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Home My WebLink AboutCO 489Conservation Order Cover Page XHVZE This page is required for administrative purposes in managing the scanning proceSs. It marks the extent of scanning and identifies certain actions that have been taken. Please insure that it retains it's current location in this file. ~'_'_'_7/~_~_ Conservation Order Category Identifier Organizing (do.~) RE$CAN DIGITAL DATA OVERSIZED (Scannable with large plotter/scanner) [] Color items: [] Diskettes, No, [] Maps: [] Grayscale items: [] Other, No/Type [] Other items [] Poor Quality Originals: OVERSIZED (Not suitable for [] Other: plotter/scanner, may work with 'log' scanner) [] Logs of various kinds [] Other NOTES; BY: ~ MARIA Scanning Preparation TOTAL PAGES .j BY; r~MARIA Production Scanning Stage I PAGE COUNT FROM SCANNED DOCUMENT: / ~ PAGE COUNT MATCHES NUMBER IN SCANNING PRE~AR'ATI~N: ,,~ YES NO BY: Stage 2 isl'~ IF NO IN STAGE t, PAGE(S) DISCREPANCIES WERE FOUND: ~ YES NO (SCANNING IS COMPLETE AT THIS POINT UNLESS SPECIAL ATTENTION 18 REQUIRED ON AN INDIVIDUAL PAQB BASI~ DUE TO QUALITY, GRAY~.,ALE OR COLOR IMAGES) General Notes or Comments about this Document: 5/21/03 ConservOrdCvrPg.wpd CAS SO.( © COUNSEL OF RECORD KEEP ON TOP OF FILE NAME MAILING ADDRESS & PHONE ,.NUMBER , FOR WItOM .) Pamela L. Barkeley "\enior Paralegal ,13gal Department y ConocoPhillips Alaska, Inc. A TO-2008 P. O. Box 100360 Anchorage, AK 99510-0360 phone 907.263.4875 fax 907.265.6998 pam.barkeley@conocophillips.com April 3, 2003 Ms. Jody Colombie Alaska Oil and Gas Conversation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 """$ CON;:, o¡: JJ. ~ ¡7''¡~ 0 'FlM4Ì"' l'ou OIV'JJ.C8IM/~j?INA.1. ¡::oC}N COp" s '1 )'OUFf r o MISSION ~~COFrDS. 'Nr ìa' Re: Petition under §31.05.11 O-ADL 380066 Filed by Daniel K. Donkel on January 31, 2003 Dear Jody: Would you please ensure that copies of any and all communications sent or received in the above-referenced matter be forwarded to: Barbara F. Fullmer A TO-2084 ConocoPhillips Alaska, Inc. P.O. Box 100360 Anchorage, Alaska 99510-0360 Facsimile: 907-265-6998 Please call me if you have any questions. Thank you very much for your assistance in this matter. ve?2ours, ~~Barkeley RECE\VEi cc: Daniel K. Donkel (via certified mail) APR' ", ,1 "} U ._,- . ..~, t _ Alaska (}\ & G¡¡ GOOõ. GŒltOOSIOI A~~Õ\t'J? IND~ CONSERVATION ORDER N&~489 Hemi Springs #1 1. January 31, 2003 2. February 5, 2003 3. February 11,2003 4. February 11, 2003 5. March 9, 2003 6. March 18,2003 7. March 19,2003 8. March 20, 2003 9. April 17, 2003 10. April 18, 2003 11. April 23, 2003 11 A. April 23, 2003 12. April 24, 2003 13. May 4,2003 14. May 4,2003 15. May 15, 2003 16. May 15, 2003 17. May 16, 2003 18. May 19, 2003 19. May 15,2003 20. May 28, 2003 21. May 28, 2003 22. May 29, 2003 23. June 2, 2003 24. June 4, 2003 25. June 4, 2003 26. June 6, 2003 27. June 17, 2003 28. June 26, 2003 29. December 12, 2003 30. December 22,2003 31. December 31, 2003 32. November 8, 2005 33. November 15,2005 34. November 15,2005 Dan Donkel's Petition under AS 31.05.110-ADL 380066 Letter from CPA re: copies of filed documents Letter from the CC' s to Mr. Donkel CP A re: request for documents Letter from Dan Donkel to CC's Fax cover sheet to Barbara Fullmer re: CPA request for Documents Letter from CC' s Donkel Notice's of hearing, Affidavit of publication, bulk Mailing. Posted in the Anchorage Daily News, and Petroleum News Donkel's response to CC' s Fax of Donkels Letter 4/17/03 to George Lyle Invoice for copies to CPA Order Cancellation Notice's of hearing, Affidavit of publication, bulk Mailing. Posted in the Anchorage Daily News, and Petroleum News E-mail from Dan Donkel Letter from Dan Donkel (Revised E-mail Message) Letters from Bruce Moore (represents Dr . Kasper) and letter from Rod Scribner Order Granting Rehearing AOGCC response to Mr. Moore and Mr. Scribner Corrected letter from Bruce Moore Letter from Richard Wagner Letter to Richard Wagner Letter to Dan Donkel from the CC' s Invoice to Barbara Fullmer for copies Letter from Dan Donkel to CC's regarding Notice Letter to Dan Donkel Re: Notice of Petition for Compulsory Unitization Order on Rehearing Letter from Daniel Donkel re: description of the Hemi Springs Pool CC's response to Dan Donkelletter of June 6, 2003 E-mail from Brit Lively, Mapmakers Alaska declining Dan Donkel request for her to be his agent Notice of Dismissal Donkel withdraw of petition Agency Notice of Withdrawal of Petition Richard Wagner Request for a hearing AOGCC's response to letter Letter to CPA with recent correspondence of 11/8/05- 11/15/05 Conservation Order 489, bulk mailing list #34 :,~~-."U Ii r~~,l~~r\ 11 [-C, ' ji)'~' ¡ r ,il \ ! i '-6i n~:) \ U " ( ,'! III " U I IJJ, L..J ;' ',,"";:::::ì' I'? i!l!f~1 I ¡ ! I, ) ! I I I <..LU I ! ;' ¡i\'~ n " 117," ¡}\\ (ifù, n~" ~/i\ \ ! il~\ ¡: ! i1J ~" i l \- u,J1 : \ I' , I I ~ l;n\LbUlJn)'d\(; ~ ALASIiA. OIL AND GAS CONSERVATION COMMISSION November 15, 2005 Pam Barkeley ConocoPhillips (Alaska), Inc. PO Box 100360 Anchorage, AK 99510 Re: Attached Correspondence Petition under AS 31.05.110-ADL 380066 Dear Pam, / / I ¡ I j FRANK H. MURKOWSKI, GOVERNOR 333 W pH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Per your request I am attaching recent correspondence in this closed case. Sincerely, Q,..¡~{) (!4~ Jo<&J~ Oo~ Special Staff Assistant #33 " ,~ i~Ú ,:¡:;-;:¡¡ iA' ~ ì::-;::¡¡ IT' I " " '. [, II ¡, I '" "I ' I ¡ I .,ilj""J') II! 'I d I" I' f Lb! I ' :n'l U i \ 'I'" \~" , ,! IU! I / / I 1 ¡ FRANK H. MURKOWSKI, GOVERNOR AI,.SIiA. OIL AND GAS CONSERVATION COMMISSION 333 W. pH AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 November 15, 2005 Richard E. Wagner PO Box 60868 Fairbanks, Alaska 99706 Dear Mr. Wagner: This is to respond to your letter of November 8, 2005, in which you request a hearing on a petition for compulsory unitization filed by Daniel K. Donkel in 2003. Mr. Donkel withdrew this petition on December 22, 2003, and the Commission issued a Notice of Withdrawal of Petition on December 31,2003. Accordingly, there is no petition pending before the Commission on which a hearing could be held. Sincerely, '~ ~/1(J l L/,'iO~ ; "'~'<SL\'fJvA¡' ..'~ JQ¢:y J. 10 bie ... Special Staff Assistant Daniel K. Donkel 968 WiDow Run Lane Winter Springs, FL 32708 (407) 699-4937 - Telephone (407) 699-4718 - Facsimile ddonkel@?cfl.rr.com - E-mail ::K~¡\ :r¡...: 1(," ~,·:E, 11\/' iE"" '. i ;",.' ~ '1\ / (, ,; ", ,'"..... ,~#:,''''''''',,¡ '. , , N ]. 0 2003 m~ & t~3¿~ Cons, June 6, 2003 VIA E-MAIL: randy ruedrich@admin.state.ak.us dan seamount@admin.state. ak.us sarah palin@admin.state.ak.us u.s. MAIL AND FACSIMILE: (907) 276-7542 Sarah Palin, Commissioner, Chairperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas, Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AI< 99501-3539 Re: Donkel's Petition for Compulsory Unitization - Lease No. ADL 28249 - Operated by ConocoPhillips & Lease No. ADL 380066 (& other leases in the vicinity of the productive pool) - Operated by ConocoPhillips- Daniel K. Donkel, an Overriding Royalty Interest Owner, with no ability to drill or produce and dependent on the protection of the AOGCC under AS 3105.110 Dear AOGCC Commissioners: I need the AOGCC to give me the description of the pool that was discovered by the HemiSprings Well based on the subdivision of public lands or its aliquot parts; specifically, I need to know where the pool and field are located and the size of the area encompassed by this pool. The ARCO HemiSprings Well which was certified and is capable of producing oil and gas in paying quantities discovered in this well bore which comes within 66 feet of Lease ADL380066 of which I am an overriding royalty interest owner. In making a detennination of the area of the pool it is important that we use the statutory definition of "pool" which under AS 31.05.170(11) we are given the following definition: '''pool'' means an underground reservoir containing, or appearing to contain, a common accumulation of oil or gas. Each zone of a general structure which is completely separated from any other zone in the structure is covered by the term "pool";." I JI' ~ Sarah Palin, Commissioner, \.. .irperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission June 6, 2003 Page 2 of3 In the Conservation Order 489, dated Apri123, 2003 it is written in the fmdings under No. 1 that I have not provided proof that the owners of interests in tracts proposed to be included in a compulsorily created or expanded Unit have been notified of my Petition. My question to you is who are the owners of interest in this pool and what is the legal description of the pool? The only defmition I can fmd for "owners" is under AS 31.05.170 (9) which defmes "owners" as 'the person who has the right to drill into and produce from a pool and to appropriate the oil and gas the person produces ftom a pool for that person and others." Am I to just provide 'Notice' to ConocoPhillips since they are the owners of the working interest in the Lease or, are there others that I am to provide with a 'Notice; and, who are these 'others' who are owners of interests in tracts which are proposed to be included in a compulsorily created or expanded Unit? Also, is the Kuparuk Unit pool and/or field part of the pool discovered by the HemiSprings Well? I ask this because, 'pool' means an underground reservoir containing or appearing to contain a common accumulation of oil or gas. These questions are why it is important for you to tell me where the pool is so I can fmd out who the owners are if you would give me the defmition of what you are using for "owner." Clearly, the definition of AS 31.05.170(9) states that the owner is the person who has the right to drill into and produce ftom a pool and I am wondering if your defmition is different ftom that given in this statute. This process would be so much easier if you would simply provide the notices as you have done in every hearing that I have ever known and which now begs the question: Are you saying that all Conservation Orders ever done were all properly noticed by certified mail by the Petitioners? And, if not, couldn't one argue that if every Petition or Notice of a Hearing not distributed or sent out by Certified Mail, that the Hearings held could be invalid because there may have been failures to provide notice to everyone affected? This notification rule was not required in 1996 when the Danco/ Allen case on North Cook Inlet Unit was filed, but now we are faced with a new requirement and I don't believe this law has changed since then. Please note that the Supreme Court ruled in Petitioners' favor and ordered a hearing on remand without a certified letter to all the owners. Please explain why the Commission insists on changing and obfuscating the rules? This merely adds fuel to the fIfe that this Commission is biased and prejudiced on our Petition and is not acting as an impartial tribunal. Additionally, I am still waiting for an answer to my last correspondence for this Commission to allow me to go to the Superior Court as a trial court so that I can be provided the due process I have been so far denied at the Agency level. One final note on the new Statute AS 31.05.093: It is my belief that it is unconstitutional because you are a quasi-judicial agency and yet ConocoPhillips is paying you money under this new Statute and I am not required to pay. Now, since ConocoPhillips is indirectly paying your salary and I am not paying your salary, how can you be my tribunal and remain impartial? I believe this renders the Commission's independent quasi-judicial status as null and void because · Sarah Palin, Commissioner,,, .irperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission June 6, 2003 Page 3 of3 you are taking money from some entities and not fÌ'om other entities yet you sit in judgment with this 'bone-crushingly' obvious conflict of interest and partiality. How can you be a fair and impartial tribunal when you use this statute against me as you did in your April 23, 2003 Order? I demand that you recuse yourselves as my adjudicators for this hearing so that I can have a trial before the Superior Court which would provide me with a clear separation of powers and transfer me to the judiciary branch of government. When can I expect to receive a response fÌ'om you on these issues? I would also like to know how the average citizen would ever have ability to overcome the complexities presented by this Commission by a petitioner simply requesting a hearing under AS 31.05.110 for compulsory unitization. Your process is similar to running a maze with no exit. I would appreciate your earliest possible response to my earlier request and to this letter. Please understand, I am just trying to get a hearing on compulsory unitization. May I have your cooperation now? Please just provide the notices like you have done in every hearing ever held as far as I know, and treat me equally under the law. I am trying to do the noticing process as best as I am able. I will be working with Map Makers, Inc., to try to get this done unless I can get some relief If I don't get cooperation fÌ'om the Commission on this issue, I am putting this Commission on notice that I may file an emergency motion for a stay :fÌ'om these proceedings in the Alaska Superior Court and file a Motion for Review. But I am hopeful the Commission will work with me to fmd answers to these matters so the Commission can comply with AS 31.05.110. Sincerely, /7 /" ~ ,1// Þ <::Y-A~~ Daniel K. Donkel ' DKD/jee #32 Nav 08 05 06:29p Rick Wagner 9074562300 p.1 Richard E. Wagner P.O. Box 60868 Fairbanks, Alaska 99706 November 8, 2005 Jody J. Colombie Special Staff Assistant Alaska Oil & Gas Conservation Commission 333 W. 7th Ave., Ste. 100 Anchorage, Alaska 99501 VIA FAX TO: (907) 276-7542 &~. Re: Hearing Dear Ms. Colombie, Thank you for returning the calli placed to John Norman today. As you requested, here is a copy of my May 15, 2003 request to Commissioners Ruedrich, Seamount and Palin (Chair) for a hearing as required under AS 31.05 and AS 31.05.060 and the Alaska Supreme Court Monte J. Allen vs. AOGCC decision of May 12, 2000. On May 19~ 2003, I died of a heart attack (Sudden Cardiac Death), was revived hours later, and medevaced to Anchorage Alaska Regional Hospital and underwent a four way heart bypass operation. I have never been given a hearing as I requested.. Please give me the hearing I requested on May 15, 2003. The only correspondence I have received from the Alaska Oil & Gas Commission is a May 28, 2003 letter from Sarah Palin, Chair (copy attached). Please respond as soon as possible. S~,/~Y. Jr2 .. /~~_/~ Richard E. Wagner Nov 08 05 06:30p ~...--' & Rick Wagner 9074562300 p.3 FRANK H. MURKOWSKJ. GOVERNOR AT,AS&& OIL AND GA~ CONSERVATION COMMISSION 333 W. 1"'1 AVENUE, SUrrE 1 aD ANCHORAGE, ALASKA 9950'-3539 PHONE (9D7) 279-1433 FAX (907) 276-7542 May 28,2003 Rick Wagner PO Box 60868 Fairbanks, Alaska 99706 Dear Mr. Wagner: This is in response to your e-mail of May 15, 2003, concerning the cancellation of the hearing on Mr. Donkel's petition for compulsory unitization. Enclo~ed is a copy of the Commission's order in that matter, Conservation Order "No. 489, which I believe you will find self-explanatory. As you will see, the Commission believes it is important to ensure that affected interest owners such as yourself have an opportunity to participate in unitization hearings. You will also probably be interested in seeing the Commission's more recent order in this matter, the Order Granting Rehearing, which is also enclosed. ~~'" ~/ Now that we have learned that you own an interest in the affected property, we will be sure to add your name to the distribution list in tlús matter. SinCerelY'~ (;2J íJ . C --- ~ Sarah Palin, air cc: Daniel Donkel Barbara Fullmer, Esq. Rod Scribner Bruce Moore SP:\jjc Nov 08 05 06:30p Riok Wagner 9074562300 p.2 Ran~~. Ruedrich <randy _r_uedrich@.admin.~tate.ak.u: S/lS/0~.11:59 AM ..0800, 1 TO: Randy Ruedrich <randy_ruedrich@admin.state.ak.us>, Dan Seamount <dan_seamoWlt@admin..s·t.ate.ak.us.>, Sarah Palin <sarah~ln@admin.state.ak.us> From: Rick Wagner <bluemax@gci. net> Subjeot: The petition of Daniel .ß.. Dpok~::' to alternative, to expand the Co: governo:r@gov.state.ak.us Bee: ddonkel@e£l.rr.com K...Attachments: unitize leases AD!. 380066 and 28249 Kuparuk Unit to include lease ~ or, in the 3B0066. _ ... .,..,.., ,_. .. ,,,....w....' _._'" .... ,,,., ,. . '" , "".'. .,." ,. '" ... '...,...., _, .'......"".. ,. ......,. ,." ,. . ....h.. "'" ',"" ,."... .". ,_ "" _,.. " "..........,... '..... ."...' ,,\,. ... "... _.. .." ._. ,_, "," W"" ",.....,.,. '.. .¡. _, . ".. "'..,' ,.". ._. ...'. ,... ...~.... . ,.... . ..., .. '" .. .. '.'''.'.' ,.','. ,.._.. .,.'."..", ".".'. ,. May 15, 2003 Dear Commissioners My name is :tti.chard!l. i'iagner, P.O. Box 6086B, Fairbanks, Alaska 99706, telephone (907)456-2300. I was noticed and reoeived a copy of the Plililic Bearing on The petition of Daniel :ß.. .ponkel to unitize leases ~ 380066 and 28249 or, in the alternative, to expand the Ku~aruk Unit to include lease ~ 380066. I own a 1% overriding royalty interest in lease ADI. 380066. I now have recei-..red a Notice of Canoellation of this Public Hearing that was scheduled for today, May 15,2003. Please consider t.his M a request by me for a Public Hearing on The petition of Daniel .ß. D()!lJ~e::" to unit.ize leases ~ 380066 and 28249 ör, in the alternativer to expand the KLlPe.;¡:ï,lk Unit to include lease ADL 380066. A bearing on 'this issue is neoessaxy to protect my correlative rights and my overriding royalty interest in ~ 380066. In the alt.er:cative, I respectfully request that. the Alaska Oil and Gas Commission and you as Commissioners protect my correlative rights in my overriding royalty in /I..DL 360066 as required by Alaska statutes. Sincerely, Richard .§.. Wagner Printed for Rick Wagner <bluemax@gci.net> 1 #31 ') ) STATE OF ALASKA ALASKA OIL AND GAS CONSERV A TION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 THE PETITION OF DANIEL K. DONKEL ) for the compulsory unitization ) of Lease No. ADL 380066 with one or ) more other tracts. ) December 31, 2003 NOTICE OF WITHDRA W AL OF PETITION Notice is hereby given that petitioner Daniel K. Donkel, by letter dated December 22, 2003, has withdrawn his petition in the above-captioned matter. The Commission considers this matter closed. DONE at Anchorage, Alaska, this 31 st day of December 2003. ¿:::.=~~ 1,;; /- /'.~. .' " j.r ~ ~..¡;;C- -" --' iJ . cz----Y<""'--- Sarah Palin, Chair ~'. ka Oil and Gas Gønservation Commission (41 Daniel T. Seamount, ~ commISSIoner Alaska Oil and Gas Conservation Commission I certify that on January(, 2004 a copy of the above was mailed to each of the following at their addresses of record: Daniel Donkel Barbara Fuller, CPA Mark Meyers, SOA, Div of Oil and Gas Rick Wagner Rod Scriber Bruce Moore. J o~J: Cõlombie Special Staff Assistant #30 .~ ) ) Daniel K. Donkel 968 Willow Run Lane Winter Springs, FL 32708 Phone - 407-699-4937 ,Fax - 407-699-4718 ddonkel@cfl.rr.com RECEIVED Ute 2 Ii 20fJJ AIarka Oil II Gas Cons. ~ 4nchorage If» December 22, 2003 Via Certiied Mail Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue Suite 100 Anchorage,AJ( 99501 RE: Hemi Springs - ADL 380066 Dear Commi ssioners: I am hereby withdrawing the petition for compulsory unitization of the undefined Hemi Springs Oil Pool concerning in part lease number ADL 380066, which was filed on January 31, 2003. Sincerely, rd2--/~ J2 ß Daniel K. Donkel Y DKD/vh ,. Donkel 'Jw Run Lane, 'prings, FL 32708 _r~"",o-,,"~ , ==- &" ~ c" :-' .... , ',:::, ',....' ,-,'~ "". '-,-"'- '- -.., , ,I ' r: ... -,~"",.".." >-,-., ,..,1.',-,-..,-.... .. P 341 135 b05 -,-.,..- .~ -, ',. ' '" "'> j """""-- . . Alaska Oil and Gas Conservation Commission 333 W. ih Avenue Suite 100 Anchorage, AK 99501 <::¡r-l/ i+ '-'r-,"'./~ .' ,.='., ,-~:'::1'_?'.' '""J"'~'~"""'.J¡.l,,',,¡&...,.,,r!I, -, '~ljÇl11.:f:r.¡~ ' ,6~i1~~: ¡f~~ , , " " -- .~'STJMfs'u&s:'vostaj ~vi;:,?:~ WAILED FROW 32708 - 01USO481000136 ;IJIIJIII !ii! Jflll!1 II III I !}JI I J! 1,1 I JJI}I'I! ,J)II I JJllt/lll #29 ) ') STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 THE PETITION OF DANIEL K. DONKEL for the compulsory unitization of Lease No, ADL 380066 with one or more other tracts, ) ) ) December 12,2003 ) Notice of Dismissal The petitioner, Daniel K, Donkel, is hereby notified that his petition will be dismissed with prejudice unless the petitioner files with the Commission, no later than January 15, 2004, a response showing good cause why the petition should not be dismissed, In its Order on Rehearing, dated June 4, 2003, the Commission reinstated the petition, which had previously been dismissed without prejudice, based on the petitioner's statement that he intended to comply with the Commission's notification requirements for owners of interests in affected property, The petitioner was also required to supply the Commission with an affidavit demonstrating that the notification requirements had been met. The Order Granting Rehearing noted: "Failure to comply with those requirements or to supply that affidavit within a reasonable time may result in dismissal of the petition. " Over six months have elapsed without the petitioner having supplied the required affidavit or indeed any evidence that he has undertaken the required notification of owners of interests in affected property, Since the pendency of an unresolved unitization petition has the potential to create uncertainty as to the ownership or status of leased tracts, it is in the public interest to resolve this matter without further delay, Accordingly, the Commission will dismiss the petition with prejudice unless the petitioner shows good cause, no later than January 15, 2004, why the petition should not be dismissed, , " ".",~,.~ DONE at Attc~rage, Alaska, this 12th day of December 2003. , C~". /L7~ ) .I , )..-/- ' r ~~a!".~h.MÏJÅ, Chair Alaska oil and Gas Conse~ Commission Q)r~ Daniel T, Seamount, Jf., COlrímissioner Alaska Oil and Gas Conservation Commission ! -~,~!f\1 " ,'¡""';'1'1 "'"'i" ' 1 iLl. l)~ -;~, oorr7 , """'¡ ~~ " ~\ .....t, \,"",. _1.6.-- --.-- (¡. i'" Ji I.)f the abC',;'Ø iN::.'i':. ~~Irna~!ed to eactf¡ -,,: 1'¡",,'~ .-:.",~~...t.P"'i"", ",' \'i<,,:;':,¡'" ""'Ii~"¡>,~~~"'" -..J;; \..;( I.HI;;; ,...¡,~,)\:ì,'\~",:" ";"b ~,~-:M \T.J,-~G~ Vt !.'~o:.:c~'~: j}O(Î i<'t? I / /::v//nl ¿ r .filA iÎ s./!fLi?J1' 12ff' ¿j.s. C £j ß /?If' r JC STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 THE PETITION OF DANIEL K. DONKEL for the compulsory unitization of Lease No. ADL 380066 with one or more other tracts. ) Conservation Order No. 489 ) ) April 23, 2003 ) IT APPEARING THAT: , On January 31, 2003, the Commission received a petition from Daniel K. Donkel seeking the compulsory unitization of Lease No. ADL 380066 with Lease No. ADL 28249 or the compulsory expansion of "the existing voluntary Kuparuk Unit." . On February 11, 2003, the Commission informed Mr. Donkel pursuant to AS31,05.050(b) and AS31.05.110(e) that he was required to provide notification of the petition by certified mail to each owner of an interest in the affected tracts. . On March 19, 2003, the Commission set a hearing on the petition for May 15, 2003. Notice of the hearing was published in the Anchorage Daily News on March 20, 2003. , On March 19, 2003, the Commission informed Mr. Donkel that proof of notification by certified mail to owners of interests in the affected tracts must be received no later than April 17, 2003, and that if the Commission were required to cancel or postpone the hearing due to his failure to timely submit proof of notification, the Commission would consider allocating to him the cost of the newspaper notice, as provided by AS 31.05.085. . On April 17 and 18, 2003, the Commission received letters from Mr. Donkel stating his position that he does not have "the duty to notice anyone of [his] Petition" and clearly indicating that he does not intend to comply with the Commission's requirement of notification by certified mail to owners of interests in affected tracts. FINDINGS: 1. The Commission has not been provided proof that the owners of interests in tracts proposed to be included in a compulsorily created or expanded unit have been notified of Mr. Donkers petition. 2. Mr. Donkel had an adequate opportunity to comply with the Commission's requirement to notify those owners of his petition. . The Commission's cost of publishing notice of hearing was $67.68, and the Commission's cost of publishing notice of cancellation of the hearing is $35.25. 4. Mr. Donkel has not paid any regulatory cost charges under AS 31.05.093. CONCLUSIONS: , An order of compulsory unitization under AS 31.05.110 directly affects the property rights of the owners of interests in tracts that are included within the unit. . A Commission order on the merits of Mr. Donkel's petition would not be binding on owners of those interests who did not have a reasonable opportunity to be heard due to lack of notice. . It would be wasteful of the Commission's time and resources, and those of the parties, to proceed with a hearing on Mr. Donkers petition under these circumstances. . Considering that Mr. Donkel has not paid any regulatory cost charges and that Mr. Donkers failure to comply with the Commission's notification requirement has caused the Commission unnecessarily to bear the expense of publishing notice of a hearing that will now be canceled and the expense of publishing notice of cancellation of the hearing, the Commission determines under AS 31.05.085 that it is just under the circumstances to allocate those expenses of publication to Mr. Donkel. /// /// /// Conservation Order No. 489 April 23, 2003 Page 2 of 3 NOW THEREFORE IT IS ORDERED: 1. The petition is dismissed without prejudice. 2. The hearing scheduled for 9:00 a.m. on May 15, 2003, is canceled. 3. Costs in the amount of $102.93 are allocated to, and shall be paid to the Commission by, Mr. Donkel. DONE at Anchorage, Alaska, this 23rd day of.April 2003. Sarah palir~, Chair Alaska Oil and Gas Conservation Commission Daniel T. Seamount, ,Jr., Commissioner Alaska Oil and Gas Conservation Commission Alaska Oil and Gas Conservation Commission AS 31.05.080 provides that within 20 days after receipt of written notice of the entry of an order, a person affected by it may file with the Commission an application for rehearing. A request for rehearing must be received by 4:30 PM on the 23rd day following the date of the order, or next working day if a holiday or weekend, to be timely filed. The Commission shall grant or refuse the application in whole or in part within 10 days. The Commission can refuse an application by not acting on it within the 10-day period. An affected person has 30 days from the date the Commission refuses the application or mails (or otherwise distributes) an order upon rehearing, both being the fmal order of the Commission, to appeal the decision to Superior Court. Where a request for rehearing is denied by nonaction of the Commission, the 30-day period for appeal to Superior Court runs from the date on which the request is deemed denied (i.e., 10th day after the application for rehearing was filed). I certify that on April 23, 2003 a copy of the above was mailed to each of the following at their addresses of record: Daniel Donkel Barbara Fullmer, ConocoPhillips J0c~ J.] Colombie SpeL'iaI Staff Assistant Conservation Order No. 489 April 23, 2003 Page 3 of 3 Notice and CO 489 Subject: Date: From: Organization: To: Notice and CO 489 Wed, 23 Apr 2003 14:23:56 -0800 Jody Colombie <jody_colombie@admin.state.ak.us> Alaska Oil and Gas Conservation Commission Robert E Mintz <robert_mintz@law.state.ak.us>, John Tanigawa <JohnT@EvergreenGas.com>, Terrie Hubble <hubbletl@bp.com>, Sondra Stewman <StewmaSD@BP.com>, stanekj <stanekj@unocal.com>, ecolaw <ecolaw@trustees.org>, roseragsdale <roseragsdale@gci.net>, trmjrl <trmjr! @aol.com>, jbriddle <jbriddle@marathonoil.com>, rockhill <rockhill~aoga. org>, shaneg <shaneg@evergreengas.com>, rosew <rosew~evergreengas.com>, jdarlington <jdarlington@forestoil.com>, nelson <nelson@gci.net>, cboddy <cboddy@usibelli.com>, "mark.dalton" <mark.dalton@hdrinc.com>, "shannon.donnelly" <shannon.donnelly~conocophillips.com>, "mark.p.worcester" <mark.p.worcester@conocophillips.com>, "jerry. c.dethlefs" <j erry.c.dethlefs@conocophillips.com>, arlenehm <arlenehm@gci.net>, bob <bob@inletkeeper.org>, wdv <wdv@dnr. state.ak.us>, tjr <tjr~dnr. state.ak.us>, bbritch <bbritch@alaska.net>, greg-noble <greg-noble@blm.gov>, mjnelson <mjnelson@purvingertz.com>, burgin_d <burgin_d@niediak.com>, "charles.o'donnell" <charles.o'donnell@veco.com>, "Skillem, Randy L" <SkilleRL@BP.com>, "Dickey, Jeanne H" <DickeyJH~BP.com>, "Jones, Deborah J" <JonesD6@BP.com>, "Hyatt, Paul G" <hyattpg~BP.com>, "Rossberg, R Steven" <RossbeRS@BP.com>, "Shaw, Anne L (BP Alaska)" <ShawAL@BP.com>, "Kirchner, Joseph F" <KirchnJF@BP.eom>, "Pospisil, Gordon" <PospisG@BP.com>, "Sommer, Francis S" <SommerFS@BP.com>, "Schultz, Mikel" <Mikel. Schultz@BP.com>, "Jenkins, David P" <JenkinDP@BP.com>, "Glover, Nick W" <GloverNW@BP.com>, "Kleppin, Daryl J" <KleppiDE~BP.com>, "Platt, Janet D" <PlattJD@BP.com>, "Wuestenfeld, Karen S" <WuesteKS@BP.com>, "Jacobsen, Rosanne M" <JacobsRM@BP.com>, ddonkel <ddonkel@cfl.rr.com>, collins_mount <collins_mount@revenue.state.ak.us>, mckay <mckay@gci.net>, "barbara. f. fullmer" <barbara. f. fullmer~conocophillips.com>, eyancy <eyancy@seal-tite.net>, bocastwf <bocastwf@bp.com>, cowo <cowo~chevrontexaco.com>, ajiii88 <ajiii88@hotmail.com>, doug_schultze <doug_schultze~xtoenergy. com>, "hank.alford" <hank.alford@exxonmobil.com>, yesno 1 <yesno 1 @gci.net>, "john.w.hanes" <john.w.hanes~exxonmobil.com>, babsonandsheppard <babsonandsheppard@warthlink.net>, gspfoff <gspfoff@aurorapower. com>, "gregg.nady" <gregg.nady@shell.com>, "fred.steece" <fred. steece@state.sd.us>, rcrotty <rcrotty@ch2m.com>, jejones <jejones@aurorapower.com>, dapa <dapa~alaska.net>, jack_laasch <jack_laasch~natchiq.com>, jimwhite <jimwhite~satx.rr. com>, wrholton <wrholton@marathonoil.com>, "richard.prentki" <richard.prentki@mms.gov> I of 2 4/23/2003 2:25 PM Notice and CO 489 ~CO 489.doc Name: CO 489.doc Type: WINWORD File (application/msword) Encoding: base64 ~Notice of Cancellation of Public Hearing.doc Name: Notice of Cancellation of Public Hearing. doc Type: WINWORD File (application/msword) Encoding: base64 [-~jody colombie.vcf Name: jody colombie.vcf ] Type: vca~d (text/x-vcard) ] Encoding: 7bit !1 Description: Card for Jody Colombiet 2 of 2 4/23/2003 2:25 PM SD Dept of Env & Natural Resources Oil and Gas Program 2050 West Main, Ste 1 Rapid City, SD 57702 Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 G. Havran Gaffney, Cline & Associations Library 1360 Post Oak Blvd., Ste 2500 Houston, TX 77056 Chevron USA Alaska Division PO Box 1635 Houston, TX 77251 Shelia McNulty Financial Times PO Box 25089 Houston, TX 77265-5089 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 Christine Hansen Interstate Oil & Gas Compact Comm Excutive Director PO Box 53127 Oklahoma City, OK 73152 Paul Walker Chevron 1301 McKinney, Rm 1750 Houston, TX 77010 W. Allen Huckabay ConocoPhillips Petroleum Company Offshore West Africa Exploration 600 North Dairy Ashford Houston, TX 77079-1175 Donna Williams World Oil Statistics Editor PO Box 2608 Houston, TX 77252 Shawn Sutherland Unocal Revenue Accounting 14141 Southwest Freeway Sugar Land, TX 77478 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 John Katz State of Alaska Alaska Governor's Office 444 North Capitol St., NW, Ste 336 Washington, DC 20001 Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 Texico Exploration & Production PO Box 36366 Houston, TX 77236 Chevron Chemical Company Library PO Box 2100 Houston, TX 77252-9987 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO Samuel Van Yactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Susan Hill State of Alaska, ADEC EH 555 Cordova Street Anchorage, AK 99501 80901 John Levorsen 200 North 3rd Street,#1202 Boise, ID 83702 Thor Cutler OW~137 US EPA egion 10 1200 Sixth Ave. Seattle, WA 98101 Julie Houle State of Alaskan DNR Div of Oil & Gas, Resource Eval. 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Duane Vaagen Fairweather 715 L Street, Ste 7 Anchorage, AK 99501 Cammy Taylor 1333 West 11th Ave. Anchorage, AK 99501 Trustees for Alaska 1026 West 4th Ave., Ste 201 Anchorage, AK 99501-1980 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Ciri Land Department PO Box 93330 Anchorage, AK 99503 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 John Harris NI Energy Development Tubular 3301 C Street, Ste 208 Anchorage, AK 99503 Mark Hanley Anadarko 3201C Street, Ste 603 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., ~,4 Anchorage, AK 99503 Judy Brady Alaska Oil & Gas Associates 121 West Fireweed Lane, Ste 207 Anchorage, AK 99503-2035 Paul L. Craig Trading Bay Energy Corp 5432 East Northern Lights, Ste 610 Anchorage, AK 99508 Jeff Walker US Minerals Management Service Regional Supervisor 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Perry Markley Alyeska Pipeline Service Company Oil Movements Department 1835 So. Bragaw- MS 575 Anchorage, AK 99515 Jeanne Dickey BP Exploration (Alaska), Inc. Legal Department PO Box 196612 Anchorage, AK 99518 Kevin Tabler Unocal PO Box 196247 Anchorage, AK 99519-6247 Kenai Peninsula Borough Economic Development Distr 14896 Kenai Spur Hwy #103A Kenai, AK 99611-7000 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Jordan Jacobsen Alyeska Pipeline Service Company Law Department 1835 So. Bragaw Anchorage, AK 99515 Tesoro Alaska Company PO Box 196272 Anchorage, AK 99519 BP Exploration(Alaska),lnc. Land Manager PO Box 196612 Anchorage, AK 99519-6612 Penny Vadla Box 467 Ninilchik, AK 99639 Jim Scherr US Minerals Management Service Resource Evaluation 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Jim Ruud ConocoPhillips Alaska, Inc. Land Department PO Box 100360 Anchorage, AK 99510 David Cusato 600 West 76th Ave., #508 Anchorage, AK 99518 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Sue Miller BP Exploration (Alaska), Inc. PO Box 196612 Anchorage, AK 99519-6612 James Gibbs PO Box 1597 Soldotna, AK 99669 Claire Caldes US Fish & Wildlife Service Kenai Refuge PO Box 2139 Soldotna, AK 99669 Kenai National WildlifeRefuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Richa~Wagner PO Box 60868 Fairbanks, AK 99706 Cliff Burglin PO Box 131 Fairbanks, AK 99707 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 Lt GovemorLoren Leman State of Alaska PO Box 110015 Juneau, AK 99811-0015 Harry Bader State of Alaska Department of Natural Resources 3700 Airport Way Fairbanks, AK 99709 North Slope Borough PO Box 69 Barrow, AK 99723 Bernie Karl K&K Recycling Inc. PO Box 58055 Fairbanks, AK 99711 Kurt Olson State of Alaska Staff to Senator Tom Wagoner State Capitol Rm 427 Juneau, AK 99801 #28 [Fwd: Response on ADL 380066] Subject: [Fwd: Response on ADL 380066] Date: Thu, 26 Jun 2003 11:46:19 -0800 From: Sarah Palin <sarah_palin~admin.state.ak.us> Organization: AOGCC To: Jody J Colombie <jody_colombie~admin.state.ak.us> Subject: Date: From: To: CC: Re: Response on ADL 380066 Mon, 23 Jun 2003 19:30:04 -0800 "Brit Lively" <mapalaska@ak.net> "Dan Donkel" <ddonkel@cfl.rr. com>, "John Yule" <jyule@infovision.com>, "Frank Wollensack" <frankwollensack~aol.com>, "Fred Wickham" <mymollymo@aol.com>, "Jim White" <jimwhite~satx.rr.com>, "Bill White" <bwhite@adn.com>, "Rick Wagner" <bluemax~gci.net>, "Vickie Ujvary" <vau@coffey. com>, "Andy & Aileen Ujvary" <cujvary~trib.com>, "S.C. TURNER" <IITURNRS~msn.com>, "Urban Throm" <ieddet~aol.com>, "Steve Sutherlin" <steves~ak.net>, "Nicholas Vincent Stepovich" <smiths2ndave~gci.net>, "Vernon Stephens" <vem_stephens~msn.com>, "Rod Scribner" <rscrib7768~aol.com>, "Patrick J. Russell" <pmssell~allen-vellone.com>, "Victor Rogers" <vjr~ccsi.com>, "Robert Reges" <robert~resourcelawyers.com>, "Jim Pound" <Jim_Pound~Legis.state.ak.us>, "Gerald Pescuma" <geardaddi~attbi.com>, "Mark Myers" <mdm~dnr. state.ak.us>, "Frank H. Murkowski" <Govemor~gov.state.ak.us>, "Brace Moore" <bmoore@winnerlaw.com>, "Douglas Mertz" <dkmertz~ak.net>, "Kenneth Mehaffey" <kmehaffey~earthlink.net>, "David Lappi" <lapres~gci.net>, "Mark Landt" <m.landt~prodigyoilandgas.com>, "Andrea Kurak" <akura~ccb.com>, "Nancy Knuutila" <collage~gci.net>, "Dr. George Kasper" <kaspercrc~aol.com>, "Peter Huddleston" <P eterH~huddlestonco.com>, "Jerry Hodgden" <krock~attbi.com>, "Bill Hieronymus" <geojazz@swbell.net>, "Jim Gottstein" <jimgotts~touchngo.com>, "Donna Gloria" <itdontcare@hotmail.com>, "James Givens" <jwgivens~arctic.net>, "Dan Gilbertson" <beaverl ~acsalaska.net>, <GeraldGillman~aol.com>, "Jim Freeman" <jim.kyoko@attbi.com>, "Richard A. Fineberg" <fineberg@alaska.net>, "John Ferguson" <jferg~ccb.com>, "Russell Douglas" <rdouglass~doyondrilling.com>, <dbarr~rgo-cpa. com>, "Daniel J. Boone, Reges & Boone LLC" <daniel@resourcelawyers.com>, "John Crowder" <adm~cbycb.com>, "Dick Crouch" <rbc6010~aol.com>, "Jenkins Cromwell" <cromwell@mdcapital.com>, "Paul Craig" <pcraig~gci.net>, "Scott Cichon" <scich~ccb.com>, "David Childress" <DavidChildress~akllp.com>, "Kay Cashman" <publisher@gci.net>, "Kay Cashman" <edit~gci.net>, "Mark Capalongan" <markc~stratamet.com>, "Dr. Sam H. Cade" <samuel.h.cade~att.net>, "Barbara Buck" <sygnet~sbcglobal.net>, "Frederic E. Brown" <fbrown@mosquitonet.com>, "John Brooks" <JBrooks709~aol.com>, "Robert O. Bolt" <bobbolt~aol.com>, "Ed Bennett" <editor@alaskajoumal.com>, "Kevin Beiter" <kbeiter@hsfblaw.com>, "Steven Beckendorf' <beckendo~uclink4.berkeley. edu>, "Virginia Beattie" <virginiab 14~aol.com>, "Doug Barr" <alanbarr~hotmail.com>, "Ronald & Jane Baker" <bakerrj~eoni.com>, "B.J. Baker" <bjbaker~literallyyours.com>, "Ellsworth Alvord, Jr." <alvord~u.washington.edu> <dan_seamount~admin. state.ak.us>, <sarah_palin~admin.state.ak.us>, <randy_ruedrich~admin. state.ak.us>, <jody_colombie~admin.state.ak.us> I of 3 6/26/2003 12:22 PM [Fwd: Response on ADL 380066] Dear Dan, Thank you for having the confidence in my ability to choose me as your agent. However, I am afraid that I must decline for two reasons: 1) I don't think I'm qualified. In order to do justice to your effort, I recommend you use the services of a registered landman, an expert in the field for the preparation of documents required for unitization, who, in concert with your professional geologist/geophysicist team, will lend to your effort the credibility you deserve. 