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Home My WebLink AboutCO 487Conservation 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. ~ ~'_~_ Conservation Order Category Identifier Organizing RESCAN [] Color items: [] Grayscale items: [] Poor Quality Originals: [] Other: NOTES: DIGITAL DATA [] Diskettes, No. [] Other, No/Type OVERSIZED (Scannable with large plotter/scanner) [] Maps: [] Other items OVERSIZED (Not suitable for plotter/scanner, may work with 'log' scanner) [] Logs of various kinds [] Other BY: O~ MARIA Scanning Preparation TOTAL PAGES BY: ~MARIA DATE: Production Scanning Stage PAGE COUNT FROM SCANNED DOCUMENT: ~ PAGE COUNT MATCHES NUMBER IN SCANNING PREPARATION: YES NO BY: Stage 2 (~~ARIA DATE: IF NO IN STAGE 1, PAGE(S) DISCREPANCIES WERE FOUND: /si YES NO ~JARIA DATE: IS/ (SCANNING IS COMPLETE AT THIS POINT UNLESS SPECIAL ATTENTION IS REQUIRED ON AN INDIVIDUAL PAGE BASIS DUE TO QUALrrY, GRAYSCALE OR COLOR IMAGES) I I General Notes or Comments about this Document: 5/21/03 ConservOrdCvrPg.wl)d INDEX CONSERVATION ORDER NO. 487 Romig Park 1. February 20, 1996 Request for Spacing Exception from Intrepid Production Company for Romig Park 2. February 21, 1996 Memo to Bob Crandall from David Johnson re: Notice 3. March 4, 1996 Letter from Johnston to Jim White 4. May 30, 1996 Letter from Jim White to David Johnston regarding application 5. June 17, 1996 May 30, 1996 6. July 13, 1996 7. July 17, 2002 8. July 31, 1996 9. July 31, 1996 / Letter from Johnston to Jim White regarding letter of Notice of hearing, Affidavit of publication, bulk mailing list for the Anchorage Daily News and Clarion Peninsula Itr from Glen Cravez re: application Sign in Sheet Transcript Conservation Order 487 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 RE: ALASKA OIL AND GAS CONSERVATION COMMISSION MEETING JULY 31, 1996, 9:00 O'CLOCK A.M. TRANSCRIPT OF PROCEEDINGS The application of ALASKA CRUDE CORPORATION for a variance from the notice requirements of 20 AAC 25. 055(b) . ORIGINAL · HEL~D. AT ALASKA OIL AND GAS CONSERVATION COMMISSION 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA METRO COURT REPORTING, 550 West Seventh Avenue, Suite 1460 Anchorage, Alaska 99501 (907) 276-3876 INC. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 (on record - 9:07 a.m.) CHAIRMAN JOHNSTON: I'd like to call this hearing to order. The date is July 31, 1996, the time is approximately seven after 9:00 on the morning, and we are located at 3001 Porcupine Drive, Anchorage, Alaska. I'd like to begin by introducing the head table. My name is David Johnston, I'm chairman of the Commission. To my right is Commissioner Tuckerman Babcock, and making a transcript of these proceedings is Laurel Evenson of Metro Court Reporters. If you wish to receive a copy of this transcript, we would ask that you contact Metro Court Reporters directly to do that. We are here in the matter of the Romig Park well, which is located near the corner of Sand Lake and Dimond Boulevard in Anchorage, Alaska. We are considering a request by Mr. Jim White to alter the notice provisions of 20 AAC 25.055(b) which governs well spacing. The notice provisions require that application for a spacing exception be sent by registered mail to all affected owners and governmental sections surrounding the well. Mr. White is proposing alternative means of providing notice because of the complexity of land ownership in this area. At this time I'd like to ask Commissioner Babcock to enter the public notice into the record that was provided. METRO COURT REPORTING, lNG 550 West ~venth Avenu~ ~ 14~ Anchorage, Alas~ 9~01 ~0~ 276-38~ 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 COMMISSIONER BABCOCK: Yes. Notice of Public Hearing, State of Alaska, Alaska Oil and Gas Conservation Commission, regarding the application of the Alaska Crude Corporation for a variance from the notice requirements of 20 AAC 25.055(b). It was published July 13, 1996. And with that, Mr. Chairman, without objection I'd enter that into the record. CHAIRMAN JOHNSTON: Thank you, and so entered. We'll be conducting these procedures consistent with our regulations governing hearings, and those are specifically 20 AAC 25.540. Essentially those procedures allow us to take sworn testimony and unsworn statements. The applicant will be asked to provide his opening remarks, and from time to time the Commission may ask questions of the applicant. Following his presentation, then we would ask for general statements from other people that wish to do so. If you do