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Home My WebLink AboutCO 477 A INDEX CONSERVATION ORDER NO. 477A MILNE POINT UNIT SCHRADER BLUFF POOL 1. December 19, 2023 Hilcorp application for expansion of Schrader Bluff Oil Pool 2. January 9, 2024 Notice of public hearing 3. January 11, 2024 Hilcorp application for spacing exception for MPU R-101 (CO 477A.001) 4. January 11, 2024 Hilcorp application for spacing exception for MPU R-102 (CO 477A.001) 5. January 11, 2024 Hilcorp application for spacing exception for MPU R-103 (CO 477A.001) 6. February 21, 2024 Notice of public hearing (CO 477A.001, CO 477A.002, CO 477A.003) (Confidential documents held in secure storage) STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage Alaska 99501 Re: THE APPLICATION OF HILCORP ALASKA, LLC for an order to expand the Schrader Bluff Oil Pool, Milne Point Field, North Slope, Alaska ) ) ) ) ) ) Conservation Order 477A Milne Point Field - Milne Point Unit Schrader Bluff Oil Pool May 29, 2024 IT APPEARING THAT: 1. By application dated December 19, 2023, Hilcorp Alaska, LLC (Hilcorp) in its capacity as the owner and operator of the Milne Point Unit (“MPU”) requested an order from the Alaska Oil and Gas Conservation Commission (AOGCC) to expand the affected area of Conservation Order No. 477 (CO 477) which established pool rules for the Schrader Bluff Oil Pool (SBOP) in the MPU. The AOGCC on its own motion also proposes to rescind Rule 11 of CO 477 because 20 AAC 25.556(d) now allows the AOGCC to administratively amend an order it has issued, so having a rule that allows for the same thing is unnecessary. 2. In accordance with 20 AAC 25.540 the AOGCC published notice of opportunity for public hearing in the Anchorage Daily News on January 11, 2024. The notice was published on the State of Alaska Public Notices and the AOGCC websites on January 9, 2024. 3. The public hearing was tentatively scheduled for 10:00 AM on February 15, 2024. 4. The tentatively scheduled hearing was vacated. FINDINGS: 1. CO 477 was issued on August 23, 2002, and expanded the extent of the SBOP at that time and consolidated several older conservation orders into one comprehensive set of pool rules for the SBOP. 2. Hilcorp proposes to expand the SBOP to the northwest beyond both the current pool and unit boundaries to encompass acreage now believed to be part of the SBOP 3. Hilcorp is the operator of the SBOP and the proposed expansion acreage and the sole working interest owner of the MPU and the leases in the proposed expansion area that lie beyond the current boundary of the MPU. 4. Hilcorp provided a map showing the current and proposed boundaries of the SBOP and another map showing their planned development drilling operations in the SBOP that shows wells going beyond the current limits of the planned development drilling and the SBOP and MPU. 5. The proposed expansion area abuts the Kuparuk River and Nikaitchuq Units as well as acreage not currently committed to a unit. 6. Hilcorp provided the AOGCC with a structure map that showed the geologic basis for its planned development drilling and SBOP expansion area but due to the adjoining acreage that is not owned and operated by Hilcorp, asked that the map be held confidential. Conservation Order 477A May 29, 2024 Page 2 of 5 7.Well control in the proposed expansion area that extends beyond the planned development drilling is sparse and therefore there is some uncertainty as to how far the SBOP actually extends. 8.Planned development drilling will provide more geologic data to help better define the extent of the SBOP. CONCLUSIONS: 1.Hilcorp’s request to keep the structure map confidential because it is based on its interpretation of geological and geophysical data and adjoins offset acreage that they do not own and operate is accepted by the AOGCC. 2.Information provided by Hilcorp indicates that the SBOP extends beyond its current affected area, and thus expanding the affected area of the SBOP is appropriate. 3.Having an administrative action rule in the SBOP pool rules is no longer necessary due to AOGCC regulations now allowing administrative action to be taken on any order issued by the AOGCC. NOW, THEREFORE, IT IS ORDERED: 1.This Conservation Order supersedes Conservation Order No. 255, dated July 2, 1990, and Conservation Order No. 283, dated December 30, 1991, and Conservation Order No. 477 dated August 23, 2002, and all associated administrative approvals to Conservation Order No. 477. The administrative records of these orders are incorporated by reference in this order. 2.Conservation Orders 282, 347 and 390 remain in effect and are not modified by this order. 3.In addition to statewide requirements under 20 AAC 25 (to the extent not superseded by these rules), the following rules apply to the Schrader Bluff Oil Pool within the following affected area (Revised This Order): Township – Range Sections T12N, R10E 1, 2, 11, and 12 T12N, R11E 2 to 11 T13N, R9E 1, N ½ of 2, SE ¼ of 2, NE ¼ of 11, 12, 13, 14, 23, and 24 T13N, R10E W ½ of 2, SE ¼ of 2, 3 - 11, S ½ of 12, and 13 to 36 T13N, R11E 18, 19, W ½ of 20, SW ¼ of 27, 28 to 33, and W ½ of 34 T14N, R9E 11 to 15, 22, 23 to 27, and 34 to 36 T14N, R10E 30 and 31 Rule 1 Pool Designation and Definition (Restated from CO 477) The Schrader Bluff Oil Pool is defined as that accumulation of oil and found within stratigraphic sections that correlate with the stratigraphic section occurring in the Conoco Inc Milne Point A-1 well between the measured depths of 4,174 and 4,800 feet. (CO 255, Rule 1, modified by this order) Conservation Order 477A May 29, 2024 Page 3 of 5 Rule 2 Well Spacing (Revised by CO 477.005) There are no restrictions as to well spacing except that no pay shall be opened in a well closer than 500 feet from the exterior boundary of the affected area. Rule 3 Horizontal/High Angle Completions (Repealed by CO 477.005) Rule 4 Casing and Cementing Requirements (Restated from CO 477) To provide proper anchorage for the blowout prevention equipment, surface casing shall be set at least 500 feet below the base of the permafrost, and the annulus shall be filled with cement. To withstand anticipated internal pressure and the potential forces generated by thaw subsidence and freeze back, the casing shall meet normal design criteria and have minimum axial strain properties of 0.5 percent in tension and 0.7 percent in compression. Rule 5 Automatic Shut-in Equipment (Superseded by Other Order No. 66) Rule 6 Common Production Facilities and Surface Commingling (Revised by CO 477.008) a. Production from the Schrader Bluff Oil Pool may be commingled on the surface with production from the Kuparuk River Oil Pool and the Sag River Oil Pool, Milne Point Unit, prior to custody transfer. b. Schrader Bluff Oil Pool wells will use the allocation factor for oil, gas, and water derived from the CFP. c. Each producing well shall be tested at least once a month for a minimum of six hours each test. d. The Commission may require more frequent or longer well tests if the summation of the calculated monthly production volume for both pools is not within 10 percent of the actual LACT metered volume. e. The operator shall provide the Commission with a Well Test and Allocation Report of commingled regular production from all Milne Point Unit wells on April 1, 2003 and annually thereafter. The report will consist of a thorough analysis of all surveillance data relative to the well test system and the resulting allocation factors. Rule 7 Reservoir Pressure Monitoring (Restated from CO 477) a. Prior to regular production a pressure survey shall be taken on each well to determine reservoir pressure. b. A minimum of one bottom-hole pressure survey per producing governmental section shall be run annually. The surveys in part (a) of this rule may be used to fulfill the minimum requirements. c. The datum for all surveys is 4,000 feet subsea. d. Pressure surveys may be stabilized static pressure measurements at bottom-hole or extrapolated from surface (single phase fluid conditions), pressure fall-off, pressure buildup, multi-rate tests, drill stem tests, and open-hole formation tests. e. Data and results from pressure surveys shall be submitted with the annual reservoir surveillance report. All data necessary for analysis of each survey need not be submitted Conservation Order 477A May 29, 2024 Page 4 of 5 with the report but must be available to the Commission upon request. f. Results and data from any special reservoir pressure monitoring techniques, tests, or surveys shall also be submitted in accordance with part (e) of this rule. Rule 8 Pool-wide Waterflood Project (Restated from CO 477) A waterflood project to maintain reservoir pressure must be implemented within eighteen months after regular production from the Schrader Bluff Oil Pool has started. Water injection must be implemented within the expanded S-Pad area within eighteen months of initial production. Rule 9 Gas-Oil Ratio Exemption (Restated from CO 477) Wells producing from the Schrader Bluff Oil Pool are exempt from the gas-oil-ratio limits of 20 AAC 25.240(a) so long as requirements of 20 AAC 25.240(b) are met. Rule 10 Schrader Bluff Oil Pool Annual Reservoir Surveillance Report (Restated from CO 477) An annual Schrader Bluff Oil Pool surveillance report is required by April 1 of each year. The report shall include, but is not limited to, the following: a. Progress of enhanced recovery project implementation and reservoir management summary including results of reservoir studies. b. Voidage balance by month of produced fluids and injected fluids and cumulative status for each producing interval. c. Summary and analysis of reservoir pressure surveys within the pool. d. Results and, where appropriate, analysis of production and injection log surveys, tracer surveys, observation well surveys, and any other special monitoring. e. Review of pool production allocation factors and issues over the prior year. f. Future development plans. g. Review of Annual Plan of Operations and Development. Rule 11 Administrative Action (Superseded by 20 AAC 25.556(d)) DONE at Anchorage, Alaska and dated May 29, 2024. Brett W. Huber, Sr Jessie L. Chmielowski Gregory C. Wilson Chair, Commissioner Commissioner Commissioner Gregory Wilson Digitally signed by Gregory Wilson Date: 2024.05.29 15:48:42 -08'00' Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2024.05.29 17:01:33 -08'00' Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2024.05.30 09:20:56 -08'00' Conservation Order 477A May 29, 2024 Page 5 of 5 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. From:Coldiron, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] Conservation Order 477A (Hilcorp) Date:Thursday, May 30, 2024 1:58:25 PM Attachments:co 477a.pdf THE APPLICATION OF HILCORP ALASKA, LLC for an order to expand the Schrader Bluff Oil Pool, Milne Point Field, North Slope, Alaska Samantha Coldiron 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.coldiron@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/samantha.coldiron%40alaska.go v Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov ADMINISTRATIVE APPROVAL CONSERVATION ORDER 477A.001 Jamie Wilson Sr. Landman Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Docket Number: CO-24-001 Spacing Exception Milne Point Unit R-101 Well Milne Point Unit Schrader Bluff Oil Pool Dear Ms. Wilson: By letter dated January 11, 2024, Hilcorp Alaska, LLC (Hilcorp) requested the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order approving an exception to the spacing requirements of Rule 2 of Conservation Order 477 (CO 477)—as amended in Conservation Order 477.05 (CO 477.05)—to drill, complete, test, pre-produce, and inject into well Milne Point Unit R-101 (MPU R-101) within 500 feet of the external boundary of the Schrader Bluff Oil Pool, Milne Point Unit (MPU), North Slope Borough, Alaska. Hilcorp sent, by certified mail, notice of the application to all owners, landowners, and operators of all properties within 1,000 feet of the MPU R-101 well trajectory and provided to AOGCC the notice, the addresses to which the notices were delivered, and certified mailing receipts. Pursuant to 20 AAC 25.540, AOGCC tentatively scheduled a public hearing for March 26, 2024. On February 21, 2024, AOGCC published notice of the opportunity for that hearing on the State of Alaska’s Online Public Notice website and on AOGCC’s website, and electronically transmitted the notice to all persons on AOGCC’s email distribution list. On February 25, 2024, AOGCC published the notice in the Anchorage Daily News. No request for hearing or public comments were submitted. The hearing tentatively scheduled for March 26, 2024, was vacated. Hilcorp’s application, AOGCC’s records, and publicly available information provide sufficient information upon which to make an informed decision. CO 477A.001 June 6, 2024 Page 2 of 4 PURPOSE AND NEED FOR THIS ORDER Well spacing regulations protect the oil and gas rights of adjacent landowners and maximize resource recovery by establishing default limits on how close, under the land's surface, oil and gas wells can be to each other and to property lines where ownership changes hands. These limits are set forth in a regulation, 20 AAC 25.055. Operators must abide by the default well spacing limits (referred to as statewide spacing requirements) unless they apply for, and obtain, an exception to those limits. Although exceptions to the default well spacing requirements are not unusual, AOGCC carefully evaluates each application and typically grants them only when actual geologic conditions demonstrate that the proposed subsurface location of a well is necessary to reach otherwise unreachable oil or gas, the rights of both