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Home My WebLink AboutCO 821CONSERVATION ORDER 821 Deep Creek Unit Happy Valley Beluga / Tyonek Gas Pool Happy Valley B-13A Gas Development Well Kenai Peninsula Borough, Alaska 1. October 31, 2024 Hilcorp application for spacing exception 2. November 18, 2024 Public hearing notice and affidavit 3. December 13, 2024 Spacing exceptions questions 4. December 17, 2024 Spacing exceptions question and request STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF HILCORP ALASKA, LLC. for an exception to the spacing requirements to drill, test, and operate the Happy Valley B-13A gas development well within 1,500 feet of an external property line, pursuant to 20 AAC 25.055(d). ) ) ) ) ) ) ) ) ) ) Conservation Order 821 Docket Number: CO-24-016 Deep Creek Unit Happy Valley Beluga / Tyonek Gas Pool Happy Valley B-13A Gas Development Well Kenai Peninsula Borough, Alaska January 14, 2025 IT APPEARING THAT: 1. By letter and application dated October 31, 2024, and received by the Alaska Oil and Gas Conservation Commission (AOGCC) the following day, Hilcorp Alaska, LLC (Hilcorp), in its capacity as operator of the Happy Valley Beluga / Tyonek Gas Pool (HV B/T Gas Pool) in the Deep Creek Unit (DCU) requests an order approving an exception to the spacing requirement of 20 AAC 25.055(a)(2) to drill, test, and operate as a gas development well the Happy Valley B-13A (HV B-13A) well in the HV B/T Gas Pool within 1,500 feet of the external boundary of the DCU. 2. In accordance with 20 AAC 25.055(d), Hilcorp sent, by certified mail, notice of the application to all owners, landowners, and operators of all properties within 3,000 feet of the HV B-13A well trajectory and provided the notice, addresses to which the notices were delivered, and certified mail receipts to the AOGCC. 3. Pursuant to 20 AAC 25.540, the AOGCC scheduled a tentative public hearing for January 14, 2024. On November 18, 2024, the AOGCC published notice of the hearing on the State of Alaska’s Online Public Notices website and on the AOGCC’s website, and the AOGCC electronically transmitted the notice to all persons on the AOGCC’s email distribution list and mailed printed copies of the notice to all persons on the AOGCC’s mailing distribution list. On November 20, 2024, the notice was published in the ANCHORAGE DAILY NEWS. 4. The AOGCC received no comments or request to hold the proposed hearing. The scheduled hearing was vacated. 5. Hilcorp’s application, AOGCC’s records, and publicly available information provide sufficient information upon which to make an informed decision. 6. The record was closed at the end of the day on December 20, 2024. 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 property lines where ownership changes. These limits are set forth in 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 Conservation Order 821 January 14, 2025 Page 2 of 4 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 adjacent landowners are upheld, and underground sources of drinking water can be protected. As a general matter, AOGCC does not have extensive authority over surface impacts such as noise, emissions, or construction. FINDINGS: 1. Owners: Hilcorp owns 100% Working Interest in the affected oil and gas leases and is currently operator of DCU. The proposed HV B-13A well path lies within lease C-061589. Cook Inlet Region, Inc. (CIRI) owns 100% of the mineral interest in lease C-061589. 2. Operator: Hilcorp is Operator for the DCU and for proposed onshore gas development well HV B- 13A, which is located on the east side of the Cook Inlet Basin, within Kenai Peninsula Borough, and about 7 miles southeast of Ninilchik, Alaska 3. Well Location: The proposed HV B-13A well, shown in Figure 1, is located as follows. Surface Location: Lease C-061589 (100% CIRI Ownership) 2,359’ FSL, 333’ FEL, Section 21, T02S, R13W, Seward Meridian (S.M.) Top of Productive Horizon: Lease C-061589 (100% CIRI Ownership) 2,030’ FSL, 850 FEL, Section 21, T02S, R13W, S.M. Total Depth: Lease C-061589 (100% CIRI Ownership) 2,510’ FNL, 1,590’ FEL, Section 21, T02S, R13W, S.M. 4. Governing Well-Spacing Rule: Hilcorp’s application incorrectly cites Rule 2 of Conservation Order 553A (CO 553A) as governing well spacing within the HV B/T Gas Pool. This rule was superseded by Rule 2 of Conservation Order No. 553A.001 (CO 553A.001), which states: “There shall be no restrictions to well spacing within the affected area except that no pay may be opened in a well which is closer than 1,500 feet to an external property line where the owners and landowners are not the same on both sides of the line.” A portion of the potentially productive interval and the planned bottom-hole location of proposed well HV B-13A lie within 1,500’ of the external boundary of the DCU, which is a property line where ownership and / or landownership changes. 5. Exception Justification: HV B-13A targets unproven reserves in the HV B/T Gas Pool. These reserves cannot be reached and efficiently developed by conforming to applicable statewide spacing regulations because of the narrow, discontinuous, and lenticular nature of the reservoir sands and their most prospective locations on the subsurface structure. 6. Freshwater Protection: If operated as required, drilling, testing, completion, and operation of HV B-13A will not cause waste or result in an increased risk of fluid movement into freshwater. Conservation Order 821 January 14, 2025 Page 3 of 4 Figure 1. Map of planned Hilcorp HV B-13Awellbore displaying the 1,500’ buffer from the boundary of Happy Valley Beluga / Tyonek Gas Pool. Conservation Order 821 January 14, 2025 Page 4 of 4 CONCLUSIONS: 1. An exception to the well spacing provisions of 20 AAC 25.055 is necessary to allow drilling, testing, completion, and operation of HV B-13A as a gas development well within the HV B/T Gas Pool. 2. It is unlikely that a well that conforms to the spacing requirement would be able to access and efficiently produce the targeted reservoir sands. 3. If constructed and operated as required, HV B-13A will not cause waste or result in an increased risk of fluid movement into freshwater. 