2) My first priority and commitment with Mapmakers Alaska is to our subscribers. I am responsible for accurate information, timely updates, ongoing tracking of lease, well and industry issues, product enhancement, and customer care. I just can't see how I can make time for your request. I am copying this to those people whom you have informed of my appointment as your agent; to let them know that I have declined the appointment so that they will not contact me on your behalf. Best regards and best wishes, Brit Lively MAPMAKERS ALASKA 259 South Alaska Street Palmer AK 99645 907-745-3398 ..... Ori.gina! .Message ..... FrOm: :Dan::.Donkel' · .. To: John Yule; Frank Wollensack; Fred Wickham; Jim White; Bill White; Rick Wagner; Vickie Uivary; Andy & Aileen Uivary; S.C. TURNER; Urban Throm; Steve Sutherlin; Nicholas Vincent Stepovich; Vernon Stephens; Rod Scribner; Patrick J. Russell; Victor Rogers; Robert Re,qes; Jim Pound; Gerald Pescuma; Mark Myers; Frank H. Murkowski; Bruce Moore; Douglas Mertz; Kenneth Mehaffey; Brit Lively; David Lappi; Mark Landt; Andrea Kurak; Nancy Knuutila; Dr. George Kasper; Peter Huddleston; Jerry Hod.qden; Bill Hieronymus; Jim Gottstein; Donna Gloria; James Givens; Dan Gilbertson; GeraldGillmanCb, aol.com; Jim Freeman; Richard A. Fineber,q; John Fer.quson; Russell Douglas; dbarrC, r.qo-cpa.com; Daniel J. Boone, Re,qes & Boone LLC; John Crowder; Dick Crouch; Jenkins Cromwell; Paul Craig; Scott Cichon; David Childress; Kay Cashman; Kay Cashman; Mark Capalon.qan; Dr. Sam H. Cade; Barbara Buck; Frederic E. Brown; John Brooks; Robert O. Bolt; Ed Bennett; Kevin Beiter; Steven Beckendorf; Virginia Beattie; Dou,q Barr; Ronald & Jane Baker; B.J. Baker; EIIsworth Alvord, Jr. Sent: Tuesday, June 03, 2003 8:59 AM Subject: Fw: Response on ADL 380066 Dear Friends: Please find a copy of the reponse to the Commission's Order for Rehearing on Compulsory Unitization regarding the oil & gas pool discovered on Hemi Springs(ADL 380066). This well comes within 66 feet north of our property line in which we own an overriding royalty interest in said pool. It is my belief that we clearly comply with the criteria for compulsory unitization and it is my intent to get the AOGCC to order ConocoPhillips, who owns the working interest, to be forced into unitization. This will protect overriding royalty interest owners in said pool. Getting the AOGCC to do their duty has been a long and arduous task, but the law demands it and I require the Commission to obey the law and force the unitization. I will keep you posted, as this is a very important issue in making sure that fairness prevails in the Alaska Oil & Gas Conservation. 2 of 3 6/26/2003 12:22 PM [Fwd: Response on ADL 380066] Sincerely Your Fighting For Justice, Daniel K. Donkel ..... Original Message ..... From: Dan Donkel To: Dan Seamount; Sarah Palin; Randy Ruedrich; Jody Colombie Sent: Tuesday, June 03, 2003 12:39 PM Subject: Response on ADL 380066 Dear Commissioners: Enclosed for your consideration, this confirms that I have met your requirements of the Order. Therefore, you shall have a Hearing as mandated by law. Please advise me of anything that I need to be informed of in order to continue to comply as it is my desire. Please note my objections shall be included in the record for the purpose of appeal and I reserve all rights under law and contract. This does not invalidate any of my previous correspondence which clearly shows that I protest your procedures, however I will comply with them until a court of law orders otherwise. Thank you, I look forward to your response. Sincerely, Daniel K. Donkel 3 of 3 6/26/2003 12:22 PM #27 ALASILA OIL AND GAS CONSERYA~ION COPlPlISSION / i' / / / / / ,/ I' FRANK H. MURKOWSKI, GOVERNOR 333 W. 7TM AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 June 17, 2003 Daniel K. Donkel 968 Willow Run Lane Winter Springs, FL 32708 Re: The petition of Daniel K. Donkel to unitize leases ADL 380066 and 28249 or, in the alternative, to expand the Kuparuk Unit to include lease ADL 380066 Dear Mr. Donkel: This responds to your letter dated June 6, 2003, in which you ask about which persons you are to notify of your petition. We believe our letter of February 11, 2003, was clear on this point. That letter stated that you are required to notify "each owner of either a working interest or a royalty interest in ADL 380066 or in ADL 28249," and that if you intend to seek the involuntary expansion of the existing Kuparuk River Unit, you are also required to notify "each owner of either a working interest or a royalty interest in any tract within the Kuparuk River Unit." These instructions are based on your own identification of the properties that you have proposed to be included in a compulsorily created or expanded unit. AS 31.05.110(b) requires a petition for compulsory unitization to include "a description of the proposed unit area." Your petition appears to propose a new unit encompassing leases ADL 380066 and ADL 28249, or in the alternative, an expansion of the Kuparuk River Unit to include lease ADL 380066. However, if we have misunderstood your proposed unit area(s), then you should clarify your description of the area(s), and you should include in your list of persons to be notified of your petition each owner of either a working interest or a royalty interest in each tract that is located within your proposed unit area(s). You ask about the descriptions of "the pool that was discovered by the HemiSprings Well" and of the "Kuparuk Unit Pool." The Commission has never had occasion to define a.pool discovered by the well in question, since that well has not produced. As to the Kupamk River Oil Pool in the Kuparuk River Field, that pool is defined in Conservation Order No. 173 as "the accumulation of oil that is common to and correlates with the accumulation found in the Atlantic Richfield Daniel Donkel June 17, 2003 Page 2 of 2 Company West Sak River State No. 1 well between the depths of 6,474 and 6,880 feet." You will note that pools are not described in terms of surface location. However, conservation orders that prescribe pool rules, such as Conservation Order No. 173, define an area to which the pool rules apply, and that area typically corresponds to the area estimated to encompass the pool. Therefore, you may find it helpful to refer to the conservation orders concerning the Kuparuk River Field, Kuparuk River Oil Pool, particularly Conservation Order No. 432B. The text of those orders is available on the Commission's website at: http://www.state.ak.us/local/akpages/ADMIN/ogc/orders/co/coindex.htrn. In addition, printed copies of the pertinent orders can be obtained from the Commission by contacting Linda Laasch at 907-793-1223. You also ask about the definition of "owner." It is tree that AS 31.05.170(9) defines "owner" as, "unless the context otherwise requires the person who has the right to drill into and produce from a pool and to appropriate the oil and gas the person produces from a pool for that person and others." Both the context and the literal language of our letter of February 11, 2003, were very clear that the notification requirements concerning your petition apply to more than working interest owners and that they also apply to persons owning royalty interests. You further ask that the Commissioners recuse themselves on the ground that ConocoPhillips pays regulatory cost charges under AS 31.05.093 and you do not. You may raise this or other procedural or substantive issues after affected interest owners have been given notice of your petition, so that all parties will have the opportunity to be heard. Sarah Palin '; Chair Sincerely, Daniel T Sb'fimount, Jr. Commissioner Randy R~edrich Commissioner CC: Barbara Fullmer, Esq. Rod Scribner Bruce Moore Rick Wagner #26 . Danie l K. Do_nkel 968 Willow Run Lane Winter Springs, FL 32708 (407) 699-4937- Telephone (407) 699-4718- Facsimile ddonkel~cfl, rr. com- E-mail RECEIVED JUN 1 0 2003 Alaska 0il & Gas Cons. Commission Anchorage June 6, 2003 VIA E-MAIL: randy ruedrich~admin.state.ak, us dan seamount@admin.state.ak, us sarah palin~admin.state.ak, us U.S. MAIL AND FACSIMILE: (907) 276-7542 Sarah Palin, Commissioner, Chairperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., CommissiOner Alaska Oil and Gas. Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501.-3539 Re: Donkel's Petition for Compulsory Unitization- Lease No. ADL 28249 - Operated by ConocoPhillips & Lease No. ADL 380066 (& other leases in the vicinity of the productive pool)- Operated by ConocoPhillips- Daniel K. Donkel, an Overriding Royalty Interest Owner, with no ability to drill or produce and dependent on the protection of the AOGCC under AS 3105.110 Dear AOGCC Commissioners: I need the AOGCC to give me the description of the pool that was discovered ~by the HemiSprings Well based on the subdivision of public lands or its aliquot parts; specifically, I need to know where the pool and field are located and the size of the area encompassed by this pool. The ARCO HemiSprings Well which was certified and is capable of producing oil and gas in paying quantities discovered in this well bore which comes within 66 feet of Lease ADL380066 of which I am an overriding royalty interest owner. In making a determination of the area of the pool it is important that we use the statutory definition of"pool" which under AS 31.05.170(11) we are given the following definition: ."'Po°l'' means an underground reservoir containing, or appearing to contain, a common accumulation of oil or gas. Each zone of a general structure which is completely separated fi.om any other zone in the structure is covered by the term "pool";." Sarah Palin, Commissioner, ( ,irperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission June 6, 2003 Page 2 of 3 In the Conservation Order 489, dated April 23, 2003 it is written in the findings under No. 1 that I have not provided proof that the owners of interests in tracts proposed to be included in a compulsorily created or expanded Unit have been notified of my Petition. My question to you is who are the owners of interest in this pool and what is the legal description of the pool? The only definition I can find for "owners" is under AS 31.05.170 (9)which defines "owners" as 'the person who has the right to drill into and produce fi.om a pool and to appropriate the oil and gas the person produces fi'om a pool for that person and others." Am I to just provide 'Notice' to ConocoPhillips since they are the owners of the working interest in the Lease or, are there others that I am to provide with a 'Notice; and, who are these 'others' who are owners of interests in tracts which are proposed to be included in a compulsorily created or expanded Unit? Also, is the Kupamk Unit pool and/or field part of the pool discovered by the HemiSprings Well? I ask this because, 'pool' means an underground reservoir containing or appearing to contain a common accumulation of oil or gas. These questions are why it is important for you to tell me where the pool is so I can find out who the owners are if you would give me the definition of what you are using for "owner." Clearly, the definition of AS 31.05.170(9) states that the owner is the person who has the right to drill into and produce from a pool and I am wondering if your definition is different fi.om that given in this statute. This process would be so much easier if you would simply provide the notices as you have done in every hearing that I have ever known and which now begs the question: Are you saying that all Conservation Orders ever done were all properly noticed by certified mail by the Petitioners? And, if not, couldn't one argue that if every Petition or Notice of a Hearing not distributed or sent out by Certified Mail, that the Hearings held could be invalid because there may have been failures to provide notice to everyone affected? This notification rule was not required in 1996 when the Danco/Allen case on North Cook Inlet Unit was filed, but now we are faced with a new requirement and I don't believe this law has changed since then. Please note that the Supreme Court ruled in Petitioners' favor and ordered a hearing on remand without a certified letter to all the owners. Please explain why the Commission insists on changing and obfuscating the rules? This merely adds fuel to the fire that this Commission is biased and prejudiced on our Petition and is not acting as an impartial tribunal. Additionally, I am still waiting for an answer to my last correspondence for this Commission to allow me to go to the Superior Court as a trial court so that I can be provided the due process I have been so far denied at the Agency level. One final note on the new Statute AS 31.05.093: It is my belief that it is unconstitutional because you are a quasi-judicial agency and yet ConocoPhillips is paying you money under this new Statute and I am not required to pay. Now, since ConocoPhillips is indirectly paying your salary and I am not paying your salary, how can you be my tribunal and remain impartial? I believe this renders the Commission's independent quasi-judicial status as null and void because Sarah Palin, Commissioner, ~irperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission June 6, 2003 Page 3 of 3 you are taking money from some entities and not from other entities yet 'you sit in judgment with this 'bone-crushingly' obvious conflict of interest and partiality. How can you be a fair and impartial tribunal when you use this statute against me as you did in your April 23, 2003 Order? I demand that you reeuse yourselves as my adjudicators for this hearing so that I can have a trial before the Superior Court which would provide me with a clear separation of powers and transfer me to the judiciary branch of government. When can I expect to receive a response from you on these issues? I would also like to know how the average citizen would ever have ability to overcome the complexities presented by this Commission by a petitioner simply requesting a hearing under AS 31.05.110 for compulsory unitization. Your process is similar to running a maze with no exit. I would appreciate your earliest possible response to my earlier request and to this letter. Please understand, I am just trying to get a hearing on compulsory unitization. May I have your cooperation now? Please just provide the notices like you have done in every hearing ever held as far as I know, and treat me equally under the law. I am trying to do the noticing process as best as I am able. I will be working with MapMakers, Inc., to try to get this done unless I can get some relief. If I don't get cooperation from the Commission on this issue, I am putting this Commission on notice that I may file an emergency motion f~r a stay from these proceedings in the Alaska Superior Court and file a Motion for Review. But I am hopeful the Commission will work with me to find answers to these matters so the Commission can comply with AS 31.05.110. Sincerely, Daniel K. Donkel DKD/jee #25 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 THE PETITION OF DANIEL K. DONKEL ) for the compulsory unitization ) of Lease No. ADL 380066 with one or ) more other tracts. ) June 4,2003 Order on Rehearing In its May 15, 2003, Order Granting Rehearing, the Commission stated that if the petitioner, Daniel K. Donkel, informed the Commission in writing by June 2, 2003, that he intends to comply with the Commission's notification requirements for owners of interests in affected property, the Commission would issue an order on rehearing reinstating the petition that had been dismissed without prejudice in Conservation Order No. 489. Mr. Donkel has so informed the Commission. Accordingly, the petition will be reinstated. As stated in the Order Granting Rehearing, a hearing on the petition will be scheduled for a later date after the Commission receives Mr. Donkel's affidavit demonstrating that the notification requirements have been met. Failure to comply with those requirements or to supply that affidavit within a reasonable time may result in dismissal of the petition. NOW THEREFORE IT IS ORDERED that the petition is reinstated. DONE at Anch°rage' Alaska~~aY~°~V Daniel T. Seam0~unt, Jr., Commissioner Alaska Oil and Gas Conservation Commission Alaska Oil and Gas Conservation Commission Randy drich, Commissioner Alaska Oil and Gas Conservation Commission #24 ALASKA OIL AN~ GAS CONSERYATIOS' COMMISSIOS~ FRANK H. MURKOWSKI, GOVERNOR 333 W. 7TM AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Daniel K. Donkel 968 Willow Run Lane Winter Springs, FL 32708 June 4,2003 Re.' THE PETITION OF DANIEL K. DONKEL for the compulsory unitization of Lease No. ADL 380066 w/th one or more other tracts. Dear Mr. Donkel: As you requested, the Commission is providing you with the enclosed notice form that you may use for the purpose of notifying owners of interests in affected property of your petition in accordance with the requirements the Commission has previously set forth. Sincerely, f~ /'2 ' Chair CC: Barbara Fullmer, Esq. Rod Scribner Bruce Moore Rick Wagner Encl. STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 THE PETITION OF DANIEL K. DONKEL ) for the compulsory unitization ) of Lease No. ADL 380066 with one or ) more other tracts. ) June 4,2003 NOTICE OF PETITION FOR COMPULSORY UNITIZATION NOTICE IS HEREBY GIVEN that a petition has been filed under AS 31.05.110 by Daniel K. Donkel seeking to unitize leases ADL 380066 and 28249 or, in the alternative, to expand the Kuparuk Unit to include lease ADL 380066. If you own an interest in affected property or if you owned such an interest as of the date the petition was filed, January 31, 2003, you may elect to participate as a party in this matter, including attending and being heard at any hearing on the petition. Please inform the Alaska Oil and Gas Conservation Commission in writing at the following address if you wish to participate as a party in this matter or if you wish to be included in the distribution list for notices, filings, and orders: Alaska Oil and Gas Conservation Commission 333 West Seventh Avenue, suite 100 Anchorage, Alaska 99501 You may also contact the Commission at the above address or at (907) 279- 1433 to learn the date, time, and place of any hearing in this matter. The record in this matter, including the petitio~nay be inspected at the Commission's offices. ~ ~/ / 2 ~_.._ Alaska Oil and Gas Conservation Commission #23 Daniel K. Donkel 968 Willow Run Lane Winter Springs, Florida 32708 Phone: (407)699-4937 Fax: (407)699-4718 Email: ddonkel@cfl.rr, com RECEIVED JUN 0 9 2003 Alaska Oil & 6as Cons. Commission Anchorage Alaska Oil and Gas Conservation Commission (AOGCC) 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 The Petition of Daniel K Donkel for the compulsory unitization of Lease No. ADL 380066 with one or more other tracts. June 2, 2003 To The AOGCC And To Whom It May Concern: This is a letter is a response in Compliance With the Commission's owner notification order. I intend to comply With yOur May 15 and April 23 orders. I shall do so, however, with objection and I reserve all rights under contract and law for any and all losses incurred to me in doing so. In an attempt to comply with providing the notice unlawful burdens of the of the Commission's requirements/orders, I have contracted with an outside company, Brit Lively of Map Makers of Alaska, 259 South Alaska Street, Palmer AK 99645, (907)745-3398, who is researching and attempting to obtain the addresses of any known owners of interest in the affected tracts. Having met the requirements of the Commission order, I respectfully request that a Hearing on my petition be promptly granted and date set. Pursuant to your April 23, 2003 order paragraph 2, the Commission stated "the Commission informed Mr. Donkel pursuant to AS 31.05.050(b) and AS 31.05.110(e) that he was required to provide notification of petition by certified mail to each owner of an interest in the affected tracts." The is no requirement within either AS 31.05.050(b), nor AS 31.05.110(e) stating that it is the petitioner's duty to provide notification of petition by certified mail to each owner of an interest in all affected tracts." More specifically, AS 31.05.110(e) states: "(e) Except as otherwise expressly provided in this section, all proceedings hem under this chapter, including the filing of petitions, the giving of notices, the conduct of hearings and other actions taken by the commission shall be in the form and manner and in accordance with the procedure provided in AS 31.05.040-AS 31.05.060. Additional notice shall be given as the commission requires." With respect to that statute, there is no such requirement that the petitioner, or anyone other than the Commission, be under a duty to provide notification of petition by certified mail to each owner of interest in the affected tracts. In fact, that statute and its intent indicate clearly that it is the Commission has the duty to notify. With respect to the reference of procedure provided by AS31.05.040 - AS 31.05.060, there is also no requirement for the petitioner to undertake such a duty. Pursuant to AS 31.05.050(b), in pertinent part, "the commission may also give, or require the giving of, additional notice in a proceeding, or class of proceeding, which it considers necessary and desirable." Presumably, the Commission relies on this portion of the statute to require the Petitioner to give notice per their April 23 and May 15 orders. The Petitioner has already complied with these orders. According to the Alaska Department of Natural Resources Land Administration System records, for ADL 380066, the only "affected tract owner" is Conocophillips Alaska, Inc. Conocophillips, has been notified of this petition since the onset of these proceedings. However, to further comply, I will send Conocophillips, by certified mail, notice. According to DNR records, there are no other "affected tract owners" to whom notice is required. As you know, please note that Conocophillips has been receiving bom the Commission, all correspondence. If the Commission order requires more notice than this, then it should have clarified its order and been specific to exactly whom and which "affected tracts owners" it was referring to. If I am expected to provide notice by certified mail to all of the state of Alaska, then the appropriate method of notice would have been accomplished by the AOGCC hearing notice published in the newspaper. By the way, when that meeting was cancelled, did the AOGCC send notice by certified mail to "all affected tract owners?" If they did, I would presume then, that the AOGCC does have the information I requested of them to send out my own notices, which is contradictory to their claim that they do not have access to this information or that it would be easier to access this information. The Commission clearly has access to the name of all owners of interest. It could provide that information to more efficiently than attempting to search for it myself. The Commission and its counsel knows that if anyone transfers interest in an oil and gas lease, those transfers are controlled by 11AAC 82.605(b). Pursuant to 11 ACC 82.605(b) which states in pertinent part: "When transfers of overriding royalty are made after the initial separation from the working interest of the lease, executed or image copies of these transfers must be transmitted to the department without charge for filing in the appropriate case file. However, the commissioner will take no action and official status records will not be posted to reflect these transfers." Thus, it is evident that this information is kept and maintained by the commission within ADL File number 380066. Since the Law Department works for both the Commission and the Department of Natural Resources it could have easily accessed this information without such delay and proceeded with the hearing. Furthermore, as an administrative arm of the State of Alaska the AOGCC has the duty to ensure that all interested parties, citizens, etc. are afforded their due process rights. The requirement that I provide notice to all interested parties by certified mail is not only arbitrary and capricious, but it is also excessive because it is more burdensome to me than what the State/Commission is required to do on its own. The only notice requirement promulgated by the statutes requires the Commission to provide notice in the newspaper ten ( days prior the hearing date. AS 31.05.050(b). If this was enough sor the Legislature of Alaska when it set up the law, then why should an ordinary citizen be required to do more in order for the Commission to comply with its mandate to afford everybody due process? At minimum, the Commission misinterpreted the statute in order to carry out its own agenda. I would submit to you a question. How would a little old lady or the common, ordinary US citizen be able to comply with the discriminatory and unduly burdensome requirements of the Commission by its abuse and misuse of authority of AS 31.05.110(e): "Additional notice shall be given as the commission requires" and AS 31.05.050(b), in pertinent part, "the commission may also give, or require the giving of additional notice in a proceeding, or class of proceeding, which it considers necessary and desirable?" Is it intent of the Commission to create undue burden and confusion that will in most cases, would render a petitioner's rights under this statute moot? How are the people these statutes were created to protect, supposed to access and benefit bom laws that were created to protect them? This burden is in violation of the law that the Commission has wrongfully used to make the law inaccessible to the common layperson. My intent is to draw this to the Commission's, Court's, and the public's attention; so that some average citizen can have this compulsory unitization law work for them in a meaningful and beneficial way. I am, by no means, trying to annoy the Commission. I am simply trying to show the Commission that they are rendering the law useless under this current method, which creates morass and confusion and causes the average citizen to not even bother to petition this Commission at all. Is that what the Commission wants? Clearly, it is not what the Legislature intended, and it is bone-crushingly obvious that it is not what the Supreme Court in Allen v AOGCC, interprets this law to do. It is your duty to protect; please stop shirking your duty. It is hurting the people it was designed to protect and benefiting the people who are clearly in violation of the intent and purpose of unitization laws. This makes one wonder who the Commission works for, the big oil companies or the people of the state of Alaska? This statute, as well as other notice statutes, does not require this extreme hardship and unduly burdensome task to be placed on the ordinary citizen seeking your protection. The Legislature's intent behind these statutes was to effectuate the providing of notice, while balancing the interests of the parties by not creating a requirement that was unduly burdensome and one that affords due process to everyone. It seems to me that the Commission's order is arbitrary and capricious in the sense that other laws do not require such a burdensome and costly requirement. In closing, I require the Commission to submit into the record all evidence that they have reviewed, when they stated in their February 11, 2003 letter that, "the Commission sees no need to take any further action with respect to lease ADL 28249 or lease ADL 380066 in order to prevent waste, in sure greater ultimate recovery ofoil and gas, or to protect correlative rights." It is clear that this tribunal has prejudiced its position based on its "investigation" in review of the evidence, as it is there is their affirmative duty to investigate. Due process affords a fair and impartial tribunal, how does this Commission believe it could now be fair and impartial, based on its statement and conclusion in said letter? I will look forward to receiving all of the information you reviewed during your investigation. When can I expect to receive it? It is traditional among~:ibunals that, when empanelling a jury, ~fe question is normally asked: "Do any of the jurors have any prejudices or conclusions based any information they have r~ceived prior to be called for this jury duty?" It seems that the Commission cannot be an independent quasi-judicial and tribunal. Since it has already drawn its own conclusion in the February 11, 2003 letter. My question to the Commission: Do you want to r~use yourself, and bring this straight to an impartial tribunal such as the Superior Court as the trial court. It seems due process would be served under the circumstances of this case. Therefore, I ask, would you voluntarily recuse yourself and can we file a stipulation with the Court so we can move on to the merits of this petition? Sincerely, .., Daniel K. Donkel An American Citizen owning interest In the tracts of land affected Jun 02 03 08:31p DRMIEL K DOMKEL i,' 407 688 4718 Daniel K. Donkel 968 Willow Run Lane Winter Springs, Florida 32708 Alaska Oil and Gas Conservation Commission 333 West 7'h Avenue, Suite 100 Anchorage, Alaska 99501 RE: The Petition of Daniel K Donkel for the compulsory unitization of Lease No. ADL 380066 with one or more other tracts. June 2, 2003 To The AOGCC and Whom It May Concern: This is a letter is a response in compliance with the Commission's owner notification order. I intend to comply with your May 15 and April 23 orders. I shall do so, however, with objection and I reserve all rights ander contract and law for any and all losses incurred to me in doing so. In an attempt to comply with providing the notice unlawful burdens of the of the Commission's requirements/orders, I have contracted with an outside company, Brit Lively of Map Makers of Alaska, 259 South Alaska Street, Palmer AK 99645, (907)745-3398, who is researching and attempting to obtain the addresses of any known owners of interest in the affected tracts. Having met the requirements of the Commission order, I respectfully request that a Hearing on my petition be promptly granted and date set. Pursuant to your April 23, 2003 order paragraph 2, the Commission stated "the Commission informed Mr. Donkel pursuant to AS 31.05.050(b) and AS 31.05.110(e) that he was required to provide notification of petition by certified mail to each owner of an interest in the affected tracts." The is no requirement within either AS 31.05.050(b), nor AS 31.05.110(e) stating that it is the petitioner's duty to provide notification of petition by certified mail to each owner of an interest in all affected tracts." More specifically, AS 31.05.110(e) states: " (e) Except as otherwise expressly provided in this section, all proceedings held under this chapter, including the filing of petitions, the giving of notices, the conduct of hearings and other actions taken by the commission shall be in the form and manner and in accordance with the procedure provided in AS 31.05. 040 - AS 31. 05. 060. Additional notice shall be given as the commission requires." Page I Jun O2 03 O8:3Pp DRMIEL K DOMKEL ~07 ~99 4718 With respect to that statute, there is no such requirement that the petitioner, or anyone other than the Commission~ be under a duty to provide notification of petition by certified mail to each owner of interest in the affected tracts. In fact, that statute and its intent indicate clearly that it is the Commission has the duty to notify. With respect to the reference of procedure provided by AS31.05.040 - AS 31.05.060, there is also no requirement for the petitioner to undertake such a duty. p.3 Pursuant to AS 31.05.050(b), in pertinent part, "the commission may also give, or require the giving of, additional notice in a proceeding, or class of proceeding, which it' considers necessary and desirable." Presumably, the Commission relies on this portion of the statute to require the Petitioner to give notice per their April 23 and May 15 orders. The Petitioner has already complied with these orders. According to the Alaska Department of Natural Resources Land Administration System records, for ADL 380066, the only "affected tract owner" is Conocophillips Alaska, Inc. Conocophillips, has been notified of this petition since the onset of these proceedings. However, to further comply, I will send Conocophillips, by certified mail, notice. According to DNR records, there are no other "affected tract owners" to whom notice is required except Royalty owner and ORR/owners. As you know, please note that Conocophillips has been receiving from the Cormnission, all correspondence. If the Commission order requires more notice than this, then it should have clarified its order and been specific to exactly whom and which "affected tracts owners" it was referring to. If I am expected to provide notice by certified mail to all of the state of Alaska, then the appropriate method of notice would have been accomplished by the AOGCC hearing notice published in the newspaper. By the way, when that meeting was cancelled, did the AOGCC send notice by certified mail to "all affected tract owners?" If they did, I would presume then, that the AOGCC does have the information I requested of them to send out my own notices, which is contradictory to their claim that they do not have access to this information or that it would be easier to access this information. Do you think about these things when you are doing them or are you just advised to do it and then do them? The Commission clearly has access to the name of all owners of interest. It could provide that information to more efficiently than attempting to search for it myself. The Commission and its legal counsel (Dept of Law) working for both the AOGCC and with the DNR DOG clearly knows that if anyone transfers interest in an oil and gas lease, those transfers are controlled by 11 A_AC 82.605(b) and 11 AAC 82.615. Pursuant to 11 ACC 82.605(b) which states in pertinent part: "When transfers of overriding royalty are made afler the initial separalion from the worla'ng interest of the lease, executed or image copies of these transfers must be transmitted to the department without charge for filing in the appropriate case file. However, the commissioner will take no action and official status records will not be posted to reflect these transfers." Thus, it is evident that this information is kept and maintained by the the State of Alaska therefore the Commission can fred owners names and addresses within ADL File number 380066 and other the tract owners. Since the Law Department works for both the Commission and the Department of Natural Resources it could have easily accessed this information without such delay and proceeded with the hearing. Why don't you do the notices of your own hearings like the law says, if the common person had to do what you have wrongfully told me to do in your letters and Orders I think it would be impossible for the people of Alaska or anywhere to do and you would never have to have a heating like this but you would still be paid to Protect people's ,Jun 03 00:3~p DAMIEL K DOMKEL 40? SSS 4718 right under AS 31.05 110. I feels strongly about this because it underminds the rule of law and we can't have that! p.4 Furthermore, as an administrative arm of the State of Alaska the AOGCC has the duty to ensure that all interested parties, citizens, etc. are afforded their due process rights. The requirement that I provide notice to all interested parties by certified mail is not only arbitrary and capricious, but it is also excessive because it is more burdensome to me than what the State/Commission is required to do on its own. The only notice requirement promulgated by the statutes requires the Commission to provide notice in the newspaper ten days prior the hearing date. AS 31.05.050(b). If this was enough for the Legislature of Alaska when it set up the law, then why should an ordinary citizen be required to do more in order for the Commission to comply with its mandate to afford everybody due process? At minimum, the Commission misinterpreted the statute in order to carry out its own agenda and fails to protect people's rights under AS 31.05.. I would submit to you a question. How would a little old lady as a homesteader or the common, ordinary US citizen be able to comply with 'both AS 31.05 and the discriminatory and unduly burdensome requirements of the Commission? Is it right that this Commission will do it's DUTY by giving its duty to me and is it not an abuse and misuse of authority of AS 31.05.110(e): "Additional notice shall be given as the commission requires" and AS 31.05.050(b), in pertinent part, "the commission may also give, or require the giving of, additional notice in a proceeding, or class of proceeding, which it considers necessary and desirable?" Is it the intent of the Commission to create undue burden and confusion that will in most cases, would render a petitioner's rights under this statute moot? How are the people these statutes were created to protect, supposed to access and benefit from laws that were created to protect them? This burden is in violation of the law that the Commission has wrongfully used to make the law inaccessible to the common layperson. My intent is to draw this to the Commission's, Court's, and the public's attention; so that some average citizen can have this compulsory unitization law work for them in a meaningful and beneficial way. I am, by no means, trying to annoy the Commission. I am simply trying to show the Commission that they are rendering the law useless under this current method, which creates morass and confusion and causes the average citizen to not even bother to petition this Commission at all. Is that what the Commission wants? I pray not! Clearly, it is not what the Legislature intended, and it is bone-crushingly obvious that it is not what the Supreme Court in Allen v AOGCC, interprets this law to do. It is your duty to protect; please stop shirking your duty. It is hurting the people it was designed to protect and benefiting the people who are clearly in violation of the intent and purpose of unitization laws. This makes one wonder who the Commission works for, the big oil companies or the people of the state of Alaska? This statute, as well as other notice statutes, does not require this extreme hardship and unduly burdensome task to be placed on the ordinary citizen seeking your protection. The Legislature's intent behind these statutes was to effectuate the providing of notice, while balancing the interests of the parties by not creating a requirement that was unduly burdensome and one that affords due process to everyone. It seems to me that the Commission's order is arbitrary and capricious in the sense that other laws do not require such a burdensome and costly requirement. 