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Home My WebLink About188-069Image Project Well History File COver Page XHVZE This page identifies those items that were not scanned during the initial production scanning. They are available in the original file, may be scanned during the rescan activity or are viewable by direct inspection of the file. Organization Well History File Identifier RESCAN DIGITAL DATA OVERSIZED (Scannable) [] Color items: o Diskettes, No. [3 Maps: [] Grayscale items: [] Poor Quality Originals: Other: [] Other, No/Type o Other items scannable by large scanner OVERSIZED (Non-Scannable) Logs of various kinds [] Other TOTAL PAGES: ~/[.~' NOTES: ORGANIZED BY: BEVERLY BREN VINCENT SHERYL MARIA LOWELL DATE: ISl Project Proofing Staff Proof Date: PROOFED BY: BEVERLY BREN VINCENT SHERYL MARIA LOWELL DATE: Isl PAGES: ~ (al~th-Eli--m-e-of sc,~,,,,i,~l) SCANNED BY: BEVERLY BREN~T .~HERYL MARIA LOWELl. ReScanned (done) RE SCANNED BY: BREN VINCENT SHERYL MARIA LOWELL Is~ General Notes or Comments about this file: Quality Checked (donel .~ ! ~ ~_~U~ ,iiVl~____..._ ----- ---- ~ ~! ENG ASST SR GEOL~ ~:=c CJ4 A~S KENAI PENINSULA BOROUGH PLANNING COMMISSION PUBLIC HEARIN ''~~~-A'~' ~, i aT T'E~,` ^T,'~Y T±?,~` Public notice is hereby given that an application for a per~~,.~:'~_.~ has been received for an exception to Borough Code of Ordinance, Chapter 21.12, Noxious, Injurious or Hazardous Uses. The application defines the proposed conditions for an oil and gas drilling operation by Borealis Resources, Inc. The proposed drilling activity will take place on Tracts 2& 3, Neher Subdivision, Section 12, T1N, R13W, S.M. Subject property consists of approximately b.e acres and is iocazeci approximately 23 miles south of Soldotna in the Clam Gulch area. Public hearing will be conducted by the Kenai Peninsula Borough Planning Commission as required under Chapter 21.12.010 and 21.12.020. The use shall only be permitted by exception. An exception for this use will be determined by the commission, if the permit conditions adequately protect the public interest. Public hearing on this exception will be conducted by the Kenai Peninsula Borough Planning Commission on Monday, May 15, 1989 commencing at 7:30 P.M. Hearing will be held at the Borough Administration Building in Soldotna, Alaska. Binkley, Soldotna, AK 99669. For additional information contact Jane Gabler; Kenai • r~riiilsuict DC3i'U-u~~1; ~oG-~+~i ~4` i ot' i-`u~Gv-~ %~U" -!'t~~ i ~ tCiii i r°~c within the Kenai Peninsula BorQUgh). ~_ ~ hi`~ ~. (~C~~ E CJC..;C.v'.''~.~~ V~x`j Richard Troeger ~ '~' ~,~ ~~ ~ ' G`1i 5 ~ ~~ ~c1 a -~- Ch6'C :"~G~~~CC::~~~~ Planning Director ~~:~l~ t~~ C; ,l ~~' Z`J~J~ Shcr~~1 c r ~~ ~~ a~- ~N~'~ ~:~ ~ Anyone wishing to tes~ify may come to the above meeting or may submit a written statement to the atte~tion of Jane Gabler, Planning Department, Kenai Peninsula Borough; 1.44 North Publish: May '3 & 10, 1989 (Peninsula May 4& 11, 1989 (Homer News) t~:r~~_ ~._ i ~ 1~ ~-~s~ ~ P, ~ ~~ ~r ..s:.~~ : ~ .~ ~ ~sS.1~~~ ~~~ ~~ ~ ~~~ ~-Nnc~-~. ~ :~E ~~ ~`~rc ~~~~~ ~~~ Clarion) ~ ~ ~`-"'- ~~~~y,~~ R~c~~iv~a ~~ ~~i'i~ i, ~~t°;~;~tiil A-s~ka ~9) ~ ~~~ ~~ns~ C~Smmissiar~: ~A41~~1E~~~~~ n ~1.12.010--21.12.020 . ~: . ~' Chapter 21.12 ,%/ NOXIOUS , INJURI OUS OR HAZARDOUS U SES Sections: i 21.12.010 Permitted when--Exception required. • 2.1.12.020 Exception--Grounds for granting. ~1.~12.010 Permitted when--Exce tion re uired. All uses that may be noxious, injurzous or hazardous to surrounding property or persons by reason of the production or emission of dust, srr~oke, refuse matter, odor, gas fumes, noise, vibra- tion or similar substances or conditions or the production or storage of explosive materials shall be permi tted only by ~x~~F~i~«. . (~rd, i5 gi (part) , 1966: KPC §20.10..15 (a) ) . 2i.12.020 Exception--Grounds for grantinq. An excep- tion tor any noxious, in~urious or hazardous use or uses may be granted only upon finding that the public interest is ade- quately protected considering the economic benefit to the com- munity derived from the use, and that the owners or occupants of property in the vicinity who are-specially affected are adequately protected or compensated. (Ord. 15. §1(part) , 1966: KPC §20 .10.15 (b) ) . ~ ~~~~,I V ~Ll , r n r, tr 1~ ~c,.r;,1 ~ . ~~ • ~~zl~~ka Oii & Gas Cons. Cc~r-m9ssi~~ Anchorage 182 • ~ PROPOSED SITE OF OIL AND GAS DRILLING OPERATION Tracts 2& 3, Nzher Subdivision --_ _ _. ~ s~ : :~~ .: Li : • °'" / ~ „o~~. ~~VICINITY -~ PAAP / ~5 ~'. ~~ G . . 10 . .' . ` .. ..s •i~V " ; i ~ :',< A° ...T ~ ~+ ,: . ~, ~/ ~ ~~ .` ~~~ y'-.~ ~ • '~e~~.a ss3o \ \ a ' ~ ' '. i , ~, p . . . ~. ~~::;~ :~ -~ ~ , . ,p_ \ . . a ti . . . .~.~ ~, _,- 5D ~ ~~ h_ ... ~ ee•.a ~i~n~ ~ ~ Q ~ "~' , . \ ...~__ r: ttt/13 RIDGE AVE. ~ ~ -~ ~ \ . : . - ~9 ~.~0 . .::: ~ . : -- - - - - - --- - --- G `' „ ~ •~ ~• ~ 1 . ` • ~ •~ \• . ~ ~ \ J ~ 2 ~ L r, n , " ~ ' . ~~ y ' • n r~ ~ ~ O . .;~~' ti0~ ~ . ~ 0 ,~ ~ f ~.412 PC.. . ~- ni :. i r ~ ~•z~o ac e~.,~ ~mn7 ~ ` O v ~ . . .. . ~ _ • . _ . _ ~ ~ _ ' - - -z- %y` ~ . ~,- . . i J/ , '~/ ': . _ ~ ~~ ~ ~t1 WE3T . . y~ ~r :' ,~ •F. ~ ?~ ?3~ . . 130A0_ 300.0~' ° ~~ ~_ ~} _,~O o '3Q, : ~ v~. ,y • ~ ~ J :: _~ v 3.467AC.'~ ~i 1 200 AC: '~J" '_, ~ , . O tro~a ~ w ~'"::r - ~ - ry ' ~ -~_ .- ~ ~ ~ ~ ~ ~ ~ ~ ~ : ~A ` ~ .~ ~ ' ` . a~e.~ 61.lt1 C . : ~. ' . I, • - : ~~ b .:\ •: c ~ ~ ' . . • NECicZ CoUR73 , : ~osoo. . - ~ =i • . . , ~ . . ~: Q 23E.7' . ~r, po ~ . `ai'i ~ ~` •w~ it1 ' . ~ ~ •:. •' .. V . . =~O '; , O l~ yl tt1 . ..5.729 AC. ~ N '1.200 AC. i= u:~`~ `'~ ~zr oa' '~~~ ' ~ fl•7AC•a~e~• ~l./t) C~ 1-"~ - - - - - - - -- ' - `- ' . oo ~ ~ • 402.42 30400r.. ~: ..W~ST t 6 g i31=.48' • ~ . . ~p , O . t •~ I 1 ~ a ~ ao °ti _ ~ . . ~ . . . ' ; . ~`~ ~ i ~. , - , ' ~_ _a1 -- ~-- - . ' ' • . - ---- 'i 1~: HEHER UNSUBD • ' ' i '~ ' ~= . . 7tKA UHSU80 REt7AtNDEA ~ ~= . , 7RAC7 A • ~ TRACT 8 ~ ~E~~: ~ ~ ' ' ~I : •.t...~:.twrtaazvw•rti~i -tr~ . . ~ ~ (~ ~ .~ • t-.+.. ~ ~rY S • s.,•~~;i'':~:. t ~•+ 1~ ~ ~ ~ ~ _.__ _ _ ~ ; I ~ ' \ ~~~ .,~ ~ ~R~~ '. : ... . . • ~S~U~~D~~~~ . ' . ..-. ~ , ~~~~~~ ~ ~ ' - ( 'l , ~ `~~'~ ~._ I : _: . _ . , . . LOCATED .. . . !N TRAC7 0 0~ FACIO SUODIVISIOt~, IN GOV, LOT 1, fH FR~CTIOtd:IL "'' s'" ±`~'t` ~§LC.7 "'-'- "~' ' I NE 1/4 S , . EC. 12 . TIN R13 Y ~ l , .t.i., ALASXA. . . . _ • • •- -• • .. ~ 'SCALE ^ , ~ 2Q0 ., ~ .~ . .- AR~A ^ 26•OQOA • C r•_.•_-': ~ 3 C O / ~n• .~.~:.,~~ NOV, 20, 1~70 M-..L BY hfiKE ~II NENER 9J61 807H~YELL CIA. ANCHORAGE, . . ALASKA 9~~0~ . : E C. 7 `t :rC1.'C ~: ~~ ~ ~:1 ~W ~ J ~t.) t.~ ~C -, ~~ . • • ~P~ ~~39 PROPOSED CONDITIONS: BOREALIS RESOURCES, INC. ~`~~~A'~'"! ~n-.. APPL ICATION FOR EXCEPTION TO K. P. B 21. 12 ~r'~''`- F=:: ~ The following are the proposed conditions (subject to public hearing and approval by the Kenai Peninsula Borough Planning Commission) for oil <~nd gas drilling operations by Applicant Borealis Resources, Inc., on that property known as: Lot Three (3), and Tract Twc~ (2), Neher Subdivision, according to P:Lat 79-123 Homer Recording District, Third Judicial District, State of Alaska. as prov~_ded for un.der KPB 21.12.020. An exception in accordance with the ordinance for drilling activities will be granted so long as the following conditions are met: A. VIBRATION. Applicant will take such action as may be reasonably necessary to prevent the production of continuous, frequent, or repetitive vibrations which, at a frequency of 10 cycles/sec. or greater, exceed the displacement of 0.004 inches at the boundary of the property. B. NOISE. Applicant will take such action as may be reasonably necessary to prevent the production of continuous, frequent, or repetitive noise levels which, measured at the boundary of the parcel exceed the Maximum Noise Levels. The Maximum Noise L ev els shall be as follows: 1. Beginning on the date drilling activity is first commenced, and continuing for a period of 45 consecutive days thereafter, the Maximum Noise Levels shall be as follows: 7:OG a.r~~. tv i:~0 p. ~'~., 55 DT,3A 7:00 p.m. to 7:00 a.m., 65 DBA 2. Thereaf ter, but for a period which shal l not exceed an additional 45 days, the Maximum Noise Levels shall be as follows: 7:00 a.m. to 7:00 p.m., 65 DBA _. 7:00 p.m. to 7:00 a.m., 55 DBA 3. Thereafter, the Maximum Noise Levels shall be as f ol lows : 7:00 a.m, to 7:00 p.m., 60 DBA 7:00 p.m, to 7:00 a.m., 50 DBA • C. D. DIIST ~ 1. Keep fugitive dust at a minimum by properly watering roadbed. 2. Keep vehicle speed at a minimum. Vehicles shall keep speed within limits that will not create a dust problem. 3. Keep on-site-generated fugitive dust at a minimum through regular watering program. 4. Truck loads must be limited in quantity or covered sufficiently to avoid blown out particulate matter. SAFETY l. Drilling site and all associated on-site activities must be fenced in with access limited to a monitored gate. 2. Waste Storage/Disposal. a. No in-ground storage at the drill site. All wastes, fuels, and chemicals must be stored in leak-free containers. b. No waste may be stored more than three months on site after drilling operations cease. c. A safety plan describing measures and precautions to be undertaken to prevent spillage of fuel, waste, or potentially harmful materials/substances onto the land surface or into surface water and ground water must be provided. A contingency plan for response to spills is also required. d. Before disposal of drilling waste, Applicant must identify the sitelfacility ~lan~.ed fc~ drilling waste disposal, give 48 hours' notification of transport of drilling waste from the drilling site and provide documentation of proper disposal of all wastes. E. COMPLIANCE WITH PERMITS. Applicant must hold and remain in compliance with all State and Federal permits and reg~lations eovering oil and gas drilling and waste handling and disposal. Applicant must notify KPB within 48 hours of any violation of permit or regu~ation as determined by a State or Federal monitoring agency. ~ - J F. EROSION. Applicant must provide to KPB an erosion control plan signed by an Alaska-registered civil engineer designed to prevent erosion by drilling activities of the bluff bordering the drilling site and maintain or preserve the natural drainage pattern of the site and surrounding area. G. RIGHT-OF-WAY CONTROL. While use of the right-of way for site access is not controlled under KPB 20.12 regarding noxious injurious uses, Surf Street and Facio Road are Borough-maintained rights-of-way and as such are regulated by the KPB Public Works Department. Applicant is hereby notified that any use of heavy commercial vehicles causing damage to a Borough right- of-way beyond the normal wear-and-tear of personal vehicle use is prohibited. Thus Applicant's use of the right-of-way by heavy vehicles may require upgrade and maintenance of the road at Applicant's expense. Further, the blocking of regular vehicle travel on any Borough-maintained rights-of-way through the parking or non-transit operation of vehicles is prohibited (Thus, Applicant may not block the right-of-way while filling water trucks from the roadway, nor store equipment within the right-of-way). MICROFILMED 10/12/00 DO NOT PLACE ANY NEW MATERIAL UNDER THIS PAGE Memorandum State of Alaska Oil and Gas Conservation Commission Re.' Cancelled or Expired Permit Action EXAMPLE: Point McIntyre P2-36AXX API# 029-22801-95 This memo will remain at the front of the subject well file. Our adopted conventions for assigning APl numbers, permit numbers and well names did not specifically address expired or cancelled permits. This omission has caused some inconsistencies in the treatment of these kinds of applications for permit to ddll. Operators have asked us to adopt formal procedures for this class of permit application in order to prevent future database disparities. If a permit expires or is cancelled by an operator, the permit number of the subject permit will remain unchanged. The APl number and in some instances the well name reflect the number of preexisting reddlls and or muitilaterals in a well. In order to prevent confusing a cancelled or expired permit with an active well or multilateral these case sensitive well identifiers will be changed for expired and cancelled applications for permits to ddll. The AP! number for this cancelled or expired permit is modified so the eleven and twelfth digits is 95. The well name for a cancelled or expired permit is modified with an appended xx. These procedures are an addendum to the APl numbering methods described in AOGCC staff memorandum "Multi-lateral (weiibore segment) Drilling Permit Procedures, revised December 29, 1995. AOGCC database has been changed to reflect these changes to this permit. St-eve McMains ' ~ Statistical Technician June 21, I989 Telecopy No. (907) 276-7542 Penny Vadla P 0 Box 467 Ninilchik, ~ 99639 Dear Mrs Vadla: Please refer to your June 21, 1989 letter and our discussion in Mr Chatterton's office regardint~realts Resources, Inc Falls Creek/Burglin, et al, well~FC×_J~location. You are correct, indeed, in your understanding that~ the drilling permit for this well was cancelled March 31, 1989. You requested the Commission to not re-issue a drilling permit for a well at the FCX 12-1 location because of it being in a resident- ial area. Absent permit denial, you request that our inspectors make frequent inspections (weekly) to check the drilling equipment and operation. Ms Vadla, as expressed in Mr Chatterton's September 8, 1988 letter to you, the Legislature failed to give us the authority to deny a drilling permit application for a well because of it being in a residential area. When an application conforms to the purposes and