carlisle@alaska.gov> Sent:Friday, September 9, 2022 7:43 AM To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] Conservation Order 803 (Ninilchik Unit) Attachments:co803.pdf Re: THE APPLICATION OF Hilcorp Alaska, LLC for a spacing exception to drill, test, and produce the Paxton 5 well in an Undefined 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 pursuant to 20 AAC 25.055(d). Samantha Carlisle AOGCC Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907) 793-1223 __________________________________ List Name: AOGCC_Public_Notices@list.state.ak.us You subscribed as: samantha.carlisle@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/samantha.carlisle%40alaska.gov 1 Prysunka, Anne E (OGC) From:Carlisle, Samantha J (OGC) Sent:Friday, September 9, 2022 7:50 AM To:Cody Terrell Subject:Conservation Order 803 Paxton 5 Attachments:co803.pdf Please see attached. Samantha Carlisle AOGCC Special Assistant Alaska Oil and Gas Conservation Commission 333 West 7th Avenue Anchorage, AK 99501 (907) 793-1223 2 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RE: Docket Number: CO-22-005 Hilcorp Alaska, LLC’s Spacing Exception Application for Paxton 5 Well Hilcorp Alaska, LLC (Hilcorp) by letter received May 4, 2022, filed an application with the Alaska Oil and Gas Conservation Commission (AOGCC) for an exception to the spacing requirements of 20 AAC 25.055 to drill, complete, test, and produce the Paxton 5 well in an Undefined 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, pursuant to 20 AAC 25.055(d). Hilcorp drilled and completed Paxton 5 during 2013, and the well has produced regularly from the Beluga- Tyonek Gas Pool since November 2013 in conformance with the requirements of Conservation Order No. 701C. Hilcorp plans to add perforations to Paxton 5 in strata shallower than the Beluga-Tyonek Gas Pool, which are governed by the statewide spacing requirements of 20 AAC 25.055. 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, contact the AOGCC’s Special Assistant, Samantha Carlisle, at (907) 793-1223 or samantha.carlisle@alaska.gov. A public hearing on the matter has been tentatively scheduled for Tuesday, June 21, 2022, at 10:00 a.m. The hearing, which may be changed to full virtual if necessary, 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: 833 606 877#. Anyone who wishes to participate remotely using MS Teams video conference should contact Ms. Carlisle at least two business days before the scheduled public hearing to request an invitation for the MS Teams. To request that the tentatively scheduled hearing be held, a written request must be filed with the AOGCC no later than 4:30 p.m. on June 2, 2022. If a request for a hearing is not timely filed, the AOGCC may issue an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1223 after June 3, 2022. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 west 7th Avenue, Anchorage, AK 99501 or samantha.carlisle@alaska.gov. Comments must be received no later than 4:30 p.m. on June 20, 2022, except that, if a hearing is held, comments must be received no later than the conclusion of the June 21, 2022 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact Samantha Carlisle, at (907) 793-1223, no later than June 14, 2022. Jeremy M. Price Chair, Commissioner Jeremy Price Digitally signed by Jeremy Price Date: 2022.05.18 10:47:20 -08'00' ANCHORAGE DAILY NEWS RECFIVEDAFFIDAVIT OF PUBLICATION MAY 2 5 2Mount #: 100869 ST OF AK/AK OIL AND GAS CONSERVATION COMMISSION AOGCC 333 W. 7TH AVE STE 100, ANCHORAGE, AK 99501 Order#: W0030090 STATE OF ALASKA THIRD JUDICIAL DISTRICT Adam Garrigus being first duly sworn on oath deposes and says that she is a representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all said time was printed in an office maintained at the aforesaid place of publication of said news- paper. That the annexed is a copy of an adver- tisement as it was published in regular issues (and not in supplemental form) of said news- paper on 05/20/2022 and that such newspaper was regularly distrib- uted to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signe� Subscribed and sworn to before me this 23rd day of May 2022. Thud Division Anchorage, Alaska MY COMMISSION EXPIRES rADA