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Home My WebLink AboutCO 816CONSERVATION ORDER 816 Milne Point Unit Kuparuk River Oil Pool 1. July 27, 2022 Request to cancel CO 205, and CO 205.01 (CO 816.001) 2. September 5, 2023 Hilcorp Application for expansion of the Kuparuk River Oil Pool 3. September 28, 2023 Notice of public hearing and affidavit of publication (confidential documents held in secure storage) STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue Anchorage, Alaska 99501 Re: THE APPLICATION OF HILCORP ALASKA, LLC. to expand the areal extent of the Kuparuk River Oil Pool ) ) ) ) ) ) Conservation Order 816 Milne Point Unit Kuparuk River Oil Pool May 29, 2024 IT APPEARING THAT: 1. By application dated September 5, 2023, Hilcorp Alaska, LLC. (Hilcorp), as the operator of the Milne Point Unit (MPU), requested the Alaska Oil and Gas Conservation Commission (AOGCC) issue an amended order to expand the areal extent of the Kuparuk River Oil Pool (KROP) in the MPU. 2. On its own motion, the AOGCC proposed to contract CO 432E to contain only the portion of the KROP that is currently in the Kuparuk River Unit (KRU) and issue a new conservation order to contain both the acreage contracted out of CO 432E and the expanded acreage Hilcorp has proposed. 3. Pursuant to 20 AAC 25.540, the AOGCC scheduled a public hearing for November 7, 2023. On September 28, 2023, 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. On October 1, 2023, the notice was published in the ANCHORAGE DAILY NEWS. 4. The AOGCC received no comments or request to hold the proposed hearing. 5. The tentatively scheduled hearing was vacated. FINDINGS: 1. Operators: Hilcorp is the operator of the MPU and all leased acreage within the proposed Affected Area. 2. Owners and Landowners: Hilcorp, Eni Petroleum US LLC, Herbaly Exploration LLC, and George Alan Joyce are the owners of the MPU. The State of Alaska, Department of Natural Resources (DNR) is the landowner. 3. Kuparuk River Oil Pool Designation: The KROP is defined by Conservation Order No. 432E (CO 432E) as the accumulation of oil that is common to and correlates with the accumulation found in the Atlantic Richfield Company West Sak River State No. 1 well between the depths of 6,474 and 6,880 feet. 4. According to Hilcorp, interpretation of seismic and well data suggests that oil-filled reservoir of the Kuparuk ‘A sands’ extends beyond the northern boundary of the KROP. CONCLUSION: 1. The Kuparuk Formation across the KRU and MPU comprise a single oil pool per AOGCC statutes. 2. Where a pool has more than one operator pool rules that are limited to the portion of a pool that is operated by a single operator are appropriate to allow each operator to develop their portions of the KROP in the manner that they deem appropriate. Conservation Order 816 May 29, 2024 Page 2 3. Geological and geophysical data support the interpretation that Hilcorp’s proposed expansion area is part of the KROP, thus expanding the affected area is appropriate. NOW, THEREFORE, IT IS ORDERED: The findings, conclusions, and administrative records of CO 432, 432A, 432B, 432C, 432D, and 432E are incorporated in this order. Development and operation of the KROP is subject to the following rules and the statewide requirements under 20 AAC 25 to the extent not superseded by these rules: Affected Area: Umiat Meridian Township 12 North, Range 10 East Sections 1, 2, 11, and 12 Township 12 North, Range 11 East Sections 1-12 Township 13 North, Range 9 East Sections 1, 2 – E1/2 and NW1/4, 11 – NE1/4, and 12 Township 13 North, Range 10 East All Township 13 North, Range 11 East Sections 7, 8, 16-21, and 27-34 Township 14 North, Range 9 East Sections 11-15, 22-27, and 34-36 Township 14 North, Range 10 East Sections 5-8, 15-22, and 27-35 Rule 1. Name of Field (New This Order) The name of the field shall be the Milne Point Field. Rule 2. Definition of Pool (Restated from CO 432E) The name of the pool in the Milne Point Field shall be the Kuparuk River Oil Pool and is defined as the accumulation of oil that is common to and correlates with the accumulation found in the Atlantic Richfield Company West Sak River State No. 1 well between the depths of 6,474 and 6,880 feet. (Source