intent of the Alaska Oil and Gas Conservation Act (AS 31.05), and the Regulations (20 AAC 25.005-570) promulgated therefrom, the Comission is required by law (AS 31.05.090) to promptly issue a permit to drill. In the event Boreaiis Resources re-applies for a drilling permit at the subject location and meets the require- ments, the Commission will issue the permit without delay. Regulation 20 AAC 25.035(a)(7) requires the well operator to test blowout preventors weekly and record the test results in the daily drilling record. In an effort to partially alleviate your concern, we would propose to visit the drilling operation weekly, subject to availability of travel funds, to check these test results. As requested, you are now on the Commission's mailing list for public notices. Please advise whenever you feel that we may be helpful. Sin¢.erely ,~. Co~issioner Jo/F.CVC.43 June 21, 1989 Mr. Lonnie Smith Ak. Oil & Gas Commission Porcupine Street Anchorage, Alaska 99510 DUPtfCATE Dear Mr. Smith: Since the residents are so close to the proposed drilling site of Borealls Drilling Company (Neher Subdivision-Clam Gulch, Alaska), and Borealis Drilling Company cancelled their drilling permit on March 31, 1989, even though they were in dispute with the Kenal Peninsula Borough regarding the borough°s noxious, hazardous, and injurious law; we, the residents of the Neher, Tikka, and Fails Creek Subdivisions, do hereby request that the Alaska Oil & Gas Commission deny a new permit to the company to drill in this residential area. Houses are a mere lO0 to 200 feet f.rom the site. Wells are closeM In the event that the Alaska Oil & Gas Commission refuses to listen to the requests of the local residents who are extremely fearful of their safety and the safety of their water supplies, we hereby request that the Alaska Oil & Gas Commission set up frequent Inspections (weekly) to cheq~k the equipment and the operation. It ls our understanding that Borealis Drilling ls an Inexperienced drilling operation; and these are exceptional circumstances In that this Is the closest that a drilling company has drilled to homes. There is no escape route for several families who have small children. Also, weare requesting that we be placed on the Alaska Oil & Gas Commission's mailing list for hearings. · 'Penny dla Thank you. RECEIVED IUN cc: Chat Chati~erton, A.O.&G.; Steve Cowper, Govenor; Alice Smith, Div. of Gov. C.oord.; Julle Howe, D.E.C.; Bill Van Dyke, D.N.R.; Hank Bali, Corp. of Eng.; and, Dick Troegger, K.P.B.D. ;JUN 1 9 B89 C~]RTiFIED NAIL REQUESTED Atas .OJj & Gas Cons. Commission Br inn Burglin Anchorage Boreaiis Resources~ inc., P.O. Box ~:~I Fairbanks ~ AK 99707 STEVE COWP£1q, GOVEt~NC:FI Re: File No. 8821-DB014 Well The Department~.~o~ rece~.~,~ed~ and ~:eviewe. d your letter dated l[ay _]9, ~ ~89 wh~''' .... ~cn continues to questions ADL~ s authority over your proposed injection well The a~' . . ~gument presented appea~s to be a matter of semantics rather than a clear understanding o~ the Alaska Statutes. In simple terms, your wastewater disposal plans involve ~n the injection of wastewater from an exploratory dr itling operation down the annulus of the well. Since this is not a dedicated in-~ection well (Class II injection well), the disposal of the wastewater is regulated by ADEC as well as by AOGCC. ...e re( vested forn!atzon r3ecaL]se Your objection tO ~ubmitting ~ ] is related to "injection operations~ is interesting. ADEC has r~,~c-~,~sted information that. is i~¥serative to our review of proposal and whether or not there is a potential fo~ groundwater contamination, and whether cr not the proposal is in compliance A,.~.,inistrativ'e Code (es. d~s~,~.,~¢,.. with Chapter 18 of the Alaska ,':~'- of the sol'~' proxim~*" to .. loS~ ..~y drinking ,;~;a'ker vzel.ls~ otc ) ereforc:~ your belief that ADEC does not have the authority to request such info~mation ~ and your statement that this info['mation is not available until the well is drilled is simply incorrect. c'ince Borealis Resources '~oes not have a Wastewater l')isposal Permit or an aooroved waste d~soosal L~lan (solid and liquid waste;:3), you are at a risk to initiate driiling~ Sho~].~d ADEC determine that plan is unacceptable or we receive substantial objections during ~.-. ~-,,-~,.~ an alternative d'[spona'~ plan the required pub!.ic notice Fe[~.~.,~ will be n,~cessary ~"',is imp ~,, statement does not ly that ;:,; .... ',,.. considers injection ef drill fluids unacceptable, it does however notify Borealis Resource{~ of potential delays in the project due to initiating drilling without the proper approvals by this department. The department has received the information yc:u submitted on Hay 17, t 9 $ 9 r e g a r ,'::~.._~ i n g t h e ,:,~..~ ~ TM ~',~ ~ ~'," w e .,t .... 1 s w i t h i n a I ~/4 m :} !. e r a d i u s f r o m the proposed Clril!~.~';te. . We wilq.~, attemr)t~ to obtain information regarding the depths of the wells that you did not provide throu~jh the Department of Natural Resources and/or the residents. Brian Burg!in {~7e have also received a submit- ~ fr. ta~.. om Gilfii~an FP. gineering, regarding the solids handling plan~ Following ,~e review of th~.s information~ we find the plan acceptable. You ~re hereby no'tifie~, that the sol~ ~s may remain lo not ' iN temporary storage more than one year. Additionally, the proposed landspreadiDg of the solids require a Sol~ ~ Waste Disposal Permit s d - . ~o . You houl contact ~:~enrl Friedman of th{s office for fu~r~her detailo I hope this clarifies the issue. Upon receipt of the details on the nearby. ~ drin'~.i.n,$~, wells, the department will proce~d.~, with the public notice. Please ,contact me if you have any questions. Sincerely, Jutie Howe Environmental Engineer JH:ect cc: Kena{ District Office George Wilson~ Central Off~~ Alison Smith, DGC-Anchorage Jane Gabler, Kenai Peninsula Borough March 31, 1989 Brian Burglin, President Borealis Resources Inc P O Box 131 Fairbanks, AK 99707 Dear Brian~ Please refer to our discussion of today regarding your plan to no longer drill your Falls Creek/Burglin mt al well Accordingly, we hereby cancel the well's July 20, 1988 Permit to Drill ;88-69. Your $~00,000 bond, a Denali State Bank Certificate of Deposit-~00383, was endorsed by the Commission today, and released to you in person. Sincerely, .,~ C V Chatterton Chairman 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 LAW OFFICES HOPPNER & PASKVAN, P.C. 714 4T# AVENUE, SUITE 30! I,. o. ~ox 73eee FA,RUANKS, AK 99707- (907) 452- ]205 IN THE SUPERIOR COURT FOR THE STATE OF ALASKA THIRD JUDICIAL DISTRICT, AT KENAI BOREALIS RESOURCES, INC., Appellant, VS. KENAI PENINSULA BOROUGH BOARD OF ADJUSTMENT, Appellee. Case No. ~N--~8- Civil ) ) ) ) *) ) ) ) ) ) ) ) STATEMENT OF POINTS ON APPEAL COMES NOW the appellant, BOREALIS RESOURCES, INC., by and through its attorneys, HOPPNER & PASKVAN, P.C., and pursuant to Appellat~ Rules 601(b) and 210(e), sets forth the following statement of points on appeal: 1. The decision of the Kenai Peninsula Borough · Board of Adjustment dated October 20, 1988,.is arbitrary and capricious. ~ Planning Commission dated September 15, 1988, is arbitrary and capricious. 3. The Kenai Peninsula Borough Board of Adjustment and Planning Commission's application of KPB 21.12.020 is ultra .vires. RECEIVED / / / DEC; .,:~l~ska 0il & Gas Cons. Commission Borealis Resources v. Ae]~0~&nsula STATEMRNT O¥ POINTS ON APPRAT, Page 1 of 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 _ 20 21 22 23 - 24 25 26 ~AW OFFICES HOPPNER & PASKVAN, P.C. 714 41# AVENUE, SUITE 301 P, O, BOX 73888 FAIRBANKS, AK 99707 . (007) 452- $205 4. Appellant's due process rights, both procedural and substantive, have been violated by appellee's decision dated October 20, 1988. 5. Appellee's decisions dated October 20, 1988, and September 15, 1988, violate Borealis Resources, Inc.'s rights of equal protection of the law in that the enforcement of KPB 21.12, et seq., has no standard for either its application or qualification for exception. 6. Ordinance no. 21.12.010, et seq., is unconstitutional. 7. Ordinance no. 21.12.010, et seq., as applied, is unconstitutional. 8. Ordinance no. 21.12.010, et seq., is vague and overbroad and is onl~ applied on an ad hoc basis. 9. As applied, the decisions dated October 21, 1988, and September 15, 1988, enforcing KPB 21.12.010, et seq., constitute a taking of property entitling appellant to just compensation by appellee. 10. Appellant is entitled to the reasonable ~se of its land, including the exercising of its surface and subsurface rights, such that the appellee's decisions of ~ctober 20, 1988, and September 15, 1988, constitute an inverse condemnation of appellant's rights. Borealis Resources v. Kenai Peninsula STATEMENT OF POINTS ON APPEAL Page 2 of 3 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 20 21 22 23 24 JLP/cmb25 26 I.AW OFFICES HOPPNER & PASKVAN. P.C. 114 4T# AVENUE, SUITE 301 P. o. BOX 7~8.e FAIRBANKS. AK 99707 * 11. Appellee's exercise of KPB 21.12.010, et seq., has been preempted by federal and/or state law. 12. Appellee's actions are enforcement of private interests rather than public interests and, therefore, are. void. 13. Appellant, as a matter of law, is entitled to compensatio~ for the taking from September 15, 1988, and continuing. 14. The Kenai Peninsula Borough Planning Commission's determination has insufficient factual support or at the such that the finding must be sum~'~;~v d~missed , minimum, a trial de novq pursuant to Appellate Rule 609 is required. 15. The Kenai Peninsula Borough Board of Adjustment's failure to determine whether sufficient facts exist to support the Planning Commission's decision entitles appellant to a trial de novo pursuant to Appellat~/_Rule' 609- _ DATED at Fairbanks, Alaska, .this ~ day of November, 1988. HOPPNER & PASKVAN, P.C. Attorneys for Appellantp Borealis Resources v. Kenai Peninsula OF OIN S ON October 6, 1988 DIVISION OF OIL AND GAS / Penny Vadla Box 467 Ninilchik, AK 99639 Dear Mrs. Vadla- SIEV '.': i-' !'::~.~':',i -! t'~ hi :'/', I am writing in response to your letter dated September 21, 1988 (copy attached). In that letter you expressed concern about the safety of the proposed exploratory drilling operation by Boreal is Resources and asked a number of permit-related questions about the well. Listed below are the answers (though you have probably heard them all before) to your inquiries. 1. Will tile Boreal is Resources operation be conducted in a safe manner? Despite the fact that the proposed well is to be drilled on private property, the drilling will be monitored by the Alaska Oil and Gas Conservation Commission. That agency regulates subsurface drilling operations and many related surface activities to assure that the casing design, blow out prevention equipment, drilling mud and cementing program, etc. all meet State standards. Borealis Resources does need a permit from the Alaska Oil and Gas Conservation Commission prior to commencing drilling operations. 2. Who will assure that there is no contamination or impacts to near by water wells? The Department of Environmental Conservation regulates discharge and disposal of drilling muds, other solid wastes and waste water. Borealis Resources must get prior approval from DEC if it plans any disposal or discharges at the drill site. It also must get prior approval from DEC if it plans to dispose of drilling fluids down the well bore. 3. What about possible erosion of the bluff? The U S Army Corps of Engineers [1as certain regulatory authorities if Borealis Resources is operating in wetlands or in navigable waters. I know that you have already spoken with the Corps of Engineers and that it has sent an inspector to the site. Separately, if the drilling operation causes damage to your property you have every right to seek recovery of those damages from Boreal is Resources. 4. ~ho is responsible for the potential loss of sleep, stress, etc.? This is really a question of which came first- the chicken or tile egg? The 'following is not intended to be a lecture or a sermon but I think that it really does need tO be discussed: Had you researched the status of your property and the surrounding properties prior to deciding to live there, you would have discovered that there was a federal oil and gas lease already issued directly underneath and completely surrounding your property. Second, you would have discovered that at least some of the nearby properties did not disallow the drilling of oil and gas wells on those properties (i.e., you would have seen Page 2 Mrs. Penny Vadla October 6, 1988 that ttle covenants, or lack 'thereof, were different). Third, you would have learned that there was an already-existing gas discovery near your property. And fourth, you would have learned that there were no local ordinances or zoning restrictions specifically prohibiting the drilling of oil and gas wells in your part of the Kenai Borougl~. I do not know what type of research you did on your property and the surrounding properties prior to deciding to live there, but some times we have to learn to admit and live with our "mistakes" or wrong assumptions. Alternatively, you might have known all of the above prior to moving in, but decided to live there anyway. Luckily, the drilling operation will be only temporary in nature; the rig should be there 'for no more than 9D days. If the well does prove to be productive and it is later produced, there is little noise or disturbance associated with that activity. 