5un 02 03 08:32p DAMIEL K DOMKEL 407 699 4718 In closing, I require the Commission to submit into the record all evidence that they have reviewed, when they stated in their February 11, 2003 letter that, "the Commission sees no need to take any further action with respect to lease ADL 28249 or lease ADL 380066 in order to prevent waste, in sure greater ultimate recovery ofoil and gas, or to protect correlative rights." AS 31.05 tells the AOGCC why they must see a need to take further action with respect to lease ADL 380066 and the Allen case tells also why. I ask you why don't you do your duty and protect the people under this law don't you like the law? It is clear that this tribunal has prejudiced its position based on its "investigation" in review of the evidence, as it is there is their affirmative duty to investigate. Due process affords a fair and impartial tribunal, how does this Commission believe it could now be fair and impartial, based on its statement and conclusion in said letter? I will look forward to receiving all of the information you reviewed during your investigation. When can I expect to receive it? It is traditional amongst tribunals that, when empanelling a jury, the question is normally asked: "Do any of the jurors have any prejudices or conclusions based any information they have received prior to be called for this jury duty?" It seems that the Commission cannot be an independent quasi-judicial and tribunal. Since it has already drawn its own conclusion in the February 11, 2003 letter. My question to the Commission: Do you want to recuse yourself, and bring this straight to an impartial tribunal such as the Superior Court as the trial court. It seems due process would be served under the circumstances of this case. Therefore, I ask, would you voluntarily recuse yourself and can we file a stipulation with the Court so we can move on to the merits of this petition? I will do what you have asked under protest. Please feel free to work with MAI>MAKERS ALASKA so we can get past the Notice stage and on to a fair Hearing. Ms Brit Lively and/or I will get your work done for you. I hope you enjoy your pay check bom the People of the fine State of Alaska. Ifa Court Orders you to pay me back for doing your job will you pay all my cost? I hope you will one day see that you may have been mislead by Big Oil people so they can rob little Oil people. PROTECT ME UNDER AS31.05 PLEASE! Please look for the wisdom in AS 31.05 110, please!! Will your process take 7 (seven) years as in your case with ALLEN or (8) eight years as was your case with CLIFF BURGL1N ? I see where you are going with this remember THE SUP.REME COURT IN ALLEN or do care what the Court says or have you just been mislead by Big Oil that found your favor! I wish we could talk and clear up this mess. Now you have turned down my request to talk, why? Let's move on to this Hearing. Is there any way I can have a hearing with a jury? That would be fair since I stand to lose my Property. I hope this will work for you I will get it done, please provide me with what you now want me to send. Thanks for hearing my concerns and protests. Sincerely Daniel K. Donkel An American Citizen owning interest In the tracts of land affected ~un 02 03 08:31p DRMIEL K DOMKEL it' ~07 699 ~718 p.1 Daniel K. Donkel 968 Witlow Run Lane Winter Springs, FL 32708 Telephone: (407) 699-4937 Facsimile: (407) 699-4718 E-mail: ddonkel~cfl, rr. com Facsimile I IIII I II I 'rm :C'~'/D'g'.~ L__.L (_~ Fru.l~ Daniel K. Donkel I~ Ument [] For Review [] Please Comment /~ease ReldY [] Please Recycle Comments: This facsimile message is confidential, together with any attachments. If you are not the intended recipient, please notify the author immediately and des'troy this message. Also, refrain from copying, disclosing or using the contents in any way. If you have any difficulties receiving this facsimile transmission, or believe you have received it in error, phase call: 407-699-4937. ALASKA OIL GAS CONSERVATION FAX 907-276-7542 PHONE 907-279-1453 COMMISSION FACSIMILE TRANSMITTAL SHEET . FAX NUMBER: ' ' ~ TOT~LNO..OF PAGES INCLUDING ¢O'VEP,: PHONE NU MBEPc SENDER'S REFERENCE NUMBER: YOUR REFERENCE NUMBER: RE: [] [] FOR RSVmW [] PLEASECOMMENT [] PLEASE REPLY ['-[PLEASE RECYCLE NOTES/COMMENTS: AOGCC 535 WEST 7TM AVENUE, SUITE 100 ANCHORAGE, AK 99501-3935 #22 TO STREET & NO, . CITY STATE ZIP CITY CUSTOMER'S ORDER ISOLD BY I TERMS , ; JF,O,B, #21 ALASKA OIL AND GAS CONSERVATION COPlPllSSION FRANK N. MURKOWSKI, GOVERNOR 333 W. 7TM AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 May 28, 2003 Daniel K. Donkel 968 Willow Run Lane Winter Springs, FL 32708 Re.' The petition of Daniel K. Donkel to unitize leases ADL 380066 and 28249 or, in the alternative, to expand the Kupamk Unit to include lease ADL 380066 Dear Mr. Donkel: In your e-mail dated May 22, 2003, you raised the question of communications between the Commission and ConocoPhillips concerning your petition. Are you asking because you want to know about the Commission's general policy and practice regarding ex parte communications or because you are aware of any specific ex parte communications? As you know, it is the Commission's policy and practice to avoid communications with a party in an adjudicatory matter concerning that matter, other than on-the-record communications of which all parties have notice. However, this does not prohibit communications between a party and Commission staff on routine administrative subjects such as an inquiry about the location of a hearing. If you are aware of any communications contrary to this policy and practice, please let us know. Chair Daniel T Seamount, Jr. Commissioner Commissioner CC: Barbara Fullmer, Esq. Rod Scribner Bruce Moore Rick Wagner #20 jLm.l LI ALASKA O/LAND GAS CONSERVATION COHHISSION May 28, 2003 FRANK I-I. MURKOWSKI, GOVERNOR 333 W. 7TM AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Rick Wagner PO Box 60868 Fairbanks, Alaska 99706 Dear Mr. Wagner: This is in response to your e-mail of May 15, 2003, conceming the cancellation of the hearing on Mr. Donkel's petition for compulsory unitization. Enclosed is a copy of the Commission's order in that matter, Conservation Order No. 489, which I believe you will find self-explanatory. As you will see, the Commission believes it is important to ensure that affected interest owners such as yourself have an opportunity to participate in unitization hearings. You will also probably be interested in seeing the Commission's more recent order in this matter, the Order Granting Rehearing, which is also enclosed. Now that we have learned that you own an interest in the affected property, we will be sure to add your name to the distribution list in this matter. Sincerely, .~f_-. //~'--') ~ . CC: Daniel Donkel Barbara Fullmer, Esq. Rod Scribner Bruce Moore SP:\jjc #19 Randy Ruedrich <randy ruedrich@admin.state.ak.u, 5~15/~,'~ 11:59 AM-0800, <dan_seamount@admin. state, ak.us .>, Sarah Palin <sarah_palin @ admin, state, ak. us> From: Rick Wagner <bluemax@gci.net> Subject: The petition of Daniel K. Donkel to unitize leases ADL 380066 and 28249 alternative, to expand the Kuparuk Unit to include lease ADL Cc: governor@gov, state, ak. us Bcc: ddonkel@cfl.rr.com X-Attachments: or, in the 380066. May 15, 2003 Dear Commissioners, My name is Richard ~. Wagner, P.O. Box 60868, Fairbanks, Alaska 99706, telephone (907)456-2300. I was noticed and received a copy of the Public Hearing on The petition of Daniel ~. Donkel to unitize leases ADL 380066 and 28249 or, in the alternative, to expand the Kuparuk Unit to include lease ADL 380066. I own a 1% overriding royalty interest in lease AD~ 380066. I now have received a Notice of Cancellation of this Public Hearing that was scheduled for today, May 15,2003. Please consider this as a request by me for a Public Hearing on The petition of Daniel K. Donkel to unitize leases~D~L 380066 and 28249 or, in the alternative, to expand the Ku_Ep_~ Unit to include lease ADL 380066. A hearing on this issue is necessary to protect my correlative rights and my overriding royalty interest in ADL 380066. In the alternative, I respectfully request that the Alaska Oil and Gas Commission and you as Commissioners protect my correlative rights in my overriding royalty in~A~ 380066 as required by Alaska Statutes. Printed for Rick Wagner <bluemax@gci.net> 1 #18 RUSSk-iI.I.L. WINNER BRUCF. A. MOORE WINNER & ASSOCIATES A PROFE,%qiONAL CORPORA~ ATTORNEYS AT LAW 900 WEST FIFITI AVENUE SUITE 7OO ANCHORAGE, ALASKA 99501-2029 TRI.lk~PHONE (907) 277-9522 FACSIMILE (907) 277-4510 E/d_AIL vfinne~'m~¼w.eom May 19, 2003 CORRECTED U.S. MAIL & FACSIMILE: 907-276-7542 Sarah Palin, Commissioner Randy Ruedefich, Commissioner, Chairperson Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501-3539 Re: The petition of Daniel K. Donkel to unitize leases ADL 380066 and 28249 or, in the alternative, to expand the Kuparuk Unit to include lease ADL 380066 Dear Commissioners: I am writing on behalf of Dr. George Kasper, M.D. As you know, he is an owner of a royalty interest in the above referenced leases. Dr. Kasper was aware of the hearing scheduled on the above referenced petition, but has informed me that he recently received notice through reading a publication that the hearing has been CANCELLED. As an interested party and the holder of property interests in these leases, Dr. Kasper has asked me to write to protest the cancellation of the hearing. He requests an explanation for the cancellation. He requests that the Commission provide him with specific notice of the rescheduling of the petition hearing. You may direct that notice to me at the above address. At Dr. Kasper's request, I l~ave re,Sewed AS 31.05.110 and Allen v. Alaska Oil and Gas Conservation Commission, 1 P.3d 699 (Alaska 2000). It appears to me that bOth of these require the Commission to hold a hearing in these circumstances. Thank you for your attention to this matter. Please contact me with any questions or comments. RECEIVED MA'( 2 0 2003 Alaska Oil & Gas Cons. Commission Anchorage 05/19/03 M0N 09:08 FAX EUSSELI, L. ~ 9O7 277 4510 WINNER & ASSOCIATES WINN~R & ASSOCIATES ATTORNEYS AT L~W 900 WF,~ FIFI'FI AVIgNU~ $~orrE 7oo AlqCHORAGF,, ~ 99501-2029 ~002 May 19, 2003 CORRECTED U.S. MAIL & ~'A.,C,S~E.~, 90%276-7542 Sarah Palin, Commissioner Randy Rued~ch, Commissioner, Chairperson Daniel T. Seamount, Ir., Commissioner Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501-3539 The petition of Daniel IC Donkel to unitize leases ADL 380066 and 28249 or, in the alternative, to expand the Kupamk Unit to include lease ADL 380066 Dear Commissioners: I am writing on behalf of Dr. George Kasper, M.D. As you know, he is an owner of a royalty interest in the above referenced leases. Dr. Kasper wa~ aware of the hearing scheduled on the above referenced petition, but has informed me that he recently received notice through reading a publication that the hearing has been CANCRLLED. As aa interested party and the holder of property interests in these leases, Dr. Kasper has asked me to write to protest the cancellation of the heating. He requests an explanation for the eanc~afion~ He requests that the Commission provide him with specific notice of the rescheduling of the petition hearing. You may direct that notice to me at the above address. At Dr. Kasper's request, I have reviewed AS 31.05.1! 0 and Allen v. Alaska Oil ard Gas Conservation Commission, 1 P.3d 699 (Alaska 2000). It appears to me that both of these require the Commission to hold a hearing in these (,,'il'ci!m,~tallce$, Thank you for your attention to this mattex. Please contact me with any qu~dons or comments. ~v Brace A_ Moore 05/19/03 M0N 09:08 FAX i 907 277 4510 'i WINNER & ASSOCIATES 001 WINNER & ASSOCIATES a professional corporation Attorneys at Law 900 West Fifth Avenue, Suite 700 Anchorage, Alaska 99501 (907) 277-9522 Facsimile (907) 277-4510 FACSIMILE TRANSMISSION SHEET TO: Sarah Palin, Commissioner Randy Ruederich, Commissioner, Chariperson Daniel Seamo'tmt, fr., Commissioner AT: Alaska Oil & Gas Conservation Commission FACS[M~E NO: 276-7542 FROM: Brace Moore DATE: May 19, 2003 The petition of Daniel K. Donkel to unitize leases ADL 380066 and 28249 or, in the alternative, to expand the Kupamk 'U'nit to include lease ADL 380066 Total number of pages (including this sheet): 2 Thc pages comprising this facsimile transmission contain confidential information from thc office of WINNER & ASSOCIATES, a professional corpmu, tion. This information is intended solely for the use by the individual or entity named as the recipient hereof. If you are not the intended recipient, be aware fl~at m~y disclosure, copying, distribution or use of the contmts of this transmission is prohibited. If you have received this u'ansmission in eh'or, please notify us by telephon~. COMMENTS Please see the attached! #17 ALASKA OIL AND GAS CONSERYA~ION CO~SSION May 16, 2003 Rod Scribner PO Box 1059 Charlestown RI 02803 FRANK H. MURKOWSKI, GOVERNOR 333 W. 7~ AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Dear Mr. Scribner: This is in response to your letter of May 15, 2003, conceming the cancellation of the hearing on Mr. Donkel's petition for compulsory unitization. Enclosed is a copy of the Commission's order in that matter, Conservation Order No. 489, which I believe you will find self-explanatory. As you will see, the Commission very much shares your concern that affected interest owners be ensured the opportunity to Participate in unitization hearings. You will also probably be interested in seeing the Commission's more recent order in this matter, the Order Granting Rehearing, which is also enclosed. Now that we have learned that you own an interest in the affected property and would like to be kept informed in this matter, we will be sure to add your name to the distribution list. SP:\jjc Sincerely, Sarah Palin Chair AI,ASKA OIL AND GAS / CONSERVA~I~ION COHHISSION FRANK H. MURKOWSKI, GOVERNOR 333 W. 7TM AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279.1433 FAX (907) 276-7542 May 16, 2003 Bruce A. Moore Winner & Associates 900 West 5th Avenue, Suite 700 Anchorage AK 99501 Dear Mr. Moore: This is in response to your letter of May 15, 2003, on behalf of Dr. George Kasper, asking about the cancellation of the hearing on Mr. Donkel's petition for compulsory unitization. Enclosed is a copy of the Commission's order in that matter, Conservation Order No. 489, which I believe you will find self-explanatory. As you will see, the Commission very much shares Dr. Kasper's concern with giving notice to affected interest owners. Dr. Kasper will also probably be interested in seeing the Commission's more recent order in this matter, the Order Granting Rehearing, which is also enclosed. Now that we have learned that Dr. Kasper owns a royalty interest in the affected property and would like to be kept informed in this matter, and that you will receive notice on his behalf, we will be sure to add your name to the distribution list. Sincerely, Sarah Palin Chair #16 STATE OF ALASKA ALASKA OIL AND GAS CONSERVATION COMMISSION 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 THE PETITION OF DANIEL K. DONKEL ) for the compulsory unitization ) of Lease No. ADL 380066 with one or ) more other tracts. ) May 15, 2003 Order Granting Rehearing On April 23, 2003, the Commission issued Conservation Order No. 489, dismissing without prejudice the petition for compulsory unitization, based on the refusal of the petitioner, Mr. Donkel, to notify affected property owners of his petition by certified mail. On May 5, 2003, the Commission received an e-mail from the petitioner (sent May 4) stating, among other things, that he would "notice in protest all the ones you want me to... if you would be so kind as to prepare the papers you want sent with said notice[. A]lso provide me with what I don't have which is a list of whom to send said notice." Although this communication was not identified as an application for rehearing and was not in the form contemplated by the pertinent statute and regulations for a document to be "filed" with the Commission, we will nevertheless treat it as an application for rehearing under AS 31.05.080(a) in order to allow for Commission reconsideration of its order that would otherwise become final and unappealable. Construing Mr. Donkel's e-mail as much as possible in his favor, it might be interpreted as asserting that he is unable to comply with the notification requirement because he does not know the identities and addresses of all of the owners of interests in tracts proposed to included in a compulsorily created or expanded unit. The Commission therefore grants rehearing to clarify the notification requirement that it has asked the petitioner to comply with and that it believes is mandated by due process. The Commission is not asking for the impossible. The requirement is to notify by certified mail all such owners whose identity and mailing address are either (1) known to the petitioner or (2) can be ascertained by reasonable efforts. Reasonable efforts for this purpose include properly searching the property records of the pertinent Recorder's Office and the oil and gas lease transaction records of the Department of Natural Resources. Accordingly, the instructions for the petitioner's affidavit of notice set out in the Commission's letter of February 11, 2003, should be understood as also calling for inclusion of an explanation of the petitioner's efforts to locate all such owners, in the event that the petitioner is unable to identify them all after reasonable efforts. The Commission has no more information about relevant property ownership than the petitioner does and is in no better position to conduct a search for the owners than is the petitioner. Indeed, as an interest owner himself, Mr. Donkel is undoubtedly in possession of more information about ownership of the property than the Commission has. In any event, as previously explained, it is properly the petitioner's burden to effect notice of his petition on affected owners. Therefore, the Commission denies Mr. Donkel's request to generate and supply him with a "list of whom to send said notice." However, to minimize the possibility of confusion and delay and to accommodate Mr. Donkel, the Commission agrees to prepare for Mr. Donkel's distribution a sample notice as he requests. Mr. Donkel shall inform the Commission in writing no later than June 2, 2003, whether or not he intends to comply with the Commission's property owner notification requirements as clarified by this order. If Mr. Donkel responds in the negative or does not respond, the Commission will issue a final order on rehearing affirming the dismissal of the petition. If Mr. Donkel responds in the affirmative, the Commission will issue an order on rehearing reinstating the petition. In that case, a hearing on the petition will be scheduled for a later date after the Commission receives Mr. Donkel's affidavit demonstrating that the notification requirements have been met. Failure to comply with those requirements or to supply that affidavit within a reasonable time may result in dismissal of the petition. IT IS SO ORDERED. DONE at Anchorage, Alaska, this 15th day of Mg.y~o03. '-A~ska Oil and Gas Cong~rvation Commission Daniel T. Seamount, Jr., Commissioner Alaska Oil a_nd Gas Conservation Commission :' '...' Order Granting Rehearing May 15, 2003 Page 2 of 2 Randy Ru'edrich, Commissioner Alaska Oil and Gas Conservation Commission #15 RUSSELL L. WINNER rwinn~eflaw, com BRUCE A. MOORE ~oore~,vinn~r~aw.com WINNER & ASSOCIATES A PR~NAL CORPORATK)N ATTORNEYS AT LAW 900 WEST FIFTH A~ SUITE 700 ANCHORAGE, ALASKA 99501-2029 Tgi.la. PHONE (907) 277-9522 FACSIMII.R (907) 277-4510 EMAIL winn~erlaw.com May 15, 2003 U,S, MAIL & FACSIMILE: 90%276-7542 Sarah Palin, Commissioner Randy Ruederich, Commissioner, Chairperson Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501-3539 Re: The petition of Daniel K. Donkel to unitize leases ADL 380066 and 28249 or, in the alternative, to expand the Kupamk Unit to include lease ADL 380066 Dear Commissioners: I am writing on behalf of Dr. George Kasper, M.D. As you know, he is an owner of a royalty interest in the above referenced leases. Dr. Kasper was aware of the hearing scheduled on the above referenced petition, but has informed me that he recently received notice through reading a publication that the hearing has been CANCELLED. As an interested party and the holder of property interests in these leases, Dr. Kasper has asked me to write to protest the cancellation of the hearing. He requests an explanation for the cancellation and why he was not given notice. He requests that the Commission provide him with specific notice of the rescheduling of the petition heating. You may direct that notice to me at the above address. At Dr. Kasper's request, I have reviewed AS 31.05.110 andAllen v. Alaska Oil and Gas Conservation Commission, 1 P.3d 699 (Alaska 2000). It appears to me that both of these require the Commission to hold a hearing in these circumstances. Thank you for your attention to this matter. Please contact me with any questions or comments. ~Bruce A. Moore RECEIVED MAY 16 2003 Oas C~s. 05/15/03 THU 15:01 FAX 1 907 277 4510 WINNER & ASSOCIATES 001 WINNER & ASSOCIATES a professional corporation Attorneys at Law 900 West Fifth Avenue, Suite 700 Anchorage, Alaska 99501 (907) 277-9522 Facsimile (907) 277-4510 FACSIMILE TRANS_.MISSION SHEET TO: Sarah Palin, Commissioner Randy Ruederich, Commissioner, Chariperson Daniel Seamount, Jr., Commissioncr AT: Alaska Oil & Gas Conservation Commission FACSIMILE NO: 276-7542 FROM: Brace Moore DATE: May 15, 2003 The petition of Daniel K. Donkel to unitize leases ADL 380066 and 28249 or, in the alternative, to expand the Kupamk Unit to in¢l'ude lease ADL 380066 Total munber of pages (including this sheet): 2 The pages comprising this facsimile transmission contain confidential information from thc officc of WINNER & ASSOCIATES, a professional corporation. This information is intcndcd solcly for the use by the individual or entity named as the recipient hereof, If you are not the intcndcd recipient, be aware that any disclosure, copyi'ag, disu'ibuti on or use of*he contents of this transmission is prohibited. If you have received this transmission in error, please notify us by telephone. Please see the attached! COMMENTS 05/~5/03 THU 15:01 FAX 1 907 277 4510 WINNER & ASSOCIATES OO2 RUSSIKL I.. ~ BRUCE,~ MOORlg WINNF. R & ASSOCIATES ATTOR_NEY~ AT LAW 9O0 WEST HFIH A~ surrE 700 A_NL~ORA6~ ~ 99501-2029 FACSlMII.~ (907) 2'/74510 May 15, 2003 U.S._MAIl. & FACSIMII~E.~ 907-276-7542. Sarah Palin, Commissioner Randy Rmderich, Commision~, Chairperson Denial T. Seamount, Ir., Commissioner Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501-3539 The petition of Daniel K. Donkel to unitize leases ADL 380066 arid 28249 or, in the alternative, to expand the Kupamk Unit to include lease ADL 380066 Dear Commissioners: I am writing on behalf of Dr. George Kasper, M.D. As you know, he is an owner of a royalty interest in the above regerenced leases. Dr. Kasper was aware of the heating scheduled on the above referenced petition, but has informed me that he recently recdved notice through reading a publication that the heating has been CANCF~LED. As an interested party and the holder of property interests in thesc leases, Dr. Kasp~ has asked me to write to protest the cancellation of the hearing. He requests an explanation for the cancellation and why he was not given notice. He requests that the Commission provide him with specific notice of the resched, ding of the petition hearing. You may direct that notice to me at the above address. At Dr. Kasper's request, I have reviewed AS 31.05.110 and.411en v. Alaska Oil and Gas Conservation Commission, 1 P.3d 699 (Alaska 2000). It appears to me that both of these require the Commission to hold a hearing in these eiro~mutanees. Thank, you for your attention to this matter. Please coamct me with any questions or comments. #14 FROM ' FAX NO. ' 401+322+7062 ROD SCRIBNER Post Ol~ce Box 1059 Ch~rlestow~, ~ 02813 (401) 36~-7700 - Telepl~onc May. 15 2003 07'06PM P1 1v~¥ 15, 2003 B.._¥_ FA, C~i~EMILE: 907-276-7-~42 . - S~ah Ps, lin, Commissioner, Chairperson Randy P,,uederlcb, Commissioner Daniel T. Seamount, irr~ Cnmmissioner Alaska Oil and G~ Conservation Commission 333 W. 7th Avenae, Suite 100 Anchorage, A.K 99501-3539 The petition of Daniel K. Donkel to unitize l~ses ADL 380066 and 2!~249 or, in the alternative, to expand the Kupas~k Unit t~ includc I~ase ADL 380066 De, ir Co~.rnissiouers: In reference m ~he erroneous c, ancetlafion of' the hearing regarding, "The petition of Da~iet K. Do~el to u~t~e leases ~L ~0066 and 28249 or, in the alte~ti~, to ~p~d ~e Kup~k Unit to include le~ ~L 380066," I h~eby ~e ~is l~er in protcs~ and p~t tM AO~C on noti~ ~at thc f~lw~ to provide ~s he~ for w~c~ I ~iv~d Public Notice t~ou~h the E~Ieum N~s ~~ ~ which was publi~ed a ~e will of ~e Comnfissio~, tha ~ Cons~itution~ rights ~~ tha the State of ~ala cannot take my prope~ rights ~thout due process t~ou~ a he~ng for proof adjudication and t~t my r~hts ~e at risk of being violated. ~erefom, I d~nd ~is Commission follow t~e law ~d immediately ~- cancel said heating and pm~de notice imm~ia~ety for a he~ing to which we are entitl~ under the law. 'The hearii~ w,hbh was $ch~dul~ for today, ,.May 15, 2003, at 9:00 a,m.,, and wrongfully cancelled., seems to be ber, a~se thc Agency apparently doe~ not take serious ',he Suprerae Court Order issued in AI!e..n_.v......A...O._G:C.C., in May, 2000. I, however, do take my Constitutional fights seriously in ~ personb rii;ht to own propm-y withou~ the tyranny of having it takez~ way without a hearing Therefore, be put on notice to correct your actions immediately and call for a hearing as indicaed herein, and as petitioned by Deaxiei K, Donkel in January 0['2003. Please contact me with any questions or ~nunents. Sincerely, X Ro~ Scribner A U.S. citizen of ~he State of Rhode Island, as a person ownin~ into, rests in tracts of]~nd affected uacler AS 3 I. 05.1 ! 0. #13 Daniel K. Donkel 968 Willow Run Lane Winter Springs, FL 32708 Telephone: (407) 699-4937 Facsimile: (407)699-4718 E-mail: ddonkel@cfl.rr, com May 4, 2003 VIA E-MAIL: iody colombie~admin.state.ak, us randy rueddch~,_,admin.state.ak, us dan seamount@admin.state.ak, us sarah palin@admin.state.ak, us AND U,S. MAIL RECEIVED Sarah Palin, Commissioner Randy Ruededch, Commissioner, Chairperson Daniel T. Seamount, Jr., Commissioner Jody Colombie, Staff Member Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501-3539 MAY O8 2003 AlaBk8 0i~ & Gas Cons. Oommi~eion Re: Notice and CO 489 - My Revised E-Mail Message to Jody Colombie, dated May 4, 2003 at 9:40 am Dear Commissioners and Staff: In kind respect I would ask your approval on the following: If you are willing to have the requested hearing which is the subject of CO 489, which has a lot of people talking, I will "Notice" in protest, all of the interested parties. At the time the Commission told me to provide Notice to people the Commission never provided the names and addresses to me, it was at the same time I suffered a serious injury to my spinal cord for which I had to go to the Emergency Room at Mt. Sinai Hospital in Miami Beach, which led to a series of visits to doctors' offices to assist me with this temporary handicap. Furthermore, it should also be noted by the Commission that at this same time I was also in the middle of moving my home and office and, as the Commission knows from its' experience from moving its' offices from Porcupine Street to downtown Anchorage, it has the effect of interrupting normal business activities. I am simply asking the Commission to be understanding of my point of view, and I am also willing to work with the Commission. If you would please prepare the papers you want to send with said "Notice of Hearing," please provide me with that which I was never given, which is a list of those interested parties, their names and addresses. In the interest of the people of the State of Alaska and to prevent waste of the State's resources I will make this concession. VVhat now will you do to provide justice with regard to the subject notice and headng? AOGCC Commission ~ Jody Colombie, Staff Member, AOC_.-.-~C May 4, 2003 Page 2 Please respond fairly as to what you are willing to do with this request in the interest of justice? I am willing to work with you and give you my full support to the extent it is reasonable. Does this seem fair to you? The great importance of this matter is that it will be worth millions of dollars to the State once HemiSprings oil and gas field comes into production, if it is not being drained already by the operator of the adjacent units. My hope is that this does not become another "Allen v. AOGCC," Supreme Court Case No. S-8690, Opinion No. 5272, dated May 12, 2000), which the AOGCC lost on this same mattermthe dght to a hearing. It is also important not to make a Federal case out of this matter because the State will greatly benefit if the AOGCC would cause the known pool of oil and gas to be put into production instead of big oil companies getting a "flee dde." Otherwise, these potential revenues will be lost because the State would not receive the royalties to which it is entitled for the benefit of the people of Alaska. I, thereby, request my right to a hearing. The law is clear in that the State cannot take property from any person without a headng, and my supposition to you is: What if the State walked into your home and told you to get out. We are taking your home from you! Wouldn't you want a headng under the law? What if you were told to provide notice to people or interested parties and you were not given a list of their names and addresses and their entitlement to said property?. What would you think---I must be in Iraq? This dght to a hearing following proper and reasonable procedures should not be denied anywhere in the United States of Amedca as a matter of law or anywhere else in the world as a matter of justice. Do you agree? Please provide me with a hearing according to the laws of the State of Alaska and the Constitution of the United States in order to stop the unlawful taking of my property. Pdor to publishing a Notice of Hearing, please provide me with the names and addresses of all interested parties so that I may provide them with my Petition and a copy of your published Notice of Hearing. I humbly request this procedure be instated as a matter of practice within the State Agency (AOGCC), because it is only fair that the Petitioner be provided with the names and addresses of the interested parties, and I thank you for your full cooperation in advance of this request being fulfilled. Sinc>erely, ~ Daniel K Donkel Petitioner DKD/jee Attachment cc: See attached list of persons being copied on this letter & e-mail message. AC)GCC Commission Jody Colombie, Staff Member, AOGCC May 4, 2003 Page 3 LIST OF PERSONS TO CC: James F. Clark <james_clark@gov. state.ak, us>; Steve Suthedin <steves@ak. net>; Nicholas Vincent Stepovich <smiths2ndave@gd.net>; Rod Scribner <rscri b7768@aol, corn>; P irtle...Bates(~dnr, state, ak. us <Pirtle_Bates@dnr. state.ak, us>; Petroleum News <circulation@petroleumnews.com>; Frank H. Murkowski <Govemor@gov.state. ak. us>; Bdt Lively <mapalaska@ak. net>; Nancy Knuutila <collage@gd.net>; Neil Kennelly <skslaw@alaska. net>; Jerry Hodgden <krock@attbi.com>; Bill Hieronymus <geojazz@swbell.net>; Russell Douglas <rdouglass@doyonddlling.com>; Dick Crouch <rbc6010@aol.com>; David Childress <DavidChildress@akllp.com>; Frededc E. Brown <fbrown@mosquitonet. com>; Patrick J. Russell <prussell@allen-vellone.com>; Douglas Mertz <dkmertz@ak. net>; Kenneth Mehaffey <kmehaffey@earthlink. net>; David Lappi <lapres@gci.net>; Andrea Kurak <akura@cr~.com>; Dr. George Kasper <kaspercrc@aol.com>; Peter Huddleston <peterh@huddlestonco. com>; Jim Gottstein <jimgotts@touchngo.com>; James Givens <jwgivens@arctic. net>; Daniel Gilbertson <gilbertsond@alyeska. net>; Kay Cashman <edit@gci.net> Dear Jody: I received your telephone message today in response to my request for a phone call with one of the Commissioners and I understand that they are not able to converse with me regarding my request. Please assist me in understanding why the AOGCC cannot communicate with me on an issue that is not in litigation. If you could ask them to answer that question for me I would kindly appreciate their assistance in my attempt to establish some line of communication. If a letter would be better, let me know. Is it the opinion of the commissioners that they cannot communicate with me or is it the opinion of their legal counsel? If so, could you ask the commissiones to ask the Attorney General's office to write an opinion on why the commissioners cannot communicate when there isn't any litigation involving me with the commission. It has been my understanding that when parties communicate properly it reduces litigation substantially. So all I am asking is why can't they talk with me and can you point me to a specific law or regulation that prohibits the commission from communicating with the public. It is my belief that under similar circumstances ConocoPhillips and other major oil companies when they are turned down for the right to have a hearing are turned down by the Commission on any matter, it is my belief that you have communicated with them. Am I being treated unequally under the law? Because, if I am, I believe you would agree that my civil rights would be violated and I'm sure that you would not want to do that. All I'm asking as an American citizen is to be able to communicate with government. I believe I still have that right as all Americans do. Please explain to me why you are denying a basic right that all Americans have which is to have access to government. Would you at least attempt to explain this to me? I'm not trying to be difficult, all I did on the HemiSprings petition was ask for a hearing because it is my understanding that an American citizens' property cannot be taken frOm them without due process of a hearing. As I explained before, I think the Supreme Court made that clear to the Commission on its Order of May, 2000 in Allen v. AOGCC. Would you please reconsider my request to communicate by phone