I NOW1 N Notary Public State of Alaska MY Commission Expires Jul 14, 2024 Cost: $402.7 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RE: Docket Number: CO-22-005 Hilcor well p Alaska, LLC's Spacing Exception Application for Paxton 5 Hilcorp Alaska, LLC (Hilcorp) by letter received May 4, 2022, filed an application with the Alaska Oil antl Gas Conservation Commission (A GCC) for an exception to the spacingg requirements of 20 AAC 25.055 to drill, complete,.test, and protluce the Paxton 5 well in an Undefined Gas Pool within 1,500 feet of a properly line where the owners and landowners are not the same on both side of the line, pursuant to 20 AAC 25.055(d). Hilcorp drilletl and completed Parton 5 during 2013, antl the well has prodUced regularly from the Beluga-Tyonek Gas Pool since November 2013 in Conformance with the requirements of Conservation Order No. 701C. Hilcorp plans to add perforations to Paxton 5 in strata shallower than the Beluga-ryonek Gas Pool, which are goverred by the statewide spacing requirements of 20 AAC 25.055. Well spacing regulations protect the oil and gas rights of ad l acent landowners and maximize resource recovery by establishing default limits on how close, under the lands 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, contact the AOGCC's Special Assistant, Samantha Carlisle, at (907) 793-1223 or samantha.carlisle*aaska. gov. A public hearing on the matter has been tentatively scheduled for Tuestlay, June 21, 2022, at 10:00 a.m. The hearing, which may be changetl to full virtual if necessary, will be he'd in the AOGCC hearing room located at 333 West 7th Avenue, Anchorage, AK 99501. The to call-in information is (907) 202-7104 Conference ID: 833 606 877#. Anyone who wishes to participate remotely using MS Teams video conference Should contact Ms. Carlisle at least two business days before the scheduled public hearing to request an invitation for the MS Teams. To request that the tentatively scheduled hearing be held a written request must be filetl with the AOGCC no later than 430 p.m. on June 2, 2022. If a request for a hearing is not timely filed, the AOGCC may issue an order without a hearing. To learn if the AOGCC will hold the hearing, call (907) 793-1223 after June 3, 2022. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 West 7th Avenue, Anchorage, AK 99501 or samantha.carlisle®alaska.gov. Comments must be received no later than 4:30 p.m. on June 20, 2022, except that, if a hearing is held, comments must be received no later than the conclusion of the June 21, 2022 hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact Samantha Carlisle, at (907) 793-1223, no later than June 14, 2022. Jeremy M. Price Chair, Commissioner Pub: May 20, 2022 From:Carlisle, Samantha J (OGC) To:AOGCC_Public_Notices Subject:Public Hearing Notice, CO-22-005 Hilcorp Paxton 5 Spacing Exception Date:Wednesday, May 18, 2022 1:01:00 PM Attachments:CO-22-005 Hilcorp Paxton 5 Spacing Exception Public Notice.pdf Docket Number: CO-22-005 Hilcorp Alaska, LLC’s Spacing Exception Application for Paxton 5 Well 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 9/9/22 1 By Samantha Carlisle at 3:39 pm, May 04, 2022 H H ilcorp Alaska, LLC May 2, 2022 Jeremy Price, Chair Commissioner Alaska Oil and Gas Conservation Commission 333 West 1'11 Avenue, Suite 100 Anchorage, Alaska 99501 RE: Application for Spacing Exception Paxton 5 Well Ninilchik Unit near Ninilchik, Alaska Dear Commissioner Price: 3800 Centerpolnt Drive Suite 1400 Anchorage, AK 99503 Phone: 907/777-8432 Fax: 907/777-8301 Email: cterrell@hllcorp.com [ RECEIVED Hilcorp Alaska, LLC ("Hilcorp"), as Operator of the Ninilchik Field, requests permission to drill, test, and produce the Paxton 5 well ("Paxton 5") in the Ninilchik Undefined Gas Pool ("Undefined 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, pursuant to 20 AAC 25.055(d). Hilcorp plans to add perforations to the Paxton 5 well could begin upon approval of this spacing exception. The existing well path of Paxton 5 is located on one (1) private oil and gas lease extending from the Paxton Pad within the Ninilchik Unit boundary. In accordance with 20 AAC 25.055(d)(2), a map of the location of Paxton 5 and its