5. Why weren't tile local residents informed prior to our agency issuing a permit in April of 19887 This agency did not issue any permit to Borealis Resources in April of 1988. Because the drilling operation is to be conducted on private property (the surface estate is owned by Borealis Resources) we do not have any authority to require Boreal is Resources to get a permit from our office. As we discussed when you visited our office this summer, Borealis will be required to get a number of permits to operate, but it will not need (and we can not require) a permit from this office. It is for this same reason that we did not send an inspector to the proposed drill site. Again, Borealis Resources is responsible for its operation and has posted a bond with tile Alaska Oil and Gas Conservation Commission as part of that responsibility. I can understand the concern you have about the proposed well and I can sympathize with your desire to have the well site located away from your property. However, in this instance I do not see any immediate solution to your problems except to continue to pursue a solution with your local g~vernment and to keep in contact with tile state and federal agencies that ¥~ill be regulating and monitoring the operation. It also certainly wouldn't hurt to keep in touci~ wi~h Borealis Resources. Please call if you have any more questions or ~ant any further clarification of my answers to your questions. Si ncerely, William Van Dyke Petrol eum ~,~anager O060V September 21, 1988 Mr. B I 11 Van Dyke Lease Administration Dept. of Natural Resources 3601 C. St. Floor lO Anchorage, Ak. 995 ! 0 SEP 2 9 19 DN~SION OF' OIL & GAS ANGI~ORAGE, ALASKA Dear Mr. Van Dyke: ,¢ I am writing to you because ! am very concerned about the safety of the drilling operation of Borealis Resources, Inc. in a well-established residental area on the Kenai Peninsula. This drilling operation has the potential to directly effect and negatively impact the water'wells, the erosion of the bluff, the quality of the air, etc. in the area. My questions,, therefore, are as follows: Why weren't the local residents informed (sent a letter) regarding the possible drilling by Borealis? Why did your offices not make an on-site investigation prior ro rhe issuance of the permit? (Then maybe your offices would have known that this was a residental area.) Who is responsible for contamination problems, hazards, erosion, illness, loss of sleep, etc.? ( I assume that. Borealis is responsible, but isn't your office equally responsible as you issjued the permit in April of 1988. Please contact me as soon as PoSsible as the prospects of this company drilling ONLY a few hundred feet from my water well and a few hundred feet from my CHILD's play area is potentially hazardous and very stressful for my family. Thank. you for your prompt reply. Penny Va/dl a Box 467 Ninilchik, AK. 99639 TELECOPY NO: (907) 276-7542 September 8, 1988 Ms. Elaine O'Hara P. O. Box 70 · Clam Gulch, AK 99568 Dear Ms. O'Hara: Thank you for your August 26, 1988 letter. You are concerned that the Alaska Oil & Gas Conservation Commission did not make an on-site investigation prior to issuing a permit to drill a well for natural gas in Section 12, TIN, R13W, SM. Further, you question why a public hearing was not held prior to permitting the well and whether the commission is liable for damage suffered by property owners. in response to your concerns, it is our opinion that the Commis- sion is without the statutory jurisdiction and authority to address your grievance in any substantive manner. Further, we have found no statutory language suggesting the Commission is responsible and liable to property owners for damages resulting from the drilling of a well for oil and gas. The statutory law limits the Commission's jurisdiction and authority over persons and property to that e~tent necessary for carrying out the purpose and intent of the Alaska Oil and Gas Conservation Act (AS 31.05). The act specifically provides that 'waste of crude oil and natural gas is prohibited and correlative rights (the right of opportunity to produce a fair share of oil and gas without waste) are protected. The Commission's authority extends to these subsurface concerns. In contrast, regulation of surface uses of private lands falls more within the purview of subdivision covenants or municipal and borough zoning ordinances. The Commission's investigation of a proposed well site is not necessary to provide assurance a well will be drilled in a manner that protects correlative rzgh~s and prevents waste of hydro- carbons. Neither does the Commission believe that a public hearing would be helpful to the Commission in determininz whether the drilling of a well is in violatign of the CommissionYs statutory mandate. These determinatzons are a burden imposed upon the Commission and its supporting staff of Petroleum Geolo- gists and Petroleum Engineers. Pis. Elaine O~' Hara September 8, 1988 Again, while the Commission understands your concerns, this agency is responsible for assuring that subsurface oil and gas activities are properly conducted. It is not responsible for regulating the surface impacts of drilling activities on private lands. Should you have further questions please do not hesitate to call or write. dlf: 1.CVC/20 TELECOPY NO.' (907) 276-7542 September 8, 1988 Ms. Nancy Mi lke Box 421 Clam Gulch, AK 99568 Dear Ms. Milke~ Thank you for your August 26, 1988 letter. You are concerned that the Alaska Oil & Gas Conservation Commission did not make an on-site investigation prior to issuing a permit to drill a well for natural gas in 'Section 12, TIN, R13W, SM. Further, you question why a public hearing was not held prior to permitting the well and whether the commission is liable for damage suffered by property owners. In response to your concerns, it is our opinion that the Commis- sion is without the statutory jurisdiction and authority to address your grievance in any substantive manner. Further, we have found no statutory language suggesting the Commission is responsible and liable to property owners for damages resulting from the drilling of a well for oil and gas. The statutory Iaw limits the Commission's jurisdiction and authority over persons and property to that extent necessary for carrying out the purpose and intent of the Alaska Oil and Gas Conservation Act (AS 31.05). The act specifically provides that waste of crude oil and natural gas is prohibited and correlative rights (the right of opportunity to produce a fair share of oil and gas without waste) are protected. The Commission's authority extends to these subsurface concerns. In contrast, regulation of surface uses of private lands falls more within the purview of subdivision covenants or municipal and borough zoning ordinances. The Commission's investigation of a proposed well site is not necessary to provide assurance a well will be drilled in a manner that protects correlative rights and prevents waste of hydro- carbons. Neither does the Commission believe that a public hearing would be helpfu~ to the Commission in determinin~ whether the drilling of a well zs in violation of the Co~nissionYs statutory mandate These determinations are a burden imposed upon the CommissiOn and its supporting staff of Petroleum Geolo- gists and Petroleum Engineers. Ms. Nancy Milke oeptember 8, 1988 Again, while the Commission understands your concerns, this agency is responsible for assuring that subsurface oil. and gas activities are properlY conducted. It is not responsible for regulating the surface impacts of drilling activities on private lands. Should you have further questions please do not hesitate to call or write. dlf: 1.CVC/20 TELECOPY NO: (907) 276-7542 Septem~ber 8, 1988 Peter M. and L~-anette Carroll Box 39044 Ninilchik, AK 99639 Dear Mr. & Ms. Carroll: Thank you for your August 26, 1988 letter. You are concerned that the Alaska Oil & Gas Conservation Commission did not make an on-site investigation prior to issuing a permit to drill a well for natural gas in Section 12, TIN, R13W, SM. Further, you question why~a public hearing was not held prior to pemitting the well and whether the commission is liable for damage suffered by property owners. In response to your concerns, it is our opinion that the Commis- sion is without the statutory Jurisdiction and authority to address your grievance in any substantive manner. Further, we have found no statutory language suggesting the Commission is responsible and liable to property owners for damages resulting from the drilling of a well for.oil and gas. The statutory law limits the Commission's jurisdiction and authority over persons and property to that extent necessary for carrying out the purpose and intent of the Alaska Oil and Gas Conservation Act (AS 31.05). The act specifically provides that waste of crude.oil and natural gas is prohibited and correlative rights (the right of opportunity to produce a fair share of oil and gas without waste) are protected. The Commission's authority extends to these subsurface concerns. In contrast, regulation of Surface uses of. private lands falls more within the purview of subdivision covenants or municipal and borough zoning ordinances. ~ne Commission's investigation of a proposed well site is not necessary to provide assurance a well will be drilled in a manner that protects correlative rights and prevents waste of hydro- carbons. Neither does the Commission believe that a public hearing would be helpful to the Co?~.ission in determining whether the drilling of a wel~ is in violation of the Commission's statutory mandate. These determinations are a burden imposed upon the Commission and its supporting staff of Petroleum Geolo- gists and Petroleum Engineers. Mr. & Ms. Carroll 2 September 8, 1988 Again, while.the Commission understands your concerns, this agency is responsible for assuring that subsurface oil and gas activities are properly conducted, it is not responsible for regulating the surface impacts of drilling activities on private lands. Should you have further questions please do not hesitate to call or write. C. V. Chattert°n Chairman dlf: 1.CVC/20 TELECOPY NO: (907) 276-7542 September 8, !988 Bruce and Penny Vadla Box 467 Ninilchik, AK 99639 Dear Mr. & Ms. Vad!a: ~ank you for your August 26, 1988 letter. You are concerned that the Alaska Oil & Gas Conservation Commission did 'not make an on-site investigation prior to issuing a permit to drill a well for natural gas in Section 12, TIN, R13W, SM. Further, you question why a public hearing was not held prior to permitting the well and whether the commission is liable for damage suffered by property owners. in response to your concerns, it is our opinion that the Commis- sion is without the statutory jurisdiction and authority to address your grievance in any substantive manner. Further, we have found no statutory language Suggesting the Commission is responsible and liable to property owners for damages resulting from the drilling of a well for oil and gas. The statutory law limits the Commission's jurisdiction and authority over persons and property to that extent necessary for carrying out the purpose and intent of the Alaska Oil and Gas Conservation Act (AS 31.05). The act ~pecifically provides that waste of crude oil. and natural gas is prohibited and correlative rights (the right of opportunity to produce a fair share of oil and gas without waste) are protected. The Commission's authority .extends to these subsurface concerns. In contrast, regulation of surface uses of private lands falls more within the purview of subdivision covenants or municipal and borough zoning ordinances. The Commission's investigation of a proposed well site is not necessary to provide assurance a well will be drilled in a manner that protects correlative rights and prevents waste of hydro- carbons. Neither does the Conm]ission believe that a public hearin~ would be helpful t? the Con~missign in determining whether the drilling of a well is in violation ox the Commission's statutory mandate. These determinations are a burden imposed upon the Commission and its supporting staff of Petroleum Geolo- gists and Petroleum Engineers. i'~Ir. & Ms~ Vadla 2 ~eptember 8, 1988 Again, while the Commission understands your concerns, this agency is responsible for assuring that subsurface oil and gas activities are properly conducted. It is not responsible for regulating the surface impacts of drilling activities on private lands. Should you have further questions please do not hesitate to call or write. dlf'. 1.CVC/20 TELECOPY NO: (907) 276-7542 September 8, 1988 Eleanor & Robin Tikka Box 243 Clam Gulch, AK 99568 Dear Mr. & Ms. Tikka: Thank you for your August 26, 1988 letter. You are concerned that the Alaska Oil & Gas Conservation Commission did not make an on-site investigation-prior to issuing a permit to drill a well for natural gas in Section 12, TIN, R13W, SM. Further, you question why a public hearing was not held prior to permitting the well and whether the commission is liable for damage suffered by property owners. In response to your concerns, it is our opinion that the Con, his- sion is without the statutory jurisdiction and authority to address your grievance in any substantive manner. Further, we have found no statutory language suggesting 'the Commission is responsible and liable to property o%a~ers for damages resulting from the drilling of a well for oil and gas. The statutory law l~its the Commission's jurisdiction and authority over persons and property to that extent necessary for carrying out the purpose and intent of the Alaska Oil and Gas Conservation Act (AS 31.05). The act specifically provides that waste of crude oil and natural gas is prohibited and correlative rights (the right of opportunity to produce a fair share of oil and gas without waste) are protected. The Commission's authority extends to these subsurface concerns. In contrast, regulation of surface uses of private lands falls more within the purview of subdivision covenants or municipal and borough zoning ordinances. The Commission's investigation of a proposed well site is not necessary to provide assurance a well will be drilled in a manner that protects correlative rights and prevents waste of hydro- carbons. Neither does the Commission believe that a public hearing~would be helpful to the Commission in determining whether the dri£1ing of a we%! is in violation of the Commission's statutory mandate. These determinations are a burden imposed upon the Commission and its supporting staff of Petroleum Geolo- gists and Petroletnn Engineers. Ms. Tl~.