with any of the Commissioners that would be willing to give me just a few minutes of their time. I believe it will resOlve any misunderstandings and we can move on with a fair and reasonable approach to the question at hand, which is my right to a hearing. I don't see that it would be necessary for this Commission to waste taxpayers money by forcing my request for a hearing into litigation which dragged out for years in the Monte Allen case, which the Commission lost on the same question at hand. Maybe I can get someone from the Governor's office to intercede to assist the Commission in understanding that when a person's property rights are being taken, the Commission must provide a hearing. It is a basic understanding of the American people that you cannot take people's property without a proper hearing. Please respond in writing and let me know if you are willing to sit down with me and someone from the Governor's office, if someone from the Governor's office is willing to assist in this matter. Sincerely, Daniel K. Donkel (407) 699-4937 - Telephone (407) 699-4718 - Fax .I ddonkel@cfl.rr, com This e-mail message is confidential, together with any attachments. If you are not the intended recipient, please notify the author immediately and destroy this message. Also, refrain from copying, disclosing or using the contents in any way. Re: Notice and CO 489 Subject: Date: From: To: CC: Re: Notice and CO 489 Sun, 4 May 2003 09:40:41 -0400 "Daniel K. Donkel" <ddonkel~cfl.rr. com> "Jody Colombie" <jody_colombie@admin.state.ak.us> "James F. Clark" <james_clark@gov.state.ak.us>, "Steve Sutherlin" <steves~ak.net>, "Nicholas Vincent Stepovich" <smiths2ndave@gci.net>, "Rod Scribner" <rscrib7768@aol.com>, "Patrick J. Russell" <prussell@allen-vellone.com>, <Pirtle_Bates@dnr. state.ak.us>, "Petroleum News" <circulation~petroleumnews.com>, "Mark Myers" <Mark_Myers~dnr. state.ak.us>, "Mark Myers" <mdm~dnr. state.ak.us>, "Frank H. Murkowski" <Govemor~gov.state.ak.us>, "Douglas Mertz" <dkmertz~ak.net>, "Kenneth Mehaffey" <kmehaffey@earthlink.net>, "Brit Lively" <mapalaska~ak.net>, "David Lappi" <lapres~gci.net>, "Andrea Kurak" <akura@ccb.com>, "Nancy Knuutila" <collage@gci.net>, "Neil Kennelly" <skslaw~alaska.net>, "Dr. George Kasper" <kaspercrc~aol.com>, "Peter Huddleston" <P eterH@huddlestonco.com>, "Jerry Hodgden" <krock@attb i.com>, "B ill Hieronymus" <geojazz@swbell.net>, "Jim Gottstein" <j imgotts@touchngo.com>, "James Givens" <jwgivens~arctic.net>, "Dan Gilbertson" <beaverl~acsalaska.net>, "Richard A. Fineberg" <fineberg@alaska. net>, "John Ferguson" <jferg@ccb.com>, "Russell Douglas" <rdouglass~doyondrilling.com>, "Dick Crouch" <rbc6010~aol.com>, "Paul Craig" <pcraig@gci.net>, "Scott Cichon" <scich~ccb.com>, "David Childress" <DavidChildress@akllp.com>, "Kay Cashman" <publisher@gci.net>, "Frederic E. BrOwn'' <fbrown~mosquitonet.com> DEAR, AOGCC AND STAFF, IN RESPECT I WOULD ASK YOUR APPROVAL ON THE FOLLOWING. IF YOU ARE WILLING TO HAVE THIS HEARING WHICH IS THE SUBJECT OF CO489, WHICH HAS ALOT OF PEOPLE TALKING, I WILL NOTICE IN PROTEST ALL THE ONES YOU WANT ME TO!! IF YOU WOULD BE SO KIND AS TO PREPARE THE PAPERS YOU WANT SENT WITH SAID NOTICE ALSO PROVIDE ME WITH WHAT I DON'T HAVE WHICH IS A LIST OF WHOM TO SEND SAID NOTICE. IN THE INTEREST OF THE PEOPLE OF THE STATE OF ALASKA AND TO PREVENT WASTE OF THE STATE'S RESOURCES I WILL MAKE THIS CONCESSTION, WHAT WILL YOU DO TO PROVIDE JUSTICE IN SUBJECT NOTICE AND HEARING? PLEASE BE KIND AND RESPOND FAIRLY AS TO WHAT WILL YOU DO WITH THIS IN THE INTEREST OF JUSTICE? I AM WILLING TO WORK WITH YOU AND GIVE YOU MY FULL SUPPORT TO THE EXTENT IT IS RESONABLE,DOSE THIS SEEM FAIR YOU? THANKs IN ADVANCE FOR YOUR COOPERATION AS THIS MATTER WILL BE WORTH MILLIONS OF DOLLAR TO THE STATE ONCE HEMI SPRINGS OIL AND GAS FIELD COMES INTO PRODUCTION IF IT IS NOT BEING DRAINED ALREADY BY THE OPERATER OF THE UNITS NEXT DOOR. LETS NOT MAKE THIS ANOTHER " ALLEN VS AOGCC " (WHICH THE AOGCC LOST ON THIS SAME RIGTH TO A HEARING MATTER) AND DON'T MAKE FEDERAL CASE OUT OF THIS PLEASE BECAUSE THE STATE WILL BENEFIT IF YOU CAUSE THE KNOW POOL OF OIL AND GAS TO BE PUT IN PRODUCING INSTEAD OF PLILLPS GETTING A FREE RIDE IF YOU DONT STOP THIS FROM HURTING THE PEOPLE OF ALASKA. THE STATE WILL GET ALOT OF MONEY FROM ROYALY!! PLEASE GIVE ME A HEARING PLEASE!! THE LAW IS CLEAR THE STATE CAN'T TAKE PROPERTY FROM THE PEOPLE WITHOUT A HEARING WHATIF THE STATE WALKED You HOME TODAY SAID "GET OUT WE ARE TAKING YOU HOME FROM YOU!!" WOULD YOU WANT A HEARING UNDER LAW??????? WHAT IF YOU WERE TOLD TO NOTICE PEOPLE THAT YOU DON'T HAVE IST OF ADDRESS OR WHO THEY ARE. WHAT WOULD YOU THINK I MUST BE IN IRAQ?? PLEASE GIVE ME A HEARING DANIEL K. DONKEL This e-mail message is confidential, together with any attachments. If you are not the intended recipient, please notify the author immediately and destroy this message. Also, refrain from copying, disclosing or using the contents in any way. Original Message 1 of 2 5/8/2003 9:03 AM Re: Notice and CO 489 From: "Jody Colombie" <jody_colombie@admin.state.ak.us> To: "Robert E Mintz" <robert mintz@law.state.ak.us>; "John Tanigawa" <JohnT@EvergreenGas.com>; "Terrie Hubble" <hubbletl@bp.com>; "Sondra Stewman" <StewmaSD@bp.com>; "stanekj" <stanekj@unocal.com>; "ecolaw" <ecolaw@trustees.or~>; "rosera~sdale" <rosera~sdale~3ci.net>; "trmjrl" <trmjrl@aol.com>; "jbriddle" <jbriddle~marathonoil.com>; "rockhill" <rockhill@ao~a.org>; "shane~" <shane~@Ever~reenGas.com>; "rosew" <rosew@Ever~reenGas.com>; "jdarlington" <jdarlin~ton@forestoil.com>; "nelson" <nelson~3ci.net>; "cboddy" <cboddy@usibelli.com>; "mark.dalton" <mark.dalton@hdrinc.com>; "shannon.donnelly" <shannon.donnelly@conocophillips.com>; "mark.p.worcester" <mark.p.worcester@conocophillips.com>; "jerry.c.dethlefs" <jerry.c.dethlefs@conocophillips.com>; "arlenehm" <arlenehm@~ci.net>; "bob" <bob@inletkeeper.or~>; "wdv" <wdv@dnr.state.ak.us>; "rjr" <tjr@dnr.state.ak.us>; "bbritch" <bbritch@alaska.net>; "~reg-noble" <~re~-noble@blm.~ov>; "mjnelson" <mjnelson@purvin~ertz.com>; "burgin_d" <bur~in_d@niediak.com>; "charles.o'donnell" <charles.o'donnell@veco.com>; "Skillern, Randy L" <SkilleRL@bp.com>; "Dickey, Jeanne H" <DickeyjH@bp.com>; "Jones, Deborah J" <JonesD6@bp.com>; "Hyatt, Paul G" <hyattp~@bp.com>; "Rossber~, R Steven" <RossbeRS@bp.com>; "Shaw, Anne L (BP Alaska)" <ShawAL@bp.com>; "Kirchner, Joseph F" <KirchnJF@bp.com>; "Pospisil, Gordon" <PospisG@bp.com>; "Sommer, Francis S" <SommerFS@bp.com>; "Schultz, Mikel" <Mikel.Schultz@bp.com>; "Jenkins, David P" <JenkinDP@bp.com>; "Glover, Nick W" <GloverNW@bp.com>; "Kleppin, Daryl J" <KleppiDE@bp.com>; "Platt, Janet D" <PlattJD@bp.com>; "Wuestenfeld, Karen S" <WuesteKS@bp.com>; "Jacobsen, Rosanne M" <JacobsRM@bp.com>; "ddonkel" <ddonkel@cfl.rr.com>; "collins mount" <collins mount@revenue.state.ak.us>; "mckay" <mckay@~ci.net>; "barbara.f.fullmer" <barbara.f.fullmer@conocophillips.com>; "eyancy" <eyancy@seal-tite.net>; "bocastwf" <bocastwf@bp.com>; "cowo" <cowo@chevrontexaco.com>; "ajiii88" <ajiii88@hotmail.com>; "doug_schultze" <dou~_schultze@xtoener~y.com>; "hank.alford" <hank.alford@exxonmobil.com>; "yesnol" <yesnol@~ci.net>; "john.w.hanes" <john.w.hanes@exxonmobil.com>; "babsonandsheppard" <babsonandsheppard@warthlink.net>; "~spfoff" <gspfoff@aurorapower.com>; "~re~.nady" <~reg~.nady@shell.com>; "fred.steece" <fred.steece@state.sd.us>; "rcrotty" <rcrotty@ch2m.com>; "jejones" <jejones@aurorapower.com>; "dapa', <dapa@alaska,net>; "jack_laasch" <jack_laasch@natchiq.com>; "jimwhite" <jimwhite@satx.rr.com>; "wrholton" <wrholton@marathonoil.com>; "richard.prentki" <richard.prentki@mms.~ov> Sent: Wednesday, April 23, 2003 6:23 PM Subject: Notice and CO 489 5/8/2003 9:03 AM 2 of 2 ., #12 STATE OF ALASKA "' NOTICE TO PUBLISHER ADYERTISINC ORDER NO. ADVERTISING ,.vol .,usT ,. 4045 AFFIDAVIT OF PUBLICATION (P~T2 OF ~IS FORM)W'~ A~ACHEU COPY OF AO'0231 ORDER ADVERTISEMENT MUST BE SUBM~D WI~ INVOICE . .. .: ........ , .;.:~. ,... :.,.~ ...~.~.,,..,~..~ ....~.~.,, .,..,; .~, .,. ~ AO~C AGENCY CONTACT ~AT~ OF~.O. " ' 333 W 7~ Ave, Ste ] 00 ~ody Co]ombie Apfi~ 23~ 2003 o ~cho~age, ~ 9950] PHONE PCN ~ - (907~ 793 --~22] ~ATEg ADVERTISEMENT REQUI~D: ~ ~chomgc D~]y News April 24, 2003 o ~ O Box ]49001 ~cho~age, ~ 99514 : spEcIAE INSTRUCTIONS: - Accost AdveAisement to bc published was c-m~]cd Type of Adve~isement X Legal ~ Display ~ Classified ~Other (Specie) SEE ATTACHED PUBLIC HEA~NG :~:.~:';":':~.:~:::~ :~'. ;'.:~'~.: ~;:"?:.~:~ ~::'~.:~:"?~.,~;'~.~?'~:;?'.~:~"?~:;~.~:~:] Anchora[c~ AE 99501 12 PAGES ALL PAGES$ REF ~PE NUMBER AMOUNT DATE I COMMENTS I VEN "~ A~B 029i0 ' ' 3 FIN AMOUNT SY CC PGM LC ACCT FY NMR 'D~ ' 1 03 02140]00 73540 ,, 2 . , , _ -. Notice of Cancellation of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The petition of Daniel K. Donkel to unitize leases ADL 380066 and 28249 or, in the alternative, to expand the Kupamk Unit to include lease ADL 380066. The public hearing on this petition that was previously scheduled for May 15, 2003, at 9:00 a.m., has been CANCELED. ~., Sarah Palin, ~h~air Published Date: April 24, 2003 AO # 02314045 ~nchorage Daily News Affidavit of Publication 1001 Northway Drive, Anchorage, AK 99508 412412003 AD # DATE PO ACCOUNT 780230 04/24/2003 02314045 STOF0330 PRICE OTHER OTHER PER DAY CHARGES CHARGES~2 $35.25 $35.25 $0.00 $0.00 OTHER CHARGES#3 $0.00 OTHER CHARGES #4 $0.00 OTHER CHARGES#5 $0.00 GRAND .TOTAL $35.25 STATE OF ALASKA THIRD JUDICIAL DISTRICT Kimberly A. Kirby, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all saidtime was printed in an office maintained at the aforesaid place of publication of said newspaper. That the annexed is a copy of an advertisement as it was published irt regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not irt excess of the rate charged private individuals. Subscribed and sworn to me before this date: Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska MY COMMISSION EXPIRES~ (/~ ~ ~ ~J Notice of Cancellation of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The petition of .Daniel K. Donkel to unit- Ize 'leases ADL 380066 and 28249 or,. inthe alterna- tive, to expand the Ku- paruk Unit. to Include lease ADL 380066. The public hearing on this petition that was previ- ously scheduled for May 15, 2003, at 9:00 a.m., has been CANCELED. , Sarah Palin, Chair Publi{fied:'Aprll 24, 2003 RECEIVED MAY 0 6 200.3 AlaskaOil& ' " ~ · · Gas Cons. Commm~on Anchorage Re: Notice and Ad Order Subject: Re: Notice and Ad Order Date: 23 Apr 2003 14:10:06 -0800 From: Legal Ads Anchorage Daily News <legalads@adn.com> To: Jody Colombie <jody_colombie@admin.state.ak.us> Hi Jody: Here is the confirmation information on the legal notice. Please let me know if you need anything further. Account Number: STOF 0330 Legal Ad Number: 780230 Publication Date(s): April 24, 2003 Your Reference #: 02314045 Total: $35.25 Thank You, Kim Kirby Anchorage Daily News Legal Classified Representative E-Mail: legalads@adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 On Wednesday, April 23, 2003, Jody Colombie <jody_colombie@admin.state.ak.us> wrote: > >Kim, > >Please publish the attached tomorrow. > > Jody 1 of I 4/23/2003 3:12 PM STATE OF ALASKA~,,. NOTICE TO PUBLISHER,~ ADVERTISING ORDER NO. ADVERTISING INVOt[ ,lUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER I~' .:RTIFIED AFFIDAVIT OF PUBLICATION (PART2 OF THIS FORM)WITH ATTACHED CuPY OF AO'02 31 4045 ORDER ADVERTISEMENT MUST BE SUBMI'r'rED WITH INVOICE !-.., .:F?..:, ,:.-..~,... <.... ,. ,?... :./.?',~. i~.,.i:..,i,:,..i,:~?.9.:::a?.:(.,.::~ '-.',?~.!~:¢?.: .;'.' F AOCTCC AGENCY CONTACT DATE OF A.O. " 333 West 7th Avenue, Suite 100 Jodv Colombie Ar~ril 23. 2003 o Anchorage, AK 99501 ,.O~E PeN M - 1'907~ 793-1221 I~ATE~ ADVERTISEMENT REQUIRED: ~' Anchorage Daily News April 24, 2003 o P O Box 149001 Anchorage, AK 99514 mt MATERIAL BETWEEN THE DOUBLE LINTS MUST Bt PRINTED IN ITS ENTIRETY ON THE DATES SHOWN. SPECIAL INSTRUCTIONS: Account #STOF0330 AFFIDAVIT OF PUBLICATION Unite st te o* Ame,ca REMINDER State of ss INVOICE MUSl BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MU,SI BE SUBMIIIED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed is a true copy, was published in said publication on the day of 2003, and thereafter for ~ consecutive days, the last publication appearing on the ~ day of ,2003, and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This day of 2003, Notary public for state of My commission expires 02-901 (Rev. 3/94) Page 2 AO.FRM PUBLISHER John Katz State of Alaska Alaska Govemor's Office 444 North Capitol St., NW, Ste 336 Washington, DC 20001 SD Dept of Env & Natural Resources Oil and Gas Program 2050 West Main, Ste 1 Rapid City, SD 57702 Christine Hansen Interstate Oil & Gas Compact Comm Excutive Director PO Box 53127 Oklahoma City, OK 73152 Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 Paul Walker Chevron 1301 McKinney, Rm 1750 Houston, TX 77010 David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 G. Havran Gaffney, Cline & Associations Library 1360 Post Oak Blvd., Ste 2500 Houston, TX 77056 W. Allen Huckabay ConocoPhillips Petroleum Company Offshore West Africa Exploration 600 North Dairy Ashford Houston, TX 77079-1175 Texico Exploration & Production PO Box 36366 Houston, TX 77236 Chevron USA Alaska Division PO Box 1635 Houston, TX 77251 Donna Williams World Oil Statistics Editor PO Box 2608 Houston, TX 77252 Chevron Chemical Company Library PO Box 2100 Houston, TX 77252-9987 Shelia McNulty Financial Times PO Box 25089 Houston, TX 77265-5089 Shawn Sutherland Unocal Revenue Accounting 14141 Southwest Freeway Sugar Land, TX 77478 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution. 300 Concord Plaza Drive San Antonio, TX 78216 Robert Gravely 7681 South Kit Carson Drive Littleton, CO 80122 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Richard Neahring NRG Associates President PO Box 1655 Colorado Springs, CO 80901 John Levorsen 200 North 3rd Street, #1202 Boise, ID 83702 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 Samuel Van Vactor Economic Insight Inc. 3004 SW First Ave. Portland, OR 97201 Thor Cutler OW-137 US EPA egion 10 1200 Sixth Ave. Seattle, WA 98101 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Susan Hill State of Alaska, ADEC EH 555 Cordova Street Anchorage, AK 99501 Julie Houle State of Alaskan DNR ' Div of Oil & Gas, Resource Eval. 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Duane Vaagen Fairweather 715 L Street, Ste 7 Anchorage, AK 99501 Cammy Taylor 1333 West 11th Ave. Anchorage, AK 99501 Trustees for Alaska 1026 West 4th Ave., Ste 201 Anchorage, AK 99501-1980 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 Cid Land Department PO Box 93330 Anchorage, AK 99503 Schlumberger Ddlling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 John Harris NI Energy Development Tubular 3301 C Street, Ste 208 Anchorage, AK 99503 Mark Hanley Anadarko 3201 C Street, Ste 603 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., ~14 Anchorage, AK 99503 Judy Brady Alaska Oil & Gas Associates 121 West Fireweed Lane, Ste 207 Anchorage, AK 99503-2035 Paul L. Craig Trading Bay Energy Corp 5432 East Northern Lights, Ste 610 Anchorage, AK 99508 Jeff Walker US Minerals Management Service Regional Supervisor 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Perry Markley Alyeska Pipeline Service Company Oil Movements Department 1835 So. Bragaw- MS 575 Anchorage, AK 99515 Jeanne Dickey BP Exploration (Alaska), Inc. Legal Department PO Box 196612 Anchorage, AK · 99518 Kevin Tabler Unocal PO Box 196247 Anchorage, AK 99519-6247 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Jordan Jacobsen Alyeska Pipeline Service Company Law Department 1835 So. Bragaw Anchorage, AK 99515 Tesoro Alaska Company PO Box 196272 Anchorage, AK 99519 BP Exploration(Alaska),lnc. Land Manager PO Box 196612 Anchorage, AK 99519-6612 Jim Scherr US Minerals Management Service Resource Evaluation 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Jim Ruud ConocoPhillips Alaska, Inc. Land Department PO Box 100360 Anchorage, AK 99510 David Cusato 600 West 76th Ave., #508 Anchorage, AK 99518 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Sue Miller BP Exploration (Alaska), Inc. PO Box 196612 Anchorage, AK 99519-6612 Kenai Peninsula Borough Economic Development Distr 14896 Kenai Spur Hwy #103A Kenai, AK 99611-7000 Penny Vadla Box 467 Ninilchik, AK 99639 James Gibbs PO Box 1597 Soldotna, AK 99669 Claire Caldes US Fish & Wildlife Service Kenai Refuge PO Box 2139 Soldotna, AK 99669 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 Richa~Wagner PO Box 60868 Fairbanks, AK 99706 Cliff Burglin PO Box 131 Fairbanks, AK 99707 Harry Bader State of Alaska Department of Natural Resources 3700 Airport Way Fairbanks, AK 99709 Bemie Kad K&K Recyclinglnc. PO Box 58055 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 North Slope Borough PO Box 69 Barrow, AK 99723 Kurt Olson State of Alaska Staff to Senator Tom Wagoner State Capitol Rm 427 Juneau, AK 99801 Lt GovemorLoren Leman State of Alaska PO Box110015 Juneau, AK 99811-0015 #11 INV©ICE NO, 1851 7L.721 CITY STATE CUSTOMER'S ORDER ZIP J SOLD BY I TERMS SHIPPED TO STREET & NO. CITY IF.O.B. STATE ZIP #10 ALASKA OIL & GAS cONSERVATION FAX 907-276-7542 pHONE 907.279-1433 coMMISSION FACSIMILE TRANSMITTAL sHEET . / / ~AT~: ., ,-. OF PAGES iNCLUDING COVER: ~ TOTAL NO. NUMBER: ~ON~ NUMBER: '.. YOUR ~FE~NCE NUMBER: ./ ~OT~/COMME~TS: [~PLEASE RECYCLE -- PH N a ,~ MOB LE ' ~ ._. ~.~ ~o 7 [:YOOfl;~ALL ~ ' ' ~ .' ~' · AGAIN · ,~ ./0, I' I' S~EYOU I ,I s~s~ou ~IGNED .......... ~ FORM 4003~ ~ AOG'CC " 33'3 WEST 7TM AVENUE, SUITE 100 ANCHORAGE, AK 99501-3935 #9 Danie l K. Do___nkel 968 Willow Run Lane Winter Springs, FL 32708 (407) 699-4937- Telephone (407) 699-4718- Facsimile ddonkel~cfl, rr. com- E-mail Apfil18,2003 ~ E-MAIL: randy ruedrich@admin, state.ak, us dan seamountCb,_,admin.state, ak. us sarah palinCC_,admin.state.ak, us U.S. MAIL AND FACSIMILE: (907) 276-7542 Sarah Palin, Commissioner, Chairperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501-3539 RECEIVED APR 2 2 2003 Alaska Oil & Gas Cons. CommissiorL Anchorage Donkel's Petition for Compulsory Unitization - Lease No. ADL 28249 - Operated by ConocoPhillips & Lease No. ADL 380066 (& other leases in the vicinity of the productive pool) - Operated by ConocoPhillips - Daniel K. Donkel, an Overriding Royalty Interest Owner Dear AOGCC Commissioners: I received your letter of March 19, 2003 in response to my letter of March 9, which was in response to the former Commissioners letter of February 11, 2003 and which was in response to my Petition for protection by the Alaska Oil and Gas Conservation Commission (AOGCC) to safeguard and protect my overriding royalty property interests in ADL380066. I object to your letter of March 19, 2003, and I will respectfully state in part my reasons in this letter. It is my hope that we can find a way to clarify the notice obligations. It is unfortunate that it appears that this Commission clearly did not get the message from its legal counsel that the Supreme Court of the State of Alaska gave directly to the Commission in its opinion in Allen v. AOGCC, that the Commission has a "duty" to protect--not only correlative rights--but also lesser rights as clearly stated. The Supreme Court determined that the Commission erred by not giving a hearing in the Danco-Allen case that 'is now being prosecuted for the second time before the Alaska Superior Court. I hope that this new Commission will not make the mistake the former Commission made by not providing notice and hearings. Sarah Palin, Commissioner, ~_.,irperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission April 18, 2003 Page 2 of 6 The Danco-Allen case has now gone on for almost seven years because the Commission has chosen to ignore its duty to provide for maximum and ultimate recovery of hydrocarbons for the benefit of the people of the State of Alaska which appears to be clearly the case on the HemiSprings oil and gas pool. ConocoPhillips has an oil pool at HemiSprings that the State has certified as capable of producing in paying quantities and the Commission chooses not to do what I believe the Permanent Fund Trustees are asking the AOGCC to do, which is to force ConocoPhillips to comply with the Alaska Statute 31.05, for ultimate recovery of this HemiSprings pool, as your records clearly state. I have put you on notice that your records are clear that the HemiSprings well found that this oil pool on the subject lease comes within 66 feet of my property line, clearly showing that my lease is productive and clearly meets the criteria under AS 31.05.110, to be included in a compulsory unitization. So, you should clearly understand that the Permanent Fund Trustees, as well as myself, are concerned that the former Commission has shirked its duty in the past by not abiding by the law under AS31.05.110. I have witnessed first-hand the former Commission's ability to create morass to undermine the rule of law by using taxpayers money to fight cases that are wrongfully dragged out for 7 and 8 years as was the case in Burglin and in Danco-Allen, which you should familiarize yourselves with to see the errors of the former Commission. It appears abundantly clear to me and many people who live in Alaska that the former Commissioners seem to have turned a blind eye in favor of large oil companies in hopes of receiving future employment or other benefits, as it is known that Commissioners' terms are fixed for 6 years by law and if they want to remain in Alaska most likely they will end up working for one of the three large oil companies which produce approximately 80% of the State's revenues. This perception is an attempt to alert you of the pattern that former Commissioners and its legal counsel have chosen in creating such morass that it would rather run lawsuits out for 7 and 8 years than strictly follow the law, thus, eliminating the chances of small independents being successful in competing in Alaska, or owners of overriding royalty interests having their interests protected by the very agency established to perform these duties for the benefit of big oil companies that appear to have undue influence on the Commission, thereby harming the people of Alaska. Now, I will reiterate again what I said to you in my original letter, which is that I do not have the duty to notice anyone of my Petition concerning my individual overriding royalty interest and which I am demanding that you protect as the law states and as the Supreme Court of the State of Alaska clearly shows in their opinion that you must do your duty to notice hearings. It is not an option--it is not discretion, it is an obligation that you swore to under oath when you became a Commissioner to uphold the law by protecting overriding royalty interest owners, the State of Alaska and the Permanent Fund, even if it means causing one of Alaska' s largest oil producers to become dissatisfied with you doing your duty. I do not have the duty under AS 31.05.050(b) or AS 31.05.110(e) to provide notice to anyone. AS 31.05.110(a) invokes your duty to do all things necessary to carry out the purposes of this Chapter which is to protect royalty owners, the people Sarah Palin, Commissioner, ,~rperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission April 18, 2003 Page 3 of 6 of the State of Alaska and the Permanent Fund to provide for ultimate recovery and the protection of correlative fights and lesser fights. My conclusion is this: I do not have the financial resources to do your duty and the law does not require it. It seems clear to me that the Commission, being agents of the State of Alaska, whose duty it is to regulate these leases, does have the names and addresses of the affected parties and is fully responsible to perform its obligatory notification. It is also my understanding that the Department of Law representing both you, the AOGCC, and the Department of Natural Resources, at least one of which agencies has these addresses should provide the notification as it seems clear to me from your letter dated March 19, 2003, that you erred when it said in the first paragraph "... it appearing that the most efficient and cost effective way to handle notices in this matter would be to set a date for a hearing and issue public notice after you (Daniel K. Donkel) mailed personal notice of your Petition to the other owners of affected property interests." Clearly, the law does not require me to provide notice of hearings (See Danco-Allen case.) However, I can see where this is going. It has been my observation that the way the former Commissioners ignored this law is in their use of the taxpayers' money to wear people out like Burglin, Monte Allen, etc., over a period of 7 to 8 years until they run out of money or die and in so doing, not only State law is not served but the taxpayers of Alaska are cheated, while the AOGCC does not force major oil companies to maximize ultimate recovery of hydrocarbons nor are royalty owners or anyone else being protected by the Commission under AS 31.05.110. It is my hope that this new Commission will correct these violations of the law of not protecting petitioners for compulsory unitization by promptly providing notice and hearing. Now I recommend that the most low cost, efficient way to proceed with the notice and hearing is for you to contact the Department of Law that represents your agency as well as the DNR-DOG, and get them to give you the addresses that you deem to be appropriate to be noticed and for you to protect my interest as a Petitioner and provide due process notice of the published hearing. For these reasons and others which I would be happy to discuss with you at your request, solutions on how the Commission can protect petitioners' rights in an orderly and timely fashion. I sincerely hope you don't follow the same tact of the former Commissioners which forced petitioners like Monte Allen, an 81-year old gentleman who worked for the Alaska Railroad for 40 years and also participated in the first Alaska Non-Competitive Lease Sale to have to go all the way to the Supreme Court to get a hearing. What the former Commissioners did to this wonderful Alaskan is shameful, especially since he has been an ongoing customer in buying oil and gas leases from almost the time when Alaska was established as a State. (Please read Conservation Order No. 391A so that you can see how the former Commissioners wrongfully humiliated Mr. Allen in this Order.) Sarah Palin, Commissioner, (J~ ,rperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission April 18, 2003 Page 4 of 6 On another note, I am overjoyed that Senator Frank Murkowski, after 22 years of protecting the people of Alaska in the U.S. Senate, has chosen to come home to Alaska to become the Governor. I am convinced alter knowing Senator Murkowski since I started in the oil and gas business in Alaska in the mid-1980's, that this Governor will not allow people under the executive branch of government to shirk their duty under law by creating morass aimed at wearing people out like Monte Allen so that the law becomes worthless simply because no one can withstand the long legal maneuvers of the Commission and the Attorney General's office with all their money and resources against vulnerable owners of overriding royalty interests and small independent petitioners. In addition, it is wonderful to have a Governor who will straighten out Alaska's oil business that works hard to keep small independent oil companies out of the competition in favor of a few large oil companies to the detriment of the people of the State of Alaska, the Permanent Fund Trustees and myself. With Governor Murkowski in office, independents around the country are buzzing with optimism that Alaska state agencies will not be subject to bureaucrats wrongfully influenced by the big money of large oil companies that may not want to provide the people of Alaska with the ultimate recovery of the State's oil and gas resources and keep the competition out to the detriment of the State but solely to benefit big oil companies. It is my hope that the new Commission will protect the people of the State of Alaska, the Permanent Fund Trustees for the ultimate recovery of the proven HemiSprings pool sandwiched between the first and second largest oil fields in the Western hemisphere; i.e., Prudhoe Bay and Kupurak. Also, as I stated in my original Petition, we are without sufficient information to know whether we should be part of the Kupurak Unit or whether the HemiSprings leases should be unitized to provide for ultimate recovery and protection of my rights under AS31.05. You have been provided with a budget from the legislature to do your duty under AS31.05.110(a) where it states "... to do all things necessary to carry out the purposes of this Chapter." I hope this letter is not taken wrongly by the new Commissioners. I respect you and I am willing to work together with you in any reasonably possible way to allow you to do your duty that so many of the former commissioners shirked as in the case of Monte Allen v. AOGCC, Supreme Court, 2000. If you would like to talk with me I am willing to assist you in understanding how your predecessors have possibly caused the competition to be banned from Alaska. Good things are about to begin with Governor Murkowski as governor and I respectfully request that you send the notice for the reasons outlined herein. However, if you force this matter to litigation I am fully prepared to go to the Supreme Court as Monte Allen did and find justice there. Sarah Palin, Commissioner, d' .rperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission April 18, 2OO3 Page 5 of 6 Sarah Palin and Randy Ruederich, again, I congratulate you on your appointment as Commissioners, especially Sarah Palin on your appointment as Chairperson of the Commission. I have heard from several people in the State of Alaska that have a great deal of respect for both of you and I would recommend that you contact some of the following persons so that it will allow you to get the other side of the story than what you may have been receiving from your current advisors. I recommend that you contact the following people who are familiar with the tactics that have been applied in the past by the Commission to the detriment of the people of Alaska in the oil business for small independents: David Lappi who is an outstanding geologist educated in the Alaska University; also Paul Craig; Jim White, Monte Allen, Dr. James Givens and Peter Huddleston of Huddleston & Co. These people are well experienced and can provide you with an insight so that you may understand and respect the small independent point of view on how the Commission can best help small oil companies compete successfully for the benefit of the people of the State of Alaska and their investors. I look forward to talking with you at the hearing. I prefer to appear by telephone. I also request that the hearing may be video-taped so that the people of the State of Alaska can see for themselves how the Commission operates. I think the people of Alaska should and want to take an active part in helping the Commission to do its duty to provide for ultimate recovery of hydrocarbons and protection of peoples' property rights and obligations of overriding royalty interest owners, royalty owners (the State of Alaska), mortgage holders, lien holders, lessees and others as the statute states. I sincerely look forward to a new Commission that will provide great benefits to us all. My recommendation to this new Commission is to recognize that ConocoPhillips is the operator of the Kupurak Unit and also the subject leases of my Petition for compulsory unitization and under the Alaska Statutes and regulations. As ConocoPhillips is the notification of lessor it has a duty to alert parties affected under the Kupurak Unit and the subject leases. Therefore, since I hereby put the AOGCC on notice that I have sent my Petition to ConocoPhillips on the same day I filed it with the Commission so they have been noticed and the Commission could have ConocoPhillips send out notices if the Commission chooses not to use the funds that the legislature has dedicated to carry out its duty of providing these notices. Also, the Commission should note that I also sent a copy of my Petition on the same day I sent it to the AOGCC to the DNR-Division of 0il and Gas to the attention of the Director, Kevin Myers. Since the DNR has the addresses of all the royalty owners and the working interest owners within the Kupurak Unit and also on the subject leases, the AOGCC can simply order the DNR to provide notices if, again, the AOGCC chooses not to use the funds the legislature has dedicated to the Commission to use to do their duty to notice parties of a hearing that the AOGCC deems appropriate. Sarah Palin, Commissioner, (~' .rperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission April 18, 2003 Page 6 of 6 The Commission should also note that the HemiSprings well is on ConocoPhillips' lease which they have held long alter their primary term of the lease and the AOGCC nor the DNR has done anything to cause ConocoPhillips to develop this known oil and gas pool so that the people of the State of Alaska and the Permanent Fund could benefit through maximum ultimate recovery of these hydrocarbons. My other recommendation to the Commission is to grant my hearing, cause a compulsory unitization and order ConocoPhillips to comply with the implied covenant to develop these resources to the benefit of the State as well as others. There is an author named Moshburg that I recommend the Commission review some of his books on the concept of "implied covenant to develop." I believe that's what the Permanent Fund Trustees are aiming at so that ConocoPhillips can't get away with sitting on these valuable State resources with no real benefit to the people of Alaska which I believe is a strategy contrary to the law and the doctrine of "implied covenant to develop" the State's resources. Since this Lease has been held since the early 1980's, over two decades have passed without the AOGCC or the DNR enforcing their duty to maximize the ultimate recovery to develop production of these discovered oil and gas resources found by the HemiSprings well drilled in 1981. I hope this letter is helpful to the new Commissioners as I am of the opinion that many of the legal advisors of the previous Commissioners are carrying on the same pattern of ignoring the statutes and which this Commission is obligated to enforce in the protection of overriding royalty interest owners and the State. Thank you kindly for your consideration. If I can be of any further assistance, please contact me and I will do what I can within my limited means. DKD/jee Sincerely, Daniel K. Donkel An American Citizen owning interest in the tracts of land affected. PS: NOTICE OF CHANGE OF ADDRESS: Please note my new address and telecommunications information at the top of this letter and change your records accordingly. Thank you. Daniel K. Donkel 968 Willow Run Lane Winter Springs, FL 32708 Telephone: (407) 699-4937 Facsimile: (407) 699-4718 E-mail: ,. Facsimile To: Commissioners - AOGCC From: Daniel K. Donkel Fax: 907-276-7542 Pages: 7 Phea~.' Bate~ 04-18-03 Re:. Lease No. ADL380066- HemiSprings- Cc: Petition of Daniel Donkel [] Urgent xx For Review [] Please Comment I-IPlease Reply [] Please Recycle ® Comment~ Please see my attached letter opposing the Commission's notification of headng process. Please also replace this corrected letter with my letter to you dated Apdl 17, 2003. This facsimile message is confidential, together with any attachments. If you am not the intended recipient, please notify the author immediately and destroy this message. Also, refrain from copying, disclosing or using the contents in any way. If you have any difficulties receiving this facsimile transmission, or believe you have received it in error, please call: 407-699-493~ - ~3~ie.E~a.~s~ RECE)VED APR i 8 2003 Alaska Ofi & 69 Oom~. [;cmn~io~ I'd 6ItI 88~ BO8 93NNO~ N 93INW~ d~O:~O 80 8I ~W 03 11:57p DANIEL K DDHKEL f' 305 438 lllS p.1 DANIEL K. DONKEL Danco Royalty Partnership, Ltd. 968 Willow Run Lane Winter Springs, Florida 32?05 Telephone: (40'7) 699-4937 Facsimile: (407) 699-4718 E-mail: ddonl~el(/t; hellsotit h.n ct FACSIMILE COVER PAGF, .. " i- /I ~.~ From: No. of Pages: RE: COMMENTS: Phone No. If you have an.;' difficulties in receiving transmission of this facsimile or, you believe you have received it in error, please call: 407-699-4937. All contents of this facsimile are confidential. 