4. Granting an exception to the well spacing provisions of CO 553A.001 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 October 31, 2024 application for an exception to the well spacing provisions of CO 553A.001 to allow the drilling, testing, and operation of HV B-13A as a gas development well in the Happy Valley Beluga / Tyonek Gas Pool within the DCU. Hilcorp may proceed and must comply with all applicable laws and all other legal requirements. DONE at Anchorage, Alaska and dated January 14, 2025. Jessie L. Chmielowski Gregory C. Wilson 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 C. Wilson Digitally signed by Gregory C. Wilson Date: 2025.01.14 13:28:45 -09'00' Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2025.01.14 14:41:55 -09'00' From:Coldiron, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] Conservation Order 820 and 821 (Hilcorp) Date:Tuesday, January 14, 2025 2:57:02 PM Attachments:co 820.pdf co 821.pdf THE APPLICATION OF HILCORP ALASKA, LLC. for an exception to the spacing requirements to drill, test, and operate the Happy Valley B-18 gas development well within 1,500 feet of an external property line, pursuant to 20 AAC 25.055(d). THE APPLICATION OF HILCORP ALASKA, LLC. for an exception to the spacing requirements to drill, test, and operate the Happy Valley B-13A gas development well within 1,500 feet of an external property line, pursuant to 20 AAC 25.055(d). 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 4 CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. From:Luke Suchecki To:Davies, Stephen F (OGC) Cc:Dewhurst, Andrew D (OGC); Coldiron, Samantha J (OGC) Subject:RE: [EXTERNAL] Happy Valley B-18 and B-13A Spacing Exceptions - Question and Request Date:Tuesday, December 17, 2024 1:09:23 PM Attachments:image001.png image002.png Mr. Davies, Hilcorp Alaska, LLC, agrees that spacing exceptions are necessary, as described below. Please contact me with any questions. Luke Suchecki Hilcorp Alaska, LLC Landman 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Direct: (907) 777-8432 Mobile: (907) 217-9729 Email: luke.suchecki@hilcorp.com This document may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient, you are on notice that any unauthorized disclosure, copying, distribution, or taking of any action in reliance on the contents of this document is prohibited. From: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Sent: Tuesday, December 17, 2024 12:37 PM To: Luke Suchecki <Luke.Suchecki@hilcorp.com> Cc: Dewhurst, Andrew D (OGC) <andrew.dewhurst@alaska.gov>; Coldiron, Samantha J (OGC) <samantha.coldiron@alaska.gov> Subject: RE: [EXTERNAL] Happy Valley B-18 and B-13A Spacing Exceptions - Question and Request Luke, Well spacing within the Happy Valley Beluga / Tyonek Gas Pool is governed by Rule 2 of Conservation Order No. 553A.001, which states: “There shall be no restrictions to well spacing within the affected area except that no pay may be opened in a well which is closer than 1,500 feet to an external property line where the owners and landowners are not the same on both sides of the line.” After viewing confidential land map that Hilcorp provided, I believe that the external boundary of the Deep Creek Unit (DCU) constitutes a property line across which ownership and / or landownership* change. From that map, I gather that Hilcorp does not have the right to drill into and produce from the acreage that lies outside of, and adjacent to, the DCU. So, since Hilcorp does not appear to be the owner* of this adjacent acreage, spacing exceptions are needed as portions of proposed gas development wells Happy Valley B-18 and B-13A encroach within 1,500 feet of that external property line. If you do not agree, please let me know and we can discuss this further. Otherwise, AOGCC’s standard spacing-exception adjudication process will continue. The public comment periods end at 4:30 P.M. on December 20, 2024. The AOGCC will notify Hilcorp whether the tentatively scheduled Public Hearings will be held as soon as we can. Regards and Be Well, Steve Davies AOGCC ---------------------------------------- *Per 20 AAC 25.990, Definitions: (35) "landowner" has the meaning given in AS 31.05.170. (47) "owner" has the meaning given in AS 31.05.170. Per AS 31.05.170, Definitions: (7) “landowner” means the owner of the subsurface estate of the tract affected. (10) “owner” means the person who has the right to drill into and produce from a pool and to appropriate the oil and gas the person produces from a pool for that person and others. From: Luke Suchecki <Luke.Suchecki@hilcorp.com> Sent: Tuesday, December 17, 2024 11:36 AM To: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Cc: Dewhurst, Andrew D (OGC) <andrew.dewhurst@alaska.gov>; Coldiron, Samantha J (OGC) <samantha.coldiron@alaska.gov> Subject: RE: [EXTERNAL] Happy Valley B-18 and B-13A Spacing Exceptions - Question and Request Mr. Davies, Attached per request. Luke Suchecki Hilcorp Alaska, LLC Landman 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Direct: (907) 777-8432 Mobile: (907) 217-9729 Email: luke.suchecki@hilcorp.com CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. This document may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient, you are on notice that any unauthorized disclosure, copying, distribution, or taking of any action in reliance on the contents of this document is prohibited. From: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Sent: Tuesday, December 17, 2024 11:06 AM To: Luke Suchecki <Luke.Suchecki@hilcorp.com> Cc: Dewhurst, Andrew D (OGC) <andrew.dewhurst@alaska.gov>; Coldiron, Samantha J (OGC) <samantha.coldiron@alaska.gov> Subject: RE: [EXTERNAL] Happy Valley B-18 and B-13A Spacing Exceptions - Question and Request Luke, I’m working through Hilcorp’s applications for spacing exceptions for proposed wells Happy Valley B-18 and B-13A, and I have a request and another question. Could Hilcorp please provide a land map that shows lease numbers and the associated landowner and owner information for the acreage lying outside of and immediately adjacent to the Deep Creek Unit? I would like to confirm the landowners and owners adjacent to the Unit boundary to ensure that a spacing exception is indeed needed for Hilcorp’s proposed B-18 and B-13A wells. The reason for my request is that while reviewing Hilcorp’s spacing exception applications for these two wells, I noticed that Hilcorp’s applications state: AOGCC’s Conservation Order No. 553A (CO 553A) was issued April 11, 2016. However, AOGCC’s Administrative Approval No. CO 553A.001 (CO 553A.001), issued August 2, 2022, amends CO 553A and revises Rule 2 of CO 