adjacent landowners are upheld, and underground drinking water can be protected. As a general matter, AOGCC does not have extensive authority over surface impacts such as noise, emissions, or construction. FINDINGS Hilcorp is the sole working interest owner and operator for the MPU and MPU R-101, a proposed onshore, horizontal, extended-reach injection well located within the Schrader Bluff Oil Pool. This well is planned to be drilled during 2024. Surface Location: 167’ FNL, 858’ FWL, Section 7, T13N, R10E, Umiat Meridian (UM) Top Productive Horizon: 1,442’ FNL, 2,325’ FWL, Section 2, T13N, R9E, UM Bottom Hole Location: 1,820’ FNL, 123’ FWL, Section 34, T14N, R9E, UM. MPU R-101 will be located on State of Alaska leases ADL 025509, ADL 388235, and ADL 355018 that are operated by Hilcorp. On May 29, 2024, the AOGCC issued CO 477A, which supersedes CO 477. Rule 2 of CO 477A governs well spacing within the Schrader Bluff Oil Pool at Milne Point. CO 447A incorporates CO 477 Rule 2—as amended by CO 477.05—and states: “There are no restrictions as to well spacing except that no pay shall be opened in a well closer than 500 feet from the exterior boundary of the affected area.” MPU R-101 will be drilled northwest from a surface location on Raven Pad. This well will open a reservoir along a course that lies within 500 feet of the external boundary of the Schrader Bluff Oil Pool. This external boundary coincides with the boundary line that separates the MPU from adjacent leases within the Kuparuk River Unit (KRU) that are operated by ConocoPhillips Alaska, Inc. (CPAI). MPU R-101 will open a 1-3/4-mile-long section of Schrader Bluff reservoir to injection. It will be the peripheral well of a line-drive injection pattern. Fluid injected into this well will push a uniform, linear bank of oil toward the planned, parallel, horizontal MPU R-102 production well that will be located about 400 feet to the northeast. The courses of MPU R-101 and MPU R-102 are situated at the most prospective locations on the subsurface structure. CO 477A.001 June 6, 2024 Page 3 of 4 Limited-duration pre-production of MPU R-101 for up to 30 days prior to injection operations will clean out the well bore, improve injectivity, and recover a portion of the oil reserves from those portions of Hilcorp’s leases that lie within 500 feet of the MPU-KRU boundary. Such limited- duration pre-production will not significantly impact oil reserves on adjacent CPAI-operated acreage. CONCLUSIONS An exception to the well spacing provisions of CO 477A Rule 2 is necessary to allow drilling, completion, testing, pre-production, and regular injection into the Schrader Bluff Oil Pool in well MPU R-101 to maximize ultimate resource recovery. It is not possible to recover a significant portion the targeted reserves from a well location that conforms to the spacing requirements of CO 477A Rule 2. Limiting pre-production of MPU R-101 to 30 days will increase injectivity and will not adversely affect reserves located within the adjacent KRU. If constructed and operated as required, granting an exception to the well spacing provisions of CO 477A Rule 2 for MPU R-101 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 January 11, 2024 application for an exception to the well spacing provisions of Rule 2 of CO 477A to allow drilling, completion, testing, pre-production, and injection into well MPU R-101 within the Schrader Bluff Oil Pool. Hilcorp may proceed and must comply all applicable laws and all other legal requirements. DONE at Anchorage, Alaska and dated June 6, 2024. Brett W. Huber, Sr. Jessie L. Chmielowski Gregory C. Wilson Chair, Commissioner Commissioner Commissioner Gregory Wilson Digitally signed by Gregory Wilson Date: 2024.06.06 09:49:43 -08'00' Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2024.06.06 11:08:58 -08'00' Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2024.06.06 14:30:15 -05'00' CO 477A.001 June 6, 2024 Page 4 of 4 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. From:Coldiron, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] Conservation Orders 477A.001, .002, and .003 (Hilcorp) Date:Thursday, June 6, 2024 12:36:45 PM Attachments:co477A.001.pdf co477A.002.pdf co477A.003.pdf Docket Number: CO-24-001 Spacing Exception Milne Point Unit R-101 Well Milne Point Unit Schrader Bluff Oil Pool Docket Number: CO-24-002 Spacing Exception Milne Point Unit R-102 Well Milne Point Unit Schrader Bluff Oil Pool Docket Number: CO-24-003 Spacing Exception Milne Point Unit R-103 Well Milne Point Unit Schrader Bluff Oil Pool Samantha Coldiron 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.coldiron@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/samantha.coldiron%40alaska.go v Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov ADMINISTRATIVE APPROVAL CONSERVATION ORDER 477A.001 $PHQGHG Jamie Wilson Sr. Landman Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Docket Number: CO-24-001 Spacing Exception Milne Point Unit R-101 Well Milne Point Unit Schrader Bluff Oil Pool Dear Ms. Wilson: By letter dated January 11, 2024, Hilcorp Alaska, LLC (Hilcorp) requested the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order approving an exception to the spacing requirements of Rule 2 of Conservation Order 477 (CO 477)—as amended in Conservation Order 477.05 (CO 477.05)—to drill, complete, test, pre-produce, and inject into well Milne Point Unit R-101 (MPU R-101) within 500 feet of the external boundary of the Schrader Bluff Oil Pool, Milne Point Unit (MPU), North Slope Borough, Alaska. Hilcorp sent, by certified mail, notice of the application to all owners, landowners, and operators of all properties within 1,000 feet of the MPU R-101 well trajectory and provided to AOGCC the notice, the addresses to which the notices were delivered, and certified mailing receipts. Pursuant to 20 AAC 25.540, AOGCC tentatively scheduled a public hearing for March 26, 2024. On February 21, 2024, AOGCC published notice of the opportunity for that hearing on the State of Alaska’s Online Public Notice website and on AOGCC’s website, and electronically transmitted the notice to all persons on AOGCC’s email distribution list. On February 25, 2024, AOGCC published the notice in the Anchorage Daily News. No request for hearing or public comments were submitted. The hearing tentatively scheduled for March 26, 2024, was vacated. Hilcorp’s application, AOGCC’s records, and publicly available information provide sufficient information upon which to make an informed decision. CO 477A.001 June 25, 2024 Page 2 of 4 PURPOSE AND NEED FOR THIS ORDER Well spacing regulations protect the oil and gas rights of adjacent landowners and maximize resource recovery by establishing default limits on how close, under the land's surface, oil and gas wells can be to each other and to property lines where ownership changes hands. These limits are set forth in a regulation, 20 AAC 25.055. Operators must abide by the default well spacing limits (referred to as statewide spacing requirements) unless they apply for, and obtain, an exception to those limits. Although exceptions to the default well spacing requirements are not unusual, AOGCC carefully evaluates each application and typically grants them only when actual geologic conditions demonstrate that the proposed subsurface location of a well is necessary to reach otherwise unreachable oil or gas, the rights of both adjacent landowners are upheld, and underground drinking water can be protected. As a general matter, AOGCC does not have extensive authority over surface impacts such as noise, emissions, or construction. FINDINGS Hilcorp is the sole working interest owner and operator for the MPU and MPU R-101, a proposed onshore, horizontal, extended-reach injection well located within the Schrader Bluff Oil Pool. This well is planned to be drilled during 2024. Surface Location: 167’ FNL, 858’ FWL, Section 7, T13N, R10E, Umiat Meridian (UM) Top Productive Horizon: 1,442’ FNL, 2,325’ FWL, Section 2, T13N, R9E, UM Bottom Hole Location: 1,820’ FNL, 123’ FWL, Section 34, T14N, R9E, UM. MPU R-101 will be located on State of Alaska leases ADL 025509, ADL 388235, and ADL 355018 that are operated by Hilcorp. On May 29, 2024, the AOGCC issued CO 477A, which supersedes CO 477. Rule 2 of CO 477A governs well spacing within the Schrader Bluff Oil Pool at Milne Point. CO 447A incorporates CO 477 Rule 2—as amended by CO 477.05—and states: “There are no restrictions as to well spacing except that no pay shall be opened in a well closer than 500 feet from the exterior boundary of the affected area.” MPU R-101 will be drilled northwest from a surface location on Raven Pad. This well will open a reservoir along a course that lies within 500 feet of the external boundary of the Schrader Bluff Oil Pool. This external boundary coincides with the boundary line that separates the MPU from adjacent leases within the Kuparuk River Unit (KRU) that are operated by ConocoPhillips Alaska, Inc. (CPAI) and from adjacent leases within the Nikaitchuq Unit (NU) that are operated by Eni US Operating Company, Inc. (Eni). MPU R-101 will open a 1-3/4-mile-long section of Schrader Bluff reservoir to injection. It will be the peripheral well of a line-drive injection pattern. Fluid injected into this well will push a uniform, linear bank of oil toward the planned, parallel, horizontal MPU R-102 production well that will be located about 400 feet to the northeast. The courses of MPU R-101 and MPU R-102 are situated at the most prospective locations on the subsurface structure. CO 477A.001 June 25, 2024 Page 3 of 4 Limited-duration pre-production of MPU R-101 for up to 30 days prior to injection operations will clean out the well bore, improve injectivity, and recover a portion of the oil reserves from those portions of Hilcorp’s leases that lie within 500 feet of the Schrader Bluff Oil Pool boundary. Such limited-duration pre-production will not significantly impact oil reserves on adjacent CPAI- and Eni-operated acreage. CONCLUSIONS An exception to the well spacing provisions of CO 477A Rule 2 is necessary to allow drilling, completion, testing, pre-production, and regular injection into the Schrader Bluff Oil Pool in well MPU R-101 to maximize ultimate resource recovery. It is not possible to recover a significant portion the targeted reserves from a well location that conforms to the spacing requirements of CO 477A Rule 2. Limiting pre-production of MPU R-101 to 30 days will increase injectivity and will not adversely affect reserves located within the adjacent KRU and NU. If constructed and operated as required, granting an exception to the well spacing provisions of CO 477A Rule 2 for MPU R-101 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 January 11, 2024, application for an exception to the well spacing provisions of Rule 2 of CO 477A to allow drilling, completion, testing, pre-production, and injection into well MPU R-101 within the Schrader Bluff Oil Pool. Hilcorp may proceed and must comply all applicable laws and all other legal requirements. DONE at Anchorage, Alaska and dated June 25, 2024 (Nunc pro tunc June 6, 2024). Brett W. Huber, Sr. Jessie L. Chmielowski Gregory C. Wilson Chair, Commissioner Commissioner Commissioner Gregory Wilson Digitally signed by Gregory Wilson Date: 2024.06.25 14:42:51 -08'00' Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2024.06.25 15:06:20 -08'00' Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2024.06.26 08:48:28 -08'00' CO 477A.001 June 25, 2024 Page 4 of 4 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. From:Coldiron, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] Conservation Orders 477A.001, .002, and .003 Amended (Hilcorp) Date:Wednesday, June 26, 2024 9:12:36 AM Attachments:co477A.001 amended.pdf co477A.002 amended.pdf co477A.003 amended.pdf Corrects errors in order where references to adjacent leases operated by Eni US Operating Company, Inc. (Eni) were omitted Docket Number: CO-24-001 Spacing Exception Milne Point Unit R-101 Well Milne Point Unit Schrader Bluff Oil Pool Docket Number: CO-24-002 Spacing Exception Milne Point Unit R-102 Well Milne Point Unit Schrader Bluff Oil Pool Docket Number: CO-24-003 Spacing Exception Milne Point Unit R-103 Well Milne Point Unit Schrader Bluff Oil Pool Samantha Coldiron 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.coldiron@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/samantha.coldiron%40alaska.go v Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.govADMINISTRATIVE APPROVAL CONSERVATION ORDER NO. 477A.002 Jamie Wilson Sr. Landman Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Docket Number: CO-24-002 Spacing Exception Milne Point Unit R-102 Well Milne Point Unit Schrader Bluff Oil Pool Dear Ms. Wilson: By letter dated January 11, 2024, Hilcorp Alaska, LLC (Hilcorp) requested the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order approving an exception to the spacing requirements of Rule 2 of Conservation Order No. 477 (CO 477)—as amended in Conservation Order No. 477.05 (CO 477.05)—to drill, complete, test, and produce from well Milne Point Unit R-102 (MPU R-102) within 500 feet of the external boundary of the Schrader Bluff Oil Pool, Milne Point Unit (MPU), North Slope Borough, Alaska. Hilcorp sent, by certified mail, notice of the application to all owners, landowners, and operators of all properties within 1,000 feet of the MPU R-102 well trajectory and provided to AOGCC the notice, the addresses to which the notices were delivered, and certified mailing receipts. Pursuant to 20 AAC 25.540, AOGCC tentatively scheduled a public hearing for March 26, 2024. On February 21, 2024, AOGCC published notice of the opportunity for that hearing on the State of Alaska’s Online Public Notice website and on AOGCC’s website, and electronically transmitted the notice to all persons on AOGCC’s email distribution list. On February 25, 2024, AOGCC published the notice in the Anchorage Daily News. No request for hearing or public comments were submitted. The hearing tentatively scheduled for March 26, 2024, was vacated. Hilcorp’s application, AOGCC’s records, and publicly available information provide sufficient information upon which to make an informed decision. 