~a 2 September 8, 1988 Again, while the Commission understands your concerns, this agency is responsible for assuring that subsurface oil and gas activities are properly conducted. It is not responsible for regulating the surface impacts of drilling activinies on private lands. Should you have further questions please do not hesitate to call or write. C. V. Chatterton Chairman dlf: 1. CVC/20 TELECOPY MO: (907) 276-7542 September 8, 1988 Louis & Pam Swanson Box 154 Clam Gulch, AK 99568 Dear Mr. & Ms. Swanson: Thank you. for your August 26, 1988 letter. You are concerned that the Alaska Oil & Gas Conservation Commission did not make an on-site investigation prior to issuing a peznnit to drill a well for natural gas in Section 12, TIN, R13W, S~[. Further, you question why a pUblic hearing was not held prior to permitting the well and whether the commission is liable for damage suffered by property owners. In response to your concerns, it is our opinion that the Commis- sion is Without the statutory jurisdiction and authority to address your grievance in any substantive manner. Further, we have found no statutory language suggesting the Commission is responsible and liable to property owners ~or damages resulting from the drilling of a well for oil and gas. The statutory law limits the Commission's jurisdiction and authority over persons and property to that extent necessary for carrying out the purpose and intent of the Alaska Oil and Gas Conse~zation Act (AS 31.05). The act specifically provides that waste of crude oil and natural gas is prohibited and correlative rights (the right of opportunity to produce a fair share of oil and gas without waste) are protected. The Commission's authority extends to these subsurface concerns. In contrast, regulation of surface uses of private lands falls more within the purview of subdivision covenants or municipal and borough zoning ordinances. The Commission's investigation of a proposed well site is not necessary to provide assurance a well will be drilled in a manner that protects correlative rights and prevents waste of hydro- carbons. Neither do~s the Commission believe that a public hearing would be helpful to the Commission in determining whether the drilling of a well is in violation oz the Commission's statutory mandate. These determinations are a burden imposed upon the Commission and its supporting staff of Petroleum Geolo- gists and P~trole~n Engineers. Mr. & Ms. Swanson September 8, 1988 Again, while the Commission understands your concerns, this agency is responsible for assuring that subsurface oil and gas activities are properly conducted. It is not responsible for regulating the surface impacts of drilling activities on private lands. Should you have further questions~please do not hesitate to call or write. dl.~: 1. CVC/20 TELECOPY NO: (907) 276-7542 September 8, 1988 Emil & Frances Bartolowits Box 227 Clam Gulch, A/~ 99568 Dear Mr. & Ms. Bartolowits: Thank you 'for your August 26, 1988 letter. You are concerned that the Alaska Oil & Gas Conservation Commission did not make an on-site investigation prior to issuing a permit to drill a well for natural gas in Section 12, TIN, R13W, SM. Further, you question why a public hearing was not held prior to permitting the well and whether the commission is liable for damage suffered by property owners. In response to your concerns, it is our opinion that the Commis- sion is without the statutory jurisdiction and authority to address your grievance in any substantive manner. Further, we have found no statutory language suggesting the Commission is responsible and liable to property owners for damages resulting from the drilling of a well for oil and gas. The statutory law limits the Commission's jurisdiction and authority over persons and property to that extent necessary for carrying out the purpose and intent of the Alaska Oil and Gas Conser~;ation Act (AS 31.05). The act specifically provides that waste of crude oil and natural gas is prohibited and correlative rights (the right of opportunity to produce a fair share of oil and gas without waste) are protected. The Commission's authority extends to these subsurface concerns. In contrast, regulation of surface uses of Private lands falls more within the purview of subdivision covenants or municipal and borough zoning ordinances. The Commission's investigation of a proposed well site is not necessary to provide assurance a well will be drilled in a manner that protects correlative rights and prevents waste of hydro- carbons. Neither does the Commission believe that a public hearing would be helpfu% to the Commission in determining whether the drilling of a well ~s in violation of the Commission's statutory mandate. These determinations are a burden imposed upon the Commission and its supporting staff of Petroleum Geolo- gists and Petroleum Engineers. i~r. & Ms. Bartolowits September 8,~19°g~.~ Again, while the Com~ission understands your concerns, this agency is responsible for assuring that subsurface oil and gas activities are properly conducted, it is not responsible for regulating the surface impacts of drilling activities on private lands. Should you have further questions please do not hesitate to call or write. C, V. Ch~t'terton. Chairman dlf: 1.CVC/20 TELECOPY NO: (907) 276-7542 September 8, 1988 ~Ir. Gregg Tikka P, O. Box 52 Clam Gulch, AK 99568 Dear Mr. Tikka: Thank you for your August 26, 1988 letter. You are concerned that the Alaska Oil & Gas Conservation Commission did not make an on-site investigation prior to issuing a permit to drill a well · for natural gas in Section 12, T1N, R13W, SM. Further, you question why a public hearing was not held prior to permitting the well and ~hether the commission is liable for damage suffered by property owners. In response to your concerns, it is our opinion that the Con~nis- sion is without the statutory jurisdiction and authority to address your grievance in any substantive manner. Further, we have found no statutory language suggesting the Conm~ission is responsible and liable to property owners for d~aages resulting from the drilling of a well for oil and gas. ~ne statutory law limits the Commission's jurisdiction and authority over persons and property to that extent necessary for carrying 9ut the purpose and intent of the Alaska Oil and Gas Conservation Act (AS 31.05). The act specifically provides that waste of crude oil and natural gas is prohibited and correlative rights (the right of opportunity to produce a fair share of oil and gas without waste) are protected. The Commission's authority extends to these subsurface concerns. In contrast, regulation of surface uses of private lands falls more within the purview of subdivision covenants or municipal and borough zoning ordinances. The Commission's investigation of a proposed well site is not necessary to provide assurance a well will be drilled in a man~er that protects correlative rights and prevents waste of hydro- carbons. Neither does the Commission believe that a public hearin~ would be helpful to the Commission in determir~ing whether the drz!ling of a well is i~ violation of the Commission's statutory mandate. These determinations are a burden imposed upon the Co~ission and its supporting staff of Petroleum Geolo- gists and Petroleum Enginears. Mr. Greg Tikka September 8, 1988 Again, while the Commission understands your concerns, this agency is responsible for assUring that subsurface oil and gas activities are properly conducted. It is not responsible for ~--- ~ .... ~ ~f driilin~ activities on private regulating the surzac~ ~p~o ~ -o ......... lands. Should you have further, questions please ~o non mesz~ane to call or write. ~,~'"' ':/ ? .'.'"'/ /'i/' _/_d_ - ~2 V~ Chatterton Chairman dlf: 1.CVC/20 Chat C'hatterton Ak:. K,.'il & '-' ' .uas A;lministratio~ Pr~rcup. i neStreet R E C ElY E D ;" .... ~--.,-. n~.n~ Ak' nn~ ~ r~ SEP - 6 1988 £1:-~F Hr r-,- . · ...... r at ert. Ataska 0il & Gas Cons. Commission Anchorage ',,,/'p. .+ ho iinriar>-;innad r.~,:.iMp, n.-:'-::; nf Falls Creek.' K-..'i:-in,-, Np.h~r ar,,-t c;.=hd4,,-i ' :: - - ' ........... ._. . ~*~" that qOU'r- di'.,.'i sinr! d rio ,_ ._,,...._~._,.,,, ,s,ons, are openl,x L:~;ncerr,..en with th~. f- ...... ~ .... ,_-, .'., ~ R~+ ~ Ari ,-. -4 ' ~-, rnak-~ i~;r~ ~{~-:-;~e iri',..,"e-_-..-_~o_c -_.,. pr !or t.r{ 1SS,'~: ...... -all .S ~'--;F-~iJl~-F'eS ir{r: nf Fairbank'?; tn driil fr,,r Rii nr :-{a:':; in T,,.vr~ ~ N f-aR!]IP, l7'''4. v',' SeC: !o.~ .... -whir-h,_.., iS~ :rinh+, ,_ ;r,:.~. the.. middle of ~.. '",,-..:eli-est r~blished, _ . r~::ifip, nt iai ~,_ ,S n~jr ,~nnRr:--.:T:ar]~:,. ~,~H !-ii~¢~, Uas CnrT!mi nn tr-ips tn f'r]a!rq~ a,r f~C annrnanh tn the isF;!jaf~nR --¢ ...... ' - ' f~-~¢t-aiu ........ ]'~r dsu.l av_'lab]~a~ , ,.,,~,,. asr,," "~,,¢~""--,,,,y v~, ~r ~ ....... *he,. ocai F~,=;~,~u~, _s ' ~--,t 'v,,h r, are most ~,~M-]u ,~¢~r:~euL,~"'U Tf'~S ncvm,,,,~]n accent,"' f'{~-* F{Otifi~ ~- ._.~F! ar ~, p.._., ,.t. _ . ~ _- .... ._ _ ,_- -,. ?.- ~:~-.~ ~ ~.--4 - · ' ' Al :~n i r.:' i ha ~.-',..-:p. rit t ha* :,.,'a+ o~- . k] l dama!_qe., l:.,,u vu, e ~ .... , .......... ar!d n,.~i-,tic o-=-;,-.*,, hazards occijr, iS UOLiF !30flfimi:.--;sir~r~ pr-epar-ed, r-e'.=_:pon'sihl~ a.~-,,4 !-.'.-,~--~.--, fnF daman~s rjaid tr, the prnpert' ti-~p n~;~.~=; whn ..... o ........... ~ ..... ~ aFB _ _ i:_=;>-;.'~-~d ~ho nerm~' +-'-: drii~ ._. ....... ~ i~ ~.:J T;?~ur~K UOU *"-"- ' ' ' . - .... , , dLLMtiLIOFi TFi t ......... ._, ~:_,~ LJ, OLiF DrOfmOt '-~* '~'*~ *his matfpr Wu are ,Jeeply concerned. I i'cq M- m protesting an exploratory oil and gas well drilling operati~N~.~.::~....T Tracts 2 & 3, Neher Subdivision. Subject property is locatg~T~/2'C~.~ · · ~ ' Section 12, TIN, R13W , S.~. consisting of app ox~mately acres and is located approximately 23 miles south of Soldot~m![~'~- the Ci~ Gulch area. Owners of the operation are Borealis Resources Inc., of Fairbanks, Alaska. ,The Public hearing will be conducted by the Kenai Peninsula Borough Planning Commission as required under the K.P.B. Code of Ordinances Chapter 21.12 - Noxious, Injurious or Hazardous Uses. The Commission will determine if the proposed activity may be a noXious; injurious'or hazardous use after developing findings of fact. ~ . -. pUblic hearing on this proposed activity will be conducted by the Kenai Peninsula Borough Planning Commission on Monday, September 12, 1988 commencing at 7:30 p.m. Hearing will be held at the. BoroUgh Administration Building in Soldotna, Alaska. Anyone wishing to testify may come to the above meeting or may submit a written statement to the attention of Jane Gabler, Planning Department, Kenai Peninsula Borough; 144 N. Binkley, Soldotna, AK 99669. ' For additional information contact Jane Gabler; Kenai Peninsula Borough; 262-4441 or 1-800-478-4441 (toll free within the Kenai Peninsula Borough). KeVin Fenner Planning Director PUBLISH: September 1 & 7, !988 RECEIVED AUG 1 1988 Naska Oil & Gas Cons.:Commisslon Anchorage August 5, 1988 - Mr. Steve Fenner Planning Dept. Kenai Pen. Borough 144 N. Binkley Soldotna, AK.. 99669 Dear Mr. Fenner: ? Per our telephone conversation of August 3, i988, I am writing to you to file a formal complaint against Borealis Resources Company of Fairbanks, the Burglin family and a Mr. Tony Ramey for a noise violation on August 1, 3, and 5. . On August 1 at. approximately 11:45, heavy trucks were brought onto the lot next door to ours. A man told me to come back in 1 1/2 hours and ! would have lots to take pictures of. In approximately 1 1/2 hours, several heavy trucks were 15rought into the lot, moved around, and unloaded by some sort of a front loader with a VERY loud beeper on it. Our daugt~ter could not sleep and missed her afternoon nap. Our dogs also barked periodically when the heavy trucks approached. On August 3, while walking down the road on our usual daily walk, my 26 month old daughter cried, "Mom, there too many trucks:--They'-are-going to'get 'me." She refused .... ' ......... to walk. She missed her nap that day and would not go o~tside the house to play in'her sandbox without me. The noise is very disturbing and apparently VERY frightening to a youngster. The workers worked until about 9:CIO p.m. that night. On August 4, they were not working, and that was the first day that our daughter i~layed outside and took a good nap. On August 5, approximately 1:00 p.m., they commenced moving large trucks onto the land next to ours. I went walking down the road and videotaped .the goings on and one of the men (i tt~ink an owner) said in a wise tone, "I'd sure like a copy of that when you're done." My daughter could not go to sleep. Finally, out ofexaustion, she managed to go to sleep at 2:00 p.m. The noise level is extremely higt~. Tile cornpany is apparently an oil/gas · . ;'VICINITY -. MAP / .o 'N"E H E'R' PROPOSED LOCATION OF AN EXPLORATORY OIL AND GAS WELL DRILLING OPERATION. Tracts 2 & 3, Neher Subdivision I Id - ":" -'~ G -G ' ' , .... -~-467A · .. . . · ,~:~.;.'