553A as follows: CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. CO 553A.001 eliminates the interwell spacing requirements for the Happy Valley Beluga / Tyonek Gas Pool within the Deep Creek Field, and it also changes the criterion that defines the outer extent of Affected Area for the well-spacing rule from the “…external boundary of the Deep Creek Unit” to “…an external property line where the owners and landowners are not the same on both sides of the line.” So, I would like to confirm whether landownership or ownership changes across property lines that lie within 1,500 feet of Hilcorp’s proposed B-18 and B-13A wells. Any information that Hilcorp can provide will be appreciated. Since Britt Lively of Map Makers Inc. retired, I don’t know of any commercial source for landownership/ownership maps for Alaska. Regards and Be Well, Steve Davies AOGCC From: Luke Suchecki <Luke.Suchecki@hilcorp.com> Sent: Friday, December 13, 2024 2:36 PM To: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Cc: Dewhurst, Andrew D (OGC) <andrew.dewhurst@alaska.gov>; Coldiron, Samantha J (OGC) <samantha.coldiron@alaska.gov> Subject: RE: [EXTERNAL] Happy Valley B-13A and B-18 Spacing Exceptions - Questions Mr. Davies, Please see Hilcorp Alaska, LLC’s (“Hilcorp”) replies to your questions below, in blue. Please contact me with any questions. Luke Suchecki Hilcorp Alaska, LLC Landman 3800 Centerpoint Drive, Suite 1400 CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. Anchorage, Alaska 99503 Direct: (907) 777-8432 Mobile: (907) 217-9729 Email: luke.suchecki@hilcorp.com This document may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient, you are on notice that any unauthorized disclosure, copying, distribution, or taking of any action in reliance on the contents of this document is prohibited. From: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Sent: Tuesday, December 10, 2024 4:39 PM To: Luke Suchecki <Luke.Suchecki@hilcorp.com> Cc: Dewhurst, Andrew D (OGC) <andrew.dewhurst@alaska.gov>; Coldiron, Samantha J (OGC) <samantha.coldiron@alaska.gov> Subject: [EXTERNAL] Happy Valley B-13A and B-18 Spacing Exceptions - Questions Luke, I’m reviewing Hilcorp’s spacing exception applications for planned wells Happy Valley B-13A and B-18, and I have several questions. 1. Why is it necessary to drill B-13A to a BHL that lies within 1,500’ of the exterior boundary of the Unit? Based on Hilcorp’s interpretation of the geologic structure and existing well locations, it is necessary to drill the referenced well by delineating further across structure to maximize recovery and ensure the most efficient development of the available resources in the field. Please note, the unit boundary was contracted in 2019 to the current Happy Valley Participating Area based on the results of previously drilled wells that identified both the geologic structure and reservoir presence. Had the reservoir been present outside of the current unit boundary, those lands would be included in the Happy Valley PA. 2. What distance will the target reservoirs in B-13A lie from the Unit boundary? Please see attached T6 Structure and T91 Structure for reference (both marked as CONFIDENTIAL pursuant to 20 AAC 25.537(b)). 3. Why is it necessary to drill B-18 a BHL located immediately adjacent to the northern boundary of the unit? In similar fashion to question 1) above, considering Hilcorp’s interpretation of the geologic structure and the existing well locations, it is necessary to drill the referenced well by delineating further across structure to maximize recovery and ensure the most efficient development of the available resources in the field. 4. What distance will the target reservoirs in B-18 lie from the Unit boundary? Please see attached T6 Structure and T91 Structure for reference (both marked as CONFIDENTIAL pursuant to 20 AAC 25.537(b)). 5. Who are the landowners and owners of the acreage in Section 21 that lies outside of the Unit boundary in Section 21 that is within 1,000’ or so of the planned BHL for B-13A? Surface: Ninilchik Native Association, Inc. Subsurface: Cook Inlet Region, Inc. 6. Who are the landowners and owners of the acreage in Section 15 that lies immediately adjacent to the planned BHL of B-18? Surface: Ninilchik Native Association, Inc. Subsurface: Cook Inlet Region, Inc. 7. Has Hilcorp been in contact with these landowners and owners? Hilcorp has noticed Landowners and Owners pursuant to 20 AAC 25.055(d)(1) and confirmed delivery via U.S.P.S Certified Mail Tracking. Hilcorp remains available for inquiry, and is happy to oblige upon the request of any landowners or owners alike. 8. Has Hilcorp had any comments from, or made recent agreements with, any of them? If so, please describe. Hilcorp received and responded to one (1) question from Cook Inlet Region, Inc. (“CIRI”) to clarify the buffer depicted around the well. CIRI was satisfied with the provided answer. Regards and Be Well, Steve Davies AOGCC CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Steve Davies at 907-793-1224 or steve.davies@alaska.gov The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notifiedthat any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility isaccepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of theindividual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediatelynotify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of theindividual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notifiedthat any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediatelynotify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility isaccepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. From:Luke Suchecki To:Davies, Stephen F (OGC) Cc:Dewhurst, Andrew D (OGC); Coldiron, Samantha J (OGC) Subject:RE: [EXTERNAL] Happy Valley B-18 and B-13A Spacing Exceptions - Question and Request Date:Tuesday, December 17, 2024 11:37:13 AM Attachments:image001.png image002.png 12-12-2024 - Map - Deep Creek Leases.pdf Mr. Davies, Attached per request. Luke Suchecki Hilcorp Alaska, LLC Landman 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Direct: (907) 777-8432 Mobile: (907) 217-9729 Email: luke.suchecki@hilcorp.com This document may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient, you are on notice that any unauthorized disclosure, copying, distribution, or taking of any action in reliance on the contents of this document