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 CO 477A.002 June 6, 2024 Page 2 of 3 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, the rights of both adjacent landowners are upheld, and underground drinking water can be protected. As a general matter, AOGCC does not have extensive authority over surface impacts such as noise, emissions, or construction. FINDINGS Hilcorp is the sole working interest owner and operator for the MPU and MPU R-102, a proposed onshore, horizontal, extended-reach production well located within the Schrader Bluff Oil Pool. This well is planned to be drilled during 2024. Surface Location: 159’ FNL, 900’ FWL, Section 7, T13N, R10E, Umiat Meridian (UM) Top Productive Horizon: 565’ FNL, 1,720’ FWL, Section 2, T13N, R9E, UM Bottom Hole Location: 1,616’ FNL, 582’ FWL, Section 34, T14N, R9E, UM. MPU R-102 will be located on State of Alaska leases ADL 025509, ADL 388235, and ADL 355018 that are operated by Hilcorp. On May 29, 2024, the AOGCC issued CO 477A, which supersedes CO 477. Rule 2 of CO 477A governs well spacing within the Schrader Bluff Oil Pool at Milne Point. CO 447A incorporates CO 477 Rule 2—as amended by CO 477.05—and states: “There are no restrictions as to well spacing except that no pay shall be opened in a well closer than 500 feet from the exterior boundary of the affected area.” MPU R-102 will be drilled northwest from a surface location on Raven Pad. This well will open a reservoir along a course that lies within 500 feet of the external boundary of the Schrader Bluff Oil Pool. This external boundary coincides with the boundary line that separates the MPU from adjacent leases within the Kuparuk River Unit (KRU) that are operated by ConocoPhillips Alaska, Inc. (CPAI). MPU R-102 will open a 1-3/4-mile-long section of Schrader Bluff reservoir to production. It will be part of a line-drive injection pattern. Hydrocarbons and fluids produced by this well will be recovered from uniform, linear banks pushed from the planned, parallel, horizontal MPU R-101 and R-103 injection wells that will be located about 400 feet to the southwest and northeast, respectively. The courses of MPU R-102 and adjacent, supporting injection wells R-101 and R-103 are situated at the most prospective locations on the subsurface structure. Production of MPU R-102 will recover oil reserves from those portions of Hilcorp’s leases that lie within 500 feet of the MPU-KRU boundary. This production will not significantly impact oil reserves on adjacent CPAI-operated acreage. CO 477A.002 June 6, 2024 Page 3 of 3 CONCLUSIONS An exception to the well spacing provisions of CO 477A Rule 2 is necessary to allow drilling, completion, testing, and regular production from the Schrader Bluff Oil Pool in well MPU R-102 to maximize ultimate resource recovery. It is not possible to recover a significant portion the targeted reserves from a well location that conforms to the spacing requirements of CO 477A Rule 2. If constructed and operated as required, granting an exception to the well spacing provisions of CO 477A Rule 2 for MPU R-102 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 January 11, 2024, application for an exception to the well spacing provisions of Rule 2 of CO 477A to allow drilling, completion, testing, and production of well MPU R-102 within the Schrader Bluff Oil Pool. Hilcorp may proceed and must comply all applicable laws and all other legal requirements. DONE at Anchorage, Alaska and dated June 6, 2024. Brett W. Huber, Sr. Jessie L. Chmielowski Gregory C. Wilson Chair, Commissioner 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. Gregory Wilson Digitally signed by Gregory Wilson Date: 2024.06.06 09:47:17 -08'00' Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2024.06.06 11:09:54 -08'00' Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2024.06.06 14:31:05 -05'00' From:Coldiron, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] Conservation Orders 477A.001, .002, and .003 (Hilcorp) Date:Thursday, June 6, 2024 12:36:45 PM Attachments:co477A.001.pdf co477A.002.pdf co477A.003.pdf Docket Number: CO-24-001 Spacing Exception Milne Point Unit R-101 Well Milne Point Unit Schrader Bluff Oil Pool Docket Number: CO-24-002 Spacing Exception Milne Point Unit R-102 Well Milne Point Unit Schrader Bluff Oil Pool Docket Number: CO-24-003 Spacing Exception Milne Point Unit R-103 Well Milne Point Unit Schrader Bluff Oil Pool Samantha Coldiron 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.coldiron@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/samantha.coldiron%40alaska.go v Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.govADMINISTRATIVE APPROVAL CONSERVATION ORDER NO. 477A.002 $PHQGHG Jamie Wilson Sr. Landman Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Docket Number: CO-24-002 Spacing Exception Milne Point Unit R-102 Well Milne Point Unit Schrader Bluff Oil Pool Dear Ms. Wilson: By letter dated January 11, 2024, Hilcorp Alaska, LLC (Hilcorp) requested the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order approving an exception to the spacing requirements of Rule 2 of Conservation Order No. 477 (CO 477)—as amended in Conservation Order No. 477.05 (CO 477.05)—to drill, complete, test, and produce from well Milne Point Unit R-102 (MPU R-102) within 500 feet of the external boundary of the Schrader Bluff Oil Pool, Milne Point Unit (MPU), North Slope Borough, Alaska. Hilcorp sent, by certified mail, notice of the application to all owners, landowners, and operators of all properties within 1,000 feet of the MPU R-102 well trajectory and provided to AOGCC the notice, the addresses to which the notices were delivered, and certified mailing receipts. Pursuant to 20 AAC 25.540, AOGCC tentatively scheduled a public hearing for March 26, 2024. On February 21, 2024, AOGCC published notice of the opportunity for that hearing on the State of Alaska’s Online Public Notice website and on AOGCC’s website, and electronically transmitted the notice to all persons on AOGCC’s email distribution list. On February 25, 2024, AOGCC published the notice in the Anchorage Daily News. No request for hearing or public comments were submitted. The hearing tentatively scheduled for March 26, 2024, was vacated. Hilcorp’s application, AOGCC’s records, and publicly available information provide sufficient information upon which to make an informed decision. 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 CO 477A.002 June 25, 2024 Page 2 of 3 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, the rights of both adjacent landowners are upheld, and underground drinking water can be protected. As a general matter, AOGCC does not have extensive authority over surface impacts such as noise, emissions, or construction. FINDINGS Hilcorp is the sole working interest owner and operator for the MPU and MPU R-102, a proposed onshore, horizontal, extended-reach production well located within the Schrader Bluff Oil Pool. This well is planned to be drilled during 2024. Surface Location: 159’ FNL, 900’ FWL, Section 7, T13N, R10E, Umiat Meridian (UM) Top Productive Horizon: 565’ FNL, 1,720’ FWL, Section 2, T13N, R9E, UM Bottom Hole Location: 1,616’ FNL, 582’ FWL, Section 34, T14N, R9E, UM. MPU R-102 will be located on State of Alaska leases ADL 025509, ADL 388235, and ADL 355018 that are operated by Hilcorp. On May 29, 2024, the AOGCC issued CO 477A, which supersedes CO 477. Rule 2 of CO 477A governs well spacing within the Schrader Bluff Oil Pool at Milne Point. CO 447A incorporates CO 477 Rule 2—as amended by CO 477.05—and states: “There are no restrictions as to well spacing except that no pay shall be opened in a well closer than 500 feet from the exterior boundary of the affected area.” MPU R-102 will be drilled northwest from a surface location on Raven Pad. This well will open a reservoir along a course that lies within 500 feet of the external boundary of the Schrader Bluff Oil Pool. This external boundary coincides with the boundary line that separates the MPU from adjacent leases within the Kuparuk River Unit (KRU) that are operated by ConocoPhillips Alaska, Inc. (CPAI) and from adjacent leases within the Nikaitchuq Unit (NU) that are operated by Eni US Operating Company, Inc. (Eni). MPU R-102 will open a 1-3/4-mile-long section of Schrader Bluff reservoir to production. It will be part of a line-drive injection pattern. Hydrocarbons and fluids produced by this well will be recovered from uniform, linear banks pushed from the planned, parallel, horizontal MPU R-101 and R-103 injection wells that will be located about 400 feet to the southwest and northeast, respectively. The courses of MPU R-102 and adjacent, supporting injection wells R-101 and R-103 are situated at the most prospective locations on the subsurface structure. Production of MPU R-102 will recover oil reserves from those portions of Hilcorp’s leases that lie within 500 feet of the Schrader Bluff Oil Pool boundary. This production will not significantly impact oil reserves on adjacent CPAI- and Eni-operated acreage. CO 477A.002 June 25, 2024 Page 3 of 3 CONCLUSIONS An exception to the well spacing provisions of CO 477A Rule 2 is necessary to allow drilling, completion, testing, and regular production from the Schrader Bluff Oil Pool in well MPU R-102 to maximize ultimate resource recovery. It is not possible to recover a significant portion the targeted reserves from a well location that conforms to the spacing requirements of CO 477A Rule 2. If constructed and operated as required, granting an exception to the well spacing provisions of CO 477A Rule 2 for MPU R-102 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 January 11, 2024, application for an exception to the well spacing provisions of Rule 2 of CO 477A to allow drilling, completion, testing, and production of well MPU R-102 within the Schrader Bluff Oil Pool. Hilcorp may proceed and must comply all applicable laws and all other legal requirements. DONE at Anchorage, Alaska and dated June 25, 2024 (Nunc pro tunc June 6, 2024). Brett W. Huber, Sr. Jessie L. Chmielowski Gregory C. Wilson Chair, Commissioner 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. Gregory Wilson Digitally signed by Gregory Wilson Date: 2024.06.25 14:44:39 -08'00' Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2024.06.25 15:06:53 -08'00' Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2024.06.26 08:49:19 -08'00' From:Coldiron, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] Conservation Orders 477A.001, .002, and .003 Amended (Hilcorp) Date:Wednesday, June 26, 2024 9:12:36 AM Attachments:co477A.001 amended.pdf co477A.002 amended.pdf co477A.003 amended.pdf Corrects errors in order where references to adjacent leases operated by Eni US Operating Company, Inc. (Eni) were omitted Docket Number: CO-24-001 Spacing Exception Milne Point Unit R-101 Well Milne Point Unit Schrader Bluff Oil Pool Docket Number: CO-24-002 Spacing Exception Milne Point Unit R-102 Well Milne Point Unit Schrader Bluff Oil Pool Docket Number: CO-24-003 Spacing Exception Milne Point Unit R-103 Well Milne Point Unit Schrader Bluff Oil Pool Samantha Coldiron 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.coldiron@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/samantha.coldiron%40alaska.go v Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov ADMINISTRATIVE APPROVAL CONSERVATION ORDER NO. 477A.003 Jamie Wilson Sr. Landman Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Docket Number: CO-24-003 Spacing Exception Milne Point Unit R-103 Well Milne Point Unit Schrader Bluff Oil Pool Dear Ms. Wilson: By letter dated January 11, 2024, Hilcorp Alaska, LLC (Hilcorp) requested the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order approving an exception to the spacing requirements of Rule 2 of Conservation Order No. 477 (CO 477)—as amended in Conservation Order No. 477.05 (CO 477.05)—to drill, complete, test, pre-produce, and inject into well Milne Point Unit R-103 (MPU R-103) within 500 feet of the external boundary of the Schrader Bluff Oil Pool, Milne Point Unit (MPU), North Slope Borough, Alaska. Hilcorp sent, by certified mail, notice of the application to all owners, landowners, and operators of all properties within 1,000 feet of the MPU R-103 well trajectory and provided to AOGCC the notice, the addresses to which the notices were delivered, and certified mailing receipts. Pursuant to 20 AAC 25.540, AOGCC tentatively scheduled a public hearing for March 26, 2024. On February 21, 2024, AOGCC published notice of the opportunity for that hearing on the State of Alaska’s Online Public Notice website and on AOGCC’s website, and electronically transmitted the notice to all persons on AOGCC’s email distribution list. On February 25, 2024, AOGCC published the notice in the Anchorage Daily News. No request for hearing or public comments were submitted. The hearing tentatively scheduled for March 26, 2024, was vacated. Hilcorp’s application, AOGCC’s records, and publicly available information provide sufficient information upon which to make an informed decision. CO 477A.003 June 6, 2024 Page 2 of 4 PURPOSE AND NEED FOR THIS ORDER Well spacing regulations protect the oil and gas rights of adjacent