CO 173) Rule 3. Well Spacing (Restated from CO 432E) There shall be no restrictions as to well spacing except that no pay shall be opened in a well closer than 500 feet to an external property line where ownership or landownership changes. Rule 4. Casing and Cementing Requirements (Restated from CO 432E) a. Casing and cementing requirements are as specified in 20 AAC 25.030, CASING AND CEMENTING, except as modified below. (Source CO 173) b. For proper anchorage and to prevent an uncontrolled flow, a conductor casing shall be set at least 75 feet below the surface and sufficient cement shall be used to fill the annulus behind the pipe to the surface. (Source CO 173) c. For proper anchorage, to prevent an uncontrolled flow, and to protect the well from the effects of permafrost thaw-subsidence and freeze back, a string of surface casing shall be set at least 500 measured feet below the base of the permafrost section but not below 2700 feet true vertical depth. Sufficient cement shall be used to fill the annulus behind the casing to the surface. (Source CO 173, CO 193, 203, 209 & 229) Conservation Order 816 May 29, 2024 Page 3 d. The surface casing, including connections, shall have minimum post-yield strain properties of 0.9% in tension and 1.26% in compression. (Source CO 173) 1) The only types and grades of casing, with threaded connections, that have been approved for use as surface casing are the following: (A) 13 3/8 inch, 72 pounds/foot, L-80, Buttress; (B) 13-3/8 inch, 72 pounds/foot, N-80, Buttress; (C) 10-3/4 inch, 45.5 pounds/foot, K-55, Buttress; 2) The AOGCC may approve other types and grades of surface casing upon a showing that the proposed casing and connection can meet the post-yield strain requirements in (d) above. This evidence shall consist of one of the following: (A) Full scale tensile and compressive tests, (B) Finite element model studies; or, (C) Other types of axial strain data acceptable to the AOGCC. e. Other means for protecting and maintaining the integrity of the well from the effects of permafrost thaw-subsidence and freeze back may be approved by the AOGCC upon application. (Source CO 173) f. The AOGCC may approve alternative completion methods (to 20 AAC 25.030(b)(4) and (5)) upon application and presentation of data that shows the alternatives are based on accepted engineering principles. Such alternative designs may include: (Source CO 173) 1) Slotted liners, wire wrapped screen liners, or combinations thereof, landed inside of open hole and may be gravel packed; 2) Open hole completions provided that the casing is set not more than 200 feet above the productive zone. Rule 5. Pressure Surveys (Restated from CO 432E) a. A bottom-hole pressure survey shall be taken on each well prior to initial sustained production. (Source CO 230) b. The operator shall obtain pressure surveys as needed to effectively manage hydrocarbon recovery processes subject to an annual plan outlined in (d) of this rule. (Source CO 432) c. Bottom-hole pressures obtained by a static buildup pressure survey, a 24-hour shut-in instantaneous test, a multiple flow rate test or an injection fall-off test will be acceptable. Calculation of bottom-hole pressures from surface data will be permitted for water injection wells. (Source CO 230) d. Data from the surveys required in this rule shall be filed with the AOGCC by April 1 of the subsequent year in which the surveys are conducted. Along with the survey submittal, the operator will provide a proposed survey plan for the upcoming year. Reservoir Pressure Reports, Form 10-412, shall be utilized for all surveys with attachments for complete additional data. Data submitted shall include, but are not limited to, rate, pressure, time, depths, fluid gradient, temperature, and other well conditions necessary for complete analysis of each survey being conducted. The pool pressure datum plane shall be 6,200 feet subsea. (Source CO 230, 432) e. Results and data from any special reservoir pressure monitoring techniques, tests, or surveys shall also be submitted as prescribed in (d) of this rule. (Source CO 230) Conservation Order 816 May 29, 2024 Page 4 f. Upon application by the operator, the AOGCC in its discretion may