relationship to adjoining properties, along with a tract ownership schedule, are attached to this application (see Exhibit A). The well's location is further indicated as follows: Surface Location • Unit Tract 163 (100% Private Ownership). o 100% Hilcorp Working Interest. o X: 206,337'; Y: 2,230,561' o Section 13, T0lS, R14W, S.M., AK. Anticipated Top of the Productive Horizon ("TPH") (780' MD) • Unit Tract 163 (100% Private Ownership). o 100% Hilcorp Working Interest. o X: 206,343'; Y: 2,230,608' o Section 13, T0lS, R14W, S.M., AK. Bottom Hole Location • Unit Tract 163 (100% Private Ownership). o 100% Hilcorp Working Interest. o X: 206,341'; Y: 2,230986' o Section 13, T0IS, R14W, S.M., AK. Paxton S's surface and bottom hole location are located within the Affected Area of CO 701C, however, the planned perforations are above the defined pool of CO 701C. The proposed perforations l Hilcorp Alaska, LLC Application for Spacing Exception Page2 of6 in the Paxton 5 well will be governed by statewide spacing rules. Therefore, statewide spacing regulation 20 AAC 25.055(a) is controlling. In relevant part, subsections (a)(2): • 20 AAC 25.055(a)(2) For a well drilling for gas, a wellbore may be open to test or regular production within 1,500 feet of a property line only if the owner is the same and the landowner is the same on both sides of the line. Paxton 5 was originally drilled in November 2013 targeting gas sands in the Beluga and Tyonek Formations within the NinilchikBeluga/fyonekPool as defined in CO 701C. This well was successful and produced commercial quantities of gas up until February 2022. This spacing exception is necessary because Hilcorp plans to add perforations to the Paxton 5 well which will be open to test or regular production of gas in the Undefined Gas Pool (anticipated TPH of 780' MD) within 1,500 feet of a property line where the owners or landowners are not the same on both sides of the line (20 AAC 25.055(a)(2)). Paxton 5 will target unproven gas reserves located within the Undefined Gas Pool that cannot be reached by conforming to applicable statewide spacing restrictions. Discussion Paxton 5 is an existing well located approximately 3.5 miles north of Ninilchik, Alaska, within the Ninilchik Unit. The Paxton 5 well was drilled in November 2013 to a total depth of 2,618' MD, targeting gas sands in the Beluga and TyonekFormations. This well was successful producing 5,206.7 MMcf of cumulative gas. In February 2022, the Paxton 5 well ceased production and is currently no longer producing gas. Hilcorp now plans to add perforations to the Paxton 5 well in various Sterling and Beluga sands located above the defined Beluga/fyonek Pool. Hilcorp anticipates that the productive sands in Paxton 5 will be discontinuous channel sands in the Sterling and Beluga Formations within the Undefmed Gas Pool that cannot be produced by wells conforming to applicable spacing restrictions. Geologic analysis of drilling data from various Ninilchik Field wells suggests that the Undefmed Gas Pool consists of a series of thin, discontinuous, stacked channel sands with a low net-to gross ratio. The channel belt widths are too narrow to yield efficient drainage based on the current spacing for gas wells. This spacing exception is necessary to efficiently drill, test, and discover new gas within the Undefmed Gas Pool channel belt sands. Hilcorp owns 100% Working Interest in the affected oil and gas leases and is currently the Operator of the Ninilchik Unit. Private landowners own 100% of the mineral interest in the affected lands where the Paxton 5 well is located, which are currently under lease by Hilcorp. Attached to this application is the tract ownership schedule for the Ninilchik Unit, which details tract ownership. Following successful completion of Paxton 5, and prior to bringing the well online, Hilcorp plans to submit to the Department of Natural Resources, Division of Oil and Gas ("DNR"), a request to produce this well as a Tract Operation, which will detail the appropriate allocation of production between Ninilchik Unit tracts. Hilcorp understands there are complex ownerships involved in the Ninilchik Field, and AOGCC is tasked with protecting all parties' correlative