. . ' · ':':"- . ~ '' elo. e bl,,ffl ' ' " WEST '. · ' .NEI'tER COURT~ -- · - · : ZAO. OO' · · ..:'":'.. § 4 o '"' · . 5.729 ~,'C. ~?;ms' "'"-_ ' .*°z-42' · :';.:: ~%,- , .:'.,.;. .~ ~ . ". ,..:. J . · N F. HF,R UNSUBD TRACT A LOCA~E~ IN TRACT D OF FAClO sdnolVlSloN, IN GOV. LOT I; IN FRACTIONAL NEI/4, SEC. 12~ TIN ~ RI3W~ S.M.~ ALASKA. 'SCALE: ¢. 200' :: AR~A · 26.080AC. NOV. 20, 1070 BY MIKE NEHER 9361 BOTHWELL CIR. ANCHORAGE, ALASKA 90502 i'D " .J R , E[VED ~-Eo.,.. ' ~" 'l::,-c~- ....... I/4 con. Alaska Oil & Gas Cons Commission '-~ Anchorage ¢ C drilling company. The workers (by their comments) appear to t~ave no regard that this is an ESTABLISHED rural community. Their equipment is loud and potentially dangerous in a rural area where children are accustomed to walking down the neighborhood roads. Also, tile equipment is so large that it is probable that the driver of one of tt~ose trucks would not see a small child until it was TOO late. · The public interest is not being adequately protected when operations such as this are' allowed to occur in established small communities within a few hundred feet of private land. . ! hope that the Kenai Peninsula 8orough will protect the interests of community 'members Who are'Concerned for'tt~eir welfare, and 'the welfare · . .. of their children..- - . ~ - Your 15rompt attention to this matter is deeply appreciated.' Thank you, Penny Vadla BOX 467 Ninilchik, AK. 99639 262-7249 RECEIVED Alaska Oil & Gas Cons. Commission ' ""~t~ ~/Mlchorage Supp. #35 Chapter 21.12 2 .... 2. 010--21.12. 020 \ NOXIOUS, INJURIOUS OR HAZARDOUS USES · , Sections: ° 21o 12. 010 Permitted when--Exception required. 21°~2.020 Exception--Grounds for granting 21.12.010 Permitted when--Exception re.quired. Ail uses that may be noxious, injurious or hazardous to surrounding property or persons by reason of the production or emission of dust, smoke, r~fuse matter, odor, gas fumes, noise, vibra- tion or similar substances or conditions or the production or storage of exp. losive materials shall be permitted only by exception. (Ord° 15 Si(part), 1966: KPC ~20.10.15(a)). 21.12.020 Exception--Grounds for granting. An excep- tion for .any noxious, injurious or hazardous use or uses may be granted only upon finding that the public interest is ade- quately protected considering the economic benefit to the com- munity de'rived from the use, and that the owners or occupants of property in the vicinity who are specially affected are adequately protected or compensated. (Ord. 15 §l(part), 1966: KPC S20.10.15 (b)) . 182 (Ken~i Peninsula Borough 5/86) Unitea States Department of the interior BUREAU OF LAND MANAGEMENT Division of 'Mineral Resources 6881 Abbott Loop Road Anchorage, Alaska 99507-2599 CERTIFIED MAIL -- RETURN RECEIPT REQUESTED Mr. Brian Burglin BOREALIS RESOURCES P.O. Box 131 Anchorage, Alaska 99707 Dear Mr. Burglin: August 25, 1981 ENG L ~ o. ';:- I '.:'r"l G EOL E~ ~-- ,x - 1 ^so , IN REPLY REFER TO: 160 (984) The purpose of this letter is to confirm the phone conversation of August 18, 1988, between Aden Seidlitz and yourself concerning your proposed Falls Creek 12X-1Burglin well. As we understand, the surface location is 2000' FNL, 300' FEL of Section 12, T. 1N., R. 13 W., SM, and the proposed bottom hole location is 2000' FNL and 3000' FEL of Section 12, T. 1N., R. 13 W, SM. Assuming this to be correct, the surface location is private, but on federal lease No. A-024399 and the proposed bottom hole location is in State lease No. ADL-00590. In this situation, the Bureau of Land Management has no permitting Or jurisdictional authority; however, we are responsible for the federal oil, gas, and coal in lease No. A-024399. To protect the federal minerals in this lease, we will require the submission of the items below within 30 days of completing the drilling operations on the Falls Creek 12X-1Burglin well: A copy of the direction survey of that portion of the well bore which passes through federal lease No. A-024399; The diameter of the drilled hole, casing size, weight and setting depth, and the type and amount of cement used in that portion of the wellbore which passes through federal lease No. A-024399; and any oil, gas, or coal which were encountered while drilling through federal lease No. A-024399 and what measures were taken to isolate these zones. Please send this information to our office at the address above. If you have any questions concerning this letter, please feel free to contact myself of Aden Seidlitz at 267-1220. Sincerely, Joseph A. Dygas Chief, Branch of Lease Operations Division of Mineral Resources cc: Chat Chatterton, Commissioner Alaska Oil and Gas Conservation Commission Public Lands USA: Use, Share, Appreciate bcc: Dave Vickery, ASO (AK-912) Lease No. A-024399 file 984:ASeidlitz:bhn:08/24/88:bu~glin TELECOPY NO: (907) 276-7542 August 12, 1988 Emmil R. Bartolowitz Box -227 Clam Gulch, AK 99568 Dear Nr. Bartolowitz: Please refer to your August 7, 1988 letter requesting the Alaska Oil and Gas Conservation Commission to cancel a Permit to Drill an exploratory well for gas in Section 12, TIN, R12W, SB issued to Borealis Resources Inc. on July 20, 1988. We have carefully reviewed your nine points of concern. Of these nine points, only two (No. 4 and No. 9) appear to lie within the purview of the Commission. Accordingly, we again reviewed in detail the planned drilling, casing and cementing programs to ensure that the well will be constructed in accord with the law and will protect underground sources of drinking water from contamination. Further, we carefully reviewed again the planned drilling fluid program and planned blowout prevention equipment installation to ensure that these matters will be performed in accordance with law, thus minimizing the hazard of a blowout occurring. Our Petroleum Inspectors visit the site during drilling operations to ensure operational compliance with plans. We find no allegation of wrong doing with respect to subsurface drilling operations. Nor do we discern any faults or omissions in Borealis Resources' application for a Permit to Drill. Lacking either of these findings, the Commissio~ is without legal ground for justifying a decision to cease and disband the planned operation. Accordingly we are allowing the Permit to Drill to stand as i~sued. Thank ypu for bringing your concerns to our attention. Perhaps o~her p~litical subdivisions or agencies will be irt a position to a~;~ress~'~your remaining seven points. dif: 1. CVC. 12 TELECOPY NO.' (907)276-7542 August 12, 1988 Eleanor M, Tikka 14545 Surf Clam Gulch, ~ 99568 Dear Ms. Tikka: Please refer to your August 7, 1988 letter requesting the Alaska Oil and Gas Conservation Commission to cancel a Permit to Drill an exploratory well for gas in Section 12, TiN, R12W, SB issued to Borealts Resources Inc. on July 20, 1988. We have carefully reviewed your nine points of concern. Of these nine points, only two (lqo. 4 and No. 9) appear to lie within the puz"~iew of the Commission. Accordingly, we again reviewed in detail the planned drilling, casing and cementing programs to ensure that the well will be constructed in accord with the law and will protect underground .sources of drinking water from contaminat ion. Further, we carefully reviewed again the planned drilling fluid program and planned blowout prevention equipment installation to ensure that these matters will be performed in accordance with law, thus minimizing the hazard of a blowout occurring. Our Petroleum Inspectors visit the site during drilling operations to ensure operational compliance with plans. We find no allegation of wrong doing with respect to subsurface drilling operations. Nor do we discern any faults or omissions in Borealis Resources' application for a Permit to Drill. Lacking either of these findings, the Commission is without legal ground for justifying a decision to cease and disband the planned operation. Accordingly we are allowing the Permit to Drill to stand as issued. Thank you for bringing your concerns to our attention. Perhaps Other political subdivisions or agencies will be in a position to address your remaining seven points. dlf: 1. CVC. 12 TELECOPY NO: (907)276-7542 August 12, 1988 Louis C. Swanson 57960 Faclo Road Clam Gulch, AK 99568 Dear Mr. Swanson~ Please refer to your August 7, 1988 letter requesting the Alaska Oil and Gas Conservation Commission to cancel a Permit to Drill an exploratory well for gas in Section 12, TIN, R12W, SB issued to Borealis Resources inc. on July 20, 1988. We have carefully reviewed your nine points ofconcern. Of these nine points, only two (No. 4 and No. 9) appear to lie within the purviewof the Commission. Accordingly, we again reviewed in detail the planned drilling, casing and cementing programs to ensure that the well will be constructed in accord with the law and wii1 protect underground sources of drinking water from contamination. Further, we carefully reviewed again the planned drilling fluid program and planned blowout prevention equipment installation to ensure that these matters will be performed in accordance with taw,~ thus minimizing the hazard of a blowout occurring. Our. Petroleum Inspectors visit the site during drilling operations to -ensure operational compliance with plans. We find no allegation of wrong doing with respect to subsurface drilling operations. Nor do we discern any faults or omissiOns in Borealis Resources' application for a Permit to Drill. Lacking either ?f these findings, the Commission is without legal ground for justzfying a decision to cease and disband the planned operation. Accordingly we are allowing the Permit to Drill to stand as issued. Thank you for bringing your concerns to our attention. Perhaps other political subdivisions or agencies will be in a position to address your remaining seven points. Sincerely, Chairman dlfz 1.CVC. 12 TELECOPY NO: (907)276-7542 August 12, 1988 Robin R. Tikka 1-4545 Surf Clam Gulch,. AK 99568 Dear Mr. Tikka: Please refer to your August 7, 1988 letter requesting the Alaska Oil and Gas Conservation Commission to cancel a Permit to Drill an exploratory well for gas in Section 12, TIN, R12W, SB issued to Borealis Resources Inc. on July 20, 1988. We have carefully reviewed your nine points of concern. Of these nine points, only two (No. 4 and No. 9) appear to lie within the purview of the Commission. Accordingly, we again reviewed in detail the planned drilling, casing and cementing programs to ensure that the well will be constructed in accord with the law and will protect underground sources of drinking water from contamination. Further, we carefully reviewed again the planned drilling fluid program and planned blowout prevention equipment installation to ensure that these matters Will be performed in accordance with law, thus minimizing the hazard of a blowout occurring. Our Petroleum Inspectors visit the site during drilling operations to ensure operational compliance with plans. We find no allegation of wrong doing with respect to subsurface drilling operations. Nor do we discern any faults or omissions in Borealis Resources' application for a Permit to Drill. Lacking either of these findings, the Commission is without legal ground for justifying a decision to cease and disband the planned operation. Accordingly we are allowing the Permit to Drill to stand as issued. Thank you for bringing your concerns to our attention. Perhaps other political subdivisions or agencies will be in a position to address your remaining seven points. Sincerely, f //'". i .'/ / ..... ': --"z / / C. V. Chatterton " Chaimn dlf: 1. CVC. 12 TELECOPY NO: (907)276-7542 August 12, 1988 K. Penny Brett Vadla Box 467 Ninilchik, AK 99639 Dear Ms. Vadla: Please refer to your August 7, 1988 letter requesting the Alaska Oil and Gas Conservation Commission to cancel a Permit to Drill an exploratory well for gas in Section 12, TIN, R12W, SB issued to Borealis Resources Inc. on July 20, 1988. We have carefully reviewed your nine points of concern. Of these nine points, only two (No. 4 and No. 9) appear to lie within the purview of the Commission. Accordingly, we again reviewed in detail the planned drilling, casing and cementing programs to ensure that the well will be constructed in accord with the law and will protect underground sources of drinking water from contamination. Further, we carefully reviewed again the planned drilling fluid program and platted 'blowout prevention equipment installation to ensure that these matters will be performed in accordance with law, thus minimizing the hazard of a blowout occurring. Our Petroleum Inspectors visit the site during drilling operations to ensure operational compliance with plans. We find no allegation of wrong doing with respect to subsurface drilling operations. Nor do we discern any faults or omissions in Borealis Resources' application for a Permit to Drill. Lacking either of these findings, the Conm~ission is without legal ground for justifying a decision to cease and disband the planned operation. Accordingly we are allowing the Permit to Drill to stand as issued. ~ r Thank you zo bringing your concerns to our attention. Perhaps other political subdivisions or agencies will be in a position to address your remaining seven points. Sincerely, f ; .-',' I // ~ ..... ... :-:~ ". ~-..