have qUestions of the applicant, you will not be allowed to directly ask those questions of the applicant, but if you do have a question, you can write it down, forward it to the front table here and we'll review that. If we feel that it is germane we'll proceed to ask the applicant that question ourselves. So, with that, I guess that takes care of all the preliminary matters. COMMISSIONER BABCOCK: Mr. Chairman. METRO COURT REPORTING, lNG 550 West &venth Avenu~ ~ 14~ ~chorag~ ~as~ 995~ ~0~ 276-38~ 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CHAIRMAN JOHNSTON: Yes. COMMISSIONER BABCOCK: I note on the sign-in sheet that nobody is here to represent the Alaska Crude Corporation, and I would like to ask Mr. Crandall, the Commission geologist, to check with our secretarial staff to see whether or not we've received any phone calls or explanations for the absence of a representative from the applicant. CHAIRMAN JOHNSTON: Just so that we're sure on this, is there any person from the audience that is here to represent the applicant in this matter? I do not see any, so it's proper that we proceed with your suggestion. COMMISSIONER BABCOCK: All right. In that case I move we stand in recess until Mr. Crandall returns. CHAIRMAN JOHNSTON: Thank you. We'll recess for a few minutes. (Off record - 9:11 a.m.) (On record - 9:14 a.m.) CHAIRMAN JOHNSTON: I'd like to go back on record. Apparently we're at a bit of a dilemma here since the applicant has not showed. I would like to note for the record though that I did have a conversation with him approximately one to two weeks ago at which point he did -- we was aware that we were going to proceeding with this hearing on this date, so he did receive notice of the hearing, and I'm at a loss to METRO COURT REPORTING, IN~ 550 West &ven~ ~enue, ~ 14~ Anchorage, ~as~ 99501 ~0~ 276-38~ 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 explain why he is not here today, but that is the case. The applicant has not showed up and there's no message that we have received, no mail from him indicating any reason why he is not here. So with that I would like to ask if there's any members of the public that would like to comment on this proposal. MR. COFFEY: Good morning, Mr. Chairman. My name is Dan Coffey. My interest in this property is I have an option to purchase the property from the fee owner, which is gentlemen by the name of Dan and Herb Evenson. They own the fee, and I have a -- I do real property development, I have an option to purchase it from them. I've talked to the Evensons this morning. I received notice of this -- somebody sent me a copy of this thing last night, so I'm here on kind of short notice, but I got word from -- I got word to the Evensons this morning and they talked to me. They own one-half interest in this property, oil and gas property rights as well, and they -- what Mr. Evenson told me here just 10 minutes ago was all they're interested in is shipping it down. So, as I understand the issue this morning, we're limited to one issue, and that's whether or not they have to give notice under the stat- -- under the regulation or the statute. I would think that they ought to give notice. I, for one, own property in other sections surrounding this property. METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1460 Anchorage, Alaska 99501 (907) 276-3876 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 I don't know what rights I may or may not have to oil and gas. I mean I've always -- never viewed it in that sense, but I would think that if I got the proper notice and there was a discussion of the appropriate way to do this and how we handle subsurface rights, then that would be better. And I, for one, -- you know, I'm not sure now that I particularly need notice because I'm going to watch this like a hawk now that I've been given this information. But there are other large blocks of property owners who own, you know, 40-acre tracts and so on in the vicinity, which would be large enough to -- to have some effect. And I think that they all need to get notice. I would also think that -- and I don't know that this is in your purview, but I Would think that the residential property owners who have family -- you know, have single family residences, they need some sort of notice relative to the usage of the land. Now, I don't know if that falls within your purview or not or whether this notice, you know, would be appropriate or whether they should get some other notice for, you know, conditional use or land use operation. But