rights. Hilcorp plans to allocate production in accordance with DNR' s approved Tract Operation. Production from Paxton 5 will commence only when a Tract Operation is approved by DNR. Hilcorp believes the correlative rights Hilcorp Alaska, LLC Application for Spacing Exception Page 3 of6 of all owners, landowners, and operators will be protected under the existing oil and gas leases in place and the proposed conditions of this application. Hilcorp proposes to allocate royalties to all leased owners / landowners based on their tract allocation percentage, mineral ownership, and lease royalty shown on the approved PA allocation schedule. Hilcorp will establish and maintain-without cost to the non-participating owners / landowners-a single, interest-bearing escrow account (Escrow Account) for the non-participating owners / landowners. Hilcorp will provide AOGCC with documentation sufficient to show that the Escrow Account has been established and maintained in accordance with this spacing exception. For each non- participating owner / landowner in a given parcel within the productive area, Hilcorp will deposit in that Escrow Account an amount equal to the total of that non-participating owner's/ landowner's interest percentage (allocation percentage) for those parcels multiplied by the production attributed to those parcels for the previous month multiplied by 0.125 (royalty rate) multiplied by the prevailing value for Cook Inlet gas published for that quarter by the Alaska Department of Revenue under 15 AAC 55.173(b). As a result, the correlative rights of all affected owners, landowners and operators will be protected by approval of this spacing exception. In accordance with 20 AAC 25.055(d)(l), a copy of this application was sent via certified mail to all affected owners and landowners within 3,000' of Pearl 2A's entire wellbore (Exhibit B). Copies of the certified mail receipts have also been enclosed. No other affected operators or working interest owners exist. In accordance with 20 AAC 25.055(d)(3), an affidavit is attached to this application stating the undersigned is acquainted with the facts and verifying that all facts asserted herein are true (Exhibit C). Should you have any technical questions, please contact Mr. Matthew Petrowsky, Geologist, at (907) 777-8404, or you may contact the undersigned at (907) 777-8432. Sincerely, ~],~ Hilcorp Alaska, LLC Enclosures: Exhibit A: Paxton 5 Well Map Exhibit B: Certified Mailing List Exhibit C: Affidavit CC: Owners & Landowners within 3,000' of subject well Hilcorp Alaska, LLC Application for Spacing Exception Page 4 of6 EXHIBIT A Paxton 5 Well Map Application for Spacing Exception PAXJO . 1 ~-~ \ S001S01 4W NINILCftlK1!JNrT \ I l PAXTON 7 BHt,t \I \ \ \ l j I I JI J I DtONNE 7 / ,, // ,, / NINJLCH ,, S001S01 3W ADL.384372 B r 164A H H~ .. rp .u....,, LLC 1&4 164C Ninilchi k Unit Paxto n 5 wp05 0 C Legend • othe r Su rfaee Well L C>Ciltions • Other Bottom 1-!ole Locations ----Well Paths CJ Oil and Gas Unit Boundary LJ l.e10Ses_peivate_ac:live 1,000 2.000 Feet Alaska Stale Pla ne Zone 4. NAD27 Ma p Dale: 512/2022 N A IBlcorp Alaska, LLC Application for Spacing Exception Page 5 of6 ----:, .---. -.. , EXHIBITB Certified Mailing List Application for Spacing Exception ~,:;·, "-. ·~-: :-;._ J~ ~Ji " ·•Y.;,.r._J .•.,,-"~ ..................... -. .. Brandon Joseph Paul Levi and Melissa Krystine Lancaster P. 0. Box 1397, Anchor Point, AK 99556 Carolee Pickett 5336 Holly Loop SE, Turner, OR 97392 c/o Stephanie M. Gates, 9215 Deercross Pkwy, Charles E. Gates Apt. Bl, Cincinnati, OH 45236 Attn: Land, 725 E. Fireweed Lane, Suite 800, Cook Inlet Region, Inc. Anchorage, AK 99503 Darlene M. Rezak 1134S Magnolia Ave, Yuma, AZ 85364 Darwin E. Waldsmith and Kave A. Waldsmith Trust, dtd 11-15-2006 PO Box 39309, Ninilchik, AK 99639 David M. and Jeanine B. Shea PO Box 394, Dallas, OR 97338 .David R. Kodysz and Jean R. Gregorich PO Box 39052, Ninilchik, AK 99639 George A. and Patricia Gates 308 Village Lane, Greensboro, NC 27409 James B. and Patricia Webster 887 Fawn Hill Drive, Edgewood, KY 41017 Janet M. and Robert C. Clucas 72880 Sterling Hilthwav, Clam Gulch , AK 99568 John D. Mccombs and Deidre E. Mccombs P.O. Box 