landowners and maximize resource recovery by establishing default limits on how close, under the land's surface, oil and gas wells can be to each other and to property lines where ownership changes hands. These limits are set forth in a regulation, 20 AAC 25.055. Operators must abide by the default well spacing limits (referred to as statewide spacing requirements) unless they apply for, and obtain, an exception to those limits. Although exceptions to the default well spacing requirements are not unusual, AOGCC carefully evaluates each application and typically grants them only when actual geologic conditions demonstrate that the proposed subsurface location of a well is necessary to reach otherwise unreachable oil or gas, the rights of both adjacent landowners are upheld, and underground drinking water can be protected. As a general matter, AOGCC does not have extensive authority over surface impacts such as noise, emissions, or construction. FINDINGS Hilcorp is the sole working interest owner and operator for the MPU and MPU R-103, a proposed onshore, horizontal, extended-reach injection well located within the Schrader Bluff Oil Pool. This well is planned to be drilled during 2024. Surface Location: 149’ FNL, 940’ FWL, Section 7, T13N, R10E, Umiat Meridian (UM) Top Productive Horizon: 877’ FNL, 2,269’ FEL, Section 2, T13N, R9E, UM Bottom Hole Location: 897’ FNL, 80’ FWL, Section 34, T14N, R9E, UM . MPU R-103 will be located on State of Alaska leases ADL 025509, ADL 388235, and ADL 355018 that are operated by Hilcorp. On May 29, 2024, the AOGCC issued CO 477A, which supersedes CO 477. Rule 2 of CO 477A governs well spacing within the Schrader Bluff Oil Pool at Milne Point. CO 447A incorporates CO 477 Rule 2—as amended by CO 477.05—and states: “There are no restrictions as to well spacing except that no pay shall be opened in a well closer than 500 feet from the exterior boundary of the affected area.” MPU R-103 will be drilled northwest from a surface location on Raven Pad. This well will open a reservoir along a course that lies within 500 feet of the external boundary of the Schrader Bluff Oil Pool. This external boundary coincides with the boundary line that separates the MPU from adjacent leases within the Kuparuk River Unit (KRU) that are operated by ConocoPhillips Alaska, Inc. (CPAI). MPU R-103 will open a 1-3/4-mile-long section of Schrader Bluff reservoir to injection. It will be a portion of a line-drive injection pattern. Fluid injected into this well will push a uniform, linear bank of oil toward the planned, parallel, horizontal MPU R-102 production well that will be located about 400 feet to the southwest. The courses of MPU R-103 and MPU R-102 are situated at the most prospective locations on the subsurface structure. CO 477A.003 June 6, 2024 Page 3 of 4 Limited-duration pre-production of MPU R-103 for up to 30 days prior to injection operations will clean out the well bore, improve injectivity, and recover a portion of the oil reserves from those portions of Hilcorp’s leases that lie within 500 feet of the MPU-KRU boundary. Such limited- duration pre-production will not significantly impact oil reserves on adjacent CPAI-operated acreage. CONCLUSIONS An exception to the well spacing provisions of CO 477A Rule 2 is necessary to allow drilling, completion, testing, pre-production, and regular injection into the Schrader Bluff Oil Pool in well MPU R-103 to maximize ultimate resource recovery. It is not possible to recover a significant portion the targeted reserves from a well location that conforms to the spacing requirements of CO 477A Rule 2. Limiting pre-production of MPU R-103 to 30 days will increase injectivity and will not adversely affect reserves located within the adjacent KRU. If constructed and operated as required, granting an exception to the well spacing provisions of CO 477A Rule 2 for MPU R-103 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 January 11, 2024, application for an exception to the well spacing provisions of Rule 2 of CO 477A to allow drilling, completion, testing, pre-production, and injection into well MPU R-103 within the Schrader Bluff Oil Pool. Hilcorp may proceed and must comply all applicable laws and all other legal requirements. DONE at Anchorage, Alaska and dated June 6, 2024. Brett W. Huber, Sr. Jessie L. Chmielowski Gregory C. Wilson Chair, Commissioner Commissioner Commissioner Gregory Wilson Digitally signed by Gregory Wilson Date: 2024.06.06 09:50:58 -08'00' Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2024.06.06 11:10:43 -08'00' Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2024.06.06 14:31:42 -05'00' CO 477A.003 June 6, 2024 Page 4 of 4 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. From:Coldiron, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] Conservation Orders 477A.001, .002, and .003 (Hilcorp) Date:Thursday, June 6, 2024 12:36:45 PM Attachments:co477A.001.pdf co477A.002.pdf co477A.003.pdf Docket Number: CO-24-001 Spacing Exception Milne Point Unit R-101 Well Milne Point Unit Schrader Bluff Oil Pool Docket Number: CO-24-002 Spacing Exception Milne Point Unit R-102 Well Milne Point Unit Schrader Bluff Oil Pool Docket Number: CO-24-003 Spacing Exception Milne Point Unit R-103 Well Milne Point Unit Schrader Bluff Oil Pool Samantha Coldiron 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.coldiron@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/samantha.coldiron%40alaska.go v Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue Anchorage, Alaska 99501-3572 Main: 907.279.1433 Fax: 907.276.7542 www.aogcc.alaska.gov ADMINISTRATIVE APPROVAL CONSERVATION ORDER NO. 477A.003 Amended Jamie Wilson Sr. Landman Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, AK 99503 Re: Docket Number: CO-24-003 Spacing Exception Milne Point Unit R-103 Well Milne Point Unit Schrader Bluff Oil Pool Dear Ms. Wilson: By letter dated January 11, 2024, Hilcorp Alaska, LLC (Hilcorp) requested the Alaska Oil and Gas Conservation Commission (AOGCC) issue an order approving an exception to the spacing requirements of Rule 2 of Conservation Order No. 477 (CO 477)—as amended in Conservation Order No. 477.05 (CO 477.05)—to drill, complete, test, pre-produce, and inject into well Milne Point Unit R-103 (MPU R-103) within 500 feet of the external boundary of the Schrader Bluff Oil Pool, Milne Point Unit (MPU), North Slope Borough, Alaska. Hilcorp sent, by certified mail, notice of the application to all owners, landowners, and operators of all properties within 1,000 feet of the MPU R-103 well trajectory and provided to AOGCC the notice, the addresses to which the notices were delivered, and certified mailing receipts. Pursuant to 20 AAC 25.540, AOGCC tentatively scheduled a public hearing for March 26, 2024. On February 21, 2024, AOGCC published notice of the opportunity for that hearing on the State of Alaska’s Online Public Notice website and on AOGCC’s website, and electronically transmitted the notice to all persons on AOGCC’s email distribution list. On February 25, 2024, AOGCC published the notice in the Anchorage Daily News. No request for hearing or public comments were submitted. The hearing tentatively scheduled for March 26, 2024, was vacated. Hilcorp’s application, AOGCC’s records, and publicly available information provide sufficient information upon which to make an informed decision. CO 477A.003 June 25, 2024 Page 2 of 4 PURPOSE AND NEED FOR THIS ORDER Well spacing regulations protect the oil and gas rights of adjacent landowners and maximize resource recovery by establishing default limits on how close, under the land's surface, oil and gas wells can be to each other and to property lines where ownership changes hands. These limits are set forth in a regulation, 20 AAC 25.055. Operators must abide by the default well spacing limits (referred to as statewide spacing requirements) unless they apply for, and obtain, an exception to those limits. Although exceptions to the default well spacing requirements are not unusual, AOGCC carefully evaluates each application and typically grants them only when actual geologic conditions demonstrate that the proposed subsurface location of a well is necessary to reach otherwise unreachable oil or gas, the rights of both adjacent landowners are upheld, and underground drinking water can be protected. As a general matter, AOGCC does not have extensive authority over surface impacts such as noise, emissions, or construction. FINDINGS Hilcorp is the sole working interest owner and operator for the MPU and MPU R-103, a proposed onshore, horizontal, extended-reach injection well located within the Schrader Bluff Oil Pool. This well is planned to be drilled during 2024. Surface Location: 149’ FNL, 940’ FWL, Section 7, T13N, R10E, Umiat Meridian (UM) Top Productive Horizon: 877’ FNL, 2,269’ FEL, Section 2, T13N, R9E, UM Bottom Hole Location: 897’ FNL, 80’ FWL, Section 34, T14N, R9E, UM . MPU R-103 will be located on State of Alaska leases ADL 025509, ADL 388235, and ADL 355018 that are operated by Hilcorp. On May 29, 2024, the AOGCC issued CO 477A, which supersedes CO 477. Rule 2 of CO 477A governs well spacing within the Schrader Bluff Oil Pool at Milne Point. CO 447A incorporates CO 477 Rule 2—as amended by CO 477.05—and states: “There are no restrictions as to well spacing except that no pay shall be opened in a well closer than 500 feet from the exterior boundary of the affected area.” MPU R-103 will be drilled northwest from a surface location on Raven Pad. This well will open a reservoir along a course that lies within 500 feet of the external boundary of the Schrader Bluff Oil Pool. This external boundary coincides with the boundary line that separates the MPU from adjacent leases within the Kuparuk River Unit (KRU) that are operated by ConocoPhillips Alaska, Inc. (CPAI) and from adjacent leases within the Nikaitchuq Unit (NU) that are operated by Eni US Operating Company, Inc. (Eni). MPU R-103 will open a 1-3/4-mile-long section of Schrader Bluff reservoir to injection. It will be a portion of a line-drive injection pattern. Fluid injected into this well will push a uniform, linear bank of oil toward the planned, parallel, horizontal MPU R-102 production well that will be located about 400 feet to the southwest. The courses of MPU R-103 and MPU R-102 are situated at the most prospective locations on the subsurface structure. CO 477A.003 June 25, 2024 Page 3 of 4 Limited-duration pre-production of MPU R-103 for up to 30 days prior to injection operations will clean out the well bore, improve injectivity, and recover a portion of the oil reserves from those portions of Hilcorp’s leases that lie within 500 feet of the Schrader Bluff Oil Pool boundary. Such limited-duration pre-production will not significantly impact oil reserves on adjacent CPAI- and Eni-operated acreage. CONCLUSIONS An exception to the well spacing provisions of CO 477A Rule 2 is necessary to allow drilling, completion, testing, pre-production, and regular injection into the Schrader Bluff Oil Pool in well MPU R-103 to maximize ultimate resource recovery. It is not possible to recover a significant portion the targeted reserves from a well location that conforms to the spacing requirements of CO 477A Rule 2. Limiting pre-production of MPU R-103 to 30 days will increase injectivity and will not adversely affect reserves located within the adjacent KRU and NU. If constructed and operated as required, granting an exception to the well spacing provisions of CO 477A Rule 2 for MPU R-103 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 January 11, 2024, application for an exception to the well spacing provisions of Rule 2 of CO 477A to allow drilling, completion, testing, pre-production, and injection into well MPU R-103 within the Schrader Bluff Oil Pool. Hilcorp may proceed and must comply all applicable laws and all other legal requirements. DONE at Anchorage, Alaska and dated June 25, 2024 (Nunc pro tunc June 6, 2024). Brett W. Huber, Sr. Jessie L. Chmielowski Gregory C. Wilson Chair, Commissioner Commissioner Commissioner Gregory Wilson Digitally signed by Gregory Wilson Date: 2024.06.25 14:40:33 -08'00' Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2024.06.25 15:07:26 -08'00' Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2024.06.26 08:50:11 -08'00' CO 477A.003 June 25, 2024 Page 4 of 4 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. From:Coldiron, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] Conservation Orders 477A.001, .002, and .003 Amended (Hilcorp) Date:Wednesday, June 26, 2024 9:12:36 AM Attachments:co477A.001 amended.pdf co477A.002 amended.pdf co477A.003 amended.pdf Corrects errors in order where references to adjacent leases operated by Eni US Operating Company, Inc. (Eni) were omitted Docket Number: CO-24-001 Spacing Exception Milne Point Unit R-101 Well Milne Point Unit Schrader Bluff Oil Pool Docket Number: CO-24-002 Spacing Exception Milne Point Unit R-102 Well Milne Point Unit Schrader Bluff Oil Pool Docket Number: CO-24-003 Spacing Exception Milne Point Unit R-103 Well Milne Point Unit Schrader Bluff Oil Pool Samantha Coldiron 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.coldiron@alaska.gov Unsubscribe at: https://list.state.ak.us/mailman/options/aogcc_public_notices/samantha.coldiron%40alaska.go v 6 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RE: Docket Numbers: CO-24-001, CO-24-002, CO-24-003 Hilcorp Alaska, LLC’s Spacing Exception Applications for Wells MPU R-101, R-102, R- 103 Milne Point Unit, North Slope Borough, Alaska Hilcorp Alaska, LLC (Hilcorp) by letters dated January 11, 2024, filed applications with the Alaska Oil and Gas Conservation Commission (AOGCC) for exceptions to the spacing requirements of 20 AAC 25.055 and Rule 2 of Conservation Order No. 477.05 to drill, complete, and short-term pre-produce (flow back for up to 30 days) and inject into Milne Point Unit wells MPU R-101 and R-103, and produce from MPU R-102 in the Schrader Oil Pool within 500 feet of the exterior boundary of the Schrader Bluff Oil Pool Affected Area, pursuant to 20 AAC 25.055(d). MPU R-101 (Injection Well) Surface Location: 167’ FNL, 858’ FWL, Section 7, T13N, R10E, Umiat Meridian (UM) Target Location: 1,442’ FNL, 2,325’ FWL, Section 2, T13N, R9E, UM Bottom Hole Location: 1,820’ FNL, 123’ FWL, Section 34, T14N, R9E, UM MPU R-102 (Production Well) Surface Location: 159’ FNL, 900’ FWL, Section 7, T13N, R10E, UM Target Location: 565’ FNL, 1,720’ FWL, Section 2, T13N, R9E, UM Bottom Hole Location: 1,616’ FNL, 582’ FWL, Section 34, T14N, R9E, UM MPU R-103 (Injection Well) Surface Location: 149’ FNL, 940’ FWL, Section 7, T13N, R10E, UM Target Location: 877’ FNL, 2,269’ FEL, Section 2, T13N, R9E, UM Bottom Hole Location: 897’ FNL, 80’ FWL, Section 34, T14N, R9E, UM 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 property lines where ownership changes hands. These limits are set forth in a regulation, 20 AAC 25.055. Operators must abide by the default limits unless they apply for, and obtain, an exception to those limits. Although exceptions to the default limits 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 Coldiron, at (907) 793-1223 or samantha.coldiron@alaska.gov. The AOGCC has tentatively scheduled a public hearing on this matter for March 26, 2024, at 10:00 a.m. via Microsoft Teams. 