~ Chaiman dlf: 1. CVC, 12 TELECOPY NO ~ (907)276-7542 August 12, 1988 Pamela Swanson 57960~ Fac!o Road Clam Gulch, A_K 99568 Dear Ms. Swanson= Please refer tO~ your August 7, 1988 letter requesting the Alaska Oil and Gas COnservation Commission to cancel a Permit to Drill an exploratory well for gas in Section 12, TIN, R12W, SB issued to Borealis Resources inc. on July 20, 1988. We have carefully reviewed your nine points of concern. Of these nine points, only two (No. 4 and No. 9) appear to lie within the purview.of the Commission. Accordingly, we again reviewed in detail the planned drilling, casing and cementing programs to ensure that the well will be constructed in accord with the law and will protect underground sources of drinking water from contamination. Further, we carefully reviewed again the planned drilling fluid program and planned blowout prevention equipment installation to ensure that these matters will be performed in accordance with law, thus minimizing the hazard of a blowout occurring. Our Petroleum Inspectors visit the site during drilling operations to ensure operational compliance with plans. We find no allegation of wrong doing with respect to subsurface drilling operations. Nor do we discern any faults or omissions in Borealis Resources' application for a Permit to Drill. Lacking either of these findings, the Commission is without legal ground for justifying a decision to cease and disband the planned operation. Accordingly we are allowing the Permit to Drill to stand as issued. Thank you for bringing your concerns to our attention. Perhaps other political subdivisions or agencies will be in a position to address your remaining seven points. Sincerely, /'.'"' ~ ,..../~"/ .... .. C. V. Chaiman dlf: 1.CVC. 12 TELECOPY NO: (907)276-7542 August 12, 1988 P. Carroll 14605 Homestead P. O..Box 39044 Ninilchik, AK 99639 Dear Mr. Carroll: Please refer to your August 7, 1988 letter requesting the Alaska Oil' and Gas Conservation Commission to cancel a Permit to Drill an exploratory well for gas in Section 12, T1N, R12W, SB issued to Borealis Resources Inc. on July 20, 1988. We have carefully reviewed your nine points of concern. Of these nine point~s, only two (No 4 and No. 9) appear to lie within the purview of~' the Commission[ Accordingly, we again reviewed in de,ail the planned dri.liing, casing and cementing programs to en~ure that the well wIli be constructed in accord with the law and will:protect underground sources of drinking water from contamination. Further, we carefully reviewed again 'the planned drilling fluid program and planned, blowout prevention equipment installation to ensure~that these matters will be performed in accordance with law, thus minimizing the hazard of a blowout occurring. Our Petroleum Inspectors visit the site during drilling operations to ensure operational compliance with plans. We find no allegation of wrong doing with respect to subsurface drilling operations. Nor do we discern any faul~s or omissions in Borealis Resources~ application for a Permit to Drill. Lacking either of these findings, the Co~nission is withou~ legal ground for justifying a decision to cease and disband the planned operation. Accordingly we are allowing the Permit to Drill to stand as issued. Thank you for bringing your concerns to our attention. Perhaps other political subdivisions or agencies will be in a position to address your remaining seven points. Sincerely, :.....,, ~.f /.:1 ..../,; :- t £ ..,:Az Chairman dif: 1.CVC. 12 TELECOPY NO.' (907)276-7542 August 12, 1988 Lynette Carroll 14605 Homestead P. O. Box 39044 Ninilchik, AK 99639 Dear Ms. Carroll: Please refer to your AuguSt 7, 1988 letter requesting the Alaska Oil and Gas Conservation Commission to cancel a Permit to Drill an exploratory well for gas in Section 12, TiN, RI2W, SB issued to Borealis Resources Inc. on July 20, 1988. We have.carefully reviewed your nine points of concern. Of thgse nine.poin~s..onl¥ two (No. ~.and ~Q. 9) a~mear to lie within the Rurv%9~ p~ the uOmmz~9599, ac~o~zngl~, W% again reviewed in ~etail the planned drml£~ng, caszng an~ cementing programs to ensure that the well will be constructed in accord with the law and will protect underground sources of drinking water from contamination. Further, we carefully reviewed again the planned drilling fluid program and planned blowout prevention equipment installation to ensure that these matters will be performed in accordance with law, thus minimizing the hazard of a blowout occurring. Our Petroleum Inspectors visit the site during drilling operations to ensure operational compliance with plans. We find no allegation of wrong doing with respect to subsurface drilling operations. Nor do we discern any faults or omissions in Boreatis Resources' application for a Permit to Drill. Lacking either of these findings, the Commission is without legal ground for Justifying a decision to cease and disband the planned operation. Accordingly we are allowing the Permit to Drill to stand as issued. Thank you for bringing your concerns to our attention. Perhaps other political subdivisions or agencies will be in a position to address your remaining seven points. Sincerely, /';' i / / ./.. ,,.f__, ' ,'" t:,.- ..,...,t .... C. V. Chatter~om Chairman dl£ ~ I. CVC. 12 TELECOPY NO: (907)276-7542 August 12, 1988 Bruce Vadla Box 467 Ninilchik~ AK 99639 Dear Mr. Vadla: Please refer to your August 7, 1988 letter requesting the Alaska Oil and Gas Conservation Co~issio~. to cancel a Permit to Drill an exploratory well for gas in Section 12, TIN, R12W, SB issued to Borealis Resources Inc. on July 20, 1988. We have carefully reviewed your nine points of concern. Of these nine .points, only two (No. 4 and No. 9) appear to lie within the purview of tile Commlsszo~ Accordingly, we again reviewed in detail the planned drilling, casing and cementing programs to ensure that the well will be constructed in accord with the law and will protect underground sources of drinking water from contamination. F~ther, we carefully reviewed again the planned drilling fluid program and planned blowout prevention equipment installation to ensure that these matters will be performed in accordance with law, thus minimizing the hazard of a blowout occurring. Our Petroleum Inspectors visit the site during drilling operations to ensure operational compliance with plans. We find no allegation of wrong doing with respect to subsurface drilling operations. Nor do we discern any faults or omissions in Borealis Resources' application for a Permit to Drill. Lacking either of these findings, the Co~-~ission is without legal ground for Justifying a decision to cease and disband the planned operation. Accordingly we are allowing the Permit to Drill to stand as issued. Thank you for bringing your concerns to our attention. Perhaps other political subdivisions or agencies will be in a position to address your remaining seven points. Sincerely, Chai~n dlf: 1.CVC. 12 TELECOPY NO: (907)276-7542 August 12, 1988 Greg Mus sman 14645 Surf Clam Gulch, AK 99568 Dear Ms. Mus sma~,: Please refer to your August 7, 1988 letter requesting the Alaska Oil and Gas Conservation Commission to cancel a Permit to Drill an exploratory well for gas in Section 12, TIN, R12W, SB issued to Borealis Resources Inc. on July 20, 1988. We have carefully reviewed your nine points of concern. Of these nine points, only two (No. 4 and No. 9) appear to lie within the purview of the Commission. Accordingly, we again reviewed in detail the planned drilling, casing and cementing programs to ensure that the well will be constructed tn accord with the law and will protect ua~derground sources of drinking water from contamination. Further, we carefully reviewed again the planned drilling fluid program and planned blowout prevention equipment installation to ensure that these matters will be performed in accordance with law, thus minimizing the hazard of a blowout occurring. Our Petroleum Inspectors visit the site during drilling operations to ensure operational.compliance with plans. We find no allegation of wrong doing with respect to subsurface drilling operations. Nor do we discern any faults or omissions in Borealis Resources' application for a Permit to Drill. Lacking either of these findings, the Commission is without legal ground for justifying a decision to cease and disband the planned operation. Accordingly we ara allowing the Permit to Drill to stand as issued. Thank you for bringing your concerns to our attention. Perhaps other political subdivisions or agencies will be in a position to address your remaining seven points. Sincerely, Chaiman TELECOPY ~O: (907)276-7542 August 12, 1988 Paul D. Bartolowitz Box 528 Clam Gulch, AK 99568 Dear Mr. Bartolowitz: Please refer to your August 7, 1988 letter requesting the Alaska Oil and Gas Conservation Commission to cancel a Permit to Drill an exploratory well for gas in Section 12, TIN, R12W, SB issued to Borealis Resources Inc. on July 20, 1988. We have carefully reviewed your nine points of concern. Of these nine points, only two (No. 4 and No. 9) appear to lie within the purview of the Commission. Accordingly, we again reviewed in detail the planned drilling, casing and cementing programs to ensure that the well will be constructed in accord with the law .and will protect underground sources of drinking water from contamination. Further, we carefully reviewed again the planned drilling fluid program and planned blowout prevention equipment installation to ensure that these matters will be performed in accordance with law, thus minimizing the hazard of a blowout occurring. Our Petroleum Inspectors visit the site during drilling operations to ensure operational compliance with plans. We find no allegation of wrong doing with respect to subsurface drilling operations. Nor do we discern any faults or omissions in Borealis Resources' aEplication for a Permit to Drill. LaCking either of these ~ndings, the Commission is without legal ground for justifying a decision to cease and disband the planned operation. Accordingly we are allowing the Permit to Drill to stand as issued. Thank you for bringing your concerns to our attention. Perhaps other political subdivisions or agencies will be in a position to address your remaining seven points. dlf: I. CVC. 12 Mr !-.'hst Phattertnn A!as~--:a Ni! .--~;..-. Ga.':_: C:ornm~ssior.., %,,'iA i pnrr:~ :-,nj no c.-_~ inr-?~nran~ Ai~.':;ka qqF,.r~i ~.~.---.~u~r.sior.,.~ri r~.'--;idents '-'~' *"-- ~'~- ~' ;:-k- _... ,_,, ,_~:u her, .,. ....... a a , al is _ ~'.l _ --.., _ _ . ._, _ ..... ~,~p_.- i ., nd ~ f:t-ep~.': ,l!~e ........ , ._~ .... ::; ,_'d ,.U~,.-~U, .t'-:, regarrii n!~ ? hp '-':.~hd,':,i,---i -- ' h~. _h~ ake th fniiowir~!~ -'-* .... n'~ .... b ............. O ~-,'- S :-I0 ....FP.,_ m. e _ _ . driiiinn nf aF; ' ' ', ,--~ =,,, ,.::~r: i -'-' ,,s -- g nr nil in the Ner,:~r .... -~- ' ' ' ...... ::uL, d~ ,.,~ r,r, ~'T:,::,r, i N ,'-~nge t._:,,,,;, ___.-. '~ h~! r__, - ' .'.FJR:'=;Ni,' .... ,~.~-e~]~:E; r,,:~,.-; .~ F~-_,ri]-'-~--- ur,.. :-: Al ~ si.-'.'a- 3~ . We dn POt aDr,'-'-n'-''-' n~ area We dc: not V?'e do no~ "*:'"~--'_.i0 not ~.--' -' ,~ · for ,sas or oil ip :~n mstablish~ri rp. sidp. qtia! · --- , , , !..I* ! ~ ,-. - -- ~ ........ apnrnvp, nf drii!'.;nd for gas or o.i! on such an ur-,,stab!e blu.-+.'t.' apot-ove nf large trucks nr"-'r~fin!]~ nt-]. at~, ,, ,.~ , '-' . . -~.';-~ ,~ *_ , - - . ~ ' ~ _ -- ~uei ,:.-er,:tar,:-~ir~a,.ior,:.. [ b.,_:_-,.., ho!es: ar~ripc~tentia] ar:r:~dents ~r~r.~rO'-,,,'p., nC f hp. +'--?,:~ ' ' ....... ~t:, L~ Y!_--'._ :QI] ~ ~ ~ ~. ...... pn: : systems anD, rove nf the po*'- -~--~: ........ ~--- - _,_ ,,_ut!~.~,~ {~,~..-.u~ u::, n; air D,D]itJfint] qrolll~ri -- ' i ~ "" ~ / ._ .... ~::,,_uD, s re idential area pNiSe pOI~':~; ' -'-"-'* '- ' '; ~ .... ~,~,.lnn i,n an , herl s We do not approve of the potentia! erosion to the bluff anrt sensitive r:n~,--.-.f, ai ar~.a fh~f the dr'.,.'ilin.o ,;;,iii ,----"---- M:ip. * ' '" , .,~:-..~. ~_n ~ t S pound] nn rNnf inl] ._ ._..~ ._. . ...... -,.~ ...... .., .. _. - , . . ---~ ~ . _ __ . _ -~ ..... ~ r~!~ ~ .... ff t fhp_-dt-ii~lnn pari ai']d eQi~prNp:r~t "-;,;~]] hm'-'.,'R nn propertu values arid rR'--.'a~ -" ' '.,.,': ..... _., _- IA !~i rirNnp, rt ""~ ~ " -' '~ - i- · - I-' Y :-: ;;,"P FJ.,'-I ,~'~0f :~r'~Flrr;,, ' ' ...... ,_ ...... ........ ,::,~.,...~,..~. ......... et r:] ear-r-i.~f ti~--,~-::,d a se.nsiti;..'p._ _... e::<trem~-lH_ _ in,,,;, .... arid bluff area an~ disposing nf th~- v;,a::;t~ n~;~r . _ .......... ~._. bluff ~;;"e Mn r_,ni approv~ r,,f fi-ip.- -.-.' .... ,i - haz rM :-,~ ' ',, nut r~ the ........ p.ut~,;:.,ai a ._ ,_,, a h!o,,,,,,-. ..... p. 2 :-:f "-'._ -.-- The.u:,-~.=,~_.:; ~:,-~.-- .--.-.~--- r-.: e: r:t- .4- _h~ s -_:r! r'~ ': ~ _ I Fi._,]n' n p.re_, t-~ t ~ ,_.,, :nn n*'_ .,. Rnrpsi: i S P:... esou FC:~._ S ir--_; ': e,r!_Iv _ u sturDir.,.g to ,+h~ r~s~dents who l~:.ve in the aboYe-met'~tionpM .xubdivisinr~s ": ' - ' '-'-~ '"nr[( i-:ui]dit~!~ our horr-!es U,' ._-' ','In '- We ar~ .~'.-..'.'; r~rn~u f~arf~!i-,_,,,.-'-,~- *:"-', ,,~ onter!tial fiar,'!_~ers rnentinn~M ...... abnve and v,,-~,,_ k r,.' c.,' w t~'a*~ :,. ,. :=, ..... c~z '.,.e ..... ,-:: ~u ...... ;'---: -, ,,~, era '! --:2,._4 ~ :'- ...... ,r:4_ ~ a.._. s ar~_es tab! i ..... s heal fnr t v,,-'~ifsr~, anM ~:;a¥ ti.~ Of ali t_h,~ r~s4" Of :--;taf~ and She c:ountrq ~,:;e. .... , ..... ~e_.._, . _ ,.~et~ts a ...... ._. - ._. :: tf;~r~fnr~, are r~.:i~,'~s*it'~Q *~',a+ your .:~.!_3~r.::,'---u at-ri,,,-'-~ at thp.' ~.r:isinn .............. h~r-.,-~ ~t iS tOO ar,;d ~i':-han,.-~ this operation imrne;~;iat'-'ly ,. .