39087, Ninilchik,. AK 99639-0087 - North 12003 Cedar Road, Birnamwood, WI 54414- John L and Nancy E. Stengl 8737 Judith Ballentine PO Box 9, Veguita, NM 87062 LR. and Katherine Lunne 2530 Fairmont Avenue, Dayton, OH 45419 Larry M. Rezak PO Box 1179, Homer, AK 99603 Michael S. and Cheryl B. Sutton PO Box 39214, Ninilchik, AK 99639 c/o Darwin E. & Kaye A. Waldsmith, PO Box Ninilchik Point View LLC 39309, Ninilchik, AK 99639 Richard Lee & Jeannie Lou Johnson 454 Camelot Dr, Anchorage, AK 99508 Robert L and Carol A. Wilson 168 Hidden Ridge Court, Cold Springs, KY 41076 550 West 7th Avenue, Ste. 800, Anchorage, AK State of Alaska 99501 c/o Larry M. Rezak, PO Box 1179, Homer, AK Theodore W. Rezak Living Trust 99603 Thomas James and Deborah Ann Bandel ow 8000 Little Dipper Ave, Anchorage, AK 99504 Tim and Kristine Moerline P.O. Box 298, Kasilof, AK 99610 c/o Facilities and Land Management, 1815 University of Alaska Bragaw Street, Suite 101, Anchorage, AK 99508 Walter L Wilson 91 Good limes Drive, Las Cruces, NM 88005 William D. Fisher, Trustee; William Fisher Living Trust 19521 S.E. Arletha Ct., Sandy, OR 97055-8202 Hilcorp Alaska, LLC Application for Spacing Exception Page 6 of6 EXHIBITC Affidavit Application for Spacing Exception VERIFICATION OF APPLICATION FOR SPACING EXCEPTION COOK INLET, ALASKA NINILCHIK FIELD Paxton Well I, CODY T. TERRELL, Landman, Hilcorp Alaska, LLC ("Hilcorp"), do hereby verify the following: I am acquainted with Hilcorp' s application for a spacing exception submitted to the Alaska Oil and Gas Conservation Commission for the drilling of the Paxton 5 Well in the Ninilchik Field, near Ninilchik, Alaska, pursuant to 20 AAC 25.055(d). I assert all facts outlined in the above-referenced application are true. I further assert the requested spacing exception is necessary to explore, drill, and establish new production of natural gas from undefined and defined gas pools in the Ninilchik Field. I have reviewed the mailing list and plat attached to said application and it correctly portrays the pertinent and required data for the Commission to take action on this request. DATED at Anchorage, Alaska this 2nd day of May 2022. STATE OF ALAKSA THIRD JUDICIAL DISTRICT C#TTe-w.!t Cody T. Terrell, Landman Hilcorp Alaska, LLC ) ) ss ) SUBSCRIBED TO AND SWORN before me this 2nd day of May 2022. LORI OLSON Notary Publlc State of Alaska My Commission Expires Mar 16, 2023 NOTARY PUBLIC IN AND FOR THE STATE OF ALSKA My Commission expires: /Ylavcn J(p, 2.o-Z.3 From:Cody Terrell To:Carlisle, Samantha J (OGC) Subject:RE: [EXTERNAL] RE: Paxton 5 Spacing Exception Application - Ninilchik Date:Wednesday, May 4, 2022 3:45:28 PM Thank you Samantha I didn’t realize she was leaving so soon. See below the certified mailing tracking numbers: 1871_001.pdf Brandon and Melissa Lancaster, P. O. Box 1397, Anchor Point AK 99556, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610327348 1871_001.pdf Carolee Pickett, 5336 Holly Loop SE, Turner OR 97392, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610327362 1871_001.pdf Charles E. Gates, c/o Stephanie M. Gates, 9215 Deercross Pkwy, Apt. B1, Cincinnati OH 45236, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610327409 1871_001.pdf Cook Inlet Region, Inc., Attn: Land, 725 E. Fireweed Lane, Suite 800, Anchorage AK 99503, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610327393 1871_001.pdf Darlene M. Rozak, 1134 S Magnolia Ave, Yuma AZ 85364, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610327379 1871_001.pdf Darwin E. & Kaye A. Waldsmith Trust, PO Box 39309, Ninilchik AK 99639, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610327386 1871_001.pdf David M. and Jeanine B. Shea, PO Box 394, Dallas OR 97338, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610327416 1871_001.pdf David R. Kodysz and Jean R. Gregorich, PO Box 39052, Ninilchik AK 99639, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610327423 1871_001.pdf George A. and Patricia Gates, 308 Village Lane, Greensboro NC 27409, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610327430 1871_001.pdf James B. and Patricia Webster, 887 Fawn Hill Drive, Edgewood KY 41017, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610327454 