20 03 DAIIIEL K DOFIKEL 305 438 1119 !o.2 April 19, 2003 To: AOGCC, SARAH PALIN, RANDY RUEDRICH, DANIEL SEAMOUNT. SARAH PALIN PLEASE CALL ME I WANT TO TALK WITH YOU. MY NUMBER IS 407 699- 4937. THANK YOU VERY MUCH. From Daniel k. Donkel This is what a friend said I should send to the Commissioners. He believes that the Commission does not truly understand what my petition on hemi Springs REALLY MEANS but should react favorable armed with this correct information. Re: State action of "Designating and certifying a well to be capable of Producing In Paying Quantities". Subject: It is matter of an existing law that requires that ADL leases must extend beyond their primary term by virtue of a lease well being determined and certified by the State of Alaska capable of producing in paying quantities. There can be no question from any quarter to the fact that the state lease containing such a well must automatically extended beyond its primary term, or any State lease that can be drained by this well must also be automatically extended beyond its primary term so long as rentals or royalties are timely paid or tolled. The lease contact paragraph 4, as matter of contract !aw, in conjunction with the state's well spacing law (20 AAC 25) REQUIRES that this must be so. The instant that the State of Alaska designates a well capable of producing oil or gas in paying quantities .t.b.e State of. Alaska thereby automatically certifies that oil or gas legally exist at that time to be produced by that well. Mr. Donkel, at this instant, has valid claim to his share of any oil or gas to be produced by this well. How can it be otherwise? In conjunction with well certified by the state to produce in paying quantities, state regulation 20 AAC 25 (a)(1)&(2)sets the standard spacing distance that specifies and dictates oil must exist under land at least 500' from the well bore, or in the case of gas, gas must exist under land least 1500' from the well bore. How can it be otherwise for a standard' one well application? Mr. Donkel owns royalty to any oil or gas to be produced from hisJand located this close to the well. Donkel's land is only 60' from the this state certified well. " Apr 20 03 11:5Up DRNIEL K DONKEL 305 ,1.38 1119 IO.3 Dan Donkel bought State of Alaska lease that ALREADY contained an existing well desiqnated by the State of Alaska capable of producing in paying quantities. The State of Alaska has never rescinded its original finding that the well will produce in paying quantities. Therefore Mr. Donkel has the perfect legal right to demand that this lease automatically extend beyond its primary term. So long as this said well exist, an affected ADL lease owner owns any oil or gas that may be produced by the well. Donkel is an effected owner. His lease is simply to close to well. Its 60' from the well. He must receive his share of royalty production from this well. It is irrelevant that previous lease owners did or did not claim their just due. In any event, Mr. Donkel is grandfathered in to valid oil and gas claim brought about by the state's original well certification. Any oil or gas produced from Donkel's land not delivered to him will not have clear title. He will forever have the future right to claim and right to lien the receiver of his share oil or gas not first delivered to him. The state's original well certification had no time limit. Its just that simple. It should be noted that this oil and gas does not convert to the lease owner's ownership until the oil or gas reaches the surface. At the instant this said well's oil or gas is produced to the surface it is owned by the affected working interest owners and royalty interest owners of land that produce this oil or gas. It can not be otherwise. The State of Alaska is required by law to enforce the protection of the owner's oil or gas produced by this well from wrongful confiscation, common pilferage or common theft. It is only the lawful owners that have title to the ownership of oil or gas produced from the state certified well. Oil and gas owners are protected by the same basic premise of law that stores, banks, individuals and other entities are protected by. The owners of oil and gas can not be deprived of their oil and gas absent due process of law. Apr ~0 03 1!:58p ]]RI"I1'EL K DONKEL 305 438 11!9 p.,t- The state is bound to exercise its police power to protect the oil and gas owners' properly at ali times from illegal acts. SO FORHT AND FITH. He said that the AOGCC does have the power if the Commission does not stray from thi_~s basic point of law. BEST WISHES Daniel k. DONKEL 4/18/2003 DANIEL K. DONKEL Danco Royalty Partnership, Ltd. 968 Willow Run Lane Winter Springs, Florida 32708 Telephone: (407) 699-4937 Facsimile: (407) 699-4718 E-mail: ddon kcl::,i'l)ellson th.net FACSIMILE COVER PAGE Date: z/__ /7-o ~? TO: COMPANY: /~O &-CC__ Phone No. From: FAX No. q~, 7. zT~,.. 7$7. ~2,. ... No. of Pages: 7' COMMENTS: RECEIVED APR 1 7 2003 If you have any difficulties in receiving transmission of this facsimile or, you believe you have received it in error, please call: 407-699-4937. All contents of this facsimile are confidential. I'd BIII B~ ~0~ 93NNO~ N 93INH~ eI~:8I ~0 BI adh Daniel K. Donkel F--- Winter Springs, FL 32708 ~(407) 699-4937- Telephone {407) 699-4718- Facsimile ddonkel~!ctl, rr. com- E-mail April 17, 2003 AND FACSIMILE: {907} 276-,7542 Sarah Palin, Commissioner, Chairperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501-3539 Re' Donkel's Petition for Compulsory Unitization - Lease No. ADL 28249 - Operated by ConocoPhillips & Lease No. ADL 380066 (& other leases in the vicinity of the productive pool) - Operated by ConocoPhillips- Daniel K. Donkel, an Overriding Royalty Interest Owner Dear AOGCC Commissioners: I received your letter of March 19, 2003 in response to my letter of March 9, which was in response to the former Commissioners letter of February 11, 2003 and which was in response to my Petition for protection by the Alaska Oil and Gas Conservation Commission (AOGCC) to safeguard and protect my overriding royalty property interests in ADL380066. I object to your letter of March 19, 2003, and I will respectfully state in part my reasons in this letter. It is my hope that we can find a way to clarify the notice obligations. It is unfortunate that it appears that this Commission clearly did not get the message from its legal counsel that the Supreme Court of the State of Alaska gave directly to the Commission in its opinion in Allen v. AOGCCo that the Commission has a "duty" to protectmnot only correlative rights--but also lesser rights as clearly stated. The Supreme Court determined that the Commission erred by not giving a hearing in the Danco-Allen case that is now being prosecuted for the second time before the Alaska Superior Court. I hope that this new Commission will not make the mistake the former Commission made by not providing notice and hearings. g'd BI II Bg~ c;Ol~ 93~NOff N 93INW[I ~Iq:E~I E;O BI ,adh Sarah Palin, Commissioner, Chairperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission April 17, 2003 Page 2 of 6 The Danco-Allen case has now gone on for almost seven years because the Commission has chosen to ignore its duty to provide for maximum and ultimate recovery of hydrocarbons for the benefit of the people of the State of Alaska which appears to be clearly the case on the HemiSprings oil and gas pool. ConocoPhitlips has an oil pool at HemiSprings that the State has certified as capable of producing in paying quantities and the Commission chooses not to do what I believe the Permanent Fund Trustees are asking the AOGCC to do, which is to force ConocoPhillips to complY with the Alaska Statute 31.05, for ultimate recovery of this HemiSprings pool, as your records clearly state. I have put you on notice that your records are clear that the HemiSprings well found that this oil pool on the subject lease comes within 66 feet of my property line, clearly showing that my lease is productive and clearly meets the criteria under AS 31.05.110, to be included in a compulsory unitization. So, you should clearly understand that the Permanent Fund Trustees, as well as myself, are concerned that the former Commission has shirked its duty in the past by not abiding by the law under AS31.05.110. I have witnessed first-hand the former Commission's ability to create morass to undermine the rule of law by using taxpayers money to fight cases that are wrongfully dragged out for 7 and 8 years as was the ease in ~ and in Danco-A!l~n, which you should familiarize yourselves with to see the errors of the former Commission. It appears abundantly clear to me and many people who live in Alaska that the former Commissioners seem to have turned a blind eye in favor of large oil companies in hopes of receiving future employment or other benefits, as it is known that Commissioners' terms are fixed for 6 years by law and if they want to remain in Alaska most likely they will end up working for one of the three large oil companies which produce approximately 80% of the State's revenues. This perception is an attempt to alert you of the pattern that former Commissioners and its legal counsel have chosen in creating such morass that it would rather run lawsuits out for 7 and 8 years than strictly follow the law, thus, eliminating the chances of small independents being successful in competing in Alaska, or owners of overriding royalty interests having their interests protected by the very agency established to perform these duties for the benefit of big oil companies that appear to have undue influence on the Commission, thereby harming the people of Alaska. Now, I will reiterate again what I said to you in my original letter, which is that I do not have the duty to notice anyone of my Petition concerning my individual overriding royalty interest and which I am demanding that you protect as the law states and as the Supreme Court of the State of Alaska clearly shows in their opinion that you must do your duty to notice heatings. It is not an option--it is not discretion, it is an obligation that you swore to under oath when you became a Commissioner to uphold the law by protecting overriding royalty interest owners, the State of Alaska and the Permanent Fund, even if it means causing one of Alaska's largest oil producers to become dissatisfied with you doing your duty. I do not have the duty under AS 31.05.050(b) or AS 31.05.110(e) to provide notice to anyone. AS 31.05.110(a) invokes your duty to do all things necessary to carry out the purposes of this Chapter which is to protect royalty owners, the people g'd BIII B~ SO~ 93NNOQ N 93INWQ e~:~I ~0 8I ~dH Sarah Palin, Commissioner, Chairperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission April 17, 2003 Page 3 of 6 of the State of Alaska and the Permanent Fund to provide for ultimate recovery and the protection of correlative rights and lesser rights. My conclusion is this: I do not have the financial resources to do your duty and the law does not require it. It seems clear to me that the Commission, being agents of the State of Alaska, whose duty it is to regulate these leases, does have the names and addresses of the affected parties and is fully responsible to perform its obligatory notification. It is also my understanding that the Department of Law representing both you, the AOGCC, and the Department of Natural Resources, at least one of which agencies has these addresses should provide the notification as it seems clear to me from your letter dated March 19, 2003, that you erred when it said in the first paragraph "... it appearing that the most efficient and cost effective way to handle notices in this matter would be to set a date for a hearing and issue public notice after you (Daniel K. Donkel) mailed personal notice of your Petition to the other owners of affected property interests." Clearly, the law does not require me to provide notice of hearings (See Danco-Allen case.) However, I can see where this is going. It has been my observation that the way the former Commissioners ignored this law is in their use of the taxpayers' money to wear people out like Burglin, Monte Allen, etc., over a period of 7 to 8 years until they run out of money or die and in so doing, not only State law is not served but the taxpayers of Alaska are cheated, while the AOGCC does not force major oil companies to maximize ultimate recovery of hydrocarbons nor are royalty owners or anyone else being protected by the Commission under AS 31.05.110. It is my hope that this new Commission will correct these violations of the law of not protecting petitioners for compulsory unitization by promptly providing notice and hearing. Now I recommend that the most low cost, efficient way to proceed with the notice and hearing is for you to contact the Department of Law that represents your agency as well as the DNR-DOG, and get them to give you the addresses that you deem to be appropriate to be noticed and for you to protect my interest as a Petitioner and provide due process notice of the published hearing. For these reasons and others which I would be happy to discuss with you at your request, solutions on how the Commission can protect petitioners' rights in an orderly and timely fashion. I sincerely hope you don't follow the same tact of the former Commissioners which forced petitioners like Monte Alien, an 81-year old gentleman who worked for the Alaska Railroad for 40 years and also participated in the first Alaska Non-Competitive Lease Sale to have to go all the way to the Supreme Court to get a hearing. What the former Commissioners did to this wonderful Alaskan is shameful, especially since he has been an ongoing customer in buying oil and gas leases from almost the time when Alaska was established as a State. (Please read Conservation Order No. 391A so that you can see how the former Commissioners wrongfully humiliated Mr. Allen in this Order.) ~'d BIII BE9 ~OE 93NN00 N 93INW0 eE~:EI EO BI Sarah Palin, Commissioner, Chairperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission April 17, 2003 Page 4 of 6 On another note, I am overjoyed that Senator Frank Murkowski, after 22 years of protecting the people of Alaska in the U.S. Senate, has chosen to come home to Alaska to become the Governor. I am convinced after knowing Senator Murkowski since I started in the oil and gas business in Alaska in the mid-19$0's, that this Governor will not allow people under the executive branch of government to shirk their duty under law by creating morass aimed at wearing people out like Monte Allen so that the law becomes worthless simply because no one can withstand the long legal maneuvers of the Commission and the Attorney General's office with all their money and resources against vulnerable owners of overriding royalty interests and small independent petitioners. In addition, it is wonderful to have a Governor who will straighten out Alaska's oil business that works hard to keep small independent oil companies out of the competition in favor ora few large oil companies to the detriment of the people of the State of Alaska, the Permanent Fund Trustees and myself. With Governor Murkowski in office, independents around the country are buzzing with optimism that Alaska state agencies will not be subject to bureaucrats wrongfully influenced by the big money of large oil companies that may not want to provide the people of Alaska with the ultimate recovery of the State's oil and gas resources and keep the competition out to the detriment of the State but solely to benefit big oil companies. It is my hope that the new. Commission will protect the people of the State of Alaska, the Permanent Fund Trustees for the ultimate recovery of the proven HemiSprings pool sandwiched between the first and second largest oil fields in the Western hemisphere; i.e., Prudhoe Bay and Kupurak. Also, as I stated in my original Petition, we are without sufficient information to know whether we should be part of the Kupurak Unit or whether the HemiSprings leases should be unitized to provide for ultimate recovery and protection of my rights under AS31.05. You have been provided with a budget from the legislature to do your duty under AS31.05.110(a) where it states "...to do all things necessary to carry out the purposes of this Chapter." However, I look forward to seeing what Rick Wagner is going to say at the hearing as he is a longtime advocate of providing maximum ultimate recovery of the States oil and gas resources for the benefit of the people of the State of Alaska. He is one Alaska citizen that I know who is well informed and cares about the rule of law and will make sure that his royalty interest in this same lease will not fall victim to a pattern of morass in order to escape your duty under law. I hope this letter is not taken wrongly by the new Commissioners. I respect you and I am willing to work together with you in any reasonably possible way to allow you to do your duty that so many of the former commissioners shirked as in the case of Monte Allen v. AOGCC, Supreme Court, 2000. If you would like to talk with me or Rick Wagner I am sure he would be willing to assist you in understanding how your predecessors have possibly caused the competition to be banned from Alaska. ~'~ 8III 8£~ ~0g 93NNOO N 93INHO e~S:~I gO 8I ~dH Sarah Palin, Commissioner, Chairperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission April 17, 20O3 Page 5 of 6 Good things are about to begin with Governor Murkowski as governor and I respectfully request that you send the notice for the reasons outlined herein. However, if you force this matter to litigation I am fully prepared to go to the Supreme Court as Monte Allen did and find justice there. Sarah Palin and Randy Ruederich, again, I congratulate you on your appointment as Commissioners, especially Sarah Palin on your appointment as Chairperson of the Commission. I have heard from several people in the State of Alaska that have a great deal of respect for both of you and I.would recommend that you contact some of the following persons so that it will allow you to get the other side of the story than what you may have been receiving from your current advisors. I recommend that you contact the following people who are familiar with the tactics that have been applied in the past by the Commission to the detriment of the people of Alaska in the oil business for small independents: David Lappi who is an outstanding geologist educated in the Alaska University; also Paul Craig; Jim White, Rick Wagner, Nick Stepovich, Dan Gilbertson, Monte Allen, Dr. James Givens and Peter Huddleston ofHuddleston & Co. These people are well experienced and can provide you with an insight so that you may understand and respect the small independent point of view on how the Commission can best help small oil companies compete successfully for the benefit of the people of the State of Alaska and their investors. I look forward to talking with you at the hearing. I prefer to appear by telephone and I expect Rick Wagner will be there. I also request that the hearing may be video-taped so that the people of the State of Alaska can see for themselves how the Commission operates. I think the people of Alaska should and want to take an active part in helping the Commission to do its duty to provide for ultimate recovery of hydrocarbons and protection of peoples' property rights and obligations of overriding royalty interest owners, royalty owners (the State of Alaska), mortgage holders, lien holders, lessees and others as the statute states. I sincerely look forward to a new Commission that will provide great benefits to us all. My recommendation to this new Commission is to recognize that ConocoPhillips is the operator of the Kupurak Unit and also the subject leases of my Petition for compulsory unitization and under the Alaska Statutes and regulations. As ConocoPhillips is the notification of lessor it has a duty to alert parties affected under the Kupurak Unk and the subject leases. Therefore, since I hereby put the AOGCC on notice that I have sent my Petition to ConocoPhillips on the same day I filed it with the Commission so they have been noticed and the Commission could have ConocoPhillips send out notices if the Commission chooses not to use the funds that the legislature has dedicated to carry out its duty of providing these notices. Also, the Commission should note that I also sent a copy of my Petition on the same day I sent it to the AOGCC to the DNR-Division of Oil and Gas to the attention of the Director, Kevin Myers. 9'd 8III B~ ~0~ 93NNOG N 93INH0 e~:~I ~0 BI Sarah Palin, Commissioner, Chairperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission April 17, 20O3 Page 6 of 6 Since the DNR has the addresses of all the royalty owners and the working interest owners within the Kupurak Unit and also on the subject leases, the AOGCC can simply order the DNR to provide notices if, again, the AOGCC chooses not to use the funds the legislature has dedicated to the Commission to use to do their duty to notice parties of a hearing that the AOGCC deems appropriate. The Commission should also note that the HemiSprings well is on ConocoPhillips' lease which they have held long after their primary term of the lease and the AOGCC nor the DNR has done anything to cause ConocoPhillips to develop this known oil and gas pool so that the people of the State of Alaska and the Permanent Fund could benefit through maximum ultimate recovery of these hydrocarbons. My other recommendation to the Commission is to grant my hearing, cause a compulsory unitization and order ConocoPhillips to comply with the implied covenant to develop these resources to the benefit of the State as well as others. There is an author named Moshburg that I recommend the Commission review some of his books on the concept of "implied covenant to develop." I believe that's what the Permanent Fund Trustees are aiming at so that ConocoPhillips can't get away with sitting on these valuable State resources with no real benefit to the people of Alaska which I believe is a strategy contrary to the law and the doctrine of "implied covenant to develop" the State's resources. Since this Lease has been held since the early 1980's, over two decades have passed without the AOGCC or the DNR enforcing their duty to maximize the ultimate recovery to develop production of these discovered oil and gas resources found by the HemiSprings well drilled in 1981. I hope this letter is helpful to the new Commissioners as I am of the opinion that many of the legal advisors of the previous Commissioners are carrying on the same pattern of ignoring the statutes and which this Commission is obligated to enforce in the protection of overriding royalty interest owners and the State. Thank you kindly for your consideration. If I can be of any further assistance, please contact me and I will do what I can within my limited means. DKD/jee PS: Sincerely, Daniel K. Donkel An American Citizen owning interest in the tracts of land affected. NOTICE OF CHANGE OF ADDRESS: Please note my new address and telecommunications information at the top of this letter and change your records accordingly. Thank you. L'~I B!I[ Bg~ q08 93NNOIS >1 93INt:IEI e~c::~'[ gO BI Rpr 18 03 06:32p DRMIEL K DOMKEL 305 438 1119 p.1 DANIEL K. DONKEL Danco Royalty Partnership, Ltd. 968 Willow Run Lane Winter Springs, Florida 32708 Telephone: (407) 699-4937 Facsimile: (407) 699-4718 E-mail: ddoJikcl,b' bellsouth.net FACSIMILE COVER PAGE Date: TO: ., COMPANY: From: No. of Pages: ..~ FAX No. Phone No. COMMENTS: If you have an): difficulties in receiving transmission of this facsimile or, you believe you have received it in error, please call: 407-699-4937. All contents of this facsimile are contidentiai. Apr 18 03 06:33p DAMIEL K DOMKEL · ,I 305 ~38 1119 .a Danie_ ____I1 K__:. D_D_o_nkel 968 Willow Run Lane Winter Springs, FL 32708 (407) 699-4937 - Telephone (407) 699-4718- Facsimile ddonkel:'tt,'.cfi.rr, com- E-mail April 17, 20O3 AND FACSIMILE: ...(907) 276-7542 Sarah Palin, Commissioner, Chairperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska OiI and Gas Conservation Commission 333 W. 7t~ Avenue, Suite 100 Anchorage, AK 99501-3539 Re: Donkel's Petition for Compulsory Unitization - Lease No. ADL 28249 - Operated by ConocoPhillips & Lease No. ADL 380066 (& other leases in the vicinity of the productive pool) - Operated by ConocoPhillips - Daniel K. Donkel, an Overriding Royalty Interest Owner Dear AOGCC Commissioners: I received your letter of March 19, 2003 in response to my letter of March 9, which was in response to the former Commissioners letter of February 11, 2003 and which was in response to my Petition for protection by the Alaska Oil and Gas Conservation Commission (AOGCC) to safeguard and protect my overriding royalty property interests in ADL380066. I object to your letter of March 19, 2003, and I will respectfully state in part my reasons in this letter. It is my hope that we can find a way to clarify the notice obligations. It is unfortunate that it appears that this Commission clearly did not get the message from its legal counsel that the Supreme Court of the State of Alaska gave directly to the Commission in its opinion in Allen v, AOGCC, that the Commission has a "duty" to protect--not only correlative rights--but also lesser rights as clearly stated, lhe Supreme Court determined that the Commission erred by not giving a hearing in the Da.nco-Allen case that is now being prosecuted for the second time before the Alaska Superior Court. 1 hope that this new Commission will not make the mistake the former Commission made by not providing notice and heatings. Apr 8 03 06:33p DAM IEL K DOMKEL Sarah Palin, Commissioner,~,,airperson Randy Ruedefich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission Apr/l 17, 2003 Page 2 of 6 305 438 1119 p.3 The Danco-Allen case has now gone on for almost seven years because the Commission has chosen to ignore its duty to provide for maximum and ultimate recovery of hydrocarbons for the benefit of the people of the State of Alaska which appears to be clearly the case on the HemiSprings oil and gas pool. ConocoPhillips has an oil pool at HemiSprings that the State has certified as capable of producing in paying quantifies and the Commission chooses not to do what I believe the Permanent Fund Trustees are asking the AOGCC to do, which is to force ConocoPhillips to comply with the Alaska Statute 31.05,. for ultimate recovery of this HemiSprings pool, 'as your records clearly state. I have put you on notice that your records are clear that the HemiSprings well found that this oil pool on the subject lease comes within 66 feet of my property line, clearly showing that my lease is productive and clearly meets the criteria under AS 31.05.1 i0, to be included in a compulsory unitization. So, you should clearly understand that the Permanent Fund Trustees, as well as myself, are concerned that the former Commission has shirked its duty in the past by not abiding by the law under AS31.05.110. I have witnessed first-hand the former Commission's ability to create morass to undermine the rule of law by using taxpayers money to fight cases that are wrongfully dragged out for 7 and 8 years as was the case in Burglin and in Danco-Allen, which you should familiarize yourselves with to see the errors of the former Commission. It appears abundantly clear to me and many people who live in Alaska that the former Commissioners seem to have turned a blind eye in favor of large oil companies in hopes of receiving future employment or other benefits, as it is known that Commissioners' terms are fixed for 6 years by law and if they want to remain in Alaska most likely they will end up working for one of the three large oil companies which produce approximately 80% of the State's revenues. This perception is an attempt to alert you of the pattern that former Commissioners and its legal counsel have chosen in creating such morass that it would rather run lawsuits out for 7 and 8 years than strictly follow the law, thus, eliminating the chances of small independents being successful in competing in Alaska, or owners of overriding royalty interests having their interests protected by the very agency established to perform these duties for the benefit of big oil companies that appear to have undue influence on the Commission, thereby harming the people of Alaska. Now, I will reiterate again what I said to you in my original letter, which is that I do not have the duty to notice anyone of my Petition concerning my individual overriding royalty interest and which I am demanding that you protect as the law states and as the Supreme Court of the State of Alaska clearly shows in their opinion that you must do your duty to notice hearings. It is not an option--it is not discretion, it is an obligation that you swore to under oath when you became a Commissioner to uphold the law by protecting overriding royalty interest owners, the State of Alaska and the Permanent Fund, even if it means causing one of Alaska's largest oil producers to become dissatisfied with you doing your duty. I do not have the duty under AS 31.05.050(b) or AS 31.05.110(e) to provide notice to anyone. AS 31.05.110(a) invokes your duty to do all things necessary to carry out the purposes of this Chapter which is to protect royalty owners, the people Apr 18 03 06:33p DANIEL K DOMKEL Sarah Palin, Commissionerf':'~nairperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission April 17, 2003 Page 3 of 6 305 438 1119 of the State of Alaska and the Permanent Fund io provide for ultimate recovery and the protection of correlative tights and lesser rights. My conclusion is this: I do not have the financial resources to do your duty and the law does not require it. It seems clear to me that the Commission, being agents of the State of Alaska, whose duty it is to regulate these leases, does have the names and addresses of the affected parties and is fully responsible to perform its obligatory notification. It is also my understanding that the Department of Law representing both you, the AOGCC, and the Department of Natural Resources, at least one of which agencies has these addresses should provide the notification as it seems clear to me from your letter dated March 19, 2003, that you erred when it said in the first paragraph "...it appearing that the most efficient and cost effective way to handle notices in this matter would be to set a date for a hearing and issue public notice after you (Daniel K. Donkel) mailed personal notice of your Petition to the other owners of affected property interests." Clearly, the law does not require me to provide notice of hearings (See Danco-Allen case.) However, I can see where this is going. It has been my observation that the way the former Commissioners ignored this law is in their use of the taxpayers' money to wear people out like Burglin, Monte Allen, etc., over a period of 7 to 8 years until they run out of money or die and in so doing, not only State law is not served but the taxpayers of Alaska are cheated, while the AOC_rCC does not force major oil companies to maximize ultimate recovery of hydrocarbons nor are royalty owners or anyone else being protected by the Commission under AS 31.05.110. It is my hope that this new Commission will correct these violations of the law of not protecting petitioners for compulsory unitization by promptly providing notice and heating. Now I recommend that the most low cost, efficient way to proceed with the notice and hearing is for you to contact the Department of Law that represents your agency as well as the DNR-DO@, and get them to give you the addresses that you deem to be appropriate to be noticed and for you to protect my interest as a Petitioner and provide due process notice of the published heating. For these reasons and others which I would be happy to discuss with you at your request, solutions on how the Commission can protect petitioners' rights in an orderly and timely fashion. I sincerely hope you don't follow the same tact of the former Commissioners which forced petitioners like Monte Allen, an 81-year old gentleman who worked for the Alaska Railroad for 40 years and also participated in the first Alaska Non-Competitive Lease Sale to have to go all the way to the Supreme Court to get a hearing. What the former Commissioners did to this wonderful Alaskan is shameful, especially since he has been an ongoing customer in buying oil and gas leases from almost the time when Alaska was established as a State. (Please read Conservation Order No. 391A so that you can see how the former Commissioners wrongfully humiliated Mr. Allen in this Order.) 18 03 06:33p DRMIEL K DOMKEL ,. Sarah Palin, Commissioner)~nakperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission April 17, 2003 Page 4 of 6 305 438 1119 p.S On another note, I am overjoyed that Senator Frank Murkowski, after 22 years of protecting the people of Alaska in the U.S. Senate, has chosen to come home to Alaska to become'the Governor. I am convinced after knowing Senator Murkowski since I started in the oil and gas business ih Alaska in the mid-1980's, that this Governor will not allow people under the executive branch of - government to shirk their duty under law by creating morass aimed at wearing people out like Monte Allen so that the law becomes worthless simply because no one can withstand the long legal maneuvers of the Commission and the Attorney General's office with all their money and resources against 'vulnerable owners of overriding royalty, interests and small independent petitioners. In addition, it is wonderful to have a Governor who will straighten out Alaska's oil business that works hard to keep small independent oil companies out of the competition in. favor of a few large oil companies to the detriment of the people of the State of Alaska, the Permanent Fund Trustees and myself. With Governor Murkowski in office, independents around the country are buzzing with optimism that Alaska state agencies will not be subject to bureaucrats wrongfully influenced by the big money of large oil companies that may not want to provide the people of Alaska with the ultimate recovery 'of the State's oil and gas resources and keep the competition out to the detriment of the State but solely to benefit big oil companies. It is my hope that the new Commission will protect the people of the State of Alaska, the Permanent Fund Trustees for the ultimate recovery of the proven HemiSprings pool sandwiched between the first and second largest oil fields in the Western hemisphere; i.e., Prudhoe Bay and Kupurak. Also, as I stated in my original Petition, we are without sufficient information to know whether we should be part of the Kupurak Unit or whether the HemiSprings leases should be unitized to provide for ultimate recovery and protection of my rights under AS31.05. You have been provided with a budget from the legislature to do your duty under AS31.05.110(a) where it states "...to do all things necessary to carry out the purposes of this Chapter." However, I look forward to seeing what Rick Wagner is going to say at the hearing as he is a longtime advocate of providing maximum ultimate recovery of the States oil and gas resources for the benefit of the people of the State of Alaska. He is one Alaska citizen that I know who is well informed and cares about the rule of law and will make sure that his royalty interest in this same lease will not fall victim to a pattern of morass in order to escape your duty under law. I hope this letter is not taken wrongly by the new Commissioners. I respect you and I am willing to work together with you in any reasonably possible way to allow you to do your duty that so many of the former commissioners shirked as in the case of Monte Allen v. AOGCC, Supreme Court, 2000. If you would like to talk with me or Rick Wagner I am sure he would be willing to assist you in understanding how your predecessors have possibly caused the competition to be banned from Alaska. Apr 18 03 06:34p DANIEL K DONKEL Sarah ?alin, Commissioner, ~h~i~person t~s~d¥ Ruederic~ Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission April 17, 2003 Page 5 of 6 305 438 1119 p.6 Good things are about to begin with Governor Murkowski as governor and I respectfully request that .you send the notice for the reasons outlined herein. However, if you force this matter to litigation I am fully prepared to go to the Supreme Court as Monte Allen did and find justice there. ' Sarah Palin and Randy Ruederich, aga/n, I congratulate you on your appointment as Commissioners, especially Sarah Palin on your appointment as Chairperson of the Commission. I have heard from several people in the State' of Alaska that have a great deal of respect for both of you and I would recommend that you contact some of the following persons so that it will allow you to get the other side of the story than what you may have been receiving from your current advisors. I recommend that you contact the following people who are familiar with the tactics that have been applied in the past by the Commission to the detriment of the people of Alaska in the oil business for small independents: David Lappi who is an outstanding geologist educated in the Alaska University; also Paul Craig; Jim White, Rick Wagner, Nick Stepovich, Dan Gilbertson, Monte Allen, Dr. James Givens and Peter Huddleston ofHuddleston & Co. These people are well experienced and can provide you with an insight so that you may understand and respect the small independent point of view on how the Commission can best help small oil companies compete successfully for the benefit of the people of the State of Alaska and their investors. I look forward to talking with you at the hearing. I prefer to appear by telephone and I expect Rick Wagner will be there. I also request that the hearing may be video-taped so that the people of the State of Alaska can see for themselves how the Commission operates. I think the people of Alaska should and want to take an active part in helping the Commission to do its duty to provide for ultimate recovery of hydrocarbons and protection of peoples' property rights and obligations of overriding royalty interest owners, royalty owners (the State of Alaska), mortgage holders, lien holders, lessees and others as the statute states. I sincerely look forward to a new Commission that will provide great benefits to us all. My recommendation to this new Commission is to recognize that ConocoPhillips is the operator of the Kupurak Unit and also the subject leases of my Petition for compulsory unitization and under the Alaska Statutes and regulations. As ConocoPhillips is the notification of lessor it has a duty to alert parties affected under the Kupurak Unit and the subject leases. Therefore, since I hereby put the AOGCC on notice that I have sent my Petition to ConocoPhillips on the same day I filed it with the Commission so they have been noticed and the Commission could have ConocoPhillips send out notices if the Commission chooses not to use the funds that the legislature has dedicated to carry out its duty of providing these notices. Also, the Commission should note that I also sent a copy of my Petition on the same day I sent it to the AOGCC to the DNR-Division of Oil and Gas to the attention of the Director, Kevin Myers. 