administratively approve exceptions to this rule. (Source CO 230) Rule 6. Productivity Profiles (Restated from CO 432E) a. During the first year of production, a production survey shall be run in each well that has multiple sand intervals open to the well bore. (Source CO 173) b. Subsequent surveys shall be run in wells that exhibit uncharacteristic changes in performance. Subsequent surveys shall also be required in wells which have had remedial work performed to change the production profile unless the remedial work results in only one sand interval being open to the well bore. (Source CO 173, 276) c. All completed production surveys taken during a calendar year shall be filed with the AOGCC by April 1 of the subsequent year. The AOGCC may request data be provided in advance of an annual submittal if required. (Source CO 173, 432) d. By administrative order, the AOGCC shall specify additional surveys should it be determined that the surveys submitted under (a) and (b) are inadequate. (Source CO 173) Rule 7. Production Well Tests (Restated from CO 432E) a. A well test must be performed on each active producing well at least once every 30 days. b. Twinned production wells commingled through the same surface flowline, must be tested at least once every 30 days as a combined production stream and the individual wells must be tested separately at least once every six months or more often if the combined well test indicates uncharacteristic performance. Rule 8. Sustained Casing Pressures (Restated from CO 432E) a. The operator shall conduct and document a pressure test of tubulars and completion equipment in each development well at the time of installation or replacement that is sufficient to demonstrate that planned well operations will not result in failure of well integrity, uncontrolled release of fluid or pressure, or threat to human safety. b. The operator shall monitor each development well daily to check for sustained pressure, except if prevented by extreme weather conditions, emergency situations, or similar unavoidable circumstances. Monitoring results shall be made available for AOGCC inspection. c. The operator shall notify the AOGCC within three working days after the operator identifies a well as having (1) sustained inner annulus pressure that exceeds 2,000 pounds per square inch gauge (psig) or (2) sustained outer annulus pressure that exceeds 1,000 psig. d. The AOGCC may require the operator to submit in an Application for Sundry Approvals (Form 10-403) a proposal for corrective action or increased surveillance for any development well having sustained pressure that exceeds a limit set out in paragraph (c) of this rule. The AOGCC may approve the operator’s proposal or may require other corrective action or surveillance. The AOGCC may require that corrective action be verified by mechanical integrity testing or other AOGCC approved diagnostic tests. The operator shall give AOGCC sufficient notice of the testing schedule to allow AOGCC to witness the tests. e. If the operator identifies sustained pressure in the inner annulus of a development well that exceeds 45% of the burst pressure rating of the well’s production casing for inner annulus pressure, or sustained pressure in the outer annulus that exceeds 45% of the burst pressure rating of the well’s surface casing for outer annulus pressure, the operator shall notify the Conservation Order 816 May 29, 2024 Page 5 AOGCC within three working days and take corrective action. Unless well conditions require the operator to take emergency corrective action before AOGCC approval can be obtained, the operator shall submit in an Application for Sundry Approvals (Form 10-403) a proposal for corrective action. The AOGCC may approve the operator’s proposal or may require other corrective action. The AOGCC may also require that corrective action be verified by mechanical integrity testing or other AOGCC approved diagnostic tests. The operator shall give AOGCC sufficient notice of the testing schedule to allow AOGCC to witness the tests. f. Except as otherwise approved by the AOGCC under paragraph (d) or (e) of these rules, before a shut-in well is placed in service, any annulus pressure must be relieved to a