1871_001.pdf Janet M. and Robert C. Clucas, 72880 Sterling Highway, Clam Gulch AK 99568, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610327447 1871_001.pdf John D. McCombs and Deidre E. McCombs, P.O. Box 39087, Ninilchik, AK 99639-0087, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610329908 1871_001.pdf John L. and Nancy E. Stengl, North 12003 Cedar Road, Birnamwood WI 54414- 8737, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610329915 1871_001.pdf Judith Ballentine, PO Box 9, Veguita NM 87062, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610329946 1871_001.pdf L.R. and Katherine Lunne, 2530 Fairmont Avenue, Dayton OH 45419, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610329922 1871_001.pdf Larry M. Rozak, PO Box 1179, Homer AK 99603, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610329939 1871_001.pdf Michael S. and Cheryl B. Sutton, PO Box 39214, Ninilchik AK 99639, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610329953 1871_001.pdf Ninilchik Point View LLC, c/o Darwin E. & Kaye A. Waldsmith, PO Box 39309, Ninilchik AK 99639, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610329991 1871_001.pdf Richard Lee & Jeannie Lou Johnson, 454 Camelot Dr, Anchorage AK 99508, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610329960 1871_001.pdf Robert L. and Carol A. Wilson, 168 Hidden Ridge Court, Cold Springs KY 41076, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610329977 1871_001.pdf State of Alaska, 550 West 7th Avenue, Ste. 800, Anchorage AK 99501, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610329984 1871_001.pdf Theodore W. Rozak Living Trust, c/o Larry M. Rozak, PO Box 1179, Homer AK 99603, CERTIFIED ELECTRONIC RETURN RECEIPT United States Tracking Information 92148901324734001610330003 1871_001.pdf Thomas James and Deborah Ann Bandelow, 8000 Little Dipper Ave, Anchorage AK 99504, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610330010 1871_001.pdf Tim and Kristine Moerline, P.O. Box 298, Kasilof AK 99610, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610327317 1871_001.pdf University of Alaska, Facilities and Land Management, 1815 Bragaw Street, Suite 101, Anchorage AK 99508, United States CERTIFIED ELECTRONIC RETURN RECEIPT 1871_001.pdf Walter L. Wilson, 91 Good Times Drive, Las Cruces NM 88005, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610327331 1871_001.pdf William Fisher Living Trust, 19521 S.E. Arletha Ct., Sandy OR 97055-8202, United States CERTIFIED ELECTRONIC RETURN RECEIPT Tracking Information 92148901324734001610327324 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: Carlisle, Samantha J (OGC) <samantha.carlisle@alaska.gov> Sent: Wednesday, May 4, 2022 3:39 PM 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. To: Cody Terrell <cterrell@hilcorp.com> Subject: [EXTERNAL] RE: Paxton 5 Spacing Exception Application - Ninilchik Ahhh I see, Grace’s last day with us was Friday. I will get this processed. From: Cody Terrell <cterrell@hilcorp.com> Sent: Wednesday, May 4, 2022 3:37 PM To: Carlisle, Samantha J (OGC) <samantha.carlisle@alaska.gov> Subject: FW: Paxton 5 Spacing Exception Application - Ninilchik 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: Cody Terrell Sent: Monday, May 2, 2022 2:25 PM To: Salazar, Grace (CED) <grace.salazar@alaska.gov> Cc: Davies, Stephen F (CED) <steve.davies@alaska.gov>; Matthew Petrowsky <mpetrowsky@hilcorp.com>; Christopher Stone <Christopher.Stone@hilcorp.com> Subject: Paxton 5 Spacing Exception Application - Ninilchik Hi Grace, Please see the attached application from Hilcorp for a spacing exception for our Paxton 5 well in the Ninilchik Field. A third party company is mailing the certified mailouts today or tomorrow to the landowners. I will forward you the tracking numbers once I get them. 