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: 671 164 378#. Anyone who wishes to participate remotely using MS Teams video conference should contact Ms. Samantha Coldiron 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 March 8, 2024. 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 March 11, 2024. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 West 7th Avenue, Anchorage, AK 99501 or samantha.coldiron@alaska.gov. Comments must be received no later than 4:30 p.m. on March 25, 2024, except that, if a hearing is held, comments must be received no later than the conclusion of the March 26, 2024, hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact Samantha Coldiron, at (907) 793-1223, no later than March 19, 2024. Brett W. Huber, Sr. Chair, Commissioner Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2024.02.21 14:48:03 -09'00' From:Christianson, Grace K (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] Public Hearing Notices (Hilcorp) Date:Wednesday, February 21, 2024 4:51:25 PM Attachments:CO-24-004 Public Hearing Notice Hilcorp MPU H-31 Spacing Exception.pdf CO-24-001,-002, -003 Public Hearing Notice Hilcorp MPU 1R-101, 1R-102, 1R-103 Spacing Exceptions.pdf Docket Numbers: CO-24-001, CO-24-002, CO-24-003 Hilcorp Alaska, LLC’s Spacing Exception Applications for Wells MPU R-101, R-102, R-103 Milne Point Unit, North Slope Borough, Alaska Docket Number: CO-24-004 Hilcorp Alaska, LLC’s Spacing Exception Application for Service Well MPU H-31 Milne Point Unit, North Slope Borough, Alaska Samantha Coldiron 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 /LVL0LVDEHLQJ¿UVWGXO\VZRUQRQRDWKGHSRVHV DQGVD\VWKDWVKHLVDUHSUHVHQWDWLYHRIWKH$Q- FKRUDJH'DLO\1HZVDGDLO\QHZVSDSHU7KDW VDLGQHZVSDSHUKDVEHHQDSSURYHGE\WKH7KLUG -XGLFLDO&RXUW$QFKRUDJH$ODVNDDQGLWQRZ DQGKDVEHHQSXEOLVKHGLQWKH(QJOLVKODQJXDJH FRQWLQXDOO\DVDGDLO\QHZVSDSHULQ$QFKRUDJH $ODVNDDQGLWLVQRZDQGGXULQJDOOVDLGWLPH ZDVSULQWHGLQDQR൶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otice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RE: Docket Numbers: CO-24-001, CO-24-002, CO-24-003, Hilcorp Alaska, LLC’s Spacing Exception Applications for Wells MPU R-101, R-102, R-103 Milne Point Unit, North Slope Borough, Alaska Hilcorp Alaska, LLC (Hilcorp) by letters dated January 11, 2024, filed applications with the Alaska Oil and Gas Conservation Commission (AOGCC) for exceptions to the spacing requirements of 20 AAC 25.055 and Rule 2 of Conservation Order No. 477.05 to drill, complete, and short-term pre-produce (flow back for up to 30 days) and inject into Milne Point Unit wells MPU R-101 and R-103, and produce from MPU R-102 in the Schrader Oil Pool within 500 feet of the exterior boundary of the Schrader Bluff Oil Pool Affected Area, pursuant to 20 AAC 25.055(d). MPU R-101 (Injection Well) Surface Location: 167’ FNL, 858’ FWL, Section 7, T13N, R10E, Umiat Meridian (UM) Target Location: 1,442’ FNL, 2,325’ FWL, Section 2, T13N, R9E, UM Bottom Hole Location: 1,820’ FNL, 123’ FWL, Section 34, T14N, R9E, UM MPU R-102 (Production Well) Surface Location: 159’ FNL, 900’ FWL, Section 7, T13N, R10E, UM Target Location: 565’ FNL, 1,720’ FWL, Section 2, T13N, R9E, UM Bottom Hole Location: 1,616’ FNL, 582’ FWL, Section 34, T14N, R9E, UM MPU R-103 (Injection Well) Surface Location: 149’ FNL, 940’ FWL, Section 7, T13N, R10E, UM Target Location: 877’ FNL, 2,269’ FEL, Section 2, T13N, R9E, UM Bottom Hole Location: 897’ FNL, 80’ FWL, Section 34, T14N, R9E, UM 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 property lines where ownership changes hands. These limits are set forth in a regulation, 20 AAC 25.055. Operators must abide by the default limits unless they apply for, and obtain, an exception to those limits. Although exceptions to the default limits 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 Coldiron, at (907) 793-1223 or samantha.coldiron@ alaska.gov. The AOGCC has tentatively scheduled a public hearing on this matter for March 26, 2024, at 10:00 a.m. via Microsoft Teams. 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: 671 164 378#. Anyone who wishes to participate remotely using MS Teams video conference should contact Ms. Samantha Coldiron 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 March 8, 2024. 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 March 11, 2024. In addition, written comments regarding this application may be submitted to the AOGCC, at 333 West 7th Avenue, Anchorage, AK 99501 or samantha.coldiron@alaska.gov. Comments must be received no later than 4:30 p.m. on March 25, 2024, except that, if a hearing is held, comments must be received no later than the conclusion of the March 26, 2024, hearing. If, because of a disability, special accommodations may be needed to comment or attend the hearing, contact Samantha Coldiron, at (907) 793-1223, no later than March 19, 2024. Brett W. Huber, Sr. Chair, Commissioner Pub: Feb. 25, 2024 67$7(2)$/$6.$ 7+,5'-8',&,$/',675,&7 2024-07-14 Document Ref: QSRQS-MTQUD-KDMHB-AXH6B Page 24 of 38 5 January 11, 2024 Brett Huber, Sr., Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 RE: Application for Spacing Exception Milne Point Unit R-103 Well Commissioner Huber: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, hereby submits this application for spacing exception to drill the Milne Point Unit R-103 Well (“R-103 Well”) in the Shrader Bluff Oil Pool. The proposed productive interval and location for the proposed drill operations are listed below and further depicted on the attached Exhibit “A”: Surface Location: x State Lease ADL 025509 x 149’ FNL, 940’ FWL Section 7, T13N-R10E, UM Top of the Producing Interval: x State Lease ADL 388235 x 877’ FNL, 2269’ FEL x Section 2, T13N-R9E, UM Bottom Hole Location: x State Lease ADL 355018 x 897’ FNL, 80’ FWL x Section 34, T14N-R9E, UM Hilcorp submits this application to ensure compliance with 20 AAC 25.055(a)(1), which states “for a well drilling for oil, a wellbore may be open to test or regular production1 within 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.” 1 AS 31.05.170(14) “regular production” means continuing production of oil or gas from a well into production facilities and transportation to market, but does not include short term testing, evaluation, or experimental pilot production activities that have been approved by permit or order of the commission.” PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com Hilcorp Alaska, LLC Spacing Exception Milne Point Unit R-103 Well January 11, 2024 Page 2 of 6 The R-103 Well will be an injection well. In order to achieve maximum injectivity of the wellbore, Hilcorp intends to flow back the well for up to 30 days to fully clean out the wellbore to reduce the effect of near-wellbore damage caused by drilling fluid invasion which will ensure maximum injectivity. The initial flowback will consist mostly of drilling and completion fluids, including cuttings and other fine materials that will be flowed to tanks, transported offsite and disposed of in accordance with State regulations. Once the flowback has less than 0.5% solids, the flow stream will be sent to the Milne Point production facility to continue cleaning up. In order to prevent waste, Hilcorp intends to sell any oil processed and separated at the production facility. Hilcorp is not proposing to drill and complete a producing oil well. Associated oil will only be “produced” for 30 days to ensure the wellbore is as clean as possible before commencing injection operations. The intent of this application is to allow Hilcorp to prevent waste that may occur as a result of its cleanup process by: 1. Ensuring a clean wellbore to achieve maximum injectivity. 2. Enhancing recovery of the offset R-102 production well. 3. Avoid disposal of sales quality oil. Additionally, well spacing within the Schrader Bluff Oil Pool is governed by Rule 2 of Conservation Order 477.05: Rule 2. Spacing. There are no restrictions as to well spacing except that no pay shall be opened in a well closer than 500 feet from the exterior boundary of the affected area. The proposed R-103 Well operations target undrained reserves that cannot be reached by wells conforming to applicable spacing restrictions. Approval of short-term pre-production of the proposed R-103 Well allows for the recovery of otherwise stranded reserves and ensures future maximum injectivity of the wellbore. Additionally, the correlative rights of all affected owners, landowners and operators will be protected and enhanced by the long- term support provided by the proposed R-103 injection. As of the date of delivery of this application, and in accordance with 20 AAC 25.055(d)(1), notice of Hilcorp’s intent to drill the R-103 Well has been sent by certified mail to those certain owners, landowners, and operators of property within 1,000 feet of the well listed in Exhibit “B”. A copy of the notice and corresponding certified mailing receipts have been attached to this application. Pursuant to 20 AAC 25.055(d)(3), and attached as Exhibit “C”, is an affidavit executed by a person acquainted with all pertinent facts of this application and verifying that all facts set forth herein are true. Hilcorp Alaska, LLC Spacing Exception Milne Point Unit R-103 Well January 11, 2024 Page 3 of 6 It is requested that the Commission approve, by Administrative Approval, pursuant to Rule 11 of Conservation Order No. 477.05, an exception to the well spacing for drilling the R- 103 Well. If you require additional information or would like to have a technical meeting regarding this application, please contact Katie Cunha, Geologist, at (907) 564-4786 or me (907) 777- 8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC cc: Heather Beat, Unit Manager, State of Alaska, DNR (via email) Nottingham Derek, Director, Division of Oil and Gas (via email) Samantha Carlisle, Assistant, AOGCC (via email) Digitally signed by Jamie Wilson (2170) DN: cn=Jamie Wilson (2170) Date: 2024.01.11 11:59:05 - 09'00' Jamie Wilson (2170) Hilcorp Alaska, LLC Spacing Exception Milne Point Unit R-103 Well January 11, 2024 Page 4 of 6 EXHIBIT “A” APPLICATION FOR SPACING EXCEPTION MILNE POINT UNIT R-103 WEL Hilcorp Alaska, LLC Spacing Exception Milne Point Unit R-103 Well January 11, 2024 Page 5 of 6 EXHIBIT “B” APPLICATION FOR SPACING EXCEPTION Milne Point Unit R-103 Well Unit/Lease Landowner Owner Operator Nikaitchuq Unit - ADL 390615 Department of Natural Resources Division of Oil & Gas 550 W. 7th Avenue, Ste. 1100 Anchorage, AK 99501-3560 Attn: Derek Nottingham, Director ENI Petroleum US LLC ATTN: Robert Province 3700 Centerpoint Drive, Ste. 300 Anchorage, Alaska 99503 ENI Petroleum US LLC ATTN: Robert Province 3700 Centerpoint Drive, Ste. 300 Anchorage, Alaska 99503 Kuparuk River Unit - ADL 355023 Department of Natural Resources Division of Oil & Gas 550 W. 7th Avenue, Ste. 1100 Anchorage, AK 99501-3560 Attn: Derek Nottingham, Director ConocoPhillips Alaska, Inc ATTN: Jason Lyons 700 G Street Anchorage, Alaska 99501 ConocoPhillips Alaska II, Inc ATTN: Jason Lyons 700 G Street Anchorage, Alaska 99501 Chevron U.S.A. Inc. ATTN: Gary Selisker 1400 Smith Street Houston, Texas 77002 ExxonMobil Alaska Production Inc. Attn: Melonnie Amundson P.O. Box 196601 Anchorage, AK 99519 ConocoPhillips Alaska, Inc 700 G Street Anchorage, Alaska 99501 January 11, 2024 Chevron U.S.A. Inc. 1400 Smith Street Houston, Texas 77002 ATTN: Gary Selisker RE: Notice of Applications for Spacing Exception Milne Point Unit R-101 Well (Injector) Milne Point Unit R-102 Well (Producer) Milne Point Unit R-103 Well (Injector) Mr. Selisker: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, will be submitting to the Alaska Oil and Gas Conservation Commission (AOGCC) the enclosed Application for Spacing Exception to drill the Milne Point Unit R-101, R-102, and R-103 Wells in the Schrader Bluff Oil Pool. Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil for which an exception is sought must receive notice of such exception application. As an owner of certain property located within 1,000 feet of Hilcorp’s proposed wells depicted on Exhibit “A”, “A-1” and “A-2”, please allow for this letter to serve as notice of Hilcorp’s intent to submit an Application for a Spacing Exception for each proposed operation, and its request for the AOGCC to schedule a public hearing to review said application in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com January 11, 2024 ConocoPhillips Alaska, Inc 700 G Street Anchorage, Alaska 99501 ATTN: Jason Lyons RE: Notice of Applications for Spacing Exception Milne Point Unit R-101 Well (Injector) Milne Point Unit R-102 Well (Producer) Milne Point Unit R-103 Well (Injector) Mr. Lyons: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, will be submitting to the Alaska Oil and Gas Conservation Commission (AOGCC) the enclosed Application for Spacing Exception to drill the Milne Point Unit R-101, R-102, and R-103 Wells in the Schrader Bluff Oil Pool. Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil for which an exception is sought must receive notice of such exception application. As an owner of certain property located within 1,000 feet of Hilcorp’s proposed wells depicted on Exhibit “A”, “A-1” and “A-2”, please allow for this letter to serve as notice of Hilcorp’s intent to submit an Application for a Spacing Exception for each proposed operation, and its request for the AOGCC to schedule a public hearing to review said application in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com January 11, 2024 ConocoPhillips Alaska II, Inc 700 G Street Anchorage, Alaska 99501 ATTN: Jason Lyons RE: Notice of Application for Spacing Exception Milne Point Unit R-101 Well (Injector) Milne Point Unit R-102 Well (Producer) Milne Point Unit R-103 Well (Injector) Mr. Lyons: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, will be submitting to the Alaska Oil and Gas Conservation Commission (AOGCC) the enclosed Application for Spacing Exception to drill the Milne Point Unit R-101, R-102, and R-103 Wells in the Schrader Bluff Oil Pool. Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil for which an exception is sought must receive notice of such exception application. As an owner of certain property located within 1,000 feet of Hilcorp’s proposed wells depicted on Exhibit “A”, “A-1” and “A-2”, please allow for this letter to serve as notice of Hilcorp’s intent to submit an Application for a Spacing Exception for each proposed operation, and its request for the AOGCC to schedule a public hearing to review said application in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com January 11, 2024 ExxonMobil Alaska Production Inc. P.O. Box 196601 Anchorage, AK 99519 ATTN: Melonnie Amundson RE: Notice of Application for Spacing Exception Milne Point Unit R-101 Well (Injector) Milne Point Unit R-102 Well (Producer) Milne Point Unit R-103 Well (Injector) Ms. Amundson: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, will be submitting to the Alaska Oil and Gas Conservation Commission (AOGCC) the enclosed Application for Spacing Exception to drill the Milne Point Unit R-101, R-102, and R-103 Wells in the Schrader Bluff Oil Pool. Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil for which an exception is sought must receive notice of such exception application. As an owner of certain property located within 1,000 feet of Hilcorp’s proposed wells depicted on Exhibit “A”, “A-1” and “A-2”, please allow for this letter to serve as notice of Hilcorp’s intent to submit an Application for a Spacing Exception for each proposed operation, and its request for the AOGCC to schedule a public hearing to review said application in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com January 11, 2024 ENI Petroleum US LLC Attn: Robert Province 3700 Centerpoint Drive, Suite 300 Anchorage, Alaska 99503 RE: Notice of Applications for Spacing Exception Milne Point Unit R-101 Well (Injector) Milne Point Unit R-102 Well (Producer) Milne Point Unit R-103 Well (Injector) Mr. Province: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, will be submitting to the Alaska Oil and Gas Conservation Commission (AOGCC) the enclosed Application for Spacing Exception to drill the Milne Point Unit R-101, R-102, and R-103 Wells in the Schrader Bluff Oil Pool. Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil for which an exception is sought must receive notice of such exception application. As an owner of certain property located within 1,000 feet of Hilcorp’s proposed wells depicted on Exhibit “A”, “A-1” and “A-2”, please allow for this letter to serve as notice of Hilcorp’s intent to submit an Application for a Spacing Exception for each proposed operation, and its request for the AOGCC to schedule a public hearing to review said application in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com January 11, 2024 Department of Natural Resources Division of Oil & Gas 550 W. 7th Avenue, Ste. 1100 Anchorage, AK 99501-3560 Attn: Derek Nottingham, Director RE: Notice of Application for Spacing Exception Milne Point Unit R-101 Well (Injector) Milne Point Unit R-102 Well (Producer) Milne Point Unit R-103 Well (Injector) Dear Mr. Nottingham: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, will be submitting to the Alaska Oil and Gas Conservation Commission (AOGCC) the enclosed Application for Spacing Exception to drill the Milne Point Unit R-101, R-102, and R-103 Wells in the Schrader Bluff Oil Pool. Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil for which an exception is sought must receive notice of such exception application. As an owner of certain property located within 1,000 feet of Hilcorp’s proposed wells depicted on Exhibit “A”, “A-1” and “A-2”, please allow for this letter to serve as notice of Hilcorp’s intent to submit an Application for a Spacing Exception for each proposed operation, and its request for the AOGCC to schedule a public hearing to review said application in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com EXHIBIT “A” APPLICATION FOR SPACING EXCEPTION MILNE POINT UNIT R-101 WELL EXHIBIT “A-1” APPLICATION FOR SPACING EXCEPTION MILNE POINT UNIT R-102 WELL EXHIBIT “A-2” APPLICATION FOR SPACING EXCEPTION MILNE POINT UNIT R-103 WELL 4 January 11, 2024 Brett Huber, Sr., Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 RE: Application for Spacing Exception Milne Point Unit R-102 Well Commissioner Huber, Pursuant to Rule 11 of Conservation Order No. 477.05, Hilcorp Alaska, LLC ("Hilcorp"), as Operator of the Milne Point Unit, hereby requests the Alaska Oil and Gas Conservation Commission ("AOGCC") to take administrative action to approve a spacing exception required to drill the Milne Point Unit R-102 Well (“R-102 Well"), in the Schrader Bluff Oil Pool. Hilcorp has not yet submitted to AOGCC the Permit to Drill R-102 Well, but anticipates drilling operations to commence approximately Third Quarter of 2024. The R-102 Well will be drilled from the Raven Pad to the northwest, with a bottom hole depth of 20,395’ MD. The anticipated productive interval and location of the Schrader Bluff Oil Pool in the Well are depicted on the attached plat, Exhibit “A”, and is further indicated as follows below: Surface Hole Location: x State Lease ADL 025509 x 159' FNL, 900’ FWL x Section 7, T13N-R10E, UM Top of the Producing Interval: x State Lease ADL 388235 x 565' FNL, 1,720' FWL x Section 2, T13N-R9E, UM Bottom Hole Location: x State Lease ADL 355018 x 1,616' FNL, 582' FWL x Section 34, T14N-R9E, UM Well spacing within the Schrader Bluff Oil Pool is governed by Rule 2 of Conservation Order 477.05: PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com Hilcorp Alaska, LLC Spacing Exception Milne Point Unit R-102 Well January 11, 2024 Page 2 of 6 Rule 2. Spacing. There are no restrictions as to well spacing except that no pay shall be opened in a well closer than 500 feet from the exterior boundary of the affected area. This spacing exception is necessary because certain portions, totaling 270’, of the proposed open interval of the R-102 well will be within 500 feet of the boundary of the CO 477 affected area. There will be two polymer injector wells on either side to support the R-102. The first, the R-101, is a proposed polymer injector well that will be located 400' to the southwest and is planned to be drilled first. The second supporting injector, the proposed R-103, will be located 400’ to the northeast of R-102. The proposed Milne Point R-101, R-102, and R-103 wells are planned to be drilled back to back, beginning with the R-101 injector. The location of these wells is shown in Exhibit “A”. Hilcorp is the sole operator and working interest owner of the Milne Point Unit. The State of Alaska is the sole landowner. The correlative rights of all affected owners, landowners and operators will be protected and enhanced by the proposed R-101 and R-103 injection wells as reserves located along the Milne Point Unit boundary will be pushed away from said boundary. In accordance with 20 AAC 25.055(d)(1), notice of Hilcorp’s intent to drill the R-102 Well has been sent by certified mail to those certain owners, landowners, and operators of property within 1,000 feet of the well listed in Exhibit “B”. A copy of the notice and corresponding certified mailing receipts have been attached to this application. Pursuant to 20 AAC 25.055 (d)(3), an affidavit, Exhibit “C”, is enclosed stating the undersigned is acquainted with the facts and verifying that all facts, set forth herein, are true. It is requested that the Commission approve, by Administrative Approval, pursuant to Rule 11 of Conservation Order No. 477.05, an exception to the well spacing for drilling the R- 102 Well. If you require additional information or would like to have a technical meeting regarding this application, please contact Katie Cunha, Geologist, at (907) 564-4786 or me (907) 777-8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC cc: Heather Beat, Unit Manager, State of Alaska, DNR (via email) Digitally signed by Jamie Wilson (2170) DN: cn=Jamie Wilson (2170) Date: 2024.01.11 11:57:57 - 09'00' Jamie Wilson (2170) Hilcorp Alaska, LLC Spacing Exception Milne Point Unit R-102 Well January 11, 2024 Page 3 of 6 Nottingham Derek, Director, Division of Oil and Gas (via email) Samantha Carlisle, Assistant, AOGCC (via email) Hilcorp Alaska, LLC Spacing Exception Milne Point Unit R-102 Well January 11, 2024 Page 4 of 6 EXHIBIT “A” APPLICATION FOR SPACING EXCEPTION Mie Point Unit R-102 Wel Hilcorp Alaska, LLC Spacing Exception Milne Point Unit R-102 Well January 11, 2024 Page 5 of 6 EXHIBIT “B” APPLICATION FOR SPACING EXCEPTION Milne Point Unit R-102 Well Unit/Lease Landowner Owner Operator Nikaitchuq Unit - ADL 390615 Department of Natural Resources Division of Oil & Gas 550 W. 7th Avenue, Ste. 1100 Anchorage, AK 99501-3560 Attn: Derek Nottingham, Director ENI Petroleum US LLC ATTN: Robert Province 3700 Centerpoint Drive, Ste. 300 Anchorage, Alaska 99503 ENI Petroleum US LLC ATTN: Robert Province 3700 Centerpoint Drive, Ste. 300 Anchorage, Alaska 99503 Kuparuk River Unit - ADL 355023 Department of Natural Resources Division of Oil & Gas 550 W. 7th Avenue, Ste. 1100 Anchorage, AK 99501-3560 Attn: Derek Nottingham, Director ConocoPhillips Alaska, Inc ATTN: Jason Lyons 700 G Street Anchorage, Alaska 99501 ConocoPhillips Alaska II, Inc ATTN: Jason Lyons 700 G Street Anchorage, Alaska 99501 Chevron U.S.A. Inc. ATTN: Gary Selisker 1400 Smith Street Houston, Texas 77002 ExxonMobil Alaska Production Inc. Attn: Melonnie Amundson P.O. Box 196601 Anchorage, AK 99519 ConocoPhillips Alaska, Inc 700 G Street Anchorage, Alaska 99501 January 11, 2024 Chevron U.S.A. Inc. 1400 Smith Street Houston, Texas 77002 ATTN: Gary Selisker RE: Notice of Applications for Spacing Exception Milne Point Unit R-101 Well (Injector) Milne Point Unit R-102 Well (Producer) Milne Point Unit R-103 Well (Injector) Mr. Selisker: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, will be submitting to the Alaska Oil and Gas Conservation Commission (AOGCC) the enclosed Application for Spacing Exception to drill the Milne Point Unit R-101, R-102, and R-103 Wells in the Schrader Bluff Oil Pool. Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil for which an exception is sought must receive notice of such exception application. As an owner of certain property located within 1,000 feet of Hilcorp’s proposed wells depicted on Exhibit “A”, “A-1” and “A-2”, please allow for this letter to serve as notice of Hilcorp’s intent to submit an Application for a Spacing Exception for each proposed operation, and its request for the AOGCC to schedule a public hearing to review said application in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com January 11, 2024 ConocoPhillips Alaska, Inc 700 G Street Anchorage, Alaska 99501 ATTN: Jason Lyons RE: Notice of Applications for Spacing Exception Milne Point Unit R-101 Well (Injector) Milne Point Unit R-102 Well (Producer) Milne Point Unit R-103 Well (Injector) Mr. Lyons: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, will be submitting to the Alaska Oil and Gas Conservation Commission (AOGCC) the enclosed Application for Spacing Exception to drill the Milne Point Unit R-101, R-102, and R-103 Wells in the Schrader Bluff Oil Pool. Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil for which an exception is sought must receive notice of such exception application. As an owner of certain property located within 1,000 feet of Hilcorp’s proposed wells depicted on Exhibit “A”, “A-1” and “A-2”, please allow for this letter to serve as notice of Hilcorp’s intent to submit an Application for a Spacing Exception for each proposed operation, and its request for the AOGCC to schedule a public hearing to review said application in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com January 11, 2024 ConocoPhillips Alaska II, Inc 700 G Street Anchorage, Alaska 99501 ATTN: Jason Lyons RE: Notice of Application for Spacing Exception Milne Point Unit R-101 Well (Injector) Milne Point Unit R-102 Well (Producer) Milne Point Unit R-103 Well (Injector) Mr. Lyons: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, will be submitting to the Alaska Oil and Gas Conservation Commission (AOGCC) the enclosed Application for Spacing Exception to drill the Milne Point Unit R-101, R-102, and R-103 Wells in the Schrader Bluff Oil Pool. Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil for which an exception is sought must receive notice of such exception application. As an owner of certain property located within 1,000 feet of Hilcorp’s proposed wells depicted on Exhibit “A”, “A-1” and “A-2”, please allow for this letter to serve as notice of Hilcorp’s intent to submit an Application for a Spacing Exception for each proposed operation, and its request for the AOGCC to schedule a public hearing to review said application in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com January 11, 2024 ExxonMobil Alaska Production Inc. P.O. Box 196601 Anchorage, AK 99519 ATTN: Melonnie Amundson RE: Notice of Application for Spacing Exception Milne Point Unit R-101 Well (Injector) Milne Point Unit R-102 Well (Producer) Milne Point Unit R-103 Well (Injector) Ms. Amundson: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, will be submitting to the Alaska Oil and Gas Conservation Commission (AOGCC) the enclosed Application for Spacing Exception to drill the Milne Point Unit R-101, R-102, and R-103 Wells in the Schrader Bluff Oil Pool. Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil for which an exception is sought must receive notice of such exception application. As an owner of certain property located within 1,000 feet of Hilcorp’s proposed wells depicted on Exhibit “A”, “A-1” and “A-2”, please allow for this letter to serve as notice of Hilcorp’s intent to submit an Application for a Spacing Exception for each proposed operation, and its request for the AOGCC to schedule a public hearing to review said application in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com January 11, 2024 ENI Petroleum US LLC Attn: Robert Province 3700 Centerpoint Drive, Suite 300 Anchorage, Alaska 99503 RE: Notice of Applications for Spacing Exception Milne Point Unit R-101 Well (Injector) Milne Point Unit R-102 Well (Producer) Milne Point Unit R-103 Well (Injector) Mr. Province: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, will be submitting to the Alaska Oil and Gas Conservation Commission (AOGCC) the enclosed Application for Spacing Exception to drill the Milne Point Unit R-101, R-102, and R-103 Wells in the Schrader Bluff Oil Pool. Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil for which an exception is sought must receive notice of such exception application. As an owner of certain property located within 1,000 feet of Hilcorp’s proposed wells depicted on Exhibit “A”, “A-1” and “A-2”, please allow for this letter to serve as notice of Hilcorp’s intent to submit an Application for a Spacing Exception for each proposed operation, and its request for the AOGCC to schedule a public hearing to review said application in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com January 11, 2024 Department of Natural Resources Division of Oil & Gas 550 W. 7th Avenue, Ste. 1100 Anchorage, AK 99501-3560 Attn: Derek Nottingham, Director RE: Notice of Application for Spacing Exception Milne Point Unit R-101 Well (Injector) Milne Point Unit R-102 Well (Producer) Milne Point Unit R-103 Well (Injector) Dear Mr. Nottingham: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, will be submitting to the Alaska Oil and Gas Conservation Commission (AOGCC) the enclosed Application for Spacing Exception to drill the Milne Point Unit R-101, R-102, and R-103 Wells in the Schrader Bluff Oil Pool. Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil for which an exception is sought must receive notice of such exception application. As an owner of certain property located within 1,000 feet of Hilcorp’s proposed wells depicted on Exhibit “A”, “A-1” and “A-2”, please allow for this letter to serve as notice of Hilcorp’s intent to submit an Application for a Spacing Exception for each proposed operation, and its request for the AOGCC to schedule a public hearing to review said application in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com EXHIBIT “A” APPLICATION FOR SPACING EXCEPTION MILNE POINT UNIT R-101 WELL EXHIBIT “A-1” APPLICATION FOR SPACING EXCEPTION MILNE POINT UNIT R-102 WELL EXHIBIT “A-2” APPLICATION FOR SPACING EXCEPTION MILNE POINT UNIT R-103 WELL 3 January 11, 2024 Brett Huber, Sr., Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 RE: Application for Spacing Exception Milne Point Unit R-101 Well Commissioner Huber: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, hereby submits this application for spacing exception to drill the Milne Point Unit R-101 Well (“R-101 Well”) in the Shrader Bluff Oil Pool. The proposed productive interval and location for the proposed drill operations are listed below and further depicted on the attached Exhibit “A”: Surface Location: x State Lease ADL 025509 x 167’ FNL, 858’ FWL x Section 7, T13N-R10E, UM Top of the Producing Interval: x State Lease ADL 388235 x 1442’ FNL, 2325’ FWL x Section 2, T13N-R9E, UM Bottom Hole Location: x State Lease ADL 355018 x 1820’ FNL, 123’ FWL x Section 34, T14N-R9E, UM Hilcorp submits this application to ensure compliance with 20 AAC 25.055(a)(1), which states “for a well drilling for oil, a wellbore may be open to test or regular production1 within 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.” 1 AS 31.05.170(14) “regular production” means continuing production of oil or gas from a well into production facilities and transportation to market, but does not include short term testing, evaluation, or experimental pilot production activities that have been approved by permit or order of the commission.” PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com Hilcorp Alaska, LLC Spacing Exception Milne Point Unit R-101 Well January 11, 2024 Page 2 of 6 The R-101 Well will be an injection well. In order to achieve maximum injectivity of the wellbore, Hilcorp intends to flow back the well for up to 30 days to fully clean out the wellbore to reduce the effect of near-wellbore damage caused by drilling fluid invasion which will ensure maximum injectivity. The initial flowback will consist mostly of drilling and completion fluids, including cuttings and other fine materials that will be flowed to tanks, transported offsite and disposed of in accordance with State regulations. Once the flowback has less than 0.5% solids, the flow stream will be sent to the Milne Point production facility to continue cleaning up. In order to prevent waste, Hilcorp intends to sell any oil processed and separated at the production facility. Hilcorp is not proposing to drill and complete a producing oil well. Associated oil will only be “produced” for 30 days to ensure the wellbore is as clean as possible before commencing injection operations. The intent of this application is to allow Hilcorp to prevent waste that may occur as a result of its cleanup process by: 1. Ensuring a clean wellbore to achieve maximum injectivity. 2. Enhancing recovery of the offset R-102 production well. 3. Avoid disposal of sales quality oil. Additionally, well spacing within the Schrader Bluff Oil Pool is governed by Rule 2 of Conservation Order 477.05: Rule 2. Spacing. There are no restrictions as to well spacing except that no pay shall be opened in a well closer than 500 feet from the exterior boundary of the affected area. The proposed R-101 Well operations target undrained reserves that cannot be reached by wells conforming to applicable spacing restrictions. Approval of short-term pre-production of the proposed R-101 Well allows for the recovery of otherwise stranded reserves and ensures future maximum injectivity of the wellbore. Additionally, the correlative rights of all affected owners, landowners and operators will be protected and enhanced by the long- term support provided by the proposed R-101 injection. As of the date of delivery of this application, and in accordance with 20 AAC 25.055(d)(1), notice of Hilcorp’s intent to drill the R-101 Well has been sent by certified mail to those certain owners, landowners, and operators of property within 1,000 feet of the well listed in Exhibit “B”. A copy of the notice and corresponding certified mailing receipts have been attached to this application. Pursuant to 20 AAC 25.055(d)(3), and attached as Exhibit “C”, is an affidavit executed by a person acquainted with all pertinent facts of this application and verifying that all facts set forth herein are true. Hilcorp Alaska, LLC Spacing Exception Milne Point Unit R-101 Well January 11, 2024 Page 3 of 6 It is requested that the Commission approve, by Administrative Approval, pursuant to Rule 11 of Conservation Order No. 477.05, an exception to the well spacing for drilling the R- 101 Well. If you require additional information or would like to have a technical meeting regarding this application, please contact Katie Cunha, Geologist, at (907) 564-4786, or me at (907) 777-8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC cc: Heather Beat, Unit Manager, State of Alaska, DNR (via email) Nottingham Derek, Director, Division of Oil and Gas (via email) Samantha Carlisle, Assistant, AOGCC (via email) Digitally signed by Jamie Wilson (2170) DN: cn=Jamie Wilson (2170) Date: 2024.01.11 11:56:54 - 09'00' Jamie Wilson (2170) Hilcorp Alaska, LLC Spacing Exception Milne Point Unit R-101 Well January 11, 2024 Page 4 of 6 EXHIBIT “A” APPLICATION FOR SPACING EXCEPTION MILNE POINT UNIT R-101 WEL Hilcorp Alaska, LLC Spacing Exception Milne Point Unit R-101 Well January 11, 2024 Page 5 of 6 EXHIBIT “B” APPLICATION FOR SPACING EXCEPTION Milne Point Unit R-101 Well Unit/Lease Landowner Owner Operator Nikaitchuq Unit - ADL 390615 Department of Natural Resources Division of Oil & Gas 550 W. 7th Avenue, Ste. 1100 Anchorage, AK 99501-3560 Attn: Derek Nottingham, Director ENI Petroleum US LLC ATTN: Robert Province 3700 Centerpoint Drive, Ste. 300 Anchorage, Alaska 99503 ENI Petroleum US LLC ATTN: Robert Province 3700 Centerpoint Drive, Ste. 300 Anchorage, Alaska 99503 Kuparuk River Unit - ADL 355023 Department of Natural Resources Division of Oil & Gas 550 W. 7th Avenue, Ste. 1100 Anchorage, AK 99501-3560 Attn: Derek Nottingham, Director ConocoPhillips Alaska, Inc ATTN: Jason Lyons 700 G Street Anchorage, Alaska 99501 ConocoPhillips Alaska II, Inc ATTN: Jason Lyons 700 G Street Anchorage, Alaska 99501 Chevron U.S.A. Inc. ATTN: Gary Selisker 1400 Smith Street Houston, Texas 77002 ExxonMobil Alaska Production Inc. Attn: Melonnie Amundson P.O. Box 196601 Anchorage, AK 99519 ConocoPhillips Alaska, Inc 700 G Street Anchorage, Alaska 99501 January 11, 2024 Chevron U.S.A. Inc. 1400 Smith Street Houston, Texas 77002 ATTN: Gary Selisker RE: Notice of Applications for Spacing Exception Milne Point Unit R-101 Well (Injector) Milne Point Unit R-102 Well (Producer) Milne Point Unit R-103 Well (Injector) Mr. Selisker: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, will be submitting to the Alaska Oil and Gas Conservation Commission (AOGCC) the enclosed Application for Spacing Exception to drill the Milne Point Unit R-101, R-102, and R-103 Wells in the Schrader Bluff Oil Pool. Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil for which an exception is sought must receive notice of such exception application. As an owner of certain property located within 1,000 feet of Hilcorp’s proposed wells depicted on Exhibit “A”, “A-1” and “A-2”, please allow for this letter to serve as notice of Hilcorp’s intent to submit an Application for a Spacing Exception for each proposed operation, and its request for the AOGCC to schedule a public hearing to review said application in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com January 11, 2024 ConocoPhillips Alaska, Inc 700 G Street Anchorage, Alaska 99501 ATTN: Jason Lyons RE: Notice of Applications for Spacing Exception Milne Point Unit R-101 Well (Injector) Milne Point Unit R-102 Well (Producer) Milne Point Unit R-103 Well (Injector) Mr. Lyons: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, will be submitting to the Alaska Oil and Gas Conservation Commission (AOGCC) the enclosed Application for Spacing Exception to drill the Milne Point Unit R-101, R-102, and R-103 Wells in the Schrader Bluff Oil Pool. Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil for which an exception is sought must receive notice of such exception application. As an owner of certain property located within 1,000 feet of Hilcorp’s proposed wells depicted on Exhibit “A”, “A-1” and “A-2”, please allow for this letter to serve as notice of Hilcorp’s intent to submit an Application for a Spacing Exception for each proposed operation, and its request for the AOGCC to schedule a public hearing to review said application in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com January 11, 2024 ConocoPhillips Alaska II, Inc 700 G Street Anchorage, Alaska 99501 ATTN: Jason Lyons RE: Notice of Application for Spacing Exception Milne Point Unit R-101 Well (Injector) Milne Point Unit R-102 Well (Producer) Milne Point Unit R-103 Well (Injector) Mr. Lyons: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, will be submitting to the Alaska Oil and Gas Conservation Commission (AOGCC) the enclosed Application for Spacing Exception to drill the Milne Point Unit R-101, R-102, and R-103 Wells in the Schrader Bluff Oil Pool. Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil for which an exception is sought must receive notice of such exception application. As an owner of certain property located within 1,000 feet of Hilcorp’s proposed wells depicted on Exhibit “A”, “A-1” and “A-2”, please allow for this letter to serve as notice of Hilcorp’s intent to submit an Application for a Spacing Exception for each proposed operation, and its request for the AOGCC to schedule a public hearing to review said application in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com January 11, 2024 ExxonMobil Alaska Production Inc. P.O. Box 196601 Anchorage, AK 99519 ATTN: Melonnie Amundson RE: Notice of Application for Spacing Exception Milne Point Unit R-101 Well (Injector) Milne Point Unit R-102 Well (Producer) Milne Point Unit R-103 Well (Injector) Ms. Amundson: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, will be submitting to the Alaska Oil and Gas Conservation Commission (AOGCC) the enclosed Application for Spacing Exception to drill the Milne Point Unit R-101, R-102, and R-103 Wells in the Schrader Bluff Oil Pool. Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil for which an exception is sought must receive notice of such exception application. As an owner of certain property located within 1,000 feet of Hilcorp’s proposed wells depicted on Exhibit “A”, “A-1” and “A-2”, please allow for this letter to serve as notice of Hilcorp’s intent to submit an Application for a Spacing Exception for each proposed operation, and its request for the AOGCC to schedule a public hearing to review said application in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com January 11, 2024 ENI Petroleum US LLC Attn: Robert Province 3700 Centerpoint Drive, Suite 300 Anchorage, Alaska 99503 RE: Notice of Applications for Spacing Exception Milne Point Unit R-101 Well (Injector) Milne Point Unit R-102 Well (Producer) Milne Point Unit R-103 Well (Injector) Mr. Province: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, will be submitting to the Alaska Oil and Gas Conservation Commission (AOGCC) the enclosed Application for Spacing Exception to drill the Milne Point Unit R-101, R-102, and R-103 Wells in the Schrader Bluff Oil Pool. Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil for which an exception is sought must receive notice of such exception application. As an owner of certain property located within 1,000 feet of Hilcorp’s proposed wells depicted on Exhibit “A”, “A-1” and “A-2”, please allow for this letter to serve as notice of Hilcorp’s intent to submit an Application for a Spacing Exception for each proposed operation, and its request for the AOGCC to schedule a public hearing to review said application in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com January 11, 2024 Department of Natural Resources Division of Oil & Gas 550 W. 7th Avenue, Ste. 1100 Anchorage, AK 99501-3560 Attn: Derek Nottingham, Director RE: Notice of Application for Spacing Exception Milne Point Unit R-101 Well (Injector) Milne Point Unit R-102 Well (Producer) Milne Point Unit R-103 Well (Injector) Dear Mr. Nottingham: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, will be submitting to the Alaska Oil and Gas Conservation Commission (AOGCC) the enclosed Application for Spacing Exception to drill the Milne Point Unit R-101, R-102, and R-103 Wells in the Schrader Bluff Oil Pool. Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties within 1,000 feet of a well drilling for oil for which an exception is sought must receive notice of such exception application. As an owner of certain property located within 1,000 feet of Hilcorp’s proposed wells depicted on Exhibit “A”, “A-1” and “A-2”, please allow for this letter to serve as notice of Hilcorp’s intent to submit an Application for a Spacing Exception for each proposed operation, and its request for the AOGCC to schedule a public hearing to review said application in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8341 or by email at jamie.wilson@hilcorp.com. Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC PO Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive, STE 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com EXHIBIT “A” APPLICATION FOR SPACING EXCEPTION MILNE POINT UNIT R-101 WELL EXHIBIT “A-1” APPLICATION FOR SPACING EXCEPTION MILNE POINT UNIT R-102 WELL EXHIBIT “A-2” APPLICATION FOR SPACING EXCEPTION MILNE POINT UNIT R-103 WELL 2 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RE: Docket Numbers: CO-23-018 By application dated December 19, 2023, Hilcorp Alaska, LLC (Hilcorp) requests that the Alaska Oil and Gas Conservation Commission (AOGCC) expand the map extent of the Schrader Bluff Oil Pool (SBOP) in and around the Milne Point Unit. Conservation Order No. 477 defines the SBOP and prescribes rules for its development. Hilcorp proposes to amend this order to expand the map extent of the SBOP to include WKHacreage that seismic data and neighboring well logs indicate extends the SBOP to the northwest beyond its current limits to allow the new acreage to be developed under the same rules as the existing SBOP. This notice does not contain all the information filed by Hilcorp. To obtain more information, contact the AOGCC’sSpecialAssistant,SamanthaCarlisle,at(907)793-1223orsamantha.carlisle@alaska.gov. A public hearing on the matter has been tentatively scheduled for February 15, 2024, 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: 727 338 359#. Anyone who wishes to participate remotely using MS Teamsvideo conference should contact Ms. Carlisle at least two business days before the scheduled publichearing to request an invitation for the MS Teams. To request that the tentatively scheduled hearing beheld, a written request must be filed with the AOGCC no later than 4:30 p.m. on January 26, 2024. 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 January 29, 2024. 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 February 9, 2024, except that, if a hearing is held, comments must be received no later than the conclusion of the February 15, 2024, 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 February 9, 2024. Brett W. Huber, Sr. Chair, Commissioner Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2024.01.09 09:01:25 -09'00' Lisi Misa being first duly sworn on oath deposes and says that she is a representative of the An- chorage 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 afore- said place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on AFFIDAVIT OF PUBLICATION ______________________________________ Notary Public in and for The State of Alaska. Third Division Anchorage, Alaska MY COMMISSION EXPIRES ______________________________________ 01/11/2024 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. Signed________________________________ Subscribed and sworn to before me this 12th day of January 2024. Account #: 100869 ST OF AK/AK OIL AND GAS CONSERVATION COMMISSION333 W. 7TH AVE STE 100, ANCHORAGE, AK 99501 Order #: W0042849 Cost: $309.42 Notice of Public HearingSTATE OF ALASKAALASKA OIL AND GAS CONSERVATION COMMISSION RE: Docket Numbers: CO-23-018By application dated December 19, 2023, Hilcorp Alaska, LLC (Hilcorp) requests that the Alaska Oil and Gas Conservation Commission (AOGCC) expand the map extent of the Schrader Bluff Oil Pool (SBOP) in and around the Milne Point Unit. Conservation Order No. 477 defines the SBOP and prescribes rules for its development. Hilcorp proposes to amend this order to expand the map extent of the SBOP to include the acreage that seismic data and neighboring well logs indicate extends the SBOP to the northwest beyond its current limits to allow the new acreage to be developed under the same rules as the existing SBOP. 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 February 15, 2024, 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: 727 338 359#. 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 January 26, 2024. 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 January 29, 2024. 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 February 9, 2024, except that, if a hearing is held, comments must be received no later than the conclusion of the February 15, 2024, 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 February 9, 2024. Brett W. Huber, Sr. Chair, Commissioner Pub: Jan. 11, 2024 STATE OF ALASKA THIRD JUDICIAL DISTRICT 2026-08-04 Document Ref: VPDKP-BTECA-XFPKA-IFUEH Page 14 of 15 From:Carlisle, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] CO-23-018 Public Hearing Notice MPU SBOP Expansion Date:Tuesday, January 9, 2024 1:39:53 PM Attachments:CO-23-018 Public Hearing Notice MPU SBOP Expansion.pdf By application dated December 19, 2023, Hilcorp Alaska, LLC (Hilcorp) requests that the Alaska Oil and Gas Conservation Commission (AOGCC) expand the map extent of the Schrader Bluff Oil Pool (SBOP) in and around the Milne Point Unit. Samantha Carlisle 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 December 19, 2023 Brett Huber, Sr., Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 RE: Application for Expansion of the Schrader Bluff Oil Pool Conservation Order 477 Milne Point Unit Commissioner Huber: Hilcorp Alaska, LLC (Hilcorp), as Operator of the Milne Point Unit, hereby submits this application for expanding the Affected Area of the Milne Point Unit Schrader Bluff Oil Pool (SBOP) as described in Conservation Order 477. Proposed Affected Area Expansion Hilcorp requests to expand the application of the rules of Conservation Order 477 to include additional lands (“Expansion Area”) as depicted on Figure 1. These lands will be targeted in the future, beginning as early as Q1 2024. Hilcorp requests that the Affected Area be amended as follow: Township - Range Sections T12N, R10E 1, 2, 11, 12 T12N, R11E 2 -11 T13N, R9E 1, N ½ of 2, SE ¼ of 2, NE ¼ of 11, 12, 13, 14, 23, 24 T13N, R10E W ½ of 2, SE ¼ of 2, 3 -11, S ½ of 12, 13 -36 T13N, R11E 18, 19, W ½ of 20, SW ¼ of 27, 28 -33, W ½ of 34 T14N, R9E 11, 12, 13, 14, 15, 22, 23, 24, 25, 26, 27, 34, 35, 36 T14N, R10E 30, 31 Development Drilling Plans and Geology The proposed northwestern expansion of the SBOP would allow for further development of the Schrader Bluff reservoir from Milne Raven-Pad and F-Pad. Figure 2 depicts the current Affected Area in relation to the proposed Schrader Bluff Oa Drill Wells from both F-Pad and Raven Pad. Blue lines are injectors, green lines are producers. Interpretation of seismic data and neighboring well logs suggests the Schrader Bluff structure extends to the northwest into the proposed Expansion Area. Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 1400 Anchorage, AK 99503 Phone: (907) 777-8341 Fax: (907) 777-8301 Email: jamie.wilson@hilcorp.com Digitally signed by Jamie Wilson (2170) DN: cn=Jamie Wilson (2170) Date: 2024.01.05 08:21:01 - 09'00' Jamie Wilson (2170) Hilcorp Alaska, LLC Application for Expansion of the Schrader Bluff Oil Pool December 19, 2023 Page 2 of 6 As of the date of delivery of this application, and in accordance with 20 AAC 25.055(d)(1), notice of Hilcorp’s proposal to expand the SBOP Affected Area has been sent by certified mail to those certain owners, landowners, and operators of property within ¼ mile of the proposed Expansion Area listed in Exhibit “A”. A copy of the notice and corresponding certified mailing receipts have been attached to this application. Pursuant to 20 AAC 25.055(d)(3), and attached as Exhibit “B”, is an affidavit executed by a person acquainted with all pertinent facts of this application and verifying that all facts set forth herein are true. It is requested that the Commission schedule a public hearing to review Hilcorp’s application for expansion of the SBOP in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8341 or by email at jamie.wilson@hilcorp.com Sincerely, Jamie Wilson Sr. Landman Hilcorp Alaska, LLC cc: Samantha Carlisle, Special Assistant, AOGCC (via email) Hilcorp Alaska, LLC Application for Expansion of the Schrader Bluff Oil Pool December 19, 2023 Page 3 of 6 FIGURE 1. Affected Area defined in CO 477 with proposed Expansion Area lands. Hilcorp Alaska, LLC Application for Expansion of the Schrader Bluff Oil Pool December 19, 2023 Page 4 of 6 FIGURE 2. Proposed future Schrader Bluff drill wells from Raven Pad (shown in red) and F-Pad in relation to the proposed Expansion area, ADL’s 025509, 388235, 355018 and 355021. Hilcorp Alaska, LLC Application for Expansion of the Schrader Bluff Oil Pool December 19, 2023 Page 5 of 6 EXHIBIT “A” APPLICATION FOR EXPANSION OF THE SCHRADER BLUFF OIL POOL Unit/Lease Landowner Owner Operator Nikaitchuq Unit - ADL 388582 - ADL 390615 Department of Natural Resources Division of Oil & Gas 550 W. 7th Avenue, Ste. 1100 Anchorage, AK 99501-3560 Attn: Derek Nottingham, Director ENI Petroleum US LLC ATTN: Robert Province 3700 Centerpoint Drive, Ste. 300 Anchorage, Alaska 99503 ENI Petroleum US LLC ATTN: Robert Province 3700 Centerpoint Drive, Ste. 300 Anchorage, Alaska 99503 Kuparuk River Unit - ADL 355023 Department of Natural Resources Division of Oil & Gas 550 W. 7th Avenue, Ste. 1100 Anchorage, AK 99501-3560 Attn: Derek Nottingham, Director ConocoPhillips Alaska, Inc ATTN: Jason Lyons 700 G Street Anchorage, Alaska 99501 ConocoPhillips Alaska II, Inc ATTN: Jason Lyons 700 G Street Anchorage, Alaska 99501 Chevron U.S.A. Inc. ATTN: Gary Selisker 1400 Smith Street Houston, Texas 77002 ExxonMobil Alaska Production Inc. Attn: Melonnie Amundson P.O. Box 196601 Anchorage, AK 99519 ConocoPhillips Alaska, Inc 700 G Street Anchorage, Alaska 99501 Digitally signed by Jamie Wilson (2170) DN: cn=Jamie Wilson (2170) Reason: Approved Date: 2024.01.05 08:17:47 -09'00' Jamie Wilson (2170)