sufficient degree (1) that the inner annulus pressure at operating temperature will be below 2000 psig and (2) that the outer annulus pressure at operating temperature will be below 1000 psig. However, a well that is subject to paragraph (c), but not paragraph (e), of these rules may reach an annulus pressure at operating temperature that is described in the operator's notification to the AOGCC under paragraph (c), unless the AOGCC prescribes a different limit. g. For purposes of these rules, “inner annulus” means the space in a well between tubing and production casing; “outer annulus” means the space in a well between production casing and surface casing; “sustained pressure” means pressure that (1) is measurable at the casing head of an annulus, (2) is not caused solely by temperature fluctuations, and (3) is not pressure that has been applied intentionally. DONE at Anchorage, Alaska and dated May 29, 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 reconsider- ation 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: 2024.05.29 15:46:07 -08'00' Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2024.05.29 17:00:18 -08'00' Brett W. Huber, Sr. Digitally signed by Brett W. Huber, Sr. Date: 2024.05.30 09:19:34 -08'00' From:Coldiron, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] Conservation Order 816 (Hilcorp) Date:Thursday, May 30, 2024 2:41:55 PM Attachments:co 816.pdf THE APPLICATION OF HILCORP ALASKA, LLC. To expand the areal extent of the Kuparuk River 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 AREA INJECTION ORDER 10C.001 CONSERVATION ORDER 816.001 Mr. Scott Pessetto Milne Point Operations Manager Hilcorp Alaska, LLC 3800 Centerpoint Dr., Suite 1400 Anchorage, AK 99503 Re: Docket Numbers: AIO-22-023 and CO 22-011 Request to rescind CO 205 and CO 205.001 and amend AIO 10B1 with Kuparuk River Oil Pool (KROP) Milne Point Unit injection well survey requirements Milne Point Field Milne Point Unit Kuparuk River Oil Pool Schrader Bluff Oil Pool Sag River Oil Pool Dear Mr. Pessetto: By letter dated July 27, 2022, Hilcorp Alaska LLC (Hilcorp) requested the Alaska Oil and Gas Conservation Commission (AOGCC) rescind Conservation Order 205 (CO 205) and its administrative approval CO 205.001 and amend AIO 10C to add Kuparuk River Oil Pool (KROP) injection well survey requirements modified from Rule 4 of Conservation Order 205 (CO 205). On its own motion the AOGCC proposes to rescind Rule 3 of CO 205 and amend CO 816 to add a reservoir surveillance report requirement that’s consistent with the requirements for the other MPU oil pools. It is recognized that all 4 rules of CO 205 have been superseded by subsequent AOGCC orders or regulations or will be superseded by this administrative approval: x The requirements of “Rule 1. Well Spacing” are covered by the current pool rules in CO 816, Rule 3. x “Rule 2. Administrative Action” was superseded by regulation 20 AAC 5.556 (d). x The requirements of “Rule 3. Milne Point Unit Waterflood Surveillance Program” will be rescinded and replaced by this administrative approval. 1Note: AIO 10B was superseded by AIO 10C after Hilcorp’s request to amend AIO 10B was submitted. However, the above-described changes to the injection well profile survey requirements were not incorporated into AIO 10C. Thus, Hilcorp’s request to amend AIO 10B is considered a request to amend AIO 10C. AIO 10C.012 CO 816.001 March 19, 2025 Page 2 of 3 x “Rule 4. Injectivity Profiles” was restated in CO 205.001 and will be rescinded and replaced by this administrative approval. The AOGCC has concluded that the periodic follow-up injection well survey requirements of CO 205.001 are not required for multi-zone injectors. However, initial injection profile surveys for multi-zone injectors are still required. Multi-pool injectors will require both initial and periodic follow-up injection profile surveys. NOW THEREFORE IT IS ORDERED: CO 205 and its accompanying administrative approval, CO 205.001, are hereby rescinded. AIO 10C is hereby amended with the addition of the following new rule: Rule 9 Injection Well Survey Requirements for Kuparuk River Oil Pool: A quantitative injection profile survey will be obtained on each multiple zone