is prohibited. From: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Sent: Tuesday, December 17, 2024 11:06 AM To: Luke Suchecki <Luke.Suchecki@hilcorp.com> Cc: Dewhurst, Andrew D (OGC) <andrew.dewhurst@alaska.gov>; Coldiron, Samantha J (OGC) <samantha.coldiron@alaska.gov> Subject: RE: [EXTERNAL] Happy Valley B-18 and B-13A Spacing Exceptions - Question and Request Luke, I’m working through Hilcorp’s applications for spacing exceptions for proposed wells Happy Valley B-18 and B-13A, and I have a request and another question. Could Hilcorp please provide a land map that shows lease numbers and the associated landowner and owner information for the acreage lying outside of and immediately adjacent to the Deep Creek Unit? I would like to confirm the landowners and owners adjacent to the Unit boundary to ensure that a spacing exception is indeed needed for Hilcorp’s proposed B-18 and B-13A wells. The reason for my request is that while reviewing Hilcorp’s spacing exception applications for these two wells, I noticed that Hilcorp’s applications state: AOGCC’s Conservation Order No. 553A (CO 553A) was issued April 11, 2016. However, AOGCC’s Administrative Approval No. CO 553A.001 (CO 553A.001), issued August 2, 2022, amends CO 553A and revises Rule 2 of CO 553A as follows: CO 553A.001 eliminates the interwell spacing requirements for the Happy Valley Beluga / Tyonek Gas Pool within the Deep Creek Field, and it also changes the criterion that defines the outer extent of Affected Area for the well-spacing rule from the “…external boundary of the Deep Creek Unit” to “…an external property line where the owners and landowners are not the same on both sides of the line.” So, I would like to confirm whether landownership or ownership changes across property lines that lie within 1,500 feet of Hilcorp’s proposed B-18 and B-13A wells. Any information that Hilcorp can provide will be appreciated. Since Britt Lively of Map Makers Inc. retired, I don’t know of any commercial source for landownership/ownership maps for Alaska. Regards and Be Well, Steve Davies AOGCC From: Luke Suchecki <Luke.Suchecki@hilcorp.com> Sent: Friday, December 13, 2024 2:36 PM CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. To: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Cc: Dewhurst, Andrew D (OGC) <andrew.dewhurst@alaska.gov>; Coldiron, Samantha J (OGC) <samantha.coldiron@alaska.gov> Subject: RE: [EXTERNAL] Happy Valley B-13A and B-18 Spacing Exceptions - Questions Mr. Davies, Please see Hilcorp Alaska, LLC’s (“Hilcorp”) replies to your questions below, in blue. Please contact me with any questions. Luke Suchecki Hilcorp Alaska, LLC Landman 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Direct: (907) 777-8432 Mobile: (907) 217-9729 Email: luke.suchecki@hilcorp.com This document may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient, you are on notice that any unauthorized disclosure, copying, distribution, or taking of any action in reliance on the contents of this document is prohibited. From: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Sent: Tuesday, December 10, 2024 4:39 PM To: Luke Suchecki <Luke.Suchecki@hilcorp.com> Cc: Dewhurst, Andrew D (OGC) <andrew.dewhurst@alaska.gov>; Coldiron, Samantha J (OGC) <samantha.coldiron@alaska.gov> Subject: [EXTERNAL] Happy Valley B-13A and B-18 Spacing Exceptions - Questions Luke, I’m reviewing Hilcorp’s spacing exception applications for planned wells Happy Valley B-13A and B-18, and I have several questions. 1. Why is it necessary to drill B-13A to a BHL that lies within 1,500’ of the exterior boundary of the Unit? Based on Hilcorp’s interpretation of the geologic structure and existing well locations, it is necessary to drill the referenced well by delineating further across structure to maximize recovery and ensure the most efficient development of the available resources in the field. Please note, the unit boundary was contracted in 2019 to the current Happy Valley Participating Area based on the results of previously drilled wells that identified both the geologic structure and reservoir presence. Had the reservoir been present outside of the current unit boundary, those lands would be included in the Happy Valley PA. 2. What distance will the target reservoirs in B-13A lie from the Unit boundary? Please see attached T6 Structure and T91 Structure for reference (both marked as CONFIDENTIAL pursuant to 20 AAC 25.537(b)). 3. Why is it necessary to drill B-18 a BHL located immediately adjacent to the northern boundary of the unit? In similar fashion to question 1) above, considering Hilcorp’s interpretation of the geologic structure and the existing well locations, it is necessary to drill the referenced well by delineating further across structure to maximize recovery and ensure the most efficient development of the available resources in the field. 4. What distance will the target reservoirs in B-18 lie from the Unit boundary? Please see attached T6 Structure and T91 Structure for reference (both marked as CONFIDENTIAL pursuant to 20 AAC 25.537(b)). 5. Who are the landowners and owners of the acreage in Section 21 that lies outside of the Unit boundary in Section 21 that is within 1,000’ or so of the planned BHL for B-13A? Surface: Ninilchik Native Association, Inc. Subsurface: Cook Inlet Region, Inc. 6. Who are the landowners and owners of the acreage in Section 15 that lies immediately adjacent to the planned BHL of B-18? Surface: Ninilchik Native Association, Inc. Subsurface: Cook Inlet Region, Inc. 7. Has Hilcorp been in contact with these landowners and owners? Hilcorp has noticed Landowners and Owners pursuant to 20 AAC 25.055(d)(1) and confirmed delivery via U.S.P.S Certified Mail Tracking. Hilcorp remains available for inquiry, and is happy to oblige upon the request of any landowners or owners alike. 