18 03 06:34p DAltlEL K DOliKEL Sarah Palin, Commissioner, ,,,nairperson Randy Ruederich, Commissioner Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission April 17, 2003 Page 6 of 6 305 438 1119 Since the DNR has the addresses of all the royalty owners and the working interest owners within the Kupurak Unit and also on the subject leases, the AOGCC can simply order the DNR to provide notices if, again, the AOGCC chooses not to use the funds the legislature has dedicated to the Commission to use to do their duty to notice parties of a hearing that the AOGCC deems . appropriate. The Commission should also note that the HemiSprings well is on ConocoPhillips' lease which they have held long after their primary term of the lease and the AOG-CC nor the DNR has done anything to cause ConocoPhillips to develop this known oil and gas pool so that the people of the State of Alaska and the Permanent Fund could benefit through maximum ultimate recovery of these hydrocarbons. My other recommendation to the Commission is to grant my hearing cause a compulsory unitization and order ConocoPhillips to comply with the implied covenant to develop these resources to the benefit of the State as well as others. There is an author named Moshburg that I recommend the Commission review some of his books on the concept of "implied covenant to develop." I believe that's what the Permanent Fund Trustees are aiming at so that ConocoPhillips can't get away with sitting on these valuable State resources with no real benefit to the people of Alaska which I believe is a strategy contrary to the law and the doctrine of"implied covenant to develop" the State's resources. Since this Lease has been held since the early 1980's, over two decades have passed without the AOGCC or the DNR enforcing their duty to maximize the ultimate recovery to develop production of these discovered oil and gas resources found by the HemiSprings well drilled in 1981. I hope this letter is helpful to the new Commissioners as I am of the opinion that many of the legal advisors of the previous Commissioners are carrying on the same pattern of ignoring the statutes and which this Commission is obligated to enforce in the protection of overriding royalty interest owners and the State. Thank you kindly for your consideration. If I can be of any further assistance, please contact me and I will do what I can within mY limited means. DKD/jee PS: Sincerely, ...,, ,,~ Daniel K. DonkeI An American Citizen owning interest in the tracts of land affected. NOTICE OF CHANGE OF ADDRESS: Please note my new address and telecommunications information at the top of this letter and change your records accordingly. Thank you. #8 '" '~ NOTICE TO PUBLISHER ~ ADVERTiSl~C ORDER NO. STATE OF ALASKA ADVERTISING ~NVO~5. dST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NO,, ,.ERTtFIED AFF,D^V,T OF ~,~.O~ ~.~ O~ ~,~ .O~.~ ~'~ ~C.~ ~O~ O~A~ n~=d~.~.~. 4039 ORDER ~VERTISEME~ MUST BE SUBMI~D Wl~ I~OICE '~' AOGCC ,c~c~ CO~TACT ~*T~ O~ *.O. ~ 333 W ?~ Ave, Ste 100 Jod~ Colombie M~ch 18, 2003 o ~chorage, ~ 99501 PHONE PON ~ - : (907~ 793 -1221 T ~chorage D~ly News M~eh 20, 2003 o P O Box 149001 ~chorage, ~ 99514 Z~T~Z~ O~ T.Z ~*XZS S.O~. SPECIAL INSTRUCTIONS: Account gSTOF0330 Adve~isement to be published was e-m~led Type of Advedisement X Legal ~ Display ~ Classified ~Other (Specie) SEE ATTACHED PUBLIC HEA~NG ~"~i~'~ CE~"i ~"~1~[1'~. ,-,O. ' a ~ -AOGCC' 333AKW.995017th Ave., Suite 100 PAO~ a OF PAGES $' . ........ ............ .,.,~,' ....... ... ............................ ~...,..~-:,~:,.~., ~nc,ora~e~_ REF ~PE NUMBER A~OUNI DATE COMMENT8 ~ VEN 2 A~ 02910 4 FIN AMOUNT SY CC PGM LC ACCT FY NMR DI~ LIQ a 03 02140100 73540 2 3 REQUISITIONED BY: ("'"x ~"'"' 02-902 (Rev. 3/94) Publisher/Original Copies: Department Fiscal, Department, Receiving AO.FRM Notice of Public Hearing STATE OF ALASKA Alaska Oil and Gas Conservation Commission Re: The petition of Daniel K. Donkel to unitize leases ADL 380066 and 28249 or, in the alternative, to expand the Kupamk Unit to include lease ADL 380066 A petition has been filed under AS 31.05.110 by Daniel K. Donkel, seeking to unitize leases ADL 380066 and 29249 or, in the alternative, to expand the Kuparuk Unit to include lease ADL 380066. A public hearing on the petition will be held before the Commission at its offices, 333 W. 7th Avenue, Suite 100, Anchorage, Alaska 99501. The hearing will commence on May 15, 2003, at 9:00 a.m., and may continue from day to day until completed or may recess and resume at a later date to be specified at the hearing. If you are a person with a disability who may need a special modification in order to participate, please contact Jody Colombie at 793-1221 before May 1, 2003 Sarah Palin, Chair Published Date: March 20, 2003 AO # 02314039 Re: Legal Notice Subject: Re: Legal Notice Date: 19 Mar 2003 10:10:12 -0900 From: Legal Ads Anchorage Daily News <legalads~adn.com> To: Jody Colombie <jody_colombie@admin.state.ak.us> Hi Jody: Following is the confirmation information on your legal notice. Please let me know if you need anything further. Account Number: STOF 0330 Legal Ad Number: 746097 Publication Date(s): March 20, 2003 Your Reference #: AO-02314039 Total: $67.68 Thank You, Klm Kirby Anchorage Daily News Legal Classified Representative E-Mail: legalads@adn.com Phone: (907) 257-4296 Fax: (907) 279-8170 On Wednesday, March 19, 2003, Jody Colombie <jody_colombie@admin. state.ak.us> wrote: > >Please publish the attached Notice tomorrow 3/20/03. > >Jody 1 of 1 3/19/2003 10:50AM Anchorage Daily News Affidavit of Publication 1001 Northway Drive. Anchorage. AK 99508 3/20/2003 AD # 746097 DATE 03/2O/20O3 AO-02314 ACCOUNT STOF0330 PRICE OTHER OTHER PER DAY CHARGES CHARGES~2 $67.68 $67.68 $0.00 $0.00 OTHER CHARGES#3 $0.00 OTH ER CHARGES #4 $0.00 OTHER CHARGES~ $0.00 GRAND TOTAL $67.68 STATE OF ALASKA THIRD JUDICIAL DISTRICT Kimberly A. Kirby, being first duly sworn on oath deposes and says that she is an advertising representative of the Anchorage Daily News, a daily newspaper. That said newspaper has been approved by the Third Judicial Court, Anchorage, Alaska, and it now and has been published in the English language continually as a daily newspaper in . Anchorage, Alaska;~ and it is now and during all saidtime was printed in an office maintained at the aforesaid place of publication'0f said newspaper. That the annexed is a copy of an advertisement as it was published in regular issues (and not in supplemental form) of said newspaper on the above dates and that such newspaper was regularly distributed to its subscribers during all of said period. That the full amount of the fee charged for the foregoing publication is not in excess of the rate charged private individuals. Signed C~/~, Z~ Subscribed and ~-~orn to/ne b~or'e' this date: Notary Public in and for the State of Alaska. Third Division. Anchorage, Alaska/ . / com4 S. N · ': = ~;-~ -. .... . ~k~~ Notice of Public Hearing STATE~ OF: ALASKA AlasRa Oil and.Gas Conservation Commission Re:The petition of Daniel K. Donkel to unitize leases ADL 380066 and 28249 or, in the alterna- tive, to expand the Ku- paruk Unit to inclUde lease ADL 380066 A petition has been filed 0nder AS 31.05.110 by Daniel K. Donkel, seek- lng to unitize leases ADL. 380066 and 29249 or,. In the alternative; to expand the Kuparuk Unit to inclUde 'lease ADL 380066. A pub- IIc hearing on"the peti- tion will be held before the Commission at ~ts of- rices, 333 W. 7th Avenue, Suite 100, Anchorage, Alaska 995,01. The hear- ing will commence on May 15,. 2003, at 9:00 a.m., and may continue'from day to day until com. pleted or may recess and resume at a later date to .be specified at the hear- jrlg; If 'YOU ar.e a 'person with a disability Whomay need a enecial modification in order tO participate, please contact Jody Co- Iombie at 793-1221 'before May 1, 2003. Sarah Palin, Chair Pub: March 20, 2003 STATE OF ALASKA i' NOTICE TO PUBLISHER [, ADVERTISING ORDER NO. ADVERTISING ~NVO~C~: MUST BE IN TRIPLICATE SHOWING ADVERTISING ORDER NOi, ,.,ERTIFIED ^~F,DAV,T OF PUBL,O^T, ON I.~.2 Or ~.,S ~O.M~ W,TH A~AO.ED OOP~ OF AO'0231 40398 ORDER ADVERTISEMENT MUST BE SUBMI'FI'ED WITH INVOICE F AOC~C AGENCY CONTACT DATE OF A.O. ~ 333 West ?th Avenue, Suite 100 ~odv Colombie March o A~chorag¢~ AK ~501 eHO~ PCN M - (~07) ?~3 -! 22! DATES ADVERTISEMENT REQUIRED: ~ Anchorage Daily News March 20, 2003 o P O Box 14~001 THE MAT£RIAL B£TW££N THI~ DOUBLF- LINES MUST B£ PI~INTI~D IN ITS SPECIAL INSTRUCTIONS: Account #STOF0330 AFFIDAVIT O1: I UBLI A'FION ~Jnited states of America REMINDER State of ss INVOICE MUST BE IN TRIPLICATE AND MUST REFERENCE THE ADVERTISING ORDER NUMBER. division. A CERTIFIED COPY OF THIS AFFIDAVIT OF PUBLICATION MUST BE SUBMITTED WITH THE INVOICE. Before me, the undersigned, a notary public this day personally appeared ATTACH PROOF OF PUBLICATION HERE. who, being first duly sworn, according to law, says that he/she is the of Published at in said division and state of and that the advertisement, of which the annexed. is a true copy, was published in said publication on the day of 2003, and thereafter for consecutive days, the last publication appearing on the __ day of. 1 2003,' and that the rate charged thereon is not in excess of the rate charged private individuals. Subscribed and sworn to before me This.. day of 2003, Notary public for state of My commission expires 02-901 (Rev. 3/94) AO.FRM Page 2 PUBLISHER Kenai Peninsula Borough Economic Development Distr 14896 Kenai Spur Hwy #103A Kenai, AK 99611-7000 Penny Vadla Box 467 Ninilchik, AK 99639 Marc Kovac PACE 8-369, Prudhoe Bay Vice-Chair PO Box 2973 Seward, AK 99664 Claire Caldes US Fish & Wildlife Service Kenai Refuge PO Box 2139 Soldotna, AK 99669 James Gibbs PO Box 1597 Soldotna, AK 99669 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 John Tanigawa Evergreen Well Service Company PO Box 871845 Wasilla, AK 99687 Charles Boddy Usibelli Coal Mine, Inc. 100 Cushman Street, Suite 210 Fairbanks, AK 99701-4659 Richa~Wagner PO Box 60868 Fairbanks, AK 99706 Cliff Burglin PO Box 131 Fairbanks, AK 99707 Harry Bader State of Alaska Department of Natural Resources 3700 Airport Way Fairbanks, AK 99709 Bernie Karl K&K Recyclinglnc. PO Box 58055 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 North Slope Borough PO Box 69 Barrow, AK 99723 Kurt Olson State of Alaska Staff to Senator Tom Wagoner State Capitol Rm 427 Juneau, AK 99801 Lt Governor Loren Leman State of Alaska PO Box 110015 Juneau, AK 99811-0015 John Katz State of Alaska Alaska Governor's Office 444 North Capitol St., NW, Ste 336 Washington, DC 20001 Daniel Donkel 2121 North Bayshore Ddve, Ste 1219 Miami, FL 33137 SD Dept of Env & Natural Resources Oil and Gas Program 2050 West Main, Ste 1 Rapid City, SD 57702 Alfred James 200 West Douglas, Ste 525 Wichita, KS 67202 Jim Yancey SeaI-Tite Intemational 500 Deer Cross Drive Madisonville, LA 70447 Christine Hansen Interstate Oil & Gas Compact Comm Excutive Director PO Box 53127 Oklahoma City, OK 73152 Citgo Petroleum Corporation PO Box 3758 Tulsa, OK 74136 Conoco Inc. PO Box 1267 Ponca City, OK 74602-1267 Mary Jones XTO Energy, Inc. Cartography 810 Houston Street, Ste 2000 Ft. Worth, TX 76102-6298 Gregg Nady Shell E&P Company Onshore Exploration & Development PO Box 576 Houston, TX 77001-0576 Michael Nelson Purvin Gertz, Inc. Library 600 Travis, Ste 2150 Houston, TX 77002 Paul Walker Chevron 1301McKinney, Rm 1750 Houston, TX 77010 G. Scott Pfoff Aurora Gas, LLC 10333 Richmond Ave, Ste 710 Houston, TX 77042 G. Havran Gaffney, Cline & Associations Library 1360 Post Oak Blvd., Ste 2500 Houston, TX 77056 David McCaleb IHS Energy Group GEPS 5333 Westheimer, Ste 100 Houston, TX 77056 William Holton, Jr. Marathon Oil Company Law Department 5555 San Fecipe St. Houston, TX 77056-2799 W. Allen Huckabay ConocoPhillips Petroleum Company Offshore West Africa Exploration 600 North Dairy Ashford Houston, TX 77079-1175 T.E. AI~ ExxonMobil Exploration Company PO Box 4778 Houston, TX 77210-4778 CorryWoolington ChevronTexaco Land-Alaska PO Box 36366 Houston, TX 77236 Texico Exploration & Production PO Box 36366 Houston, TX 77236 Chevron USA Alaska Division PO Box 1635 Houston, TX 77251 Donna Williams World Oil Statistics Editor PO Box 2608 Houston, TX 77252 Chevron Chemical Company Library PO Box 2100 Houston, TX 77252-9987 Shelia McNulty FinancialTimes PO Box 25089 Houston, TX 77265-5089 Shawn Sutherland Unocal Revenue Accounting 14141 Southwest Freeway Sugar Land, TX 77478 Kelly Valadez Tesoro Refining and Marketing Co. Supply & Distribution 300 Concord Plaza Drive San Antonio, TX 78216 James White Intrepid Prod. Co./Alaskan Crude 4614 Bohill SanAntonio, TX 78217 Doug Schultze XTO Energy Inc. 3000 North Garfield, Ste 175 Midland, TX 79705 Robert Gravely 7681 South Kit Carson Ddve Littleton, CO 80122 George Vaught, Jr. PO Box 13557 Denver, CO 80201-3557 Jerry Hodgden Hodgden Oil Company 408 18th Street Golden, CO 80401-2433 Richard Neahring NRG Associates President PO Box 1655 Colorado Spdngs, CO 80901 John Levorsen 200 North 3rd Street, #1202 Boise, ID 83702 Kay Munger Munger Oil Information Service, Inc PO Box 45738 Los Angeles, CA 90045-0738 John F. Bergquist Babson and Sheppa~ PO Box 8279 Long Beach, CA 90808-0279 Samuel Van Vactor Economiclnsightlnc. 3004 SWFirst Ave. Portland, OR 97201 Thor Cutler OW-137 US EPA egion 10 1200 Sixth Ave. Seattle, WA 98101 Michael Parks Marple's Business Newsletter 117 West Mercer St, Ste 200 Seattle, WA 98119-3960 Jim Arlington Forest Oil 310 K Street, Ste 700 Anchorage, AK 99501 Duane Vaagen Fairweather 715 L Street, Ste 7 Anchorage, AK 99501 Robert Mintz State of Alaska Department of Law 1031 West 4th Ave., Ste 200 Anchorage, AK 99501 Ed Jones Aurora Gas, LLC Vice President 1029 West 3rd Ave., Ste 220 Anchorage, AK 99501 Richard Mount State of Alaska Department of Revenue 500 West 7th Ave., Ste 500 Anchorage, AK 99501 Julie Houle State of Alaskan DNR Div of Oil & Gas, Resource Eval. 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Susan Hill State of Alaska, ADEC EH 555 Cordova Street Anchorage, AK 99501 Cammy Taylor 1333 West 11th Ave. Anchorage, AK 99501 Williams VanDyke State of Alaska Department of Natural Resources 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Tim Ryherd State of Alaska Department of Natural Resources 550 West 7th Ave., Ste 800 Anchorage, AK 99501 Trustees for Alaska 1026 West 4th Ave., Ste 201 Anchorage, AK 99501-1980 Mark Wedman Halliburton 6900 Arctic Blvd. Anchorage, AK 99502 John Harris NI Energy Development Tubular 3301 C Street, Ste 208 Anchorage, AK 99503 Cid Land Department PO Box 93330 Anchorage, AK 99503 Mark Dalton HDR Alaska 2525 C Street, Ste 305 Anchorage, AK 99503 Mark Hanley Anadarko 3201 C Street, Ste 603 Anchorage, AK 99503 Schlumberger Drilling and Measurements 3940 Arctic Blvd., Ste 300 Anchorage, AK 99503 Jack Laasch Natchiq Vice President Government Affairs 3900 C Street, Ste 701 Anchorage, AK 99503 Baker Oil Tools 4730 Business Park Blvd., #44 Anchorage, AK 99503 Rob Crotty C/O CH2M HILL 301 West Nothern Lights BIvd Anchorage, AK 99503 Judy Brady Alaska Oil & Gas Associates 121 West Fireweed Lane, Ste 207 Anchorage, AK 99503-2035 Arlen Ehm 2420 Foxhall Dr. Anchorage, AK 99504-3342 Greg Noble Bureau of Land Management Energy and Minerals 6881 Abbott Loop Rd Anchorage, AK 99507 Rose Ragsdale Rose Ragsdale & Associates 3320 E. 41st Ave Anchorage, AK 99508 Jeff Walker US Minerals Management Service Regional Supervisor 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Jill Schneider US Geological Survey 4200 University Dr. Anchorage, AK 99508 Richard Prentki US Minerals Management Service 949 East 36th Ave., 3rd Floor Anchorage, AK 99508 Jim Scherr US Minerals Management Service Resource Evaluation 949 East 36th Ave., Ste 308 Anchorage, AK 99508 Paul L. Craig Trading Bay Energy Corp 5432 East Northern Lights, Ste 610 Anchorage, AK 99508 Thomas R. Marshall, Jr. 1569 Birchwood Street Anchorage, AK 99508 Chuck O'Donnell Veco Alaska,Inc. 949 East 36th Ave., Ste 500 Anchorage, AK 99508 Gordon Severson 3201 Westmar Cr. Anchorage, AK 99508-4336 Jim Ruud Phillips Alaska, Inc. Land Department PO Box 100360 Anchorage, AK 99510 Kristen Nelson IHS Energy PO Box 102278 Anchorage, AK 99510-2278 Jordan Jacobsen Alyeska Pipeline Service Company Law Department 1835 So. Bragaw Anchorage, AK 99515 Perry Markley Alyeska Pipeline Service Company Oil Movements Department 1835 So. Bragaw - MS 575 Anchorage, AK 99515 Robert Britch, PE Northern Consulting Group 2454 Telequana Dr. Anchorage, AK 99517 Jeanne Dickey BP Exploration (Alaska), Inc. Legal Department PO Box 196612 Anchorage, AK 99518 David Cusato 600 West 76th Ave., #508 Anchorage, AK 99518 Tesoro Alaska Company PO Box 196272 Anchorage, AK 99519 Jack Hakkila PO Box 190083 Anchorage, AK 99519 Bill Bocast PACE Local 8-369 cio BPX North Slope, Mailstop P-8 PO Box 196612 Anchorage, AK 99519 J. Brock Riddle Marathon Oil Company Land Department PO Box 196168 Anchorage, AK 99519-6168 Kevin Tabler Unocal PO Box 196247 Anchorage, AK 99519-6247 Sue Miller BP Exploration (Alaska), Inc. PO Box 196612 Anchorage, AK 99519-6612 BP Exploration(Alaska),lnc. Land Manager PO Box196612 Anchorage, AK 99519-6612 Dudley Platt D.A. Platt & Associates 9852 Little Diomede Cr. Eagle River, AK 99577 Bob Shavelson Cook lnlet Keeper PO Box 3269 Homer, AK 99603 Peter McKay 55441 Chinook Rd Kenai, AK 99611 Shannon Donnelly Phillips Alaska, Inc. HEST-Enviromental PO Box 66 Kenai, AK 99611 Kenai Peninsula Borough Economic Development Distr 14896 Kenai Spur Hwy #103A Kenai, AK 99611-7000 Penny Vadla Box 467 Ninilchik, AK 99639 Marc Kovac PACE 8-369, Prudhoe Bay Vice-Chair PO Box 2973 Seward, AK 99664 Claire Caldes US Fish & Wildlife Service Kenai Refuge PO Box 2139 Soldotna, AK 99669 James Gibbs PO Box 1597 Soldotna, AK 99669 Kenai National Wildlife Refuge Refuge Manager PO Box 2139 Soldotna, AK 99669-2139 John Tanigawa Evergreen Well Service Company PO Box 871845 Wasilla, AK 99687 Charles Boddy Usibelli Coal Mine, Inc. 100 Cushman Street, Suite 210 Fairbanks, AK 99701-4659 Richa~Wagner PO Box 60868 Fairbanks, AK 99706 Cliff Burglin PO Box 131 Fairbanks, AK 99707 Harry Bader State of Alaska Department of Natural Resources 3700 Airport Way Fairbanks, AK 99709 Bernie Karl K&K Recyclinglnc. PO Box 58055 Fairbanks, AK 99711 Williams Thomas Arctic Slope Regional Corporation Land Department PO Box 129 Barrow, AK 99723 North Slope Borough PO Box 69 Barrow, AK 99723 Kurt Olson State of Alaska Staff to Senator Tom Wagoner State Capitol Rm 427 Juneau, AK 99801 Lt GovernorLoren Leman S~te of Alaska PO Box 110015 Juneau, AK 99811-0015 #7 ALASKA OIL AND GAS CONSERVATION COM~SSION FRANK H. MURKOWSKI, GOVERNOR 333 W. 7TM AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 March 19, 2003 Daniel K. Donkel 2121 North Bayshore Drive # 1219 Miami FL. 33137 Dear Mr. Donkel: In your March 9, 2003, letter regarding your petition for compulsory unitization, you ask that the COmmission proceed with a public notice in a newspaper. It has been and is the Commission's intention to publish such a notice, but as stated in our letter of February 11, 2003, the Commission determined that additional notice is necessary in this matter, as authorized by AS 31.05.050(b) and AS 31.05.110(e). It appeared that the most efficient and cost-effective way to handle notice in this matter would be to set a date for a hearing and issue public notice after you mailed personal notice of your petition to the other owners of affected property interests. Otherwise, we would run the risk of having to postpone the hearing and re-issue public notice for a later date in the event that proof of your notification of the owners were not timely submitted. However, we are willing to proceed in an alternate fashion, which we understand to be your preference. The Commission will schedule a hearing on your petition for Thursday, May 15, 2003 at 9:00 am and will publish a notice of this hearing in a newspaper. You should include this hearing date and time in the notification that you send by certified mail to the owners of affected interests, as described more fully in the Commission's February 11 letter. Your proof of such notification, as described in the February 11 letter, must be received by the Commission no later than Thursday, April 17, 2003. Please be aware that if the Commission is required to cancel or postpone the hearing due to your failure to timely submit proof of your notification of affected owners, the Commission will consider allocating to you the cost of the newspaper notice, as provided by AS 31.05.085. Daniel K. Donkel March 19, 2003 Page 2 of 2 You also suggest in your letter that the Commission seek special legal counsel on the ground that the Department of Law represents the Department of Natural Resources. It is premature to address your suggestion, because at this point we do not know whether the Department of Natural Resources will participate as a party with respect to your petition or, if it does participate, whether it will be represented by counsel. Sincerely, ~.~....B~h Palin~..~ Daniel T Seamount, dr. Chair Commissioner Commissioner DTS/jc #6 ALASKA OIL GAS CONSERVATION FAX 907-276-7542 PHONE 907-279-1433 CO'MMISSION FACSIMILE TRANSMITTAL SHEET TO: b..:,...? .:. ~?., .- / /,<',;'<.<.d'b." COMPANY: ~) ?~,' ,,, .f ..... · . ...,, r / .//...~ ,./..//./, . ~, .... ~ ~ . ,., / FAX NUMBER; ,<.... ,.. PHONE NUMBER; REFERENCE RE: YOUR REFERENCE NUMBER: [] URGENT [] FOR REVIEW [] pLEASE' COMMENT [] PLEASE REPLY [-]PLEASE RECYCLE NOTES/COMMENTS: ,, AOGCC 33'3 WEST 7TM AVENUE, SUITE 100 ANCHORAGE, AK 99501-3935 ' ALASKA OIL AND GAS CONSERVATION COPl~IISSION February 11, 2003 FRANK H. MURKOWSKI, GOVERNOR 333 W. 7~ AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Daniel K. Donkel 2121 North Bayshore Drive #1219 Miami FL. 33137 Dear Mr. Donkel: The Commission has. received your petition dated January 21, 2003, apparently seeking the invOluntary unitization of lease ADL 380066 with lease ADL 28249. Before the Commission can set a hearing date for this petition, we must ensure that sufficient notice has been provided to affected property owners. As the Commission pointed out in the North Cook Inlet Unit proceedings, due process generally requires more than notice by publiCation in order to inform affected property owners. AS 31.05.050(b) provides that the Commission may require the giving of additional notice, beyond publicatiOn, "in a proceeding, or class of proceeding, which it considers necessary or desirable." Similarly, AS 31.05.110(e) provides, in the case of involuntary unitization proceedings, .that "Additional notice shall be given as the commission requires." In order to ensure that affeCted Property owners' are adequately notified of their .oppommity to participate in the heating on your petition, the Commission 'will require that you contact by certified mail each owner of either a working interest or a royalty interest in ADL 380066 or in ADL 28249, notifying the recipient of your petition and' of the fact that the Commission will hold a hearing on the petition and that the recipient will have the right to attend and be heard. In addition, if you intend to seek the involuntary expansion of the existing Kupamk River Unit, as suggested in your petition, you must include among the recipients of this certified mail notice each owner of either a working interest or a royalty interest in any tract within the Kuparuk River Unit. Please submit to the Commission an affidavit setting out the name and address of each working interest owner and royalty owner to whOm certified mail 'notice is required as set out above and stating under oath that you have mailed a copy of the notice required above to each of them by certified mail, return receipt Daniel K. Donkel February 11, 2003 Page 2 of 3 requested, and giving the date(s) of mailing. Please include with your affidavit a copy of your notice. Your affidavit should make clear whether or not the recipients include the owners of interests in Kupamk River Unit tracts. Once the Commission has received your affidavit, we will proceed to schedule a hearing. Your petition and your cover letter dated January 31, 2003, request that the Commission "investigate the Petition" and that the Commission "exercise its investigative powers, subpoena pertinent documents, and do any and all other things reasonable [sic] necessary to protect and preserve the interests of the [petitioner] and all other interests held in ADL 380066 for them." You should be aware that, pursuant to AS 31.05.030(b), the Commission has investigated the matters raised in your petition to determine whether or not waste exists or is imminent, or whether or not other facts exist which justify or require action by it. It appears that there has never been regular production from the well (Hemi Springs No. 1) that was drilled on ADL 28249, the well was suspended as of April 3, 1984, and there is no proposal or plan pending to produce that well or develop that lease. Accordingly, the Commission sees no need to take any further action with respect to lease ADL 28249 or lease ADL 380066 in order to prevent waste, insure a greater ultimate recovery of oil and gas, or to protect correlative rights. In particular, the Commission does not intend to file a petition on its own motion to involuntarily unitize these leases or either of them. ~ Therefore, you should not expect the Commission to further inveStigate or to develop and present evidence' itself in connection with your petition. That is your burden as the petitioner. One other point deserves mention. As you know,' in the'case of the North Cook Inlet Unit petition, the .Commission performed an initial review of the petition with respect to threshOld issues such as standing, mootneSs, and attempts at voluntary unitization. In hindsight it appears that this led to some confusion and procedural difficulties, because the Commission's threshold determinations were made before other interested parties had an oppommity to be heard. Accordingly, with resPect to. your petition dated January 31, 2003, the CommiSsion. will not make any threshold determinations as to the sufficienCy of the petition, standing, mootness, attempts at voluntary unitization, or any other potential procedural or substantive issue. You should therefore understand that the Commission's acceptance of your petition.for purposes of issuing public notice and scheduling a ,. This paragraph represents a preliminary view only, for the limited purpose of guiding the Commission's independent investigative and enforcement functions, and does not prejudge the merits of your petition. 't Daniel K. Donkel February 11, 2003 Page 3 of 3 hearing or pre-hearing conference does not constitute a determination by the Commission as to any issue. Camm~Oechsli Tabor Daniel T. Seamount, Jr. Chair v Commissioner Michael L. Bill Commissioner ' amel K. Donkel 2121 N. Bayshore Drive, Ste. 1219 Miami, Florida 33137 Phone - 305-4:38-1114 ~~'ax - 305-458-1119 ---~i~ ddonkel~bellsouth, net March 9, 2003 ,,VIA E-MAIL: randy_ ruedrich ~admin. state, ak. us dan seamount~admin.state.ak.us sarah_palin~admin, state, ak. us AND u.s. MAIL Sarah Palin, Commissioner Randy Ruederich, Commissioner, Chairperson Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501-3539 . "; .." · .~ ,". ' ~ .' :,',: i; :' ?~ , '..i'" . i~'.', i. "Re::.. 'D°~el's Petition:'f0r c'°mpUlsory unitiZation - LeaSe No. ADL 28249 - :..:': ~."'.' '. '" :..'.':-.i~Op,efiited.by~C0nOebPhi]lips 8/L.'6ase No... ADL 3'80066(& other leases in' , , .the vicinity of the. ProdUctive'p°01) ' ~Operated'by Con°coPhillips 'Daniel Ki Donkel, an Overriding Royalty' interest Owner Dear AOGCC COmmissioners: As a small Overriding Royalty Owner, referenced above, I respectfully demand that the AOGCC do the things listed under AS 31.05 to protect my interest in. ADL 380066 as it clearly is the duty under A.S. 31.05 to call a hearing and provide notice of a pUblic hearing which has always been done in the newspaper by the AOGCC at their eXPense. The letter that was sent to me by your former Commissioners re the SUbject Leases, dated February 11, .2003, clearly shows that they have refused to do their duty and have placed an unfair burden on me contrary to the law. I now respectfully request that you review this matter and ask that the letter be withdrawn and proceed with a public notice in the newspaper as was done in the Danco/Allen v. AOGCC and Phillips case before the Supreme. Court in 2000. On January 1, 1997, the AOGCC simply published a notice in the neWspaper and the' Supreme Court found it Was a properly pled petition and ruled in Allen's favor.. The former Commissioners have clearly shirked their duty but the Supreme Court~ i:ernanded'" that' they'.d0~ ~their~ dUtY and h6'ld :a':hea~h~."Now'~th~at the former Commissioners are' gOne we :.'are hoping and' belieVe'that yOu' Will perform the: duties and not place these duties wrongfully on the petitioners. .. Sarah Palin, Commissioner Randy Ruederich, Commissioner, Chairperson Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission March 9, 2003 Page 2 of 2 Additionally, the record shows in the Allen case, that the Commissioners have been urged that when an appearance of a conflict of interest is found to exist with legal counsel representing the same parties, e.g., the DNR and the AOGCC, then the statute gives allowance for an impartial tribunal to apply AS 31.05.021 (b): "The Commission may, subject to the approval of the Attorney General, contract for the services for additional special legal counsel or legal consultants." We believe this is necessary because the Department of Law represents the DNR, and under AS 31.05.026(e) the DNR shall have the same standing, (no more or less) before the Commission as granted by law to any other proprietary interest. It is clear that the DNR-DOG would like to take these leases and sell them in the next lease sale which is in direct conflict with the Commission's duty for compulsory unitization in order to protect my rights as required under AS 31.05. One final point: the previous Commissioners apparently failed to recognize that the bottom hole location of the HemiSprings well according to their files, came within 66 feet of our property line and that the State certified this well as capable of producing in paying quantities; clearly productive hydrocarbons exist on the several tracts of land affected. The Commission has never forced an involuntary unit in its long history and it is clear that it is their duty to do so. We hope that this new Commission will see the value in providing such adherence to the law's wisdom of protecting all parties of interest, not just the DNR or the big oil companies, but also the average citizen who have property rights under the law also. As the Alaska Constitution clearly guarantees, there shall not be a taking of prOperty without due process under the law. Please provide us with our heating; or on your own Motion please protect our rights as your affirmative duty under AS 31.05.110. We hope this process won't take eight years as it did in the Burglin case or almost seven years in the Allen/Danco v. AOGCC & Phillips case which is on its second trip to the Supreme Court currently. I look forward to your response to this request at your earliest convenience. Thank you in advance for your consideration. I also look forward to your response to my Petition dated January 21, 2003. Congratulations on your new appointments, Ms. Palin and Mr. Ruederich. DKD/jee Sincerely, Daniel K. Donkel An American Citizen owning interest in the tracts of land affected #5 [Fwd: LT to AOGCC re Donkel Petition for protection under AS 31.05.110] Subject: Date: From: Organization: To: [Fwd: LT to AOGCC re Donkel Petition for protection under AS 31.05.110] Mort, 10 Mar 2003 09:16:05 -0900 "Dan T. Seamount" <Dan_Seamount@admin.state.ak.us> doa-aogcc Sarah H Palin <sarah_palin~admin.state.ak.us>, Randolph A Ruedrich <randy_ruedrich@admin.state.ak.us>, Jody J Colombie <jody_colombie~admin.state.ak.us>, Rob Mintz <Robert_Mintz~law.state.ak.us> Subject: LT to AOGCC re Donkel Petition for protection under AS 31.05.110 Date: Sun, 9 Mar 2003 21:15:20 -0500 From: "Daniel K. Donkel" <ddonkel@bellsouth.net> To: <dan_seamount@admin. state.ak.us> Dear Commissioners: Please respond at your earliest convenience regarding the attached letter on my Petition for compulsory unitization as referenced herein. Thanks kindly for your consideration. Daniel K. Donkel 305-438-1114 - Telephone ddonkel~,bellsouth.net This e-mail message is confidential, together with any attachments. If you are not the intended recipient, please notify the author immediately and destroy this message. Also, refrain from copying, disclosing or using the contents in any way. ~LT to AOGCC Commission - 030903 -iHemiSprings.doc Name: LT t° AOGCC Co~iSSi0n, 030903 - HemiSprings.doc Type: WINWORD File (application/msword) · Encoding: base64 1 of 1 3/17/2003 8:17 AM ' amel K. Donkel 2121 N. Bayshore Drive, Ste. 1219 Miami, Florida 33137 Phone - 30542t8-1114 ~Fax - 21054218-1119 ~ddonkel~bellsouth.net March 9, 2003 VIA E-MAIL: randy ruedrich@admin.state.ak, us dan seamount@admin.state.ak.us sarah_ palinfO,_,admin.state.ak, us AND U.S. MAIL Sarah Palin, Commissioner Randy Ruederich, Commissioner, Chairperson Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501-3539 Re: Donkel' s Petition'fOr Compulsory Unitization - Lease No. ADL 28249 - -oPerated byConocOphilliPs & Lease No. ADL 380066 (& other leases in the vicinitY of the productive pool) - Operated by ConocoPhillips - Daniel K. Donkel, an Overriding Royalty Interest Owner Dear AOGCC Commissioners: As a small Overriding Royalty Owner, referenced above, I respectfully demand that the AOGCC do the things listed under AS 31.05 to protect my interest in ADL 380066 as it clearly is the duty under AiS. 31.05 to call a hearing and provide nOtice of a public hearing which has always been done in the newspaper by the AOGCC at their expense. The letter that was sent to me by your former Commissioners re the subject Leases, dated February 11, 2003, clearly shows that they have refused to do their duty and have placed an unfair burden on me contrary to the law. I now respectfully request that you review this matter and ask that the letter be withdrawn and proceed with a public notice in the newspaper as was done in the Danco/Allen v. AOGCC and Phillips case before the Supreme Court in 2000. On January 1, 1997, the AOGCC simply published a notice'in the newspaper and the Supreme Court found it was a properly pled petition and ruled in Allen's favor, The former Commissioners haVe clearly shirked their duty but the Supreme Court'. remanded " that ' they ~ dO ' their' dUty and h0'Id .'a:hearing.