injectorwithin 9 months of sustained injection. Single and multiple zone injectors may besurveyed at the operator’s discretion if anomalous injection performance is evident ormechanical damage is suspected or if required to obtain data for waterflood management.Multiple pool injectors will require a quantitative injection profile survey within 9 monthsof sustained injection. Follow-up surveys will be performed on a rotating basis on one-third of the multiple pool injectors each calendar year. Completed injection well profilesurveys will be filed with the AOGCC as part of the annual Milne Point Unit Waterfloodand Reservoir Surveillance Report. CO 816 is hereby amended to add the following rule: Rule 9 Annual Reservoir Surveillance Report An annual Kuparuk River Oil Pool Surveillance report is required by April 1 of each year. The report shall include, but is not limited to, the following: DProgress of enhanced recovery project implementation and reservoir management summary including results of reservoir studies. EVoidage balance by month of produced fluids and injected fluids and cumulative status for each producing interval. FSummary and analysis of reservoir pressure surveys within the pool. GResults and, where appropriate, analysis of production and injection log surveys, tracer surveys, observation well surveys, and any other special monitoring. HReview of pool production allocation factors and issues over the prior year, IFuture development plans. JReview of Annual Plan of Operations and Development. DONE at Anchorage, Alaska and dated March 19, 2025. Jessie L. Chmielowski Gregory C. Wilson Commissioner Commissioner Gregory C. Wilson Digitally signed by Gregory C. Wilson Date: 2025.03.19 12:46:08 -08'00' Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2025.03.19 14:31:54 -08'00' AIO 10C.012 CO 816.001 March 19, 2025 Page 3 of 3 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] Area Injection Order 10C.001 and Conservation Order 816.001 (Hilcorp) Date:Wednesday, March 19, 2025 3:22:37 PM Attachments:AIO10C.001 and CO816.001.pdf Docket Numbers: AIO-22-023 and CO 22-011 Request to rescind CO 205 and CO 205.001 and amend AIO 10B1 with Kuparuk River Oil Pool (KROP) Milne Point Unit injection well survey requirements Milne Point Field Milne Point Unit Kuparuk River Oil Pool Schrader Bluff Oil Pool Sag River 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 3 Notice of Public Hearing STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION RE: Docket Numbers: AIO-23-029 and CO-23-014 By applications dated September 5, 2023, and September 8, 2023, Hilcorp Alaska, LLC (Hilcorp), as the operator of the Milne Point Unit (MPU), requests that the Alaska Oil and Gas Conservation Commission (AOGCC) expand the map extent of the Kuparuk River Oil Pool (KROP) in the MPU and expand the map extent of Area Injection Order No. 10B (AIO 10B). On its own motion the AOGCC proposes modifying the KROP affected area to conform to unit boundaries. CO 432E defines the KROP, which extends from the Kuparuk River Unit (KRU) operated by ConocoPhillips Alaska, Inc., into the MPU and prescribes rules for its development. AIO 10B authorizes enhanced oil recovery injection operations for the KROP, Schrader Bluff Oil Pool, and the Sag River Oil Pool in the MPU. Hilcorp proposes to amend these orders to expand the map extent of the KROP in the MPU to include new acreage to be developed under the same rules as the rest of the KROP. In addition to Hilcorp’s requests, the AOGCC proposes to contract CO 432E to contain only the portion of it that is currently in the KRU and issue a new conservation order to contain the acreage contracted out of CO 432E and, if approved, the proposed expansion acreage. Aside from some minor changes that will be necessary to eliminate a rule that is specific to a unit from the rules for the other pool and some grammatical changes to make clear the rule applies to a single unit instead of multiple units, the rules for the contracted CO 432E and the newly established order establishing pool rules for the KROP in the MPU would be essentially identical to the rules that currently exist in CO 432E. This would have the effect of allowing each operator and each field to have its own set of pool rules that could be modified as needed in the future for that field’s/operator’s specific purposes. This would also be consistent with how the AOGCC prescribes rules for other pools, such as the Nanushuk Formation and Schrader Bluff Formation, for which the geology crosses unit boundaries. 