8. Has Hilcorp had any comments from, or made recent agreements with, any of them? If so, please describe. Hilcorp received and responded to one (1) question from Cook Inlet Region, Inc. (“CIRI”) to clarify the buffer depicted around the well. CIRI was satisfied with the provided answer. Regards and Be Well, Steve Davies AOGCC CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Steve Davies at 907-793-1224 or steve.davies@alaska.gov The information contained in this email message is confidential and may be legally privileged and is intended only for the use of theindividual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notifiedthat any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility isaccepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of theindividual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notifiedthat any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediatelynotify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility isaccepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. From:Luke Suchecki To:Davies, Stephen F (OGC) Cc:Dewhurst, Andrew D (OGC); Coldiron, Samantha J (OGC) Subject:RE: [EXTERNAL] Happy Valley B-18 and B-13A Spacing Exceptions - Question and Request Date:Tuesday, December 17, 2024 1:09:24 PM Attachments:image001.png image002.png Mr. Davies, Hilcorp Alaska, LLC, agrees that spacing exceptions are necessary, as described below. Please contact me with any questions. Luke Suchecki Hilcorp Alaska, LLC Landman 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Direct: (907) 777-8432 Mobile: (907) 217-9729 Email: luke.suchecki@hilcorp.com This document may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient, you are on notice that any unauthorized disclosure, copying, distribution, or taking of any action in reliance on the contents of this document is prohibited. From: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Sent: Tuesday, December 17, 2024 12:37 PM To: Luke Suchecki <Luke.Suchecki@hilcorp.com> Cc: Dewhurst, Andrew D (OGC) <andrew.dewhurst@alaska.gov>; Coldiron, Samantha J (OGC) <samantha.coldiron@alaska.gov> Subject: RE: [EXTERNAL] Happy Valley B-18 and B-13A Spacing Exceptions - Question and Request Luke, Well spacing within the Happy Valley Beluga / Tyonek Gas Pool is governed by Rule 2 of Conservation Order No. 553A.001, which states: “There shall be no restrictions to well spacing within the affected area except that no pay may be opened in a well which is closer than 1,500 feet to an external property line where the owners and landowners are not the same on both sides of the line.” After viewing confidential land map that Hilcorp provided, I believe that the external boundary of the Deep Creek Unit (DCU) constitutes a property line across which ownership and / or landownership* change. From that map, I gather that Hilcorp does not have the right to drill into and produce from the acreage that lies outside of, and adjacent to, the DCU. So, since Hilcorp does not appear to be the owner* of this adjacent acreage, spacing exceptions are needed as portions of proposed gas development wells Happy Valley B-18 and B-13A encroach within 1,500 feet of that external property line. If you do not agree, please let me know and we can discuss this further. Otherwise, AOGCC’s standard spacing-exception adjudication process will continue. The public comment periods end at 4:30 P.M. on December 20, 2024. The AOGCC will notify Hilcorp whether the tentatively scheduled Public Hearings will be held as soon as we can. Regards and Be Well, Steve Davies AOGCC ---------------------------------------- *Per 20 AAC 25.990, Definitions: (35) "landowner" has the meaning given in AS 31.05.170. (47) "owner" has the meaning given in AS 31.05.170. Per AS 31.05.170, Definitions: (7) “landowner” means the owner of the subsurface estate of the tract affected. (10) “owner” means the person who has the right to drill into and produce from a pool and to appropriate the oil and gas the person produces from a pool for that person and others. From: Luke Suchecki <Luke.Suchecki@hilcorp.com> Sent: Tuesday, December 17, 2024 11:36 AM To: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Cc: Dewhurst, Andrew D (OGC) <andrew.dewhurst@alaska.gov>; Coldiron, Samantha J (OGC) <samantha.coldiron@alaska.gov> Subject: RE: [EXTERNAL] Happy Valley B-18 and B-13A Spacing Exceptions - Question and Request Mr. Davies, Attached per request. Luke Suchecki Hilcorp Alaska, LLC Landman 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Direct: (907) 777-8432 Mobile: (907) 217-9729 Email: luke.suchecki@hilcorp.com CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. This document may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient, you are on notice that any unauthorized disclosure, copying, distribution, or taking of any action in reliance on the contents of this document is prohibited. From: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Sent: Tuesday, December 17, 2024 11:06 AM To: Luke Suchecki <Luke.Suchecki@hilcorp.com> Cc: Dewhurst, Andrew D (OGC) <andrew.dewhurst@alaska.gov>; Coldiron, Samantha J (OGC) <samantha.coldiron@alaska.gov> Subject: RE: [EXTERNAL] Happy Valley B-18 and B-13A Spacing Exceptions - Question and Request Luke, I’m working through Hilcorp’s applications for spacing exceptions for proposed wells Happy Valley B-18 and B-13A, and I have a request and another question. Could Hilcorp please provide a land map that shows lease numbers and the associated landowner and owner information for the acreage lying outside of and immediately adjacent to the Deep Creek Unit? I would like to confirm the landowners and owners adjacent to the Unit boundary to ensure that a spacing exception is indeed needed for Hilcorp’s proposed B-18 and B-13A wells. The reason for my request is that while reviewing Hilcorp’s spacing exception applications for these two wells, I noticed that Hilcorp’s applications state: AOGCC’s Conservation Order No. 553A (CO 553A) was issued April 11, 2016. However, AOGCC’s Administrative Approval No. CO 553A.001 (CO 553A.001), issued August 2, 2022, amends CO 553A and revises Rule 2 of CO 553A as follows: CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. CO 553A.001 eliminates the interwell spacing requirements for the Happy Valley Beluga / Tyonek Gas Pool within the Deep Creek Field, and it also changes the criterion that defines the outer extent of Affected Area for the well-spacing rule from the “…external boundary of the Deep Creek Unit” to “…an external property line where the owners and landowners are not the same on both sides of the line.” So, I would like to confirm whether landownership or ownership changes across property lines that lie within 1,500 feet of Hilcorp’s proposed B-18 and B-13A wells. Any information that Hilcorp can provide will be appreciated. Since Britt Lively of Map Makers Inc. retired, I don’t know of any commercial source for landownership/ownership