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 SUOI S014W NIKILCHIK UNfT Padua a 176 177 f 102 17�8 '• z A�9C Y7� .a- 574.A WAS 1 S.9A M 'Ma 167 lot ZRBHL iM5 171 ;u 1 171 184 1AAd �.,. r If t 11� DIONNE 7 Paxton M6 BHL Paton 903-TP H AM 3W7z . oal so 1 e Legend s ddher SurfBCE Well LfM--a110nS whey BcRum We Lo4:aWrm -- Well Paths Od and Gas Unit Boundary Lpmses_pnw9te_ pctve Basic Tools Q ai 0 e 29 0 6% Layers = x < Filter Layers... © rinei + + Places — Land Records Qa + ❑ C30 Local Option Zones + ❑ LotLines + 0 ® Parcel Lines and Ownership Type + ❑ El Township, Range and Section + 0 Transportation + ❑ Material Sites 0 . Water III — 0 Backgrounds ❑ -t- 2012 / 2013 Imagery ,[ ' 0 9-inch Imagery 0 Niilzhade 4 Layers 1 M 0011 10®00R jP+_;_ to A AU 3or1;4 GOLD nH • F fr.. ., fC t A � rr _ Q II Tcol Labels X .;��\ �� �t . �� . \\ . Am� I r AUrOMN GOLD DR jL PC j �Z7 f'r . � )� . .� � y � § � � � �.� \�f 6 #qoF V A I IT rp, %,- jw i.. 300ft \\� ,�. ! ! ! ! !!!!!! ! ! !! !! ! ! ! ! !!! ! ! ! ! ! ! ! ! ! !! "/ $D Paxton Pad Kalotsa Pad Paxton #5_BHL Paxton #5_TPH Paxton #5_SHL 8 8 30 31 21 176 163 162 174A 174B 31 185 184 166 184A 186 182 182 167 176C 176B 182A 175 180 181 173A 177 182179178 176A 182 8 PEARL 1 BHL PEARL 2A BHL PAXTON 9 BHL PAXTON 8 BHL PAXTON 7 BHL PAXTON 5 BHL DIONNE 8 BHL DIONNE 7 BHL PAXTON 4 BHL DIONNE 6 BHL PAXTON 2 BHL DIONNE 5 BHLPAXTON 1 BHL PAXTON 11 BHL PAXTON 10 BHL NINILC HIK UNIT 13 12 7 18 24 14 11 1923 S001S014W S001S013W Ninilchik UnitPaxton 5Well Map Overview 0 1,400 2,800 Feet Alaska State Plane Zone 4, NAD27 ¯ Legend !Othe r Su rfa ce We ll Lo cation s Other B ottom H ole Locations Well P aths $Paxton_5_S HL "/Paxton_5_B HL Paxton_5_Wellpa th Paxton_5_Wellpa th_15 00ft Paxton_5_Wellpa th_30 00ft Oil and Gas Unit Boundary Tracts Ou tsid e 3 00 0ft Mineral Ownership CIRI Priva te Sta te Unive rsity Map Date: 6/9/2022 Tract No.Original_Lessor Lessor Interest 008 State of Alaska ADL 384372 1 021 University of Alaska 1 030 Cook Inlet Region, Inc C060385 1 031 Cook Inlet Region, Inc C060385 1 162 Charles E. Gates 0.2 162 George A. and Patricia Gates 0.2 162 James B. and Patricia Webster 0.2 162 L.R. and Katherine Lunne 0.2 162 Robert L. and Carol A. Wilson 0.2 163 Charles E. Gates 0.2 163 George A. and Patricia Gates 0.2 163 James B. and Patricia Webster 0.2 163 L.R. and Katherine Lunne 0.2 163 Robert L. and Carol A. Wilson 0.2 166 Carolee Pickett 0.25 166 John D. McCombs and Deidre E. McCombs 0.75 167 Carolee Pickett 0.25 167 Thomas James and Deborah Ann Bandelow 0.75 173A Brandon Joseph Paul Levi and Melissa Krystine Lancaster 1 174A Carolee Pickett 0.25 174A Ninilchik Point View LLC 0.75 174B Carolee Pickett 0.25 174B Darwin E. Waldsmith and Kaye A. Waldsmith Trust, dtd 11-15-2006 0.75 175 Carolee Pickett 1 176 Carolee Pickett 0.25 176 Darlene M. Rozak 0.25 176 John L. and Nancy E. Stengl 0.25 176 Judith Ballentine 0.25 176A Carolee Pickett 0.25 176A David M. and Jeanine B. Shea 0.25 176A David M. and Jeanine B. Shea 0.25 176A Judith Ballentine 0.25 176B Carolee Pickett 0.25 176B John L. and Nancy E. Stengl 0.25 176B Judith Ballentine 0.25 176B Theodore W. Rozak Living Trust 0.25 176C Carolee Pickett 0.25 176C John L. and Nancy E. Stengl 0.25 176C Judith Ballentine 0.25 176C Larry M. Rozak 0.25 177 Carolee Pickett 0.25 177 Darlene M. Rozak 0.25 177 John L. and Nancy E. Stengl 0.25 177 Judith Ballentine 0.25 178 Carolee Pickett 0.25 178 Darlene M. Rozak 0.25 178 John L. and Nancy E. Stengl 0.25 178 Judith Ballentine 0.25 179 Carolee Pickett 0.25 179 David R. Kodysz and Jean R. Gregorich 0.75 180 Carolee Pickett 0.25 180 Janet M. and Robert C. Clucas 0.75 181 Carolee Pickett 0.25 181 Michael S. and Cheryl B. Sutton 0.75 182 Carolee Pickett 0.25 182 Darlene M. Rozak 0.25 182 John L. and Nancy E. Stengl 0.25 182 Judith Ballentine 0.25 182A Carolee Pickett 0.25 182A Darlene M. Rozak 0.5 182A Judith Ballentine 0.25 184 Richard Lee & Jeannie Lou Johnson 1 184A Carolee Pickett 0.25 184A Tim and Kristine Moerline 0.75 185 State of Alaska ADL 390105 1 186 State of Alaska ADL 390105 1 Gross Acreage Notified?In AOR? 3507.84 470.91 694.78 163.25 35.98 35.98 35.98 35.98 35.98 33.21 33.21 33.21 33.21 33.21 4.42 4.42 1.95 1.95 1.63 23.567 23.567 23.782 23.782 1.99 24.657 24.657 24.657 24.657 1 1 1 1 3.085 3.085 3.085 3.085 2 2 2 2 1 1 1 1 1 1 1 1 1 1 1.63 1.63 1.3 1.3 9.25 9.25 9.25 9.25 2.62 2.62 2.62 5.424 5.553 5.553 12.242 1.77 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:Davies, Stephen F (OGC) Cc:Boyer, David L (OGC); Carlisle, Samantha J (OGC) Subject:RE: [EXTERNAL] RE: Paxton 5 Spacing Exception - Request and Questions Date:Thursday, June 9, 2022 2:28:33 PM Those two landowners were notified by mistake. I double checked again and there were no landowners missing from the mailout list that should have been notified. There were a handful of returned, mostly refused by landowners thinking its junk mail. The lions share were sent and received. There were no additional attempts made to contact the landowners. I believe we are only required to send a copy of the application by certified mail to the landowners most current known address, in accordance with 20 AAC 25.055(d)(1). 