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 November 7, 2023, 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: 602 002 645#. 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 October 16, 2023. 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 October 13, 2023. 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 November 1, 2023, except that, if a hearing is held, comments must be received no later than the conclusion of the November 7, 2023, 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 October 31, 2023. Jessie L. Chmielowski Commissioner Jessie L. Chmielowski Digitally signed by Jessie L. Chmielowski Date: 2023.09.28 08:45:09 -08'00' From:Carlisle, Samantha J (OGC) To:AOGCC_Public_Notices Subject:[AOGCC_Public_Notices] AIO-23-029 and CO-23-014 public hearing notice expand KROP Date:Thursday, September 28, 2023 9:28:36 AM Attachments:AIO-23-029 and CO-23-014 public hearing notice expand KROP.pdf Docket Numbers: AIO-23-029 and CO-23-014 By applications dated September 5, 2023, and September 8, 2023, Hilcorp Alaska, LLC (Hilcorp), as the operator of the Milne Point Unit (MPU), requests that the Alaska Oil and Gas Conservation Commission (AOGCC) expand the map extent of the Kuparuk River Oil Pool (KROP) in the MPU and expand the map extent of Area Injection Order No. 10B (AIO 10B). On its own motion the AOGCC proposes modifying the KROP affected area to conform to unit boundaries. 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 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 ______________________________________ 10/01/2023 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 2nd day of October 2023. Account #: 100869 ST OF AK/AK OIL AND GAS CONSERVATION COMMISSION333 W. 7TH AVE STE 100, ANCHORAGE, AK 99501 Order #: W0040889 Cost: $423.1 Notice of Public HearingSTATE OF ALASKAALASKA OIL AND GAS CONSERVATION COMMISSION RE: Docket Numbers: AIO-23-029 and CO-23-014 By applications dated September 5, 2023, and September 8, 2023, Hilcorp Alaska, LLC (Hilcorp), as the operator of the Milne Point Unit (MPU), requests that the Alaska Oil and Gas Conservation Commission (AOGCC) expand the map extent of the Kuparuk River Oil Pool (KROP) in the MPU and expand the map extent of Area Injection Order No. 10B (AIO 10B). On its own motion the AOGCC proposes modifying the KROP affected area to conform to unit boundaries. CO 432E defines the KROP, which extends from the Kuparuk River Unit (KRU) operated by ConocoPhillips Alaska, Inc., into the MPU and prescribes rules for its development. AIO 10B authorizes enhanced oil recovery injection operations for the KROP, Schrader Bluff Oil Pool, and the Sag River Oil Pool in the MPU. Hilcorp proposes to amend these orders to expand the map extent of the KROP in the MPU to include new acreage to be developed under the same rules as the rest of the KROP. In addition to Hilcorp’s requests, the AOGCC proposes to contract CO 432E to contain only the portion of it that is currently in the KRU and issue a new conservation order to contain the acreage contracted out of CO 432E and, if approved, the proposed expansion acreage. Aside from some minor changes that will be necessary to eliminate a rule that is specific to a unit from the rules for the other pool and some grammatical changes to make clear the rule applies to a single unit instead of multiple units, the rules for the contracted CO 432E and the newly established order establishing pool rules for the KROP in the MPU would be essentially identical to the rules that currently exist in CO 432E. This would have the effect of allowing each operator and each field to have its own set of pool rules that could be modified as needed in the future for that field’s/operator’s specific purposes. This would also be consistent with how the AOGCC prescribes rules for other pools, such as the Nanushuk Formation and Schrader Bluff Formation, for which the geology crosses unit boundaries. 