for the neighbors who have single family residences in there not to receive some sort of notice that an oil and gas well may be going into their back yard would be bad news. Now, I don't know what alternatives Mr. White proposed, but I think it's important for you folks to make sure that whatever notice is given that it's widespread and effective. METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1460 Anchorage, Alaska 99501 (907) 276-3876 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 And that's the end of my comments. CHAIRMAN JOHNSTON: Clearly that would also be our desire, to -- in the event that we were to consider an alteration on the requirement to send by registered mail this notice, we would be -- we want to receive confidence that the alternative means that was being considered was every bit as effective as what the registered mail would do. MR. COFFEY: Can I ask what he proposed to do? CHAIRMAN JOHNSTON: As I understand it, and I don't feel I have to defend what he was proposing since he is not here to present this as a formal application to us, it was my understanding that he was contemplating proposing placing a display ad in the local paper that would be more visible to just the general populace out there in Sand Lake area. He felt that with the complexity of land ownership it was not necessarily clearly established in the public record who the mineral interest owners were, apart from the surface owners. And he also said that, you know, this is a residential area and homes are being sold and bought all the time. And he felt that it was -- ownership was not fixed .at any one particular time, therefore the -- by mailing this out he may or may not be able to contact all the many owners out there, which, as I understand it, is kind of a unique situation just generally in Alaska. This area was all feed land at one time and conveyed mineral interest with the -- with that land. So, unlike most METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1460 Anchorage, Alaska 99501 (907) 276-3876 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 areas of the state where the state is the mineral interest owner, it is people like you and I that own prop- -- the mineral interests out there. So there's not just one or two owners here, there are hundreds of owners, as I -- as we understand it. He felt that was ..... MR. COFFEY: Probably thousands. CHAIRMAN JOHNSTON: He thought thousands literally, but, you know, that was one of the things that we needed to pursue with our inquiries of him. But he thought some sort of display ad in the local paper, in some other aspects in terms of maybe putting notices in public places in the area, working with the council. I had some interest relative to the permit requirements from the muni- -- excuse me, from the municipality to see if we can somehow dovetail with what they're doing in terms of providing notice. MR. COFFEY: Well, I spoke with Don Alspach last night, who is the director of Community Planning & Development. I happened to be at the assembly meeting, he was in attendance as well, and I asked him about this because, obviously, I'm at the point where I'm about to make my submittals for plan review and my final -- my engineer is doing the sewer, water, streets, curbs, gutters, you know, and the pipe that sticks up out of the ground out there, everybody -- I thought it was an old water well. So, ..... METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1460 Anchorage, Alaska 99501 (907) 276-3876 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CHAIRMAN JOHNSTON: Well, maybe a little bit of history on that might be helpful for the folks out there in the Sand Lake area. That is an oil and gas well that was drilled many years ago, maybe back in the '60s, I guess. The original owner or operator of that well and the original owner talked about converting it to a water well, and at the time that appeared to be a good idea, but for some reason it never was. It was not converted to a water well, and it has stayed on the records now as an oil and gas well for many, many years. And I think the original operator of that well is now bankrupt and has -- basically is not locatable, you know. So we have, I think, an example -- one of the very few examples, of an orphaned well in the state of Alaska. Now, maybe I could ask my staff, Mr. Crandall, to expand a little bit further on that. Bob, is that basically your understanding? I think you're fairly familiar with the history of this well. COMMISSIONER BABCOCK: MR. CRANDALL: Yes. COMMISSIONER BABCOCK: You'll have to ..... You'll have to come up to a microphone, Bob, we're still on record. MR. CRANDALL: What transpired with that well was that it was drilled, I believe, in 1967 by Pan-American, which was subsequently taken over by Amoco. The well was drilled and plugged and abandoned and a statement of intent by METRO COURT REPORTING, lNG 50 We~ ~venth Avenue, ~ 14~ ~chorage, ~as~ 99501 (90~ 276-38~ 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 10 the landowner to convert it to a water well was sufficient to transfer the responsibilities and obligations related to it to the owners of Romig Park Incorporated, I believe. That's due to a regulation which was on the books at the time that allowed for land owners to convert P and A'd oil wells to water wells when they wanted to. Romig Park Incorporated has subsequently gone bankrupt, and so it is an orphaned well. Technically it's no longer an oil and gas well, although its condition has never been changed and it was never converted to a water well. Do you follow that? cemented? MR. COFFEY: Yeah, I did. According ..... COMMISSIONER BABCOCK: What depth is it MR. CRANDALL: There's a -- I believe there's a bridge plug at 3500 feet, and the well bore above that depth is open. CHAIRMAN JOHNSTON: So the only thing at the top is the tree; there is no surface plug ..... MR. CRANDALL: No, there is no ..... CHAIRMAN JOHNSTON: ..... in this thing? MR. CRANDALL: ..... surface plug, no. COMMISSIONER BABCOCK: So it's a -- virtually an open hole down to 3500 feet? MR. CRANDALL: That's right. And the potential METRO COURT REPORTING, IN~ 550 West ~ve~h Avenue, ~ 14~ Anchorag~ Alas~ 9~ ~0~ 276-38~ 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 11 gas interval that we're assuming Mr. White wants to develop is below that. The placement of the bridge plug was determined to be above any significant (indiscernible - chair movement). COMMISSIONER BABCOCK: Any further questions, Mr. Coffey? MR. COFFEY: No. I thought I might share what Mr. Alspach said. He said given the zoning and the city's regulations, that Mr. White would have -- would have no right to do anything from the surface because of the zoning. He would have to come in from some other -- he'd have to directional drill it from somewhere where he could be there, from some industrial site, for example, the airport being the nearest or some other place. So he couldn't -- Alspach's comment was he'd have to have all of his facilities underground, which, of course, is preposterous, but what he meant was that it has -- from the city's perspective there's no way he's going to have an oil in the middle of a residential neighborhood. So ..... COMMISSIONER BABCOCK: Mr. Ch- -- are there any further comments from the audience? MR. CRANDALL: Oh, I'd like to say that we checked the mail logs and the fax records, and there's been no communication from Alaska Crude relative to this matter. COMMISSIONER BABCOCK: Thank you, Mr. Crandall. CHAIRMAN JOHNSTON: Thank you. METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1460 Anchorage, Alaska 99501 (907) 276-3876 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 12 MS. VON GEMMINGEN: Good morning. I'm Fay Von Gemmingen, with the Anchorage Assembly, and I do have a problem with the lack of public process in this, and that representing that area I received this as a fax from Mr. Coffey last night, and I think that we should be informed about such matters. And also things have changed a little bit since this was first drilled, and we now have community councils, ..... CHAIRMAN JOHNSTON: Yes. MS. VON GEMMINGEN: ..... and there is a Sand Lake Community Council that's very active, and especially in such matters as this and gravel pits. And I'm sure they'd like to know about this. We haven't been able to get a hold of the community council president and he will get this probably about 9:30 this morning. So I -- I'm real concerned about that fact, 'cause I'm sure he would have wanted to be here and offer his two cents worth on this. Another outlet for notification is the Community Council Newsletter. This particular one is dark during the summer and will have their first meeting again in September. CHAIRMAN JOHNSTON: Do you feel that the requirement to send a copy of the application by registered mail to all affected land owners in the area is proper? MS. VON GEMMINGEN: Absolutely. COMMISSIONER BABCOCK: Mr. Chairman, are you referring to surface or subsurface land? METRO COURT REPORTING, lNG ~0 West ~ven~ ~enu~ ~ 