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: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Sent: Thursday, June 9, 2022 12:23 PM To: Cody Terrell <cterrell@hilcorp.com> Cc: Boyer, David L (OGC) <david.boyer2@alaska.gov>; Carlisle, Samantha J (OGC) <samantha.carlisle@alaska.gov> Subject: RE: [EXTERNAL] RE: Paxton 5 Spacing Exception - Request and Questions Thanks for the map and Mailout Tract List spreadsheet Cody. While comparing your Mailout Tract List spreadsheet against the Certified Mailing List accompanying Hilcorp’s application (Exhibit B), I notice that Walter L. Wilson and William D. Fisher missing on the Mailout Tract List spreadsheet. Were Mr. Wilson and Mr. Fisher notified by certified mail? Were any notifications returned as undeliverable? If so, which ones? Were additional attempts made to contact those parties? Thanks again and stay safe, Steve Davies 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. From: Cody Terrell <cterrell@hilcorp.com> Sent: Thursday, June 9, 2022 10:01 AM To: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Cc: Carlisle, Samantha J (OGC) <samantha.carlisle@alaska.gov> Subject: RE: [EXTERNAL] RE: Paxton 5 Spacing Exception - Request and Questions Good Morning Steve, I attached a Map and list of tract ownership for the tracts within 3000’. Please let me know if this works for you. 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: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Sent: Thursday, June 9, 2022 8:56 AM To: Cody Terrell <cterrell@hilcorp.com> Cc: Carlisle, Samantha J (OGC) <samantha.carlisle@alaska.gov> Subject: [EXTERNAL] RE: Paxton 5 Spacing Exception - Request and Questions Cody, Following up on our Monday conversation, could Hilcorp please provide a landownership map for the Paxton 5 Area of Review so that I can confirm Hilcorp’s notifications by certified mail? Thanks and be well, Steve Davies 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. From: Davies, Stephen F (OGC) Sent: Friday, June 3, 2022 4:35 PM To: Cody Terrell (cterrell@hilcorp.com) <cterrell@hilcorp.com> Cc: Samantha Carlisle (samantha.carlisle@alaska.gov) <samantha.carlisle@alaska.gov> Subject: Paxton 5 Spacing Exception - Request and Questions Cody, I was reviewing the Spacing Exception application for Hilcorp’s planned shallow perforations in Paxton 5 today. The public hearing is tentatively scheduled for June 21 and the public comment period ends June 20, so there is ample time to work on this decision. I’d like to confirm that Hilcorp has notified all of the landowners in the AOR for this subdivided area (see map below). Today I was using the Kenai Peninsula Borough’s Parcel Locator web app to conduct a spot-check, and I didn’t see the owners shown by the Parcel Locator for Tracts 182, 177, or 178 in Hilcorp’s Certified Mailing List that accompanied the application (these tracts are located immediately south of the drilling pad). It’s likely that surface ownership has been severed from the mineral rights, but I need to check this and, if severance has occurred, could Hilcorp please provide a current landownership map so that I can confirm that all affected landowners have been notified? Also, how many, if any, of the certified mailings were returned as undeliverable? For any undelivered applications, what additional attempts have been made to contact those parties? Thanks and stay safe, Steve Davies AOGCC Thanks and stay safe, Steve Davies 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. 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 namedabove. 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 copyof 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.