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 November 7, 2023, 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: 602 002 645#. 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 October 16, 2023. 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 October 13, 2023. 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 November 1, 2023, except that, if a hearing is held, comments must be received no later than the conclusion of the November 7, 2023, 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 October 31, 2023. Jessie L. ChmielowskiCommissioner Pub: Oct. 1, 2023 STATE OF ALASKA THIRD JUDICIAL DISTRICT 2024-07-14 Document Ref: M3RXL-JXBBT-HKM6H-MNLTK Page 32 of 54 2 Ifl Hilcorp Alaska, LLC September 5, 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 Kuparuk River Oil Pool Milne Point Unit Commissioner Huber: Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 1400 Anchorage, AK 99503 Phone: (907) 777-8414 Fax:(907) 777-8301 Email: mschoetz@hllcorp.com 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 Kuparuk River Oil Pool (KROP) as described in Conservation Order 432E. Proposed Affected Area Expansion Hilcorp requests to expand the Affected Area of the KROP to include T14N, R10E Sections 5-8 (`Expansion Area"), being the same lands that comprise State Oil and Gas Lease ADL 394167 and depicted in Figure 1. These lands will be targeted in the future, beginning as early as Q4 2023. Hilcorp submits this application to expand the application of the rules of Conservation Order 432E to include the Expansion Area. Development Drilling Plans and Geology The proposed northern expansion of the KROP would allow for further development of Kuparuk reservoirs from Milne F-Pad. Figure 2 depicts the current Affected Area in relation to the proposed Kuparuk `A sands' drillwells, labelled as `F-17A' (blue line for injector) and `F-34A' (green line for producer). Interpretation of seismic data suggests the Kuparuk structure extends to the north into the proposed Expansion Area. 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 KROP Affected Area has been sent by certified mail to those certain owners, landowners, and operators of property within t/4 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. Hilcorp Alaska, LLC Application for Expansion of the Kuparuk River Oil Pool September 5, 2023 Page 2 of 6 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 KROP in accordance with 20 AAC 25.540. Should you require additional information regarding this application, please contact me by phone at (907) 777-8414 or by email at mschoetz aQku']com.com Sincerely, Michael W. Schoetz, CPL Division Landman Hilcorp Alaska, LLC cc: Samantha Carlisle, Special Assistant, AOGCC (via email) Hilcorp Alaska, LLC Application for Expansion of the Kaparuk River Oil Pool September 5, 2023 Page 3 of 6 1SN009--------------- ,+; Area Injecfion Order IOB Conservation Order 432E Unit Boundary Leasehold FIGURE 1. Affected Area defined in CO 432E with proposed Expansion Area lands labelled as ADL394167. Hilcorp Alaska, LLC Application for Expansion of the Kuparuk River OR Pool September 5, 2023 Page 4 of 6 A UM167 F34A F.17A noL t o qte . •_ ADL365018 - A LXWW AOIM]43C FIGURE 2. Proposed F-17A and F-34A wells in relation to the proposed Expansion area, ADL 394167. 10corp Alaska, LLC Application for Expansion of the Kuparak River Oil Pool September 5, 2023 Page 5 of 6 EXHIBIT A APPLICATION FOR EXPANSION OF THE KUPARUK RIVER OIL POOL Lease Landowner Owner Operator ADL 355016 Department of Natural Resources Hilcorp Alaska, LLC Hilcorp Alaska, LLC Division of Oil & Gas 3800 Centerpoint Drive, Suite 1400 3800 Centerpoint Drive Sections: 15 - 22 550 W. 7th Avenue, Suite 1100 Anchorage, Alaska 99503 Suite 1400 Anchorage, AK 99501-3560 Anchorage, Alaska 99503 Township: 14 North Attn: Derek Nottingham, Director Herbaly Exploration LLC ATTN: Dave Herbaly Range: 10 East 1420 W. Canal Ct., Suite 150 Littleton, Colorado 80120 Meridian: Umiat George Joyce, Jr. 2923 Izabella Ct. Frisco, Texas 75033 ADL 355021 Department of Natural Resources Hilcorp Alaska, LLC Hilcorp Alaska, LLC Division of Oil & Gas 3800 Centerpoint Drive, Suite 1400 3800 