~ Now that the former Commissioners are gone we.are hoping and'belieVe that yOu will perform the duties and not place these duties wrongfully on the petitioners. . Sarah Palin, Commissioner { Randy Ruederich, Commissioner, Chairperson Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission March 9, 2003 Page 2 of 2 Additionally, the record shows in the Allen case, that the Commissioners have been urged that when an appearance of a conflict of interest is found to exist with legal counsel representing the same parties, e.g., the DNR and the AOGCC, then the statute gives allowance for an impartial tribunal to apply AS 31.05.021(b): "The Commission may, subject to the approval of the Attorney General, contract for the services for additional special legal counsel or legal consultants." We believe this is necessary because the Department of Law represents the DNR, and under AS 31.05.026(e) the DNR shall have the same standing, (no more or less) before the Commission as granted by law to any other proprietary interest. It is clear that the DNR-DOG would like to take these leases and sell them in the next lease sale which is in direct conflict with the Commission's duty for compulsory unitization in order to protect my rights as required under AS 31.05. One final point: the previous Commissioners apparently failed to recognize that the bottom hole location of the HemiSprings well according to their files, came within 66 feet of our property line and that the State certified this well as capable of producing in paying quantities; clearly productive hydrocarbons exist on the several tracts of land affected. The Commission has never forced an involuntary unit in its long history and it is clear that it is their duty to do so. We hope that this new Commission will see the value in providing such adherence to the law's wisdom of protecting all parties of interest, not just the DNR or the big oil companies, but also the average citizen who have property rights under the law also. As the Alaska Constitution clearly guarantees, there shall not be a taking of property without due process under the law. Please provide us with our hearing; or on your own Motion please protect our rights as your affirmative duty under AS 31.05.110. We hope this process won't take eight years as it did in the Burglin case or almost seven years in the Allen/Danco v. AOGCC & Phillips case which is on its second trip to the Supreme Court currently. I look forward to your response to this request at your earliest convenience. Thank you in advance for your consideration. I also look forward to your response to my Petition dated January 21, 2003. Congratulations on your new appointments, Ms. Palin and Mr. Ruederich. Sincerely, Daniel K. Donkel An American Citizen owning interest in the tracts of land affected DKD/jee Daniel K. Donkel 2121 N. Bayshore Drive, Ste. 1219 Miami, Florida 33137 Phone - 305-438-1114 Fax - 305-438-1119 ddon kel~bellsouth.net March 9, 2003 VIA E-MAIL: randy ruedrich~admin.state.ak, us dan seamount~admin.state.ak.us sarah palin~,,ad rain.state.ak, us AND U.S. MAIL Sarah Palin, Commissioner Randy Ruederich, Commissioner, Chairperson Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission 333 W. 7th Avenue, Suite 100 Anchorage, AK 99501-3539 Re' Donkel's Petition for Compulsory Unitization- Lease No. ADL 28249 - Operated by ConocoPhillips & Lease No. ADL 380066 (& other leases in the vicinity of the productive pool) - Operated by ConocoPhillips - Daniel K. Donkel, an Overriding Royalty Interest Owner Dear AOGCC Commissioners: As a small Overriding Royalty Owner, referenced above, I respectfully demand that the AOGCC do the things listed under AS 31.05 to protect my interest in ADL 380066 as it clearly is the duty under A.S. 31.05 to call a hearing and provide notice of a public hearing which has always been done in the newspaper by the AOGCC at their expense. The letter that was sent to me by your former Commissioners re the subject Leases, dated February 11, 2003, clearly shows that they have refused to do their duty and have placed an unfair burden on me contrary to the law. I now respectfully request that you review this matter and ask that the letter be withdrawn and proceed with a public notice in the newspaper as was done in the Danco/Allen v. AOGCC and Phillips case before the Supreme Court in 2000. On January 1, 1997, the AOGCC simply published a notice in the newspaper and the Supreme Court found it was a properly pled petition and ruled in Allen's favor. The former Commissioners have clearly shirked their duty but the Supreme Court remanded that they do their duty and hold a hearing. Now that the former Commissioners are gone we are hoping and believe that you will perform the duties and not place these duties wrongfully on the petitioners. Sarah Palin, Commissioner Randy Ruederich, Commissioner, Chairperson Daniel T. Seamount, Jr., Commissioner Alaska Oil and Gas Conservation Commission March 9, 2003 Page 2 of 2 Additionally, the record shows in the Allen case, that the Commissioners have been urged that when an appearance of a conflict of interest is found to exist with legal counsel representing the same parties, e.g., the DNR and the AOGCC, then the statute gives allowance for an impartial tribunal to apply AS 31.05.021 (b): "The Commission may, subject to the approval of the Attorney General, contract for the services for additional special legal counsel or legal consultants." We believe this is necessary because the Department of Law represents the DNR, and under AS 31.05.026(e) the DNR shall have the same standing, (no more or less) before the Commission as granted by law to any other proprietary interest. It is clear that the DNR-DOG would like to take these leases and sell them in the next lease sale which is in direct conflict with the Commission's duty for compulsory unitization in order to protect my rights as required under AS 31.05. One final point: the previous Commissioners apparently failed to recognize that the bottom hole location of the HemiSprings well according to their files, came within 66 feet of our property line and that the State certified this well as capable of producing in paying quantities; clearly productive hydrocarbons exist on the several tracts of land affected. The Commission has never forced an involuntary unit in its long history and it is clear that it is their duty to do so. We hope that this new Commission will see the value in providing such adherence to the law's wisdom of protecting all parties of interest, not just the DNR or the big oil companies, but also the average citizen who have property rights under the law also. As the Alaska Constitution clearly guarantees, there shall not be a taking of property without due process under the law. Please provide us with our hearing; or on your own Motion please protect our rights as your affirmative duty under AS 31.05.110. We hope this process won't take eight years as it did in the Burglin case or almost seven years in the Allen/Danco v. AOGCC & Phillips case which is on its second trip to the Supreme Court currently. I look forward to your response to this request at your earliest convenience. Thank you in advance for your consideration. I also look forward to your response to my Petition dated January 21, 2003. Congratulations on your new appointments, Ms. Palin and Mr. Ruederich. Sincerely, /s/ Daniel K. Donkel An American Citizen owning interest in the tracts of land affected DKD/jee #4 INVOICE NO, · 1842 ' .. ., TO "S'TREET & NO. CITY STATE ZIP SHIPPED TO STREET & NO. STATE ZIP CUSTOMER'S ORDER #3 rtl L,Fi Postage Certified Fee Return Receipt Fee (Endorsement Required) ' Restricted Delivery Fee (Endorsement Required) 1::3 Total Postag~ & Fees $ 0.J? 1.75 3.50 $ ?..~z UNIT ID: 05J5 Postmark Here Clerk: KGS3HH O~ll~/Oj UNITED STATES POSTAL SERVICE First-Class Mail Postage &,Fees Paid USPS Permit N°. G-lO · Sender: Please print your name, address, and ZIP+4 in this box ° i~i?~'/~, ~'~"'" ,~,, ........... ,~,~ ,~ ,,, ,, ,,~,,¢. ~,~, State of Alaska Ala~ska Oil and Gas Conservation Commission ~818k¢1 icj C! !;;!~ ,!,! ?:: :'~ 'ui:.: ,, :,,~.~. :......~,,, ~,. :.'2,, s::3;:3. ¢ West ?th Ave., Suif~ 100 Anchorage, Alaska 99501 · Complete items 1, 2, and 3. Aisc complete II ~: Rece,ved by (Please Print Clearly) B. Date of Delivery item 4 if Restricted Delivery is desired. :- !1: / 'E.-(~,-cog · Print your name and address on the reverse II c S~nat,re .. /..¢ ,.<. /")---7/ / - so that v,.~ can return the card to you. . - ~1' ' · Attach th'is card to the back of the mailpiec.~ . II X ' '//'' ~] ¢///~'"/" ~ or on the front if space permits. ~D ~ /~"~"""'~- ...... [] AddreSSeE ..... · Is delivery address different from item 17 [] Yes 1. Article Addressed to: If YES, enter delivery address below: [] No .... ~. S~,e,~_'ce Type '~-4~ertified Mail [] Express Mail [] Registered [] Return Receipt for Merchandise /~~'/~ ' '~"/' ~¢/¢'7 [] Insured Mail i--lC.O.D. · 2/ 4. Restricted Delivery? (Extra Fee) s Number_(.Copy fromm service/a~ 7 O O ~ - ' PS Form ~81 1, July 1999 Domestic Return Receipt 102595-00-M-0952 ALASKA OIL AND GAS CONSERVATION COPlPlISSION February 11, 2003 FRANK H. MURKOWSKI, GOVERNOR 333 W. 7TM AVENUE, SUITE 100 ANCHORAGE, ALASKA 99501-3539 PHONE (907) 279-1433 FAX (907) 276-7542 Daniel K. Donkel 2121 North Bayshore Drive #1219 Miami FL. 33137 Dear Mr. Donkel: The Commission has received your petition dated January 21, 2003, apparently seeking the involuntary unitization of lease ADL 380066 with lease ADL 28249. Before the Commission can set a hearing date for this petition, we must ensure that sufficient notice has been provided to affected property owners. As the Commission pointed out in the North Cook Inlet Unit proceedings, due process generally requires more than notice by publication in order to inform affected property owners. AS 31.05.050(b) provides that the Commission may require the giving of additional notice, beyond publicatiOn, "in a proceeding, or class of proceeding, which it considers necessary or desirable." Similarly, AS 31.05.110(e) provides, in the case of involuntary unitization proceedings, that "Additional notice shall be given as the commission requires." In order to ensure that affected Property owners' are adequately notified of their .oppommity to participate in the hearing on your petitiOn, the Commission Will require that you contact by certified mail each owner of either a working interest or a royalty interest in ADL 380066 or in ADL 28249, notifying the recipient of your petition and' of the fact that the Commission will hold a hearing on the petition and that the recipient will have the right to attend and be heard. In addition, if you intend to seek the involuntary expansion of the existing Kupamk River Unit, as suggested in your petition, you must include among the recipients of this certified mail notice each owner of either a working interest or a royalty interest in any tract within the Kuparuk River Unit. Please submit to the Commission an affidavit setting out the name and address of each working interest owner and royalty owner to whOm certified mail notice is required as set out above and stating under oath that you have mailed a copy of the notice required above to each of them by certified mail, return receipt Daniel K. Donkel February 11, 2003 Page 2 of 3 requested, and giving the date(s) of mailing. Please include with your affidavit a copy of your notice. Your affidavit should make clear whether or not the recipients include the owners of interests in Kupamk River Unit tracts. Once the Commission has received your affidavit, we will proceed to schedule a heating. Your petition and your cover letter dated January 31, 2003, request that the Commission "investigate the Petition" and that the Commission "exercise its investigative powers, subpoena pertinent documents, and do any and all other things reasonable [sic] necessary to protect and preserve the interests of the [petitioner] and all other interests held in ADL 380066 for them." You should be aware that, pursuant to AS 31.05.030(b), the Commission has investigated the matters raised in your petition to determine whether or not waste exists or is imminent, or whether or not other facts exist which justify or require action by it. It appears that there has never been regular production from the well (Hemi Springs No. 1) that was drilled on ADL 28249, the well was suspended as of April 3, 1984, and there is no proposal or plan pending to produce that well or develop that lease. Accordingly, the Commission sees no need to take any further action with respect to lease ADL 28249 or lease ADL 380066 in order to prevent waste, insure a greater ultimate recovery of oil and gas, or to protect correlative rights. In particular, the Commission does not intend to file a petition on its own motion to involuntarily unitize these leases or either of them. ~ Therefore, you should not expect the Commission to further investigate or to develop and present evidence' itself in connection with your petition. That is your burden as the petitioner. One other point deserves mention. As you know, in the~case of the North Cook Inlet Unit petition, the Commission performed an initial review of the petition with respect to threshold issues such as standing, mootness, and attempts at voluntary unitization. In hindsight it appears that this led to some confusion and procedural difficulties, because the Commission's threshold determinations were made before other interested parties had an opportunity to be heard. Accordingly, with resPect to your petition dated January 31, 2003, the Commission. will not make any threshold determinations as to the sufficiency of the petition, standing, mootness, attempts at voluntary unitization, or any other potential procedural or substantive issue. You should therefore understand that the Commission's acceptance of your petition.for purposes of issuing public notice and scheduling a I This paragraph represents a preliminary view only, for the limited purpose of guiding the Commission's independent investigative and enforcement functions, and does not prejudge the merits of your petition. Daniel K. Donkel February 11, 2003 Page 3 of 3 hearing or pre-hearing conference does not constitute a determination by the Commission as to any issue. Camm~Oechsli Tabor Daniel T. Seamount, Jr. Michael L. Bill Chair v Commissioner commissioner #2 Barbara t'. Fullmer Couns~' Legal D~. ,tment ConocOPhillips Alaska, Inc. ATO-2084 P. O. Box 100360 Anchorage, AK 99510-0360 phone 907.265.1341 Barbara. F. Fullmer @ ConocoPhillips.com February 5, 2003 VIA FACSIMILE to 276-7542 Camill60. Taylor, Chair Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 CONFIRMATION COPY' oTHFIS. 18 THE ORIGINAL FOR YOUR RECOR A FACSIMILE TRANRMJe .... D~ - ,-~ -.-._.~,~IUN SENT T YOU ON~ RE: Petition under §31.05.110- ADL 380066 Filed by Daniel K. Donkel on January 31,2003 Dear Commissioner Taylor: I have received a copy of the above-described petition. All notices or communications to ConocoPhillips Alaska, Inc. relating to that petition and proceedings involving that petition should be addressed to: Mailing address: Barbara F. Fullmer ATO-2084 ConocoPhillips Alaska, Inc. P.O. Box 100360 Anchorage, Alaska 99510-0360 Facsimile: 907-265-6998 Street address: Barbara F. Fullmer ATO-2084 ConocoPhillips Alaska, Inc. 700 G Street Anchorage, Alaska 99501 Very truly yours, Barbara F. Fullmer CC: Jodie Colombie, Alaska Oil and Gas Conservation Commission Daniel K. Donkel #1 2121 N. Bayshore Drive, #1219 MPami, FL 33137 (305) 438-1114 - Te~eimane (3o5) 438-~ 1 ~9 - FAX dd__q~_kel~__bel!south.net - E-rnait · ' ,,-m~ Daniel K. Donkel Please Recycle ® Comment~ This facsimile message is confidential, together witl "my attachments. If you are not the intended recipient, please notify the author immediately and d~' ',:roy this message. Also, refrain from copying, ': disclosing or using the contents in any way. If ,; · hm,n =m, a.~...-t.,.,.m.,-,.,.; .---.,T.-..~-..-.-',.~ ~, ..,- ;~,... ' ' ' ' '_ transmi~i0i~,".'or b~liey, e-yo~emceived it in error, [:,:.. ', ".." '. SOB 93NNOQ N 93INWQ d62::80 E;O [13 u~[' DANIEL K. DONKEL 2121 N. Bayshore Drive, Suite 1219 Miami, Florida 33137 (305)438-1114 (305) 438-1119 FAX DELIVERY BY FACSIMILE (907) 276-7542 January 31, 2003 4iaska Oil & Ga~ ~;o~s. Gommission ",., ~,:.Or~._ e Alaska Oil and Gas Conservation Commission 333 West 7th Avenue, Suite 100 Anchorage, Alaska 99501 Re: Petition under {}31.05.110 - ADL 380066 Gentlemen: Enclosed herein is a Petition under {}31.05.110 with supporting documents which is hereby sumbitted for consideration and action by the Alaska Oil and Gas Commission (the "Commission") in accordance with its statutory duties and obligations. Please see that the Commission proceeds to concern and investigate the Petition and the assertions contained therein in a reasonable and prompt mallrler. Thank you for the consideration of the enclosed Petition. If you have any questions or comments, please advise. Sincerely yours, Daniel K. DonkeI Enclosure Cc: Dept. of Natural Resources Division of Oil and Gas Attn.:Mr. Myers, Director ~'d 8III 88~, ~08 93NNOU N 93INWU d8~:80 80 I8 ue~' 4' PETITION THE UNDERSIGNED, Daniel K. Donkel, being the owner of an overriding royalty interest in ADL 380066, hereby files this Petition with the Alaska Oil and Gas Conservation Commission in accordance with the terms and conditions set forth in {}31.05 and in connection herewith states as follows: 1. ADL 380066 is mediately adjacent to the ARCO #1 Hemi Springs well which has been certified as capable of producing oil in paying quantities, and such well currently holds lease ADL 28249 beyond its primary term. See various letters attached hereto as Exhibit A granting certification status to the Hemi Springs #1 well and continuation of ADL 28249. 2. The ARCO #1 Hemi Springs well is located immediately adjacent to the boundary of ADL 380066. Accor&gly, it is submitted that acreage within ADL 380066 is productive and/or reasonably capable of producing in paying quantities in accordance with {}31.05. 3. The undersigned has requested that Conoco Phillips Alaska, Inc., as operator of the Kupamk Unit and/or as lease operator, to either expand the Kupamk Unit and/or create a unit so as to include ADL 380066 within a unit. This request has been denied as confirmed in the letter dated January 29, 2003, a copy of which is attached hereto as Exhibit B. 4. The undersigned requests that the Commission, in accordance with its duties and responsibilities under {}31.05, take all steps to protect the undersigned's interests including, without limitation, exercise its investigative powers, subpoena pertain documents, and do any and all other things reasonable necessary to protect and preserve the interests of the undersigned and all other interests held in ADL 380066 for them. 5. The undersigned does not possess sufficient information, nor is there information reasonably available to him, to be able to'evaluate, much less conclude, whether ADL 380066 should be included within an involuntary expansion of an existing voluntary Unit (e.g., the Kuparuk Unit) or whether it is necessary for a separate and distinct new involuntary unit to be created and formed to include ADL 380066 under {}31.05. 6. In the event that it is determined that a new involuntary unit should be formed, the undersigned hereby tenders the following: (a) A plat is attached hereto as Exhibit C which contains, to the best of the undersigned's information and believe, the description and boundaries of a proposed unit comaining ADL 380066 and ADL 28249. (b) A recommended plan of unitization applicable to the proposed unit is attached hereto as Exhibit D. This recommended plan of unitization is considered to be fair, reasonable and equitable. 8'd 6II1 88~ GOC qHNNOG ~ qHINHG d6~:80 CO I8 uer 7. The undersigned hereby asserts and alleges the existence of all facts required to be found by the Commission for the expansion of the existing voluntary Kapamk Unit under {}31.05. Alternatively, if the Commission determines that a new involuntary unit should be formed, the undersigned hereby asserts and alleges the existence of all facts necessary for creation of a new proposed involuntary unit under §31.05. All of the foregoing facts must be found and determined to exist by the Commission, not the undersigned petitioner. 8. The preservation and inclusion of the undersigned interests herein shall be effective as of January 31, 2003, the date of this Petition. EXECUTED this 3 Ist day of January, 2003. Daniel K. Donkel 2121 N. Bayshore Drive, #1219 Miami, FL 33137 ~'d ~III 8g~ ~0g 93NNOG ~ 93INWU d6~:80 gO Ig Sent By: VAV LAW; TM~ph,~ Septembm Del:mrtmen DivisiOn of P.O, Box 1 Anchorage Aria: Jam He: Req' Gentlemer ARCO Working In Agmemen effective 0 3038938332; ~2, lg92 Jan-31-03 1B-44; Page 2 of Natural Resources Dil and Gas )70~4 r'#v. o.-,-- AK gg510-0734 -,,u,~ s o,:; :. ' · ~s E. Eason, Dlreclor Jest for Approval to Terminate ~i Springs Unit k~, Inc. ("ARCO"), on behatf of the Hemt Springs Unit ("HBU") lerest. Owners ("WIGs") and pursuant to Se~lon 14,2 ;f the HSU ,, hereby respectfully requests the term{natron of the HSU ,"tober. 1, 1992, TT. *d Attached l~i a ?py of a lariat dated July 20, 1992, fully executed by all of the HSU VIIIOs in support of the terminatlen ef the H~U. / Also, s CO~y of'a_letter dated September 1,199.2 Is attached avid.earing that the HS'U WIGs have agreed to waive, the ninety (90) day extension granted u~der 1 t AAC 85.140.to all teases committed to the HSU will expireldue to HSd termination. / ARCO currently _operates and own. s 100% of the Heml Springs State #1 well located on State Leas.? ADL 28249 whl(~h was certttied oapable of producing[In pa¥t,n9 quantities pursuant to 1I ARC 83,361, ARGO will continue t{3 pay minimum royalties in order to perpetuate ADL-28249. ! Piease t~rminate the HSU effective Oct.o,.ber 1, 1992 and allow the committec~ leases, except ADL-28249, to expire on October 1, 1 8incere. l~ ·. /~ames R. Senior I~ ~dman . Attachmlnt co: Hdmi Springs Unit Workina {nteres~ Owners brand lax italllit~ memo · ,,,~. t.t 81;~ SOE: -I=J)tHO[l )~ '!~ 1 Nkl(l 9'd STTT 8E;~, C;OE: 93>1N0[~ N 93INW(I dOE;:8O Sent By: VAV LAW; ~ FL~13 8038938832; Jan-31-O3 1~'44; Page ~/b r.. Tekslmoee /.'d 8TTT 88~, ~08 93NNOfr ~4 93INWO d08:80 ~0 TI~ U~L" Sent By: VAV LAW; Sanuary 31, 2003. Your ~ tathls 3038938332; Jan-31-03 16:44; ~ Flcn-~ 33137 ~ual7 2~, 20o3 ]b~q~leSt tO ¥Oltllltllly itldudC ADL 380066 ~ a Unit that AOL 3800~ is im~ Mjmr, m~ :o the ARCO #! ~~a ~ t~ ~ ~ ~ u~od ~ r~ mmnamiatt~oa's with your land h tra~S of land a~ ( AOL 3500t~) umler AS 31.0~.I10, Your pmm~ Paul, It was nice talking with you today I am ~tty we can't asree let's Page 4lb dgc :t~0 · 8TTT 8£~ q08 33~0CI ~ -13Z~EIfT dOE:130 EO TE ue/' Sent By: V.~V LAW; l-]P OfficeS~ G Seri~,~.G85 3038938332.; Jan-31 -03 16:44; Pe, r,~oaxl Pdm~rlF~ J'an29 2:40pm ~ I Ce~xior lScanoc r 305 4~8 1119 Ja~ 29 2003 2:41pm 190726~4966 O'.55 2 OK OK - Mac~ and whil Ohy color- eolor f Page 515 8'cl 8[[[ 88~, q08 -13~1~01~ ~1 -l'lIklEIE ct08:80 80 [8 uec ~OlO? ~76 { JI ~ ~ ~ ;3-85587 · . $11.7! i~,81 3 7~ -380110 IiFX ~PX J~o 38.5o I3.34 ~ -3BOg60 ;11,93 BPX I~ -~ei~33 :sa ~PX ~ -37705'1 ' I I ° 14-~8863 14' { ,.,gent. By: VAV LAW; Jan 3! 03 04:02 3038938332 ~.' Jan-31-03 lt? '~4; 305 438 ~11EI Page 2/2 p.2 State Only U,, R.evbed .,t~ne '~ UNIT Table of Comcats ARTICL~ 6: A~I'ICLI~ g: PA ARTICLE tO: 01 AIITI~ 12: .q~TIC[~ 14; ARTICLE 15: ARTICLE ARTICY...E 1.7: AIt11Cf..P-. AR'J~CL1E 1,9: Unit A~mement .... J '"L, ,' ',"..'.' ' Pag~l IT'd 8T!T 8gt~ gO8 -13~MOH :~ -13I~[[ ci~E:80 80 18 u~[' RECITALS All record owners of any right, title, or interest in the off or gas reservoirs or potential hydrocarbon accumulations to be included in this Unit have been invited to join this Agreement. The Commissioner of the Department of Natural Resources, State of Alaska, is authorized by Alaska Statute 38.05.180(p) and (cO and applicable regulations to consent to and approve oil and gas unit agreements to explore, develop and produce state oil and gas resources. AGREEMENT In consideration of the mutual promises in this Agreement, the parties commit their respective interests in the Unit Area defined in Exhibit A and depicted in Exhibit B to this Agreement, and agree as follows: ARTICLE 1: DEFINITIONS 1.1 Alaska Oil and Gas Conservation Commission (AOGCC) means the independent quasi-judicial agency of the State of Alaska established by the Alaska Oil and Gas Conservation Act, AS 31.05. 1.2 Approved Unit Plan means a 'Unit Plan that has been approved by the Commissioner. 1.3 Commissioner means the Commissioner of the Department of Natural Resources, State of Alaska, or the Commissioner's authorized representative. 1.4 Effective Date means the time and date this Agreement becomes effective. 1.5 Lease or Leases means one or more oil and gas lease subject to this Agreement. 1.6 Oil and Gas Rights means the rights to explore, develop, and produce Unitized Substances. 1.7 Outside Substances means oil, gas, and other hydrocarbons and non- hydrocarbon substances obtained from outside the Unit Area and injected into a Reservoir in the Unit Area with the approval of the Commissioner. Unit Agreement Page 2 aT 'd $III 8~ ~0£ 33~0G ~ 73I~HG d88:80 EO I~ uec 1.8 Outside PA Substances means oil, gas, and other hydrocarbons and non- hydrocarbon substances obtained from one Participating Area in the Unit Area and injected into a Reservoir in a different Participating Area in the Unit Area with the Commissioner's approval. 1.9 Participating Area means all Unit Tracts and parts of Unit Tracts designated as a PartiCipating Area under Article 9 to allocate Unitized Substances produced from a Reservoir. 1.10 Participating Area Expense means all costs, expenses or indebtedness, which are incurred by the Unit Operator for production from or operations in a Participating Area and allocated to the Unit Tracts in that Participating Area. 1.11 Paying Quantities means a quantity of Unitized Substances sufficient to yield a return in excess of operating costs, even if drilling and equipment costs will never be repaid and the undertaking considered as a whole will ultimately result in a loss. The quantity is insufficient to yield a remm in excess of operating costs unless it will produce sufficient revenue, not considering transportation and marketing, to induce a prudent operator to produce it. 1.12 Reservoir means that part of the Unit Area containing an accumulation of Unitized Substances which has been discovered by drilling and evaluated by testing a well ox wells, and which is geologically separate from and not in hydrocarbon communication with any other oil and gas accumulation. 1.13 Royalty Interest means an ownership right to or interest in the amount or value of Unitized Substances other than a Working Interest. 1.14 State means the State of Alaska acting in this Agreement through the Commissioner. 1.15 Sustained Unit Production means continuing production of Unitized Substances from a well in the Unit Area into production facilities and transportation to market, but does not include testing, evaluation or pilot production. 1.16 Unit Area means the lands subject to this Agreement, described in Exhibit A and depicted in Exhibit B to this Agreement, submerged or not. 1.17 Unit Equipment means all personal property, Lease and well equipment, plants, platforms and other facilities and equipment used,, taken over or otherwise acquired for use in Unit Operations. 1.18 Unit Expense means all costs, expenses or indebtedness incurred by the Unit Operator for Unit Operations, except for Participating Area Expense. 1.19 Unit Operating Agreement means the agreement(s) entered into by the Unit Operator and fl~e Working Interest Owners, as described in Article 7. 1.20 Unit Operations means all operations conducted in accordance with an Approved Unit Plan or Approved Unit Plans. Unit Agreement Page 3 gI'd BIII Bgt, qO8 93)11400 1.21 Unit Operator means the party designated by the Working Interest Owners and approved by the Commissioner to conduct Unit Operations. 8~ 1.22 Unit Plan means a unit plan of exploration or development as described in Article 1.23 Unit Tract means each separate parcel that is described in Exhibit A and given a Unit Tract number. 1.24 Unit Tract Participation means the percentage allocation credited to a Unit Tract in a Participating Area to allocate Unitized Substances. 1.25 Unitized Substances means all oil, gas and associated substances, as those terms are defined in the Leases, produced from the Leases within the Unit Area. 1.26 Working Interest means the interest held in lands by virtue of a lease, operating agreement, fee title or otherwise, under which the owner of'the interest is vested with the right to explore for, develop and produce minerals; the right delegated to a unit operator by a unit agreement is not a working interest. 1.27 Working Interest Owner means a party who owns a Working Interest. ARTICLE 2: EXHIBITS 2. I The following Exhibits are to be attached to and made a part of this Agreement. When this Agreement is approved, only Exhibits A, B, and G are required. Exhibit F is also required when this Agreement is approved, if the Unit Area includes Net Profit Share Leases. The Unit Operator shall supply all Exhibits. 2.2 Exhibit A is a table that identifies and describes each Unit Tract, and displays: the Unit Tract number, the Lease number, the Working Interest ownership, the Royalty Interest ownership, and the applicable royalty and net profit share rates applicable to each Unit Tract. Within thirty days after approval by the Commissioner of any expansion or contraction of the Unit Area under Article 13 or any change of the Working Interest or Royalty Interest in any Unit Tract, the Unit Operator shall submit a revised Exhibit A to the Commissioner. 2.3 Exhibit B is a map that shows the boundary lines of the Unit Area and of each Unit Tract, identified by Unit Tract number and Lease number. Within thirty days after the Commissioner approves any expansion or contraction of the Unit Area under Article 13 or any change of the Working Interest or Royalty Interest in any Unit Tract, the Unit Operator shall submit a revised Exhibit B to the Commissioner. Unit Agreement Page 4 ~,i .,.I 8!II 88~, ~08 93>tN0[I >! 93IN1:1[I d88:80 80 I8 ue[' 2.4 Exhibit C is comprised of a table for each Participating Area established under this Agreement. The Exhibit C table for each Participating Area must display the Unit Tract numbers, legal descriptions, Lease numbers, Working Interest ownership, Royalty Interest ownership, and Unit Tract Participation for that Participating Area. Exhibits must be prepared for each Participating Area established in the Unit Area. The Unit Operator shall submit an initial or revised Exhibit C to the Commissioner within thirty days of.' 1) the effective date of any Participating Area, 2) any expansion or contraction of a Participating Area, 3) any division of interest or allocation formula establishing or revising the Unit Tract Participation of any Unit Tract or Unit Tracts in a Participating Area, or 4) any change of the Working Interest or Royalty Interest in any Unit Tract. 2.5 Exhibit D is comprised of a map for each Participating Area. Each Exh~it D map must show the boundary lines of the Unit Area, a Participating Area and the Unit Tracts in that Participating Area identified by Unit Tract number and Lease number. Within thirty days after approval by the Commissioner of a Participating Area or any expansion or contraction of a Participating Area under Article 9 or any change of the Working Interest or Royalty Interest in any Unit Tract in a Participating Area, the Unit Operator shall submit a revised Exhibit D to the Commissioner. 2.6 Exhibit E is comprised of a table for each Participating Area that displays the allocation of Participating Area Expense to each Unit Tract in the Participating Area, identified by Unit Tract number and Lease number. Exhibits must be prepared for each Participating Area established in the Unit Area. The Unit Operator shall submit an initial or revised Exhibit E to the Commissioner whenever an initial or revised Exhibit C is required. 2.7 Exhibit F is a table that displays the allocation of Unit Expense to each Unit Tract in the Unit Area, identified by Unit Tract number and Lease number. The Unit Operator shall submit an initial or revised Exhibit F to the Commissioner whenever an initial or revised Exhibit A is required if the Unit Area includes Net Profit Share Leases.- The Unit Operator may submit a revised Exhibit F anytime, but any revisions to Exhibit F are not effective until approved by the Commissioner. 2.8 Exhibit G is the unit plan of exploration or unit plan of development required by the regulations, and Article 8 of this Agreement. ARTICLE 3: CREATION AND EFFECT OF UNIT 3.1 AH Oil and Gas Rights in and to the lands described in Exhibit A and shown in Exhibit B are subject to this Agreement so that Unit Operations will be conducted as if the Unit Area was a single Lease. 3.2 in effect. So long as this unit remains in effect, each Lease in the Unit Area shall continue Unit Agreement Page 5 ~I'd 8III 88~ ~08 33~M0~ ~ 33IM~G d~8:80 80 I~ u~ 3.3 Except as otherwise provided in this Agreement, where only a portion of a lease is committed to this Agreement, that commitment constitutes a severance of the lease into unitized and nonunitized portions. The portion of the leased area not committed to this Agreement will be treated as a separate and distinct lease and may be maintained only in accordance with the terms and conditions of the lease, statutes, and re~lations. Any portion of the leased area not committed to this Agreement will not be affected by the unitization, by operations in the Unit Area, or by a suspension approved or ordered by the Commissioner. If a lease has a well certified as capable of production in paying quantities on it before commitment to this Agreemem, the lease will not be severed by unitization. If any portion of the Lease is included in a Participating Area formed under this Agreement, the entire Lease will remain committed to this Agreement and the Lease will not be severed. 3.4 Production of Unitized Substances in Paying Quantifies from any part of a Participating Area shall be considered production from each Unit Tract in the Participating Area. It shall cause the portion of each Lease that is wholly or partially within the Participating Area to continue in effect as if a well were producing from each Unit Tract in the Participating Area. 3.5' The provisions of the various Leases and agreements pertaining to the respective Leases or production from those Leases are amended only to the extent necessary to make them conform to the written provisions of this Agreement. Otherwise, the provisions of those Leases and agreements shall remain in full force and effect. 3.6 This Agreement shall not be construed to transfer title to Oil and Gas Rights by any party to any other party or to the Unit Operator, 3.7 All data and information determined by the Commissioner to be necessary for the administration of this Agreement or for the performance of statutory responsibilities, shall be prodded by the Unit Operator, or Working Interest Owners, or both, upon written request. All data and information provided to the Commissioner shall be protected from disclosure under the Lease, governing law, and regulations. ARTICLE 4: DESIGNATION OF UNIT OPERATOR 4.1. is designated as the Unit Operator. agrees to accept the rights and obligations of the Unit Operator to conduct Unit Operations and to explore for, develop and produce Unitized Substances as provided in this Agreement. 4.2. Except as otherwise provided in this Agreement and subject to the terms and conditions of Approved Unit Plans, the exclusive rights and obligations of the Working Interest Owners to conduct operations to explore for, develop and produce Unitized Substances in the Unit Area are delegated to and shall be exercised by the Unit Operator. This delegation does not relieve a lessee of the obligation to comply with all Lease terms. The Unit Operator shall notify the other Working Interest Owners and the Commissioner of actions taken by the Unit Operator under this Agreement. The Unit Operator shall minimize and consolidate surface facilities to minimize surface impacts. Unit Agreement Page 6 9T'd STTT 8~ SO~ 33~N0~ ~ 33INHG d~:80 ~0 T~ ue~ ARTICLE 5: RESIGNATION OR REMOVAL OF UNIT OPERATOR 5.1 The Unit Operator shall have the right to resign at any time. The Unit Operator's resignation shall not become effective until: 1) sixty days have passed since the Unit Operator delivers a written notice of an intention to resign to the Working Interest Owners and the Commissioner; and 2) all artificial islands, installations and other devices, including wells, used for operations in the Unit Area are in a condition satisfactory to the Commissioner for suspension or abandonment of operations. However, if a successor Unit Operator is designated and approved under Article 6, the resignation is effective when approved by the Commissioner. 5.2 The Unit Operator may be removed as provided in the Unit Operating Agreement. This removal shall not be effective until: 1) the Working Interest Owners notify the Commissioner and the Unit Operator; and 2) the Commissioner' approves a successor Unit Operator. 5.3 The resignation or removal of the Unit Operator shall not release it from liability for any failure to meet obligations that accrued before the effective date of the resignation or removal. 5.4 The resignation or removal of the Unit Operator does not terminate its rights, title or interest or obligations as a Working Interest Owner or other interest in the Unit Area. A termination of the Unit Operator's rights, title or interest may occur independently under the terms of the Leases and governing law. When the resignation or removal of the Unit Operator becomes effective, the Unit Operator shall relinquish possession of all Unit Equipment, artificial islands, wells, installations, devices, records, and any other assets used for conducting Unit Operations, whether or not located in the Unit Area, to the successor Unit Operator. ARTICLE 6: SUCCESSOR UNIT OPERATOR 6.1. Whenever the Unit Operator tenders its resignation as Unit Operator or is removed as provided in Article 5, a successor Unit Operator may be designated as provided in the Unit Operating Agreement. The successor Unit Operator must accept the rights and obligations of a Unit Operator in writing. The successor Unit operator shall file an executed copy of the designation of successor with the Commissioner. The designation of successor Unit Operator will not become effective until approved by the Commissioner. 