maps for Alaska. Regards and Be Well, Steve Davies AOGCC From: Luke Suchecki <Luke.Suchecki@hilcorp.com> Sent: Friday, December 13, 2024 2:36 PM To: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Cc: Dewhurst, Andrew D (OGC) <andrew.dewhurst@alaska.gov>; Coldiron, Samantha J (OGC) <samantha.coldiron@alaska.gov> Subject: RE: [EXTERNAL] Happy Valley B-13A and B-18 Spacing Exceptions - Questions Mr. Davies, Please see Hilcorp Alaska, LLC’s (“Hilcorp”) replies to your questions below, in blue. Please contact me with any questions. Luke Suchecki Hilcorp Alaska, LLC Landman 3800 Centerpoint Drive, Suite 1400 CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. Anchorage, Alaska 99503 Direct: (907) 777-8432 Mobile: (907) 217-9729 Email: luke.suchecki@hilcorp.com This document may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient, you are on notice that any unauthorized disclosure, copying, distribution, or taking of any action in reliance on the contents of this document is prohibited. From: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Sent: Tuesday, December 10, 2024 4:39 PM To: Luke Suchecki <Luke.Suchecki@hilcorp.com> Cc: Dewhurst, Andrew D (OGC) <andrew.dewhurst@alaska.gov>; Coldiron, Samantha J (OGC) <samantha.coldiron@alaska.gov> Subject: [EXTERNAL] Happy Valley B-13A and B-18 Spacing Exceptions - Questions Luke, I’m reviewing Hilcorp’s spacing exception applications for planned wells Happy Valley B-13A and B-18, and I have several questions. 1. Why is it necessary to drill B-13A to a BHL that lies within 1,500’ of the exterior boundary of the Unit? Based on Hilcorp’s interpretation of the geologic structure and existing well locations, it is necessary to drill the referenced well by delineating further across structure to maximize recovery and ensure the most efficient development of the available resources in the field. Please note, the unit boundary was contracted in 2019 to the current Happy Valley Participating Area based on the results of previously drilled wells that identified both the geologic structure and reservoir presence. Had the reservoir been present outside of the current unit boundary, those lands would be included in the Happy Valley PA. 2. What distance will the target reservoirs in B-13A lie from the Unit boundary? Please see attached T6 Structure and T91 Structure for reference (both marked as CONFIDENTIAL pursuant to 20 AAC 25.537(b)). 3. Why is it necessary to drill B-18 a BHL located immediately adjacent to the northern boundary of the unit? In similar fashion to question 1) above, considering Hilcorp’s interpretation of the geologic structure and the existing well locations, it is necessary to drill the referenced well by delineating further across structure to maximize recovery and ensure the most efficient development of the available resources in the field. 4. What distance will the target reservoirs in B-18 lie from the Unit boundary? Please see attached T6 Structure and T91 Structure for reference (both marked as CONFIDENTIAL pursuant to 20 AAC 25.537(b)). 5. Who are the landowners and owners of the acreage in Section 21 that lies outside of the Unit boundary in Section 21 that is within 1,000’ or so of the planned BHL for B-13A? Surface: Ninilchik Native Association, Inc. Subsurface: Cook Inlet Region, Inc. 6. Who are the landowners and owners of the acreage in Section 15 that lies immediately adjacent to the planned BHL of B-18? Surface: Ninilchik Native Association, Inc. Subsurface: Cook Inlet Region, Inc. 7. Has Hilcorp been in contact with these landowners and owners? Hilcorp has noticed Landowners and Owners pursuant to 20 AAC 25.055(d)(1) and confirmed delivery via U.S.P.S Certified Mail Tracking. Hilcorp remains available for inquiry, and is happy to oblige upon the request of any landowners or owners alike. 8. Has Hilcorp had any comments from, or made recent agreements with, any of them? If so, please describe. Hilcorp received and responded to one (1) question from Cook Inlet Region, Inc. (“CIRI”) to clarify the buffer depicted around the well. CIRI was satisfied with the provided answer. Regards and Be Well, Steve Davies AOGCC CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Steve Davies at 907-793-1224 or steve.davies@alaska.gov The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notifiedthat any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility isaccepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of theindividual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediatelynotify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility is accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of theindividual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notifiedthat any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediatelynotify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility isaccepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. 3 CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. From:Luke Suchecki To:Davies, Stephen F (OGC) Cc:Dewhurst, Andrew D (OGC); Coldiron, Samantha J (OGC) Subject:RE: [EXTERNAL] Happy Valley B-13A and B-18 Spacing Exceptions - Questions Date:Friday, December 13, 2024 2:36:52 PM Attachments:12-12-2024 - T6 Structure - Confidential.pdf 12-12-2024 - T91 Structure - Confidential.pdf Mr. Davies, Please see Hilcorp Alaska, LLC’s (“Hilcorp”) replies to your questions below, in blue. Please contact me with any questions. Luke Suchecki Hilcorp Alaska, LLC Landman 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Direct: (907) 777-8432 Mobile: (907) 217-9729 Email: luke.suchecki@hilcorp.com This document may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient, you are on notice that any unauthorized disclosure, copying, distribution, or taking of any action in reliance on the contents of this document is prohibited. From: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Sent: Tuesday, December 10, 2024 4:39 PM To: Luke Suchecki <Luke.Suchecki@hilcorp.com> Cc: Dewhurst, Andrew D (OGC) <andrew.dewhurst@alaska.gov>; Coldiron, Samantha J (OGC) <samantha.coldiron@alaska.gov> Subject: [EXTERNAL] Happy Valley B-13A and B-18 Spacing Exceptions - Questions Luke, I’m reviewing Hilcorp’s spacing exception applications for planned wells Happy Valley B-13A and B-18, and I have several questions. 