--..; , ._-,, . ., -. ~ate. yOU fOr your pt'o . AUGUST 10, !i'!S JULIE Nit .ARTNh?.NT OF EI.lV'i[1~()r'~?i SOLID WASTE DIVISION ~601 C STREET ANCHORAGE, AK 99~01 AFTER REVIEi'/ING THE DEf'AfITMEN'J_' OF ~I{VII'~.ONNgNTAL COIISERVATi()I,i PROJECT QUESTIONNAIRE AND THf~ &J. TLICATION EO~ !"iASTI?; DISPOSAL PERMIT SUBMITTED TO YOUR AGENCY BY BO~I~ALIS INCORt:0RAT~D, P 0 BOX 1~, FAIRBANKS, AK 99707, ',I~U; UND]~ItSIGNED RESIDENTS OF THE N~;II~R, TIf{KA, AHD I;'AL,LS RIDGE SUBDIVISIONS DO HEREBY REQUEST A t'UBLIC H~;fARiNG TO THE ISSUANCE OF ANY .PERI, ITS BO BOIU];A],_[S R[~;SOUNCSS !?E FURTHER REQUEST THE DENIAL OF AN~ t'ERNIT ~,U ..,I 'PO THE SITE WHERE THE t"U~.'TPING ?.!OULO BE O0[If~ IS ON 'i'Hn; ON]',y FUBI, IC ACCESS 90AD IN AND OU'~ OF THE SUB.0IVIStONS IT IS AT THE BOTTOM OF A HILL OF A VER~ NARROW ROAD WHICH iT TIN~.2'I TREACHEROUS UNDEE NOR~AL l)~ ......... , uAur ~ .... ~;-.2 ~. ~ ~vir~U CC, I']DI~IONS. THE LCCATION p ~ OoES A THREAT TO THE SAPETy AND %'L[~LL-BEjI~G OF RESIDENTS OP THESE SUBDIVISIONS. ALL NESID.~:N'I'S LIVING MUST USE THIS ROAD AND CROSS PAL].,S CREEK IN ORDER TO REACH THEIR HOMES. HAULING %?ATEN PROM THE PROPOSED SITE REQUIRES OPERATORS TO DRIVE ON A N~RO%~ ROAD THROUGH THE SUBDIVISION WHICH IS USED DAILY BY THE PEOPLE WHO LIVE HERE. PLEASE INFOR~ US OF THE TI~E AND PLACE FOR A PUBLIC HE~ING ON THIS PROPOSED PROJECT. Telecopy: (907)"76-7542~ July 20, 1988 Mr. Brian Burglin, President Borealis Resources, Inc. P. O. Box 131 Fairbanks, AK 99707 Re: Burglin et al FCX 12-1 Borealis Resources, Inc. Permit No. 88-69 Sur. Loc. 20'00'FNL, 300'FEL, Sec. 12, T1N, R13W, SM Btmhole Loc. 2000'FNL, .3000'FEL, Sec. 12, T1N, R13W, SM Dear Mr. Burglin: Enclosed is~he approved application for permit to drill the above referenced well. The permit to drill does not indemnify you from the probable need to obtain additional permits required by law from other governmental agencies prior to commencing operations at the well site. To aid us in scheduling field work, please notify this office 24 hours prior to commencing installation of the blowout prevention equipment so that a representative of the Commission may be present to witness testing of the equipment before the surface casing shoe is drilled. ~R~ere a diverter system is required, please also notify this office 24 hours prior to co~mnencing e~uipment installation so that the Commission may witness testing before'drilling below the shoe of the conductor pipe. Confirming recent telephone conversations, Section 12 TIN R13W is the designated' drilling unit for the Borealis Resources Inc. well FCX 12-1 as established by 20~AAC 25.055(~)(2). Our records indicate the possibility o~ two or more owners, as defined by AS 31.05.170(9), existing in Section 12, TiN, R13W SM. Should this prove to be true and well FCX 12-1 successfully ~-~r. Brian Burglin Borealis Resources, Inc. - 2- July 20, 1988 discovers natural gas, the commission will require assurance in accord with 20 AAC 25.517(c) that the interests of persons owning interests in Section 12, TIN, R13W SM are validly inte- grated before approving regular gas production from the well as defined by AS 31.05.170(13). : C. V. Chatterton Chaiman of Alaska Oil and Gas Conmervation Co~imsion BY ORDER OF 'THE COMMISSION dlf -F~n¢lOsure cc: Department of Fish & Game, Habitat Section w/o encl. Department of Environmental Conservation w/o encl. C. Burglin Land Consultant P.O. Box 131 Fairbanks, Alaska 99707 (907) 452-5149 July 18, 1988 Commissioner Chat Chatterton Alaska Oil and Gas Conservation Commission 3001 Porcupine Dr. Anchorage, Alaska 99510 COMM COMM COMM I"~ RES ENG SR ENG SR ENG ENG SR GEOL SR GEOL ENG ASST ENG ASST STAYTECH~ STAT TEOH FILE: Dear Commissioner Chatterton: At this time all oil and gas rights in Section 12, T I N, R 13 W, Seward Meridian, except the Arco interest in ap- proximately 120 acres, are under lease to C. Burg!in et al (Burglin). Arco was notified by letter dated 5/5/88 of Burglin's intention to bottomhole a well (FCX 12-1) in Govern- mental Section 12, T I N, R 13 W, Seward Meridian. The bottomhole location of FCX. 12-1 is not proposed to be located on the 120 acres which are jointly held by Arco 50% and Burglin 50%. Burglin is unaware of any formal applications submitted by Arco or approvals by the Division of Oil and Gas and the Alaska Oil and Gas Conservation Commission (AOGCC) designating Arco as the new Operator for the Falls Creek Unit (FCU). Burglin requests the AOGCC grant an exception for the surface location (if required) of FCX 12-1 under 20 AAC 25.05~a)(2')' and approve the permit to drill application submitted by Borealis Resources Inc. (BRI) on 6/22/88. If the AOGCC requires any additional information or has any questions regarding this application you may contact Brian al, 452-5149. Very truly yours, Brian Burglin President, Borealis ResoUrces, Inc. cc: Pat Foley, Arco Paul Waiker, Chevron Bill Van Dyke, DO & G enclosures BB/mbg RECEIVED .IU t 1 1988 Oil & Gas Cons. Commlsslo. ,, ~nchorage XC' Brian ~r~lin March 30, 1988 - -~ Chevron U.S,A. Inc. ~At:nt Mr~ clair Ghylin P. O. Bo~ 5050 ~an Ramon, CA 94~83-0905 ~n r~mpon~ ~o"~h°vr°n's March 28, 1988 noti~ioatLon Un~t, ~CO Alaska, !n~., hereby votes i~1 favor of itself as Successor Unit Operator and accep~ the The d~signation of ARCO a~ S%ccessor Unit operator w%ll , ous ~overnm~ntal n~ta~on, the State of _ Ale. ~.~. and~ po~sibly, tn Unite~ BtateS Department of the Intorior~ Bureau , ~ursuan~ %o Article ~0 of~ t~8~ certain Agreement dated ndard Oi~ Company of Calf- October .3, 19 ...... - --I CdrnOrat~°n~ co~.. ~ .... ~ble ~ede~son Fee Lease, .rhebaut Fee Leas~, vandarbuilt Fee Lease, Stark Fee L,ase, A-024399, and ADL-00590). ARCO ~ _ _ ~ ........................... th ~ ab ov e responsibility ~or leasm ~ental paymont on ~sa~s to ARCO Alaska, Very truly RECEIVED JUL 1 ~ 1988 Ala~l~ 011 & 6as Cons. Commission Anchorage C. Burglin [.and Consultant P.O. Box 131 Fairbanks, Alaska 99707 (907) 452-5149 May 5, 1988 Mro Pat Foley ARCO P. Oo Box 100360 Anchorage, AK 99510 Dear Mr. Foley: As you are aware Chevron's interest in ADL 00590 has been assigned to Burglin et al (Burglin). It is Burglin's intent to drill a well (FCX 12-'I) which will be bottomhoied in Sec. 12, T. 1 N, R 13 W, S.M. ARCO is cur-- rently the leaseholder of a 50% interest in approximately 120 acres located within governmental Section 12. The bottom- hole location of FCX 12-1 will not be within the 120 acres which are now jointly held by Burglin 50% and ARCO 50%. If ARCO wishes to participate in the drilling of FCX ,~2-1, Burglin requests that ARCO inform Burglin in writing of ARCO's decis- ion by May 28, 1988. If you have any questions regarding Burglin's FCX 12-1 well project' you may contact Brian Burglin at 452-5149, or Burglin would be glad to meet with ARCO at your convenience. SinCerely, Brian Burglin AOGCC - C. V. Chatterton Chevron -~ Paul Walker Gary Player RECEIVED JUL 1 9 1988 Alaska 011 & Gas Cons. Commission iAnchorage ARCO Alaska, Inc. Post Office Box 100360 Anchorage, Alaska 99510-0360 Telephone 907 276 1215 June 13, 1988 Mr. Brian Burg!in P.O~ Box 131 Fairbanks~ Alaska 99707 Dear Brian: Falls Creek Well Proposal FCX 12-1 In response to your FCX 12-1 well proposal of May 5~ 1988, please be advised that ARCO Alaska, Inc. hereby elects not to participate in the drilling of this well. Thank you for. the opportunity to consider joinder in your proposed operations, and we wish you the best of success in your upcoming venture. 'Very truly yours . Patrick Foley Sr. Landman kw 'Anch0m~e Chevron Land Department Chevron U.S.A. inc. 6001 eoilin§er Canyon Road, San Ramon, California Mail Address: P.O. Box 5050, San Ramon, CA 94583-0905 March 28, [ 988 Resignation of Unit Operator Falls Creek Unit _ ARCO Alaska Inc. P.O. Box i 003~0 Anchorage, A~< 99510-0360 Attention~ Mr. G. L. Arnold Gentlemen: On or before Apr[[ [, 1988 Chevron will ossig~n oil of its interest in ~h'e leases ~vithir~ the Falls Creek Unit to various assignees primarily re~esented by~ Cliff Therefore, Che~mon hereby resigns as Unit Operator pursuant to the Unit Agreement and Unit Operating Agreement in favor of the Fails Creek Unit. Pursuant to Article ~; of the Unit Agreement, Chevron hereby votes its 50% interest in the unit oreo and port[c]poting oreo for ARCO Alaska Inc. os succe~sor Unit Operator. Ple~e confirm your acceptance of being designated successor Unit Operator in writing to the undersigned on or before March 30, 1988. Yours very truly, CHEVRON U.S.A. INC. As~igtant Se cr e~./~ ~/' 011 & Gas ConS. commission ~nchorage P.O. Box Fnirbnnks, Alnskn gg707 Mro Wondzell Alaska Oil and Gas Conservation Commission 3001Poreupine Dr. Anchorage, Alaska 99510 Re: FCX 12-1 Well ;Dear Hr. WOndzell, Borealis Resources, Inc. is submitting a revised Program for the proposed FOX 12-1 Well as per our ~.~'elephone eonversation. Sineerely, Brian Burglin President, Borealis Resources, Inc. BB/ne SUMMARY PROGRAM BOREALIS RESOURCES, INC. BURGLIN FCX 12-1 1.) Drive 20,,,-i. 100~ eonduotor to 80'+/-. Install 20" Bell NipPle and Flow Line. 2-.) Drill 1v''' hole to 400'+/-. No logs planned Run and cement 13-3/8", 68# casing. Land casing and J. nstall 20" API 2000 wp SOW easing head. 3-) Perform as built survey of wellbore. Install 20" diverter system as shown on attached illustration. Notify AOGCC and test diverter and hydraulic vaIve. 4.) Drill out shoe of 13-3/8" easing, Drill 8~" hole to 1800'+/-. Log hole. Open hole to 12~". Run and cement 9-5/8". 47~~ easing. Land easing and install 20" API 5000 PSI wp x 13-5/8" API 5000 PSI wP casing head and install 5000 PSI wp BOPE consisting of RSRRA as per attached illustration. Notify AOGCC and test~ BOPE. 5.) Drill out shoe oC 9-5/8" casing and run leak off.test. Directlonally drill 8-1/2" hole to 8000'+/-. Log hole. Run and cement 7", 29~ casing. Final cement volumes' to be determined from caliper log. 6.) Test liner lap. Run drill stem tests based on formations encountered and according to supplemental program. 7.) Suspend or P and A well. Move out and clean up location. Notes: 1.) BOPE will be completely tested weekly, and more frequently if needed. ~ud Program F'age #2 Section: Hole Size: Casing Size: Mud Type: 1800'-8000' 8 1/2 " Co-Polymer Weight: Viscosity: PH: PV: Yield Point: Fluid Loss: Mud Parameters 8.8 - 9.5 PPG 40 - 44 secfqt. 8.0 - 8.5 6- 12 22- 30 12 - 14 cc/30 min API Reduced to ~ 6 cc/30 min API by Target Zone Completion Fluid NaC1 Brine to appropriate weight (PPG) as dictated by drilling results. MUD SYSTEM: [0;W x 85f'H 'x 38'L 575 Barrel Mud Suction Tank w!5'L Porch Extens[on~ 3-Comp~t~nen~, Sl~t Bottom, ~te~ Piumb[ng~ Walk,aye, S~akm. 5afetF Ratl~, Skidded DEMCO 6= × g" CentrifugM Pump, ' S/N 9Z5Z, ' 'Y/RELIANCE 75 HP E!ecLric Motor, DEMCO 6' x 8" Ccn~fugal Pump~ S/N 9253, w/R~ANCE 75 HP EL=c~c Mo,..c~, w/Mud Hcpp,c, individually Slddded ca 8'W x Z3'L Core,md Skid ~.~ ..... ~ Ext~n~5. on, 3-Comp~tment& S:ant :!ottom,.~t~.ai (Z) DEMCO S'~.~r 6"' Cen~ifula! ~amp~, Each w/RE!HANCE 75 HP Electric .Motor 10'W x.8~'H x 38'L 575 ~arre! M:,_d Shaker Tank w/7'L Porch Ex{enslon, 3oConnp~.~'tments, Slant Bottom, Internal P/~&~m.. bing, Walkways, Sta,/~ Safety RaiL~, Skidded ,~.t~,.~:,~,~. x 6'~ .~2ntrafu~;al Pump, S/N 9~71, w/MARATHON 50 HP Electric Motora TRI-FLO 153296 Taadem~ DoubI~ Screen, '¢ibrating Shal~ Shaker~' S/N TFSHDI008, '~7/(g} PAGEMAKER 3 HP Electric Motora TRI-FLO 133557 Deal!tot, $/NZWDS1075, w/(16) 4" · (I) p& 5 HP Elec~ic Motor Drilling Fit.rid HonitorSng Equ.Lpr::c~r~t To include: F/ow Sensors, Pit Volume Trip Tank Ind ica tors, DEPTH 1000' 2000' 3000' 4000' 5000' 6000' 7000' 8000' 9000' 10,000' 11,000' 12,000' DRILL OUT 20" CONDUCTOR DRILL 17~" HOLE, SET 13-3/8" C~SING DRILL 12¼" HOLE, RUN LOGS. SET 9-~8" CASING DRILL 8½" }~OI.E RUN LOGS. SET 7" CASING 5 !0 15 20 25 30 35 40 DAYS BOREALIS RESOURCES. INC. BURGLIN FCX 12-1 KATMAI NATIONAL MONUMENT Mountain= Valley 0 50 ~00 K~LOME~ERS ::~ ~ [~0 Anchoroge :,~': ~,,~g;.J ~: ~ t' < Point ':~:': ~ '~"=' / ~ ~ '~ ~' ~ ?~ DOUGLAS BARREN ISLANDS ' ~ SHUYAK ISLAND 8LAC CAPE / NAK RASBERRy WHALE ISLAND Figure LOCATION MAP KENAI PENINSULA, PROS P g C T ALAS 'e¢lel Illlell I!. · 1'.0.110 I1' ¢o ox FALLS ~ ' UNIT / N t_E--~---- I i · STATE CHEVRON ADL 00590 HIP ' . , CHEVRON Op~. Agmt, (L.E~lan4) I1~.(,~ Ac /et, A-024599 .HBP I"' . S Va.O~me. I/1 ~ ~LC.r~tm Bill STATE COIdR .1 T.I N R.I'SW. Ill-I · .1~ ISTATE U. of A. i STATE U. of A. SUMMARY PROGR.AM BOREALIS RESOURCES, INC. BURGLIN FC× 12-1 1.) Drive 20,','i. 100# conductor to 80'+/-. Instal]_ 20" Bell. Nipple and Flow Line. 2.) Drill 17½" hole to 400'+/-. No logs planned. Run and cement 13-3/8" 68# casing Land casing and ~.nstall 20" API 2000 wp SOW casing head. 3-) Perform as built surVey of wellbore. Instal]. 20" diverter system as shown on attached illustration. Notify AOGCC and test diverter and hydraulic valve. 4..) Drill oUt shoe of 13-3/8" casing, DriI1 ,,~" hole to 1800'+/-. Log hole. Open hole to 12~". Run and cement 9-5./8", 47# casing. Land casing and install 20" API 5000 PSI wp x 13-5/8" API 5000 PSI wp casing head and install 5000 PSI wp BOPE consistJ, ng of RSRRA as per attached illustration. Notify AOGCC and test BOPE. 5.) Drill out shoe oE 9-5/8" casing and run leak off.test. Directionally drill 8-1/2" hole to 8000'+/-. Log hole. Run and cement 7", 29# casing. Final cement volumes to be determined from caliper log. 6.) Test liner lap. Run drill stem tests based on formations encountered and according to supplemental program. 