6.2. If no successor Unit Operator is designated within sixty days after notice to the Commissioner of the resignation or removal of a Unit Operator, the Commissioner will, in his or her discretion, designate another Working Interest Owner as successor Unit Operator, or declare this Agreement terminated. Unit Agreement Page 7 ARTICLE 7: UNIT OPERATING AGREEMENT 7.1 The Working Interest Owners and the Unit Operator shall enter into a Unit Operating Agreement. It will apportion all costs and liabilities incurred in maintaining or conducting Unit Operations among the Working Interest Owners. The Unit Operating Agreement will also apportion the benefits, which will accrue from Unit Operations among the Working Interest Owners. 7.2 Any allocation described in the Unit Operating Agreement will not bind the State in determining or settling royalties and net profit share payments. Allocations of Unit Expense, Participating Area Expense, or Unitized Substances for determining, settling and paying royalties and net profit share payments will be based on Exhibits C, E and F of this Agreement, and must be approved by the Commissioner in writing before taking effect. An original or revised conforming Exhibit C and F shall be submitted to the Commissioner within thirty days of.' 'any change in the division of interest or allocation formula establishing or revising the Unit Tract Participation of any Unit Tract or Unit Tracts in a Participating Area. 7.3 The Working Interest Owners and the Unit Operator may establish, through one or more Unit Operating Agreements and amendments, other rights and obligations between the Unit Operator and the Working Interest Owners. The Unit Operating Agreement will not modify any term or obligation of this Agreement. If the terms of this Agreement and the Unit Operating Agreement conflict, this Agreement will prevail. 7.4 Any Working Interest Owner is entitled to drill a well On the unitized portion of its Lease when the Unit Operator declines to drill that well. A Working Interest Owner must have an approved permit to drill and the well must be part of an Approved Unit Plan. If the Commissioner determines any such well to be capable of producing Unitized Substances in Paying Quantities, the land upon which that well is situated will be included in a Participating Area. The Participating Area will be formed or an existing Participating Area enlarged as provided in this Agreement. The Unit Operator will thereafter operate the well in accordance with this Agreement and the Unit Operating Agreement. 7.5 The Unit Operator shall file a copy of the Unit Operating Agreement with the Commissioner when this Agreement is filed for approval. The copy of the Unit Operating Agreement is for informational purposes only. Approval. of the Unit Agreement is not approval of the Unit Operating Agreement. Complete copies of all other Unit Operating Agreemems and any amendments to them will also be filed with the Commissioner within thirty days of execution and at least thirty days before their, effective dates. Unit Agreement Page 8 8T'd STTT 8g~ ~0g 13~M0ff ~ ~3IMUff dgg:80 gO T~ ue~ ARTICLE 8: PLANS OF EXPLORATION, DEVELOPMENT AND OPERATIONS 8.1. Any Unit Plan and any amendment to a Unit Plan will not be effective until the Commissioner approves it. Approved Unit Plans are incorporated into this Agreement and become effective on the date of their approval. 8.1.1. A unit plan of exploration ('~Plan of Exploration") shall describe the proposed exploration and delineation activities for any land in the Unit Area that is not in a Participating Area. Plans of Exploration shall comply with 11 AAC 83.341 and any successor regulation. The Unit Operator shall submit updated Plans of Exploration to the Commissioner for approval at least sixty days before the current Plan of Exploration expires. 8.1.2. A unit plan of development ("Plan of Development") shall include a description of the proposed development activities based on data available when the plan is submitted. Plans of Development shall comply with 11 AAC 83.343 and any successor regulation. The Unit Operator shall submit updated Plans of Development to the Commissioner for approval at least ninety days before the current Plan of Development expires. 8.1.3. When this Agreement is submitted to the Commissioner for approval, the Unit Operator shall submit an initial Plan of Development or an initial Plan of Exploration (collectively called the "Initial Unit Plan") for approval by the Commissioner. 8.2. The Unit Operator shall not explore, develop or produce on the Unit Area except in accordance with an Approved Unit Plan. The Unit Operator shall obtain a plan of operations approval, and any other permits and approvals required before operations begin. A plan of operations approval must be consistent with the mitigation measures and lessee advisories developed for the most recent State areawide lease sale in the region that includes the unit as deemed necessary by the Commissioner to protect the resources of the State. The Unit Operator shall submit a complete copy of all such applications to the Commissioner. The Unit Operator shah give the Commissioner written notice before beginning testing, evaluation, or pilot production from a well in the Unit Area. 8.3. After Sustained Unit Production in Paying Quantities begins, Unit Operations shall be maintained, with lapses of no more than ninety days per lapse between operations. The lapse may be longer if suspension of operations or production has been ordered or approved by the Commissioner. Approved Unit Plans may call for a suspension of Unit Operations. 8.4. After giving written notice to the Unit Operator and an opportunity to be heard, the Commissioner may require the Unit Operator to modify from time to time the rate of prospecting and development and the quantity and rate of production. Unit Agreement Page 9 81: '~I 8I I 1: 88t~ c~Og -13>lklOrl >! "13IIql:lG "198:80 80 I8 U~l" 8.5. If a well has been drilled in the Unit Area prior to the Effective Date of this Unit Agreement or is being drilled within the Unit Area on the Effective Date, that well will be considered a Unit Well as of the Effective Date of this Agreement. 8.6. The Commissioner will, in the agency's discretion, approve any injection of Outside Substances or Outside PA Substances within the Unit Area. Any injection of Outside Substances or Outside PA Substances within the Unit Area must be part of an Approved Unit Plan. ARTICLE 9: PARTICIPATING AREAS 9.1. The Unit Operator shall submit a request for approval of the proposed initial Participating Area to the Commissioner at least six months before Sustained Unit Production from a Reservoir in the Unit Area. A Participating Area shall include only land that is reasonably known to be underlain by Unitized Substances and known or reasonably estimated through the use of geological, geophysical and engineering data to be capable of producing or contributing to production of Unitized Substances in Paying Quantities. The Unit Operator must receive approval from the Commissioner of a Participating Area before commencement of Sustained Unit Production. The Unit Operator shall notify the Commissioner of commencement of Sustained Unit Production within I0 days after commencement from each Participating Area. 9.2. Each application for approval of a Participating Area shall include Exhibits C, D, E, and G. Exhibit F is also required if the Unit Area includes Net Profit Share Leases. If approved by the Commissioner, the area described in Exhibit C and depicted in Exhibit D shall be a Participating Area, and the allocation of Participating Area Expenses and Unit Expenses described in Exhibits E and F shall be effective on the effective date of the Participating Area. 9.3. A separate Participating Area shall be established for each Reservoir in the Unit Area. If one Reservoir underlies another Reservoir in whole or in part, separate Participating Areas may be created for each Reservoir. Any two or more Reservoirs or Participating Areas may be combined into one Participating Area if approved by the Commissioner. 9.4. At the Unit Operator's election or if so directed by the Commissioner, the Unit Operator shall apply to expand or contract the Participating Area if expansion or contraction is warranted by geological, geophysical, or engineering dam. Each application for.expansion or contraction shall include Exhibits C, D, E, and G. Exhibit F is also required if the Unit Area includes Net Profit Share Leases. The application must be submitted to the Commissioner for approval. Before any directed expansion or contraction of the Participating Area, the Commissioner will give the Unit Operator reasonable notice and an opportunity to be heard. 9.5. The Commissioner will establish the effective date of the initial Participating Area. That effective date shall be no later than the date of the first Sustained Unit Production. The Commissioner will establish the effective date of each later Participating Area. Unit Agreement Page 10 O~'d 8[I! 8E~ ~OE 33~0U ~ 33I~HU ~LE:80 EO IE u~C 9.6. Land in a Participating Area shall remain in that Participating Area even if its Unitized Substances are depleted. 9.7. If the Working Interest Owners cannot agree on the fair, reasonable and equitable allocation of production or costs, the Commissioner shall prescribe an allocation. 9.8. A Unitized Substance produced fi.om one Participating Area ("Originating Participating Area") may be used as an Outside PA Substance ("Injected Substance") for repressuring, recycling, storage or enhanced recovery purposes in another Participating Area ("Receiving Participating Area") only if the State is paid royalty as if the Unitized Substance was saved, removed, or sold by the Working Interest Owners, except as follows: 9.8.1. If the Commissioner consents to the transfer of Unitized Substances between Participating Areas without immediate payment of royalties, the Unit Operator shall provide monthly reports to the State. These monthly reports shall reflect the volumes of any Unitized Substance transferred and the British thermal units ("Btus") in any natural, gas Unitized Substance transferred as au Outside PA Substance during the preceding month. 9.8.2. If the Commissioner consents to the transfer of Unitized Substances between Participating Areas without immediate payment of royalties, the royalties shall be paid when the Injected Substances are produced and sold from the Receiving Participating Area. The first natural gas Unitized Substances produced and sold from the Receiving Participating Area shall be considered to be the Injected Substances until a volume of natural gas containing Btus equal to the Btus contained in the Injected Substances is produced and sold from the Receiving Participating Area. All the Unitized Substances produced and sold from a Receiving Participating Area that are considered to be the Injected Substance shall be allocated to the Originating Participating Area. The Working Interest Owners shall pay the State royalties on Injected Substances produced and sold from a Receiving Participating Area as if those Injected Substances were produced and sold from the Originating Participating Area when they were produced from the Receiving Participating Area. 9.9. All liquid hydrocarbons removed in any equipment or facility in Alaska from produced Injected Substances and not used for fuel shall be allocated to the Receiving Participating Area. If liquid hydrocarbons are removed from the natural gas, the Btu content of the natural gas shall be measured after liquid hydrocarbons are removed. 9.10. The Commissioner must approve the deemed recovery rate and commencement date for recovery before any Outside Substance is injected within the Unit Area. 9.11. After giving written notice to the Unit Operator and an opportunity to be heard, the Commissioner will, in his or her discretion, require the Unit Operator to modify from time to time the rate of prospecting and development and the quantity and rate of production fi.om a Participating Area. Unit Agreement Page 11 I~'d 6III 8~ ~0~ 33~0~ ~ 33IHH~ d8~:80 ~0 I~ ue~ 9.12. Underground storage shall be covered by separate a~eement with the Commissioner. ARTICLE 10: OFFSET WELLS 10.1. The Unit Operator shall drill such wells as a reasonable and prudent operator would drill to protect the State from loss by reason of drainage resulting from production on other land. Without limiting the generality of the foregoing sentence, if oil or gas is produced in a well on other land not owned by the State or on which the State receives a lower rate of royalty than under any Lease in the Unit Area, and that well is within 500 feet in the case of an oil well or 1,500 feet in the case of a gas well of lands then subject to this Agreement, and that well produces oil or gas for a period of 30 consecutive days in quantifies that would appear to a reasonable and prudent operator to be sufficient to recover ordinary costs of drilling, completing, and producing an additional well in the same geological structure at an offset location with a reasonable profit to the operator, and if, after notice to the Unit Operator and an opportunity to be heard, the Commissioner finds that production from that well is draining lands then subject to this Agreement, the Unit Operator shall within 30 days after written demand by the Commissioner begin in good faith and diligently prosecute drilling operations for an offset well on the Unit Area. In lieu of drilling any well required by this paragraph, the Working Interest Owners must compensate the State in full each month for the estimated loss of royalty through drainage in the amount determined by the Commissioner. ARTICLE 11: ALLOCATION OF PRODUCTION I1.I Production and costs will be allocated according to I1 AAC 83.371 and any successor regulation. The Unit Operator shall submit a proposed allocation plan, with supporting data, to the Commissioner for approval. The Commissioner will, in his or her discretion, revise the proposed allocation plan if it does not equitably allocate production and costs from the Reservoir. The Commissioner will give the Working Interest Owners reasonable notice and an opportunity to be heard before revising the Unit Operator's proposal. The allocation plan must be revised whenever a Participating Area is expanded or contracted. Within thirty days after approval by the Commissioner of any division of interest or allocation formula establishing or revising the Unit Tract Participation of any Unit Tract or Unit Tracts in a Participating Area, the Unit Operator shall submit revised Exhibits C and F to the Commissioner. The Unit Operator may submit a revised Exhibit F anytime, but any revisions to Exhibit F are not effective until approved by the Commissioner. 11.2 The Working Interest Owners shall pay royalties for each Unit Tract in proportion to each Working Interest Owner's ownership in that Unit Tract. The amount of Unitized Substances allocated to each Unit Tract shall be deemed to have been produced from that Unit Tract. Unit Agreement Page 12 ~'d 8III 8~ ~08 93NNO~ N 93INW~ d88:80 80 I8 ue~ 11.3 The Working Interest Owners may allocate Unitized Substances, Participating Area Expense, and Unit Expense differently than described in Exhibits C, E and F. However, that allocation shall not be effective for determining royalty or net profit share payments. The Unit Operator shall Submit any allocation which is different than the allocations required in Exhibit C, E or F to the Commissioner under 11 AAC 83.371(b) for the State's information within ten days of its effective date with a statement explaining the reason for the different allocation. 11.4 Royalties shall not be due or payable to the State for the portion of Unitized Substances unavoidably lost or used in the Unit Area for development and production in accordance with prudent industry practices. Gas that is flared for any reason other than safety purposes as allowed by the AOGCC shall not be deemed to be unavoidably lost, and the Working Interest Owners shall pay royalties for such flared gas as if it had been produced. This exemption does not apply to Unitized Substances that are sold, traded or assigned, including sales, transactions, or assignments among the Working Interest Owners. I 1.5 If a State Lease committed to this Agreement provides for a discovery royalty rate reduction for the first discovery of oil or gas, that Lease provision shall not apply to a well spudded after the Effective Date. ARTICLE 12: LEASES, RENTALS AND ROYALTY PAYMENTS 12.1. The Working Interest Oxvners shall pay rentals and royalty payments due under the Leases. Those payments must be made to any depository designated by the State with at least sixty days notice to the Unit Operator and the Working Interest Owners. 12.2. Each month, the Unit Operator shall furnish a schedule to the Commissioner. That schedule shall specify, for the previous month: 1) the total amount of Unitized Substances produced; 2) the amount of Unitized Substances used for development and production or unavoidably lost; 3) the total amount of Unitized Substances allocated to each Unit Tract; 4) the amount of Unitized Substances allocated to each Unit Tract and delivered in kind as royalty to the State; and 5) the amount of Unitized Substances allocated to each Unit Tract for which royalty is to be or has been paid to the State. 12.3. Each Working Interest Owner shall pay its share of royalties to the State on Unitized Substances as provided in the Lease, except "leased area" shall mean Unit Area. 12.4. Notwithstanding any contrary Lease term, royalties and the share of Unitized Substances attributable to royalties and any payment due must be paid free and clear of all Lease expenses, Unit Expenses and Participating Area Expenses. These excluded expenses include, but are not limited to, separating, cleaning, dehydration, saltwater removal, processing, compression, pumping, and manufacturing costs. These excluded expenses also include the costs of preparing the Unitized Substances for transportation off the Unit Area and gathering and transportation costs incurred before the Unitized Substances are delivered to a common carrier pipeline. No lien for any expenses shall attach to royalty Unitized Substances. The royalty share Unit Agreement Page 13 8~'d 8III 88~ ~08 q3~NO~ ~ q3INHU ~88:80 ~O I~ uec shall bear a proportionate part of any gas shrinkage that occurs during gas processing and blending. 12.5. Notwithstanding any contrary Lease term or provision in 11 AAC 83.228--11 AAC 83.229, all royalty deductions for transportation, including marine and pipeline transportation, from the Unit Area to the point of sale are limited to the actual and reasonable costs incurred by the Working Interest Owners. These transportation costs must be determined by taking into account all tax benefits applicable to the transportation. 12.6. The Unit Operator shall give the Commissioner notice of the anticipated date for commencement of production at least six months before the commencement of Sustained Unit 'Production from a Participating Area. Within ninety days of receipt of that notice, the Commissioner will give the Working Interest Owners written notice of its elections to take in kind all, none, a specified percentage, or a specified quantity of its royalties in any Unitized Substances produced from the Participating Area. The Commissioner will, in his or her discretion, increase or decrease (including ceasing to take royalty Unitized Substances in kind) the amount of royalty Unitized Substances the State takes in kind. The Commissioner shall give written notice to the Working Interest Owners ninety days before the first day of the month in which an increase or decrease is to be effective. I2.6.1. The Commissioner will, in his or her discretion, elect to specify the Unit Tracts from which royalty Unitized Substances taken in kind are to be allocated. 12.6.2. The Unit Operator shall deliver the State's royalty Unitized Substances at the custody transfer meter at a common carder pipeline capable of carrying those substances, or at any other place mutually agreeable place. The State will, in its discretion, designate any individual, firm or corporation to accept delivery. 12.6.3. Royalty Unitized Substances delivered in kind shall be delivered in good and merchantable condition and be of pipeline quality. If a Working Interest Owner processes the Unitized Substances to separate, extract or remove liquids from a Working Interest Owner's share of natural gas Unitized Substances, the State will, in its discretion, require that a Working Interest Owner also process the State's share of natural gas being taken in kind in the same manner without cost to the State. Under these circumstances, the State, or its buyer, shall only pay any tariffed transportation costs and shrinkage of the volume of gas resulting from processing. I2.6.4. Each Working Interest Owner shall furnish storage in or near the Unit Area for the State's share of Unitized Substances to the same extent that the Working Interest Owner provides storage for its own share of Unitized Substances. I2.7. Ifa purchaser of the State's royalty Unitized Substances does not take delivery of Unitized Substances, the State will, in its discretion elect, without penalty, to underlift for up to six months. The State will, in its discretion, underlift ali or a portion of those substances. The State's right to underlift is limited to the portion of those substances that the purchaser did not take delivery of or what is necessary to meet an emergency condition. The State shall give the Unit Operator written notice thirty days before the first day of the month in which the underlifted Unit Agreement Page 14 ~'~ B~ 8~ ~08 93~00 ~ 93I~B0 ~88:B0 80 I~ ue~ royalty Unitized Substances are to be recovered. The State will, in its discretion, recover at a daily rate not exceeding 25 percent (25%) of its share of daily production, unless otherwise agreed. 12.8. The Unit Operator shall keep and have in its possession books and records showing the exploration, development, production and disposition of all Unitized Substances produced from the Unit Area. The Unit Operator shall permit the State or its agents to examine these books and records at all reasonable times. Upon request by the State, the Unit Operator's books and records shall be made available to the State at the State office designated by the State. These books and records of exploration, development, production, and disposition must employ methods and techniques that will ensure the most accurate figures reasonably available. The Unit Operator shall use generally accepted accounting procedures consistently applied. 12.9. If a Lease committed to this Agreement specifies the mount of rent due, that Lease is amended to require that rentals due be calculated under A.S. 38.05.180tn), as amended. If a Lease committed to this Agreement requires payment of minimum royalty, that Lease is amended to delete that minimum royalty obligation. The rental due under State law, as amended, must be paid in lieu of minimum royalty. 12.10. All rights and obligations relating to the State's net profit share will be determined in accordance with 11 AAC 83.201 - I 1 AAC 83.295, as amended, notwithstanding any contrary Lease term. The State will, in its discretion, audit the net profit share reports or payments due for any Lease within ten years of the date of production. The period of limitations for the State to file a lawsuit relating to an audit of a net profit share report or payment shall be three years longer than the audit period. The Working Interest Owners holding interests in net .profit share Leases shall maintain the records relevant to determination of net profit share until the audit period has expired. ARTICLE 13: UNIT EXPANSION AND CONTRACTION 13.1. The Unit Operator, at its own election may, or at the 'direction of the Commissioner shall, apply to expand the Unit Area to include any additional lands determined to overlie a Reservoir that is at least partially within the Unit Area, or to include any additional lands that facilitate production. The Commissioner will give the Unit Operator reasonable notice and an opportunity to be heard before any directed expansion of the Unit Area. The Unit Operator shall notify the Working Interest Owners of any expansion proposed by the Unit Operator or any third party, or proposed or directed by the Commissioner. Any unit expansion shall not be effective until approved by the Commissioner. 13.2. Ten years after Sustained Unit Production begins, the Unit Area must be contracted to include only those lands then included in an approved Participating Area and lands that facilitate production including the immediately adjacent lands necessary for secondary or tertiary recovery, pressure maintenance, reinjection, or cycling operations. The Commissioner will, in the Commissioner's discretion, after considering the provisions of 11 AAC 83.303, delay contraction of the Unit Area if the circumstances ora particular unit warrant. If'any portion of a Unit Agreement Page 15 Lease is included in the Participating Area, the portion of the Lease outside the Participating Area will neither be severed nor will it continue to be subject to the terms and conditions of the unit. The portion of the Lease outside the Participating Area will continue in full force and effect so long as production is allocated to the unitized portion of the Lease and the lessee satisfies the remaining terms and conditions of the Lease. 13.3. Not sooner thaxt 10 years after the effective date of this Agreement, the Commissioner will, in the Commissioner's discretion, contract the Unit Area to include only that land covered by an Approved Unit Plan, or that area underlain by one or more oil or gas reservoirs or one or more potential hydrocarbon accumulations and lands that facilitate production. Before any contraction of the Unit Area under this Article 13.3, the Commissioner will give the Unit Operator, the Working Interest Owners, and the royalty owners of the Leases or portions of Leases being excluded reasonable notice and an opportunity to be heard. 13.4. The Commissioner will give the Unit Operator reasonable notice and an opportunity to be heard before any directed contraction of the Unit Area. The Unit Operator shall notify the Working Interest Owners of any proposed, directed, or approved contraction of the Unit Area. Any unit contraction shall not be effective until approved by the Commissioner. 13.5. The Unit Area may be contracted with the Commissioner's approval and an affirmative vote of the Worldug Interest Owners. 13.6. Within thirty days after approval by the Commissioner of any expansion or contraction of the Unit Area, the Unit Operator shall submit revised Exhibits A and B to the Commissioner. ARTICLE 14: UNIT EFFECTIVE DATE, TERM AND TERMINATION 14.1. This Agreement is effective as of 12:01 a.m. on the day after the Commissioner approves it. At least, ene copy of this Agreement shall be filed with the Department of Natural Resources, Anchorage, Alaska and one copy shall be filed with the AOGCC. This Agreement is binding upon each party who signs any counterpart. 14.2. Subject to the terms and conditions of the Approved Unit Plan, this Agreement terminates five years from the Effective Date unless: 14.2.1. A unit well in the Unit Area has been certified as capable of producing Unitized Substances in Paying Quantities; or 14.2.2. The unit term is extended with the approval of the Commissioner. An extension shall not exceed five years. 14.3. If the Commissioner orders or approves a suspension of production or other Unit Operations, this Agreement shall continue in force during the authorized suspension. Unit Agreement Page 16 9~'d BIII B8~ SOg 933~00 ~ 93I~B0 dO~:BO gO I~ uec 14.4. Nothing in this Article holds in abeyance the obligations to pay rentals, royalties, or other production or profit-based payments to the State from operations or production in any part of the Unit Area. Any seasonal restriction on operations or production or other condition required in the Lease is not a suspension of operations or production required by law or force majeure. 14.5. This Agreement may be terminated by an affirmative vote of the Working Interest Owners and the Commissioner's approval. ARTICLE 15: EFFECT OF CONTRACTION AND TERMINATION 15.1. If a Lease or portion of a Lease is contracted out of the Unit Area under this Agreement, then it will be maintained only in accordance with State law and the Lease. 15.2. Each Lease committed to this Agreement on the day that this Agreement terminates shall remain in force for an extension period of ninety days, or any longer period which may be approved by the Commissioner. After the extension period expires, the Lease will be maintained only in accordance with State law and the Lease. 15.3. Upon the expiration or earlier termination of the unit, the Unit Operator will be directed in writing by the Commissioner and will have the right at any time within a period of one year after the termination, or any extension of that period as may be granted by the Commissioner, to remove from the Unit Area all machinery, equipment, tools, and materials. Upon the expiration of that period or extension of that period and at the option of the Commissioner, any machinery, equipment, tools, and materials that the Unit Operator has not removed from the Unit Area become the property of the State or may be removed by the State at the Working Interest Owners' expense. At the option of the State, all improvements such as roads, pads, and wells must either be abandoned and the sites rehabilitated by the Unit Operator to the satisfaction of the State, or be left intact and the Unit Operator absolved of all further responsibility as to their maintenance, repair, and eventual abandonment and rehabilitation. Subject to the above conditions, the Unit Operator shall deliver up the Unit Area in good condition. ARTICLE 16: COUNTERPARTS 16.1. The signing of counterparts of this Agreement shall have the same effect as if all parties had signed a single original of this Agreemer/t. Within thirty days after approval by the Commissioner of any change of the Working Interest ownership of Oil and Gas Rights in any Unit Tract, the Unit Operator shall submit a revised Exhibits A and C to the.Commissioner. Unit Agreement Page 17 L~'d BTTT B~ ~Og 93NN00 N 93IMB0 ~T~:BO ~0 Tg ARTICLE 17: LAWS AND REGULATIONS 17.1. This Agreement is subject to all applicable State and federal statutes and regulations in effect of the Effective Date of this Agreement, and insofar as is constitutionally permissible, to ali statues and regulations placed in effect al[er the Effective Date of this Agreement. A reference to a statute or regulation in this Agreement includes any change in that statute or regulation whether by amendment, repeal and replacement, or other means. This Agreement does not limit the power of the State of Alaska or the United States of America to enact and enforce legislation or to promulgate and enforce regulations affecting, directly or indirectly, the activities of the parties to this Agreement or the value of interests held under this Agreement. In case of confficting provisions, statutes and regulations take precedence over this Agreement. ARTICLE 18: APPEARANCES AND NOTICES 18.1. If the State gives the Unit Operator a notice or order relating 'to this Agreement it shall be deemed given to all Working Interest Owners and all persons whose interest in the Unit Area derived from a Working Interest. All notices required by this Agreement shall be given in writing and delivered personally, or by United States mail or by facsimile machine to the Unit Operator at the address or facsimile number listed below. All notices actually received will also be deemed properly given. The Unit Operator will change its notice address by giving thirty days written notice to the State and the other Working Interest Owners. The State will change its notice address by giving thirty days written notice to the Unit Operator. Address of the Unit Ol~erator: Ad, d..ress of the State: Commissioner, Department of Natural Resources 550 West Seventh Avenue, Suite 1400 Anchorage, Alaska 99501-3554 Fax: (907) 269-8918 with a copy to: Director, Division of Oil and Gas 550 West Seventh Avenue, Suite 800 Anchorage, Alaska 99501-3560 Unit Agreement Page 18 82 'd BTTT 93NNOa N 93INWa 8i~i~:80 gO Ig ue_r Fax: (907)269-8938 ARTICLE 19: JOINDER 19.1. The Commissioner will, in his or her discretion, order or, upon request, approve a joinder to this Agreement under the expansion provisions of Article 13. The Unit Operator shall submit a request for joinder with a signed counterpart of this Agreement and a notice of proposed expansion under Article 13. A joinder is subject to the requirements of the Unit Operating Agreement. However, the Commissioner will, in his or her discretion, modify any provision in a Unit Operating Agreement, which the Commissioner finds discriminates against parties who request joinder. The Commissioner shall' give notice and an opportunity to be heard to the Unit Operator before modifying the Unit Operating Agreement. ARTICLE 20: DEFAULT 20.1 The Commissioner will, in his or her discretion, determine that failure of the Unit Operator or the Working Interest Owners to comply with any of the terms of this Agreement, including any Approved Unit Plan, is a default under this Agreement. The failure to comply because of force majeure is not a default. 20.2 The Commissioner will give notice to the Unit Operator and the Working Interest Owners of the default. The notice will describe the default, and include a demand to cure the default by a certain date. The cure period shall be at least thirty days for a failure to pay rentals or royalties and ninety days for any other default. 20.3 If there is no well certified as capable of producing Unitized Substances in Paying Quantities and a default is not cured by the date indicated in the demand, the Commissioner will, in his or her discretion, terminate this Agreement after giving the Unit Operator notice and an opportunity to be heard. The Commissioner will give notice, by mail, of the termination, which is effective upon mailing the notice. 20.4 If there is a well capable of producing Unitized Substances in Paying Quantities and the operations to cure the default are not completed by the date indicated in the demand, the Commissioner wilt terminate this Agreement by judicial proceedings. 20.5 This Article's remedies are in addition to any other administrative or judicial remedy provided for by Lease, this Agreement, or federal or State law. IN WITNESS OF THE FOREGOING, the parties have executed this Unit Agreement on the dates opposite their respective signatures. WORKING INTEREST OWNERS Unit Agreement Page 19 S~'d GIII 8~b ~0~ 93NNOG N 93INW~ d~:80 80 I8 By: Date: (Company Name, signatoty's printed name and title) STATE OF ALASKA ) )SS. THIKD ~tJDICIAL DISTRICT ) This certifies that on November ,2000, before me, a no~'y public, /n and for the State of Alaska, duly commissioned and sworn, personally appeared .. , known to me to be the person described in, and ~vho executed the foregoing agreement, who' then after being duly sworn according to law, acknowledged to me under oath that he executed same freely and voluntarily for the uses and purposes therein mentioned. WITNESS my hand and official seal the day and year in this certificate first above written. NOTAKY PUBLIC in and for Alaska My Commission Expires: By: Date: (Company Name, signatory's printed name and rifle) STATE OF ALASKA ) THIRD JUDICIAL DISTRICT ) This certifies that on November .____, 2000, before me, a notary public in and for the State of Alaska, duly commissioned and sworn, personally appeared , known to me to be the person described in, and who executed the foregoing agreement, Who the~' after being duly sworn according to law, acknowledged to me under oath that he executed same fi'eely and voluntarily for the uses and purposes therein mentioned. WITNESS my hand and official seal the day and year in this certificate first above written. NOTARY PUBLIC in and for Alaska My Commission Expires: OVERRIDING ROYALTY INTEREST OWNERS By: Date: Unit Agreement Page 20 Og'd BIII B8~ ~08 93NNOU N 93INW0 d2~:BO 80 I~ uec 8ant By: VAr LAW; Jan-31-03 attn: 3. Heat Spring, ~. F0£ey: lette: or ~ ~ ~ ex~ P2~ of Exp: Page I you have POUCH i~ch 22, 1~ :equested ce:tlrZcat/~n of ' ted . Heat' Spt~ngs ~taetoe that the first well be ~111~ 1~ 81oak A et ~e Unl~ ~ questions cora:e:nlng this ~eclsLan please contact ~e at