1. Why is it necessary to drill B-13A to a BHL that lies within 1,500’ of the exterior boundary of the Unit? Based on Hilcorp’s interpretation of the geologic structure and existing well locations, it is necessary to drill the referenced well by delineating further across structure to maximize recovery and ensure the most efficient development of the available resources in the field. Please note, the unit boundary was contracted in 2019 to the current Happy Valley Participating Area based on the results of previously drilled wells that identified both the geologic structure and reservoir presence. Had the reservoir been present outside of the current unit boundary, those lands would be included in the Happy Valley PA. 2. What distance will the target reservoirs in B-13A lie from the Unit boundary? Please see attached T6 Structure and T91 Structure for reference (both marked as CONFIDENTIAL pursuant to 20 AAC 25.537(b)). 3. Why is it necessary to drill B-18 a BHL located immediately adjacent to the northern boundary of the unit? In similar fashion to question 1) above, considering Hilcorp’s interpretation of the geologic structure and the existing well locations, it is necessary to drill the referenced well by delineating further across structure to maximize recovery and ensure the most efficient development of the available resources in the field. 4. What distance will the target reservoirs in B-18 lie from the Unit boundary? Please see attached T6 Structure and T91 Structure for reference (both marked as CONFIDENTIAL pursuant to 20 AAC 25.537(b)). 5. Who are the landowners and owners of the acreage in Section 21 that lies outside of the Unit boundary in Section 21 that is within 1,000’ or so of the planned BHL for B- 13A? Surface: Ninilchik Native Association, Inc. Subsurface: Cook Inlet Region, Inc. 6. Who are the landowners and owners of the acreage in Section 15 that lies immediately adjacent to the planned BHL of B-18? Surface: Ninilchik Native Association, Inc. Subsurface: Cook Inlet Region, Inc. 7. Has Hilcorp been in contact with these landowners and owners? Hilcorp has noticed Landowners and Owners pursuant to 20 AAC 25.055(d)(1) and confirmed delivery via U.S.P.S Certified Mail Tracking. Hilcorp remains available for inquiry, and is happy to oblige upon the request of any landowners or owners alike. 8. Has Hilcorp had any comments from, or made recent agreements with, any of them? If so, please describe. Hilcorp received and responded to one (1) question from Cook Inlet Region, Inc. (“CIRI”) to clarify the buffer depicted around the well. CIRI was satisfied with the provided answer. Regards and Be Well, Steve Davies AOGCC CONFIDENTIALITY NOTICE: This e-mail message, including any attachments, contains information from the Alaska Oil and Gas Conservation Commission (AOGCC), State of Alaska and is for the sole use of the intended recipient(s). It may contain confidential and/or privileged information. The unauthorized review, use or disclosure of such information may violate state or federal law. If you are an unintended recipient of this e-mail, please delete it, without first saving or forwarding it, and, so that the AOGCC is aware of the mistake in sending it to you, contact Steve Davies at 907-793-1224 or steve.davies@alaska.gov The information contained in this email message is confidential and may be legally privileged and is intended only for the use of the individual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notified that any dissemination, distribution, or copy of this email is strictly prohibited. If you have received this email in error, please immediately notify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently deletethis message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibilityis accepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate. 2 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RE: Docket Number: CO-24-016 Hilcorp Alaska, LLC’s Spacing Exception Application for Well Happy Valley B-13A Deep Creek Unit Kenai Peninsula Borough, Alaska Hilcorp Alaska, LLC (Hilcorp), by letter dated October 31, 2024, filed an application with the Alaska Oil and Gas Conservation Commission (AOGCC) for an exception to the spacing requirements of Conservation Order No. 553A.001 to allow for the drilling, completion, testing, and operation of the proposed Happy Valley B-13A development gas well in the Deep Creek Unit Happy Valley Beluga / Tyonek Pool within 1,500 feet of an external property line where the owners and landowners are not the same on both sides of the line, pursuant to 20 AAC 25.055(d). Surface Location: 2359' FSL, 333' FEL, Section 21, T2S, R13W, Seward Meridian (SM) Target Location: 2030' FSL, 850’ FEL, Section 21, T2S, R13W, SM Bottom Hole Location: 2510' FNL, 1590’ FEL, Section 21, T2S, R13W, SM Well spacing regulations protect the oil and gas rights of adjacent leaseholders and 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 order approving 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 leaseholders and 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 January 14, 2025, 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: 364 413 504#. 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 December 6, 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 December 10, 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 December 20, 2024, except that, if a hearing is held, comments must be received no later than the conclusion of the January 14, 2025, 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 January 7, 2025. Jessie L. Chmielowski Gregory C. Wilson Commissioner Commissioner Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2024.11.18 13:18:48 -09'00' Gregory Wilson Digitally signed by Gregory Wilson Date: 2024.11.18 13:26:08 -09'00' From:Coldiron, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] Public Hearing Notices (Hilcorp) Date:Monday, November 18, 2024 2:13:48 PM Attachments:CO-24-015 Public Hearing Notice Hilcorp HV B-18 Spacing Exception.pdf CO-24-016 Public Hearing Notice Hilcorp HV B-13A Spacing Exception.pdf Docket Number: CO-24-015 Hilcorp Alaska, LLC’s Spacing Exception Application for Well Happy Valley B-18 Deep Creek Unit Kenai Peninsula Borough, Alaska Docket Number: CO-24-016 Hilcorp Alaska, LLC’s Spacing Exception Application for Well Happy Valley B-13A Deep Creek Unit Kenai Peninsula Borough, 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 