7.) Suspend or P and A well. Move out and ciean up location. Notes- 1.) BOPE will be completely tested weekly, and more frequently if needed. FILLU~ LINF. 2000 Pill \\\\ '~ t t t ; I / // I// CONDUCT'R PiPE Figure 2 20 -inch wellhead dive~'ter system schematic. ANNU%AR PREVE~TER TO 10,0C0 P$1 ViP MANIFOLD Figure 3 B.O.P. stack configuration, 13/38inch triple ram stack with annular ores~ure. HUD PROGRAH Section: Hole Size: Casing Size: Mud Type: 0 - 400' 17 1/2" 13 3/8" Spud 25/30 PPB gel for viscosity of 200 sec/qt treat out ca++ with 1/2 PPB Soda ASh maintain viscosity and volume with addition of Gel. Adjust viscositY as hole conditions dictate. Section: Hole Size- Casing Size- Mud Type- 400'-1800' 12 1/4" 9 5/8" Gel/water Weight: Viscosity: PH: PV: Yield Point: Fluid Loss: Mud Parameters 8.8 - 9.7 PPG 100- 125:~sec/qt. 9.O- 9.5 8- 12 20- 30 NC c~,~l ~:. OF AL. ASKA A''~' ' LA e ,-'- .,,.,,,. L.~.~KA el ND GAo ~ONSER~CAI'ION COMM~qSIO~ PERMIT TO DR[L.L ' Ex ~P~rator ~ St~ati r~nhi(', '7e~ f"l r'lr;v¢ r"prnerr~ Qi !a, 'TL, oe o~ work Drill E~ RedriI~ C',j lb. Type of well. z ~ }'~ ','Y%?, '" ' .-:.,g ~1"'1 ' Y?'~'-'.-." ~,~ .... :.' ,='.~ ' .., 2. Nar'ne of Operator Borealls Resources, Zne. ?.0. Box 131, Ea±rbanks, AK 99707 Sec ,~2, TI~, E 13 W S.M. At to~ o" [:,'odLctive iq[r, Fv3 ' Tyonek FM 5400 I 5. Datum Elevation (DF or K!q) i0. t':ield and Pool KB 22 feet Offset to -~'-¥7'~,;7.~'TiT'~7'i:.7/&_Ti',~T:T~;',/i~T~':: ..................... Falls Creek Unit ADL 00590 7. LJni',', or property Nar;~,e 11. 'Type bo;-x:i {s~?~. ::~),:,..c :~., ~x::,, ~ Burglin et al C D FCX 12-1 00383 At tot,?tl dept~' 2,000' FNL, 3,000' EEL Sec. 12, T ~1 N, R 13 W, S.M. , /:/.~ (,fg~..~ $100,000.00 12. Distance to r':ear~~l i3. Distance to nearest wei~ ~14.. Nur'iber el' acres in propert? 15. Fh'op<)sed dQ~"~,:~.,~:; .,',; ~'...'c: ~';'~Ob'f ,'¢:,,:-,t J 5,000' ,:~:,¢i:i 3,660 7 240 TVD feet 'i& 75 be cornpieted for deviated weI~s j17. Aaticipatad pressure (s~,~ 2o .~,,~c 2scz,s <0><2;) Kickoff depth 1 ~ 800fee( Maximum hoie angle 25 :8. Casing program! t Settin~ DeE, th size l Specifications F-'i-f~7-? i-~7~7~'~7-~?[-E'5-¢TE6'~E- ~oo'j 12~" t 9-5)~]' ~7NSOs~i' BTC 3%~b---F~U~'P~-8~ ......... h~b-~;~'~' ...... f ............. -?d'O'-'SXb~'~- ....................... ...... -~i".' .......... v,,--'r'~V~?~-a~ ~-~ ...... ] ..... ~'~-~"-~-8'8~ ...... ~Z~'~"8-[ ........... 8'oo--~'~v~- ....................... ...................... ~ ............................ ~ ........ ' " I ................. , ............. J ........................................ ~ ....................................................................... ................... ~ .................... i ........... ~ .......... J , ................ ~ ............ 'r .......... ~ .................................. " ................................................................ ~q, .... 7b be cornoleted, for Redri!i: Re-entry, and Deepen Pres ::un~ wet~ condition summary 3;(:-~ a J -~e~+h' ~ .... true vertical feet Effective depth; measured f~mt jurlk (me. asured) true ver!ical feet measu red G,s s in g Structural Conductor S u trace intermediate Produclion L inei' P-.,¢f-~r ? ,', depth: , ~:: ...... a, ,~, ~ o.,~ ' ' Cemented ' .... ,'" Ti'ue Voriical depth t_..r,~tl~ S:-ze M.~::: sur.: u, d,.::p; h 20. /.~,t ta~.,l,rnent$ Fi Ii n ~ '!ee Property plat ~ $.~; ~nchm'a9e BOP Sko(ch ~.X Diverter.~xe;.ch ~ Drittif:g Frog,'am ~ Drilling fluid program .~} Time vs depth piot ~.!,' Refraction aha), n<.~ :s ;Z: Seabed. report ,._.,'-'" 2(.) Ai,,.O 25.050 requirernents .i'x 21. ! ~'"~ . c,..,r,c..,, .... the ,best o'f rny l.~now!edgs I,~::;~t.,,),~. certify thai the foregoing ~s true and .'~ ~ :,n* fo ~ ....... ~ ~ c~%,-7~7~7'i7,T'5"~;,:%7~? .... hlu~,, .... t FAPi number [/,.pr~¢~/~c~..~)~8 { S';r'~ cover letter J 50 ..... i3~- ~tq~ ~' ] v,/ v / i for oti'~:;r requiremer~:s G-:')nditions of ar, i:>rova~ Samples reqt,~ired ~-~ ..... --, ,i .~,, i.~.i Hvdroncn sulfideme,..~.~u,e.~ [2] Yes ~ No Directiona! s~rvev required L.~ Ybs t...j No ~ ~. .~ .- .. .¢ .r t)T: -' ,,'." ':~ ~-'"" ~- -', * ~:;-'~ 1,,,,,, >.,.~3proved by ~'- / · ,,,': c?mm' '"" ............ I CERTIFIED MAIL RETURN RECEIPT REQUESTED D~.W, SION OF O;L AND GAS ~ STEVE COWPER, GOVERNOR F.O. BOX 7034 ANCHORAGE, AL. AS;~A 09510-703:~ DECiS[ON APR 2 9 tgB Assignees: Cliff Burgl'in Estate of James Lundgren Mar1~ Gustafson Michael Sexton Bruce Burglin Barbara Burgtin 3oseph Burglin David Burglin Brian Burg!in c/o P. O. Box 131 Fairbanks, AK 99707 Assignor; Chevron U.S.A. Inc. P. O. Box 5050 San-Ramon, ~a _ ~ 94583-0905 Oil arid Gas Lease APL 005~0 RECEIVED JUN 2 Naska Oil & Gas Cons. Commission .... ~"~L. ~ochorage As s i]nment AEE.1 i___c_a_~.] on Ap~p roved Application for approval of assignment of 100 perceqt record title interest fram Chevron UoS.A. Inc. to Cliff Bur§lin 44 percent, Estate of 3ames Lundgren $0 percent,. ~qary Gustafson 6 percent, Michael Sexton 5 percent, Bruce Burglin 3 percent, Barbara Burglin 3 percent, Joseph Burglin 3 percent, David Burg!in 3 percent and Brian Burglin 3 percent, is herebs~ approved effective April 15, 1988 on the following lands: T. IN.~__B_R.___!13H.. S. N. Section 1: N 1/2 N !/2, S 1/2 N~ I/4 SW 1/4 ,NE 1/4, N i/2 S?~I !/~,, Sb~ 1/~. Si,.~ 1/4 Section 2: E 1/2 Section i0: SE 1/4 Section ll: All Free. Sec. 12: NI~ 1/4 Nb/ 1/~+, S 1/2 NW 1/4, S 1/2 NE 1/4, S 1/2 except 'that portion lying above the line of mean high tide. Fraco Sec. 13: All, except that portion lying above tile l~ine of mean %igh tide. Fraco Sec. 14: All, except that portion lying ~-.bove the line of mean high Frac. Sec. 15: All Page 2 ADL 00590 T. IN:. R~ 12~.~ S. M. Fraco Sec. 6: E I/2, except that portion lying above the line of mean high tide. Frac. Sec. ?: All, except that portion lying above the line of mean high tide. Containing 3095.55 acres, more or less, and application for approval of assignment ef 5<~ percen'i; record title interest from Chevron U.S.A. l~nc. to Cliff Burglin 22 perce~t, Estate of James Lun~gren i5 percent, Mary Gustafson 3 percent, Michael Sexton 2.5 percent, Bruce Ourglin t.5 percent, Barbara Burglin t.5 percent, 2oseph Burglin 1.5 percent, David Burglin 1.~ percent, and Brian Burglin 1.5 percent is hereby approved effective April 15, 1988 on the follo~ning lands: Section I' SE 1/4 NE 1/4, SE 1/4, SE 1/4 SW 1/4. Frae. Sec. 12: NE 1/4 NW 1/4, N 1/2 NE I/4, except that portion l!/ing above the line of mean high t~de. T~ IN.~ R. 12N~ S~ Frac. Sec. 6: W 1/2~ except that portion lying above the line of mean high tide. Containing 564.45 acres, more or less. This assignment ~s hereby approved as to the record title in';:.erest onJy. lhis approval does not constitute .~pp, oval or ~cc.ptance of an~/ s~ipulations or attachments to the assignment instrument. An approved cop~ of the assignment ~s enclosed with this decision. E. Eason ~rector Enclosure JEtLS/ldb/O426Z isorealis Resources,_lnc. P.O. Box 131 Fairbanks, Alaska 99707 (907) 4,52-5149 June 21, 1988 Commissioner Chatterton A]_aska Oil and Gas Conservation Commission 3001 Porcupine Dr. Anchorage, Alaska 99510 Re: FCX 12-1 Well Dear Chat: 1. Presently available data from adjacent wells indicates the absence of abnormal pressures and we do not expect to penetrate overpressured strata in our proposed well. 2. Borealis Resources, Inc. hereby requests the Commission to waive the requirements of 20 AAC 25.061. Well Site Surveys pursuant to paragraph "C" of said regulation. 3. Excess cement will be available on location for the cementing of all casing to accomodate the fill up factor needed for excess hole capacity caused by wash outs as shown On the caliper logs. If you are in need of additional information, please contact Brian at 452-5149. Sincerely, Brian Burglin President, Borealis Resources, Inc. BB/mbg enclosures Gas Cons. L;,s, mmission gnchorago STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION DESIGNATION OF OPERATOR 20 AAC 25.020 1. Name of Owner C. BURGLIN, ET AL 2. Address P.O. Box 131 Fairbanks, Alaska 99707 3. Notice is hereby given of a designation of n.oera+--~, :: _,orsr:ip' ~ for +,,he cji and 9as property described below: Property designation: ADL 0O0590 Legai description of property: SEE ATTACHED Property Plat Attachod ~ Name of Designated Operator BOREALIS RESOURCES, INC. Address P.O. Box 131 Fairbanks, Alaska 90707 5. Effective date designation RECEIVED ,JUN Z Z' 198~ · Alaska Oil & Gas Cons. Commission /~nchora~e f' 6. Acceptance of operatorship for the above described property with a!{ attendant responsibilities and obliga- tions is :; ..... ~_)y acknowledged o_. T;" President .Z-~'g ,L,'_e 7. The owner hereby certifies that tl~-e foregoing is true and cc, rrect Sig ned .,~.~-',~---'"'-~ '¥'it ie Leas eh o 1der Form t0-4!t, -o- ¢'~ ' - ***ALASKA ~ ~Erl;IL.I .ST~qTE 119 N. Cua~mmn, F&trbankl, Al~a June 15, ~g88 Anch, AK 9950 OIL & GAS CONSERVATION CO~ITTEE, 3001 Porcupine, I O0, OOC- , l O0 t ,, oo,ooo.oo, 00383 IN CURRENT FUNDS ON THE RETURN OF THIS CERTIFICATE PROPERLY ENDORSED _ O n~ Y ~,~ r AFTER DATE WI'TH INTEREST AT THE RATE OF._.7_,-]_2.~ "/. PER ANNUM FOR THE TIME SPECIFIED ONLY. I-I SINGLE MATURITY: the deposit evidenced by this certificate is a single maturity certificate and NO INTEREST WILL BE PAID AFTER MATURITY DATE. [:](AUTOMATICALLY RENEWABLE TIME DEPOSIT: This certificate shell be considared renewed automatically for an edditional poriod of time equal to the original term and'therefor for additional successive periods of time equal to such original term, unless presented for redemption with 10 business days after the end of the original term or anysul~t term provided for herein. Instruments with the automatic renewal feature will be renewed at the rate in existence at the time of maturity. The bant~ i~ai~.t~ ri;lllt,~ .radaem this cartificete at any ori..ginal or subsequent maturity date upon 30 days pri. or written notice. The bank reserves the right also to cl~ the interest ~.~ ..~. tbn~ to time upon 30 days written not,ce prior to the original or any subsequent maturity.date. 5 7.' 4,' 07' ? 410 NOT NEGOTIABLE TY~HE.,, - 3 6 5 / 3 6 5 if personal, not transferable tm'.PAlO :MOnthlv 'co 100 5792 c~,.o U~VJ T T May 5, 1988 Mr. Pat Foley ARCO P. O. Box 100360 Anchorage, AK 99510 C. Burglin Land Consultant P,O. Box 131 Fairbanks, Alaska 99707 (907) 4,52-5149 Dear Mr. Foley: As you are aware Chevron's interest in ADL 00590 has been assigned to Burgiin et al (Burglin)o It is Burglin's intent to drill a well (FCX 12-1) which will be bottomholed in See. 12, T. 1 N, R 13 W, S.M. ARCO is cur- rently the leaseholder of a 50% interest in approximately 120 acres located within governmental Section 12. The bottom- hole location of FCX 12-1 will not be within the 120 acres which are now jointly held by Burglin 50% and ARCO 50%. If ARCO wishes to participate in the drilling of FCX ~2-1, Burglin requests that ARCO inform Burglin in writing of ARCO's ideeis- ion by May 28, 1988. If you have any questions regarding Burglin's FCX 12-1 well project you may contact Brian Burglin at 452-5149, or Burglin would be glad to meet with ARCO at your convenience. Sincerely, Brian Burglin cc' AOGCC - C. V. Chatterton Chevron -' Paul Walker Gary Player un,.u~ ,.lsl' ~u~ a~W W~LL FSRMITS Company ~,~r~).]~ /~o3~c~c.~-~ /,Z¢- Lease & Well No. ~-~//5 ~-c~e~ (1) Fee ~ ~/~Sf~ I. Is the permit fee attac ..................................... ~__ -- REMARKS (2) Loc (2 thru 8) ~.~g V- le-ea (8) (3) Admin ~ 6/Z~/%%gj 9. (9 thru 13) 10. (10 and 13) 12. 13. (t4 ~h~ 22) (23 thru 28) (6) OTHER ..~, :!' ~.,~L, *k-/'?;~/~!~ (29 thru~ 31) (6) Add: Geology '. En~',, ~ring'~/.,-'' rev: 02/17/88 6.011 2. Is well to be located in a defined pool ............................. ~k_ 3. Is well located proper distance from property line .................. ~_ 4. Is well located proper distance from other wells .................... Q-~ 5. Is sufficient undedicated acreage available in this pool ..' .......... ~_ 6. Is well to be deviated and is wellbore plat included ................ ~L 7. Is operator the only affected party ................................. C~ 8. Can permit be approved before fifteen-day wait ...................... d~ Does operator have a bond in force .................................. Is a conservation order needed ...................................... Is administrative approval needed ................................... Is the lease number appropriate ..................................... Does the well have a unique name and number ......................... 14. Is conductor string provided ........................................ 15. Will surface casing protect fresh water zones ....................... 16. Is enough cement used to circulate on conductor and surface ......... 17. Will cement tie in surface and intermediate or production strings ... 18. Will cement cover all known productive horizons ..................... 19. Will'all casing give adequate safety in collapse, tension and burst.. 20. Is this well to be kicked off from an existing wellbore ............. 21. Is old wellbore abandonment procedure included on 10-403 ............ 22. Is adequate wellbore separation proposed .... · ........................ 23. Is a diverter system required ....................................... 24. Is the drilling fluid program schematic and list of equipment adequate.4~¢ 25. Are necessary diagrams and descriptions of diverter and BOPE attached. 26. Does BOPE have sufficient pressure rating - Test to ~~ psig .. 27. Does the choke manifold comply w/API RP-53 (May 84) .................. 28. Is the presence of H2S gas probable ................................. For exploratory and Stratigraphic wells: 29. Are data presented on potential overpressure zones? ................. 30. Are seismic analysis data presented on shallow gas zones ....... 31. If an offshore loc., are survey results of seabed conditions presente¢': 32 Additional requirements ' o INITIAL GEO. UNIT ON/OFF POOL CLASS STATUS AREA NO. SHORE ,EXP ,, ,