Centerpoint Drive Sections: 11 - 15, 550 W. 7th Avenue, Suite 1100 Anchorage, Alaska 99503 Suite 1400 22 - 24 Anchorage, AK 99501-3560 Anchorage, Alaska 99503 Attn: Derek Nottingham, Director ENI Petroleum US LLC Township: 14 North ATTN: Robert Province 3700 Centerpoint Drive, Suite 300 Range: 9 East Anchorage, Alaska 99503 Meridian: Umiat Herbaly Exploration LLC ATTN: Dave Herbaly 1420 W. Canal Ct., Suite 150 Littleton, Colorado 80120 George Joyce, Jr. 2923 Izabella Ct. Frisco, Texas 75033 Hilcorp Alaska, LLC Application for Expansion of the Kuparuk River Oil Pool September 5, 2023 Page 6 of 6 EXHIBIT B APPLICATION FOR EXPANSION OF THE KUPARUK RIVER OIL POOL VERIFICATION OF APPLICATION FOR EXPANSION OF THE KUPARUK RIVER OIL POOL NORTH SLOPE ALASKA ADL 394167 Hilcorp Alaska, LLC I, Michael W. Schoetz, Division Landman, Hilcorp Alaska, LLC do hereby verify the following: I am acquainted with the application submitted for the expansion of the Kuparuk River Oil Pool in the Milne Point Unit. I have reviewed the application submitted for the exception to 20 AAC 25.055 (a)(4) and all facts therein are true. I have reviewed the plat attached to said application, and it correctly portrays pertinent and required data. DATED at Anchorage, Alaska, this 5th day of September 2023. Michael W. Schoetz, CPL Division Landman STATE OF ALASKA ) THIRD JUDICIAL DISTRICT) SUBSCRIBED TO AND SWORN before me this 5h day of September 2023 NOTARY IC IN AND FOR NOTARY - STATE OF ALASKA PUBLIC,:` My commission Expires: January 26, 2025 H COPY Hilcorp Alaska, LLC September 5, 2023 Department of Natural Resources Division of Oil & Gas Attn: Derek Nottingham, Director 550 W. 7th Avenue, Suite 1100 Anchorage, AK 99501-3560 RE: Notice of Application for Amendment Kuparuk River Oil Pool Director Nottingham: Post Office Box 244027 Anchorage, AK 99524-4027 3800 Centerpoint Drive Suite 1400 Anchorage, AK 99503 Phone:(907) 777-8414 Fax:(907) 777-8301 Email: mschoetz@hilcorp.cam 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 expansion of the Affected Area of the Kuparuk River Oil Pool (KROP), as described in Conservation Order 432E. Pursuant to 20 AAC 25.055(d)(1), all owners, landowners, and operators of all properties within 3,000ft of the lands subject to the application for which the expansion is sought must receive notice of such application. As an owner of certain property located within 3,000ft of the lands subject to its application, please allow for this letter to serve as notice of Hilcorp's intent to submit the enclosed application, and its request for the AOGCC to schedule a public hearing to review said application in accordance with 20 AAC 25.540. Hilcorp is not proposing any changes to the rules of Conservation Order 432E. The correlative rights of all affected owners, landowners, and operators will not be adversely impacted by approval of this application Should you require additional information regarding this application, please contact me by phone at (907) 777-8414 or by email at mschoetz@hilcorp.com Sincerely, Michael W. Schoetz, CP Division Landman Hilcorp Alaska, LLC Enclosures: Application for Expansion of the Kuparuk River Oil Pool, dated September 5, 2023 COPY EXIMIT A APPLICATION FOR EXPANSION OF THE KUPARUK RIVER OIL POOL 1n10099----------- - Area Injeckon Order 108 7 Conservation Order 432E J Unit Boundary 0 aA a5 1 :3 i 9171 9690 0935 0306 6432 50 Department of Natural Resources Division of Oil & Gas Attn: Derek Nottingham, Director 550 W. 7th Avenue, Suite 1100 Anchorage, AK 99501-3560 ENI Petroleum US LLC Attn: Robert Province 3700 Centerpoint Drive, Suite 300 Anchorage, Alaska 99503 George Joyce, Jr. 2923 Izabella Ct. Frisco, Texas 75033 Herbaly Exploration LLC Attn: Dave Herbaly 1420 W. Canal Ct., Suite 150 Littleton, Colorado 80120 1111111111111111111111111111111 9171 9690 0935 0306 6432 50 9171 9690 0935 0306 6432 50 9171 9690 0935 0306 6432 74 9171 9690 0935 0306 6432 74 9171 9690 0935 0306 6432 74 9171 9690 0935 0306 6432 67 9171 9690 0935 0306 6432 67 9171 9690 0935 0306 6432 67 9171 9690 0935 0306 6432 81 PLACE STICKER AT TOP OF ENVELOPE TO THE FIGHT - - - - - -- - ` - OF THE RETURN ADDRESS, FOLD AT-OOTTED. LINE - - CERTIFIED MAIL,M000 1 Received 07/27/22