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 ______________________________________ 11/20/2024 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 Account #: 100869 ST OF AK/AK OIL AND GAS CONSERVATION COMMISSION333 W. 7TH AVE STE 100, ANCHORAGE, AK 99501 Order #: W0049306 Cost: $441.0 Notice of Public HearingSTATE OF ALASKAALASKA OIL AND GAS CONSERVATION COMMISSION RE: Docket Number: CO-24-016Hilcorp Alaska, LLC’s Spacing Exception Application for Well Happy Valley B-13ADeep Creek UnitKenai Peninsula Borough, Alaska Hilcorp Alaska, LLC (Hilcorp), by letter dated October 31, 2024, filed an application with the Alaska Oil and Gas Conservation Commission (AOGCC) for an exception to the spacing requirements of Conservation Order No. 553A.001 to allow for the drilling, completion, testing, and operation of the proposed Happy Valley B-13A development gas well in the Deep Creek Unit Happy Valley Beluga / Tyonek Pool within 1,500 feet of an external property line where the owners and landowners are not the same on both sides of the line, pursuant to 20 AAC 25.055(d). Surface Location: 2359’ FSL, 333’ FEL, Section 21, T2S, R13W, Seward Meridian (SM)Target Location: 2030’ FSL, 850’ FEL, Section 21, T2S, R13W, SMBottom Hole Location: 2510’ FNL, 1590’ FEL, Section 21, T2S, R13W, SM Well spacing regulations protect the oil and gas rights of adjacent leaseholders and 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 order approving 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 leaseholders and 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 January 14, 2025, 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: 364 413 504#. 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 December 6, 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 December 10, 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 December 20, 2024, except that, if a hearing is held, comments must be received no later than the conclusion of the January 14, 2025, 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 January 7, 2025. Jessie L. Chmielowski Gregory C. WilsonCommissioner Commissioner Pub: Nov. 20, 2024 STATE OF ALASKA THIRD JUDICIAL DISTRICT ______________________________________2024-11-21 2028-07-14 Document Ref: Q5QGD-UZHMN-YEJMH-YFKPZ Page 2 of 14 1 By Samantha Coldiron at 3:19 pm, Nov 01, 2024 CAUTION: External sender. DO NOT open links or attachments from UNKNOWN senders. From:Luke Suchecki To:Davies, Stephen F (OGC) Cc:Coldiron, Samantha J (OGC); Dewhurst, Andrew D (OGC); Roby, David S (OGC) Subject:Re: [EXTERNAL] Hilcorp"s Applications for Spacing Exception - Happy Valley B-18 and B-13A - Deep Creek Unit Date:Wednesday, November 13, 2024 6:20:22 PM Attachments:image001.png image002.png Mr. Davies, I confirm that spacing exceptions for B-18 and B-13A are still needed considering the above- described change from CO 553A to CO 553A.001. Please contact me with any questions. Sent via iPhone Luke Suchecki Landman Hilcorp Alaska, LLC 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Direct: (907) 777-8432 Mobile: (907) 217-9729 Email: luke.suchecki@hilcorp.com This document may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient, you are on notice that any unauthorized disclosure, copying, distribution, or taking of any action in reliance on the contents of this document is prohibited. From: Davies, Stephen F (OGC) <steve.davies@alaska.gov> Sent: Wednesday, November 13, 2024 5:35:26 PM To: Luke Suchecki <Luke.Suchecki@hilcorp.com> Cc: Coldiron, Samantha J (OGC) <samantha.coldiron@alaska.gov>; Dewhurst, Andrew D (OGC) <andrew.dewhurst@alaska.gov>; Roby, David S (OGC) <dave.roby@alaska.gov> Subject: [EXTERNAL] Hilcorp's Applications for Spacing Exception - Happy Valley B-18 and B-13A - Deep Creek Unit Luke, While reviewing Hilcorp’s spacing exception applications for these wells, AOGCC’s attorney noticed that CO 553A has been superseded by CO 553A.001, which reads in part: CAUTION: This email originated from outside the State of Alaska mail system. Do not click links or open attachments unless you recognize the sender and know the content is safe. Whereas CO 553A reads in part: Please confirm that the spacing exceptions for B-18 and B-13A are still needed considering this change. Thanks, Steve Davies AOGCC From: Luke Suchecki <Luke.Suchecki@hilcorp.com> Sent: Friday, November 1, 2024 2:14 PM To: Coldiron, Samantha J (OGC) <samantha.coldiron@alaska.gov> Cc: Roby, David S (OGC) <dave.roby@alaska.gov> Subject: Application for Spacing Exception - Happy Valley B-18 - Deep Creek Unit Ms. Coldiron, Attached, please find a copy of the Application for Spacing Exception for the Happy Valley B-18 to be situated in the Deep Creek Unit, Kenai Peninsula Borough, Alaska. The same was sent today, November 1, 2024, via U.S. Certified Mail the AOGCC’s address. Please acknowledge receipt via reply confirmation email. Please contact me with any questions. Luke Suchecki Hilcorp Alaska, LLC Landman 3800 Centerpoint Drive, Suite 1400 Anchorage, Alaska 99503 Direct: (907) 777-8432 Mobile: (907) 217-9729 Email: luke.suchecki@hilcorp.com This document may contain information that is privileged, confidential and exempt from disclosure under applicable law. If you are not the intended recipient, you are on notice that any unauthorized disclosure, copying, distribution, or taking of any action in reliance on the contents of this document is prohibited. The information contained in this email message is confidential and may be legally privileged and is intended only for the use of theindividual or entity named above. If you are not an intended recipient or if you have received this message in error, you are hereby notifiedthat any dissemination, distribution, or copy of this email is strictly prohibited. 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If you have received this email in error, please immediatelynotify us by return email or telephone if the sender's phone number is listed above, then promptly and permanently delete this message. While all reasonable care has been taken to avoid the transmission of viruses, it is the responsibility of the recipient to ensure that theonward transmission, opening, or use of this message and any attachments will not adversely affect its systems or data. No responsibility isaccepted by the company in this regard and the recipient should carry out such virus and other checks as it considers appropriate.