1460 ~chora~, ~aska 99501 (90~ 276-$8~ 10 11 12 13 14 15 16 17 18 19 21 22 23 24 25 13 CHAIRMAN JOHNSTON: Well, essentially what the regulation says is owners. To us owners is interpreted as the mineral interest owner. The difficulty, of course, out here is establishing who clearly is the mineral interest owner versus the surface owner. And I think just our general perusal of the records show that generally the land owner is the mineral interest owner in this case, and I think maybe in a few cases the mineral estate has been severed from the surface estate. But that just adds to the complexity,of the notice requirements. But as I understand it, you would think that the requirement to send by registered mail a copy of the applicant to all owners is in fact a reasonable requirement. MS. VON GEMMINGEN: Yes, it is. CHAIRMAN JOHNSTON: Thank you. COMMISSIONER BABCOCK: I did a little investigation on this subject, and the municipality has no record of who the mineral owners are in the municipality unless it happens to be recorded on the particular titles in the municipal ..... MS. VON GEMMINGEN: Send it to all ..... COMMISSIONER BABCOCK: ..... records. MS. VON GEMMINGEN: ..... registered land owners then, period. COMMISSIONER BABCOCK: owners that the municipality has ..... So the surface land METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1460 Anchorage, Alaska 99501 (907) 276-3876 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 14 notified. MS. VON GEMMINGEN: Yes. COMMISSIONER BABCOCK: ..... should at least be MS. VON GEMMINGEN: Uh-huh. COMMISSIONER BABCOCK: The State Division of Lands also does not keep a record of who the mineral owners are except for state land. The recorder's office does have those records, and they suggested to me and Mr. Crandall that you would go to the original transfer from the federal government and research them in their ancient books up to the present day to see whether or not the mineral interest had been severed in any particular case or transferred subsequently. But since no one from the Alaska Crude Corporation is here to petition for a change in our regulations, I move we adjourn. CHAIRMAN JOHNSTON: Any other -- before we adjourn, any other comments from the audience? I see no ..... COMMISSIONER BABCOCK: Mr. Chairman. I'm sorry. I wonder if it would be useful to adopt as part of the record the March 4 letter from the Commission and the June 17 letter from the Commission. CHAIRMAN JOHNSTON: I certainly think that would be appropriate, yes. COMMISSIONER BABCOCK: And the May 30 fax from Mr. White under the heading Intrepid Production Company, and METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1460 Anchorage, Alaska 99501 (907) 276-3876 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 the February 20 fax from Mr. White also from the Intrepid Production Company. CHAIRMAN JOHNSTON: Yes. And for the record, I'd like to note that Mr. White has operated both under the title Intrepid and Alaska Crude Corporation, so there should not be any confusion between the two entities. Okay. Anything else then? COMMISSIONER BABCOCK: Then I move to enter into the record those four documents. accepted. CHAIRMAN JOHNSTON: Okay. So entered and COMMISSIONER BABCOCK: I move to adjourn. CHAIRMAN JOHNSTON: adjourned. Thank you. (Off record - 9:31 a.m.) END OF PROCEEDINGS Thank you. We are METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1460 Anchorage, Alaska 99501 (907) 276-3876 15 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 CERTIFICATE UNITED STATES OF AMERICA) )SS. STATE OF ALASKA ) I, Laurel L. Evenson, Notary Public in and for the State of Alaska, and Reporter for Metro Court Reporting, do hereby certify: That the foregoing Alaska Oil & Gas Conservation Commission Meeting was taken before me on the 31st day of July, 1996, commencing at the hour of 9:00 o'clock a.m., at the offices of Alaska Oil & Gas Conservation Commission, 3001 Porcupine Street, Anchorage, Alaska; That the Meeting was transcribed by myself to the best of my knowledge and ability. IN WITNESS WHEREOF, I have hereunto set my hand and affixed my seal this 26th day of July 1996. Notary Public in and for Alaska METRO COURT REPORTING, INC. 550 West Seventh Avenue, Suite 1460 Anchorage, Alaska 99501 (907) 276-3876 #8 ALASKA OIL AND GAS CONSERVATION COMMISSION July 31, 1996 PUBLIC HEARING - Romig Park #1 NAME - COMPANY TELEPHONE (PLEASE PRINT) a:~c:tforms~attend.doc[Ijb] #7 FROM _ , ~' ~",'~ ~ ' ~ .... EA CODE S ' ' ~, SIGNED PHONED~ CALL ~RETURNED WILL CALL BACK ~CALL ~ ] WANTSTOsEEYOU ~ ~A N ~ WASIN 07/31/96' ~ 11:09 FAX 907 276 8238 ~IDDL~0N TI1~fR ~00! [AWOfflCEOf ~--~LENN E. C1;~.XVEZ, INC. 421 ~ [qRST A~,~qU~, :~.Jrl~ 250 C9G7) 276-3370 MEMORANDU~ To: Diana Fleck, Alaska Oil and Gas Conservation Commission From: Glenn Cravez, President, Sand Lake Community Council ~ Date: July 31, 1996 Re: Application to Reenter Romig Park #1 Gas Well, near Sand Lake Rd. and Dimond Blvd. Dan Coffey left a phone message last night that your commission was meeting this morning at 9 to consider approving reentry into a gas well near Sand Lake Road and Dimond Bvd. Unlike what happens with rezoning applications, plat approval requests, liquor license applications or renewals, or virtually anything else that would have any affect on our community council area, we received no notice by mail of this very important meeting. I left a message with the Commission's answering service last .night that the Community Council would object to any action on this matter in the absence of a fully noticed public process and meaningful opportunity for input from the neighborhood. , You phoned this morning and indicated that the message you received from your answering service was that the Community Council did not object to the gas well reentry. I responded that this was 100% incorrect, and that the Council would object in the absence of meaningful notice and an opportunity to comment. Commisioner Tuckerman Babcock called at 10 A.M. this morning to report that the 9 A.M. hearing adjourned without action because the applicant was not present. He indicated further that the applicant arrived late and may very well reapply for permission to waive administrative code 07/31/96 WF, D 11:09 FA~ 907 276 8238 XIDI)I,~ON TIC, f;_. reqauirements for notifying owners of subsurface rights within a certain s_rea of the abandoned well site. I asked and Mr. Babcock agreed that the Commission would provide the Sand Lake Cornmur~ty Council with direct written notice of any additional hearings on this matter. You may reach me either at the fax n,,~ber provided above or at my home, 2810 I~g~sher Drive, Anchorage, 99515. Thank you for your consideration. ~002 cc: Mayor Rick ~ystrom All Anchorage Assembly Members C, overnor Tony Knowles' Office - Attn: David Ramseur Senator Drue Pearce Representative Mark Hanley #6 Notice of Public Hearing State of Alaska Alaska Oil and Gas Conservation Commission Re~ The application of ALASKA CRUDE CORPORATION for a variance from the notice requirements of 20 AAC 25.055(b). In correspondence dated May 30, 1996 Alaska Crude Corporation requested a vahance from the notice requirements of 20 AAC 25.055(b) in order to reenter the Romig Park #1 well. The Romig Park #1 well which was suspended in March 12, 1964 is located near the northwest comer of Sand Lake and Dimond Blvd in Anchorage, Alaska. To comply with 20 AAC 25.055(b), AAC would be required to send a copy of the application for spacing exception by registered mail to all owners in quarter sections directly and diagonally offsetting the well. AAC maintains this requirement is unrealistic because of the many owners to be so notified in this case. As an altemative to mail, AAC proposes to provide notice by advertising in a local daily newspaper. A hearing on this matter will be held at the above address at 9:00 am on July 31, 1996 in conformance with 20 AAC 25.540. If you are a person with a disability who may need a special accommodation in order to attend the meeting, please contact Diana Fleck at 279-143'3 by 4:00 P.M. July 24, 1996. Chairman Published July 13, 1996 AO-02714001 #9567 STO F0330 A0-02714001 $52.50 AFFiDAViT STATE OF ALASKA, ) THIRD JUDICIAL DISTRICT. ) Eva M. Kaufmann being first duly sworn on oath deposes and says that he/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 said time 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 in regular issues (and not in supplemental form) of said newspaper on July 13, ~996 OF PUBLICATION ',Notice of Public Hearing STATE OF ALASKA , Alaska Oil and Gas , Conservation,, C0mmJssi0n ~ Re: The application'of ALASKA~ CRUDE CORPORA'FION for al variance from the notice qui?ements.of 20.AAC In correspondence dated 30, 1996 Alaska CrUde~ Corpora- tion'requested a variance from ~the' notice requirements of 20 AAC 25.055¢b) in order to reen- ter the Romig Park #1 well. The Romig Park #1 well which was suspended in March 12, 1964 is located.near the northwest car-' ncr'of Sand Lake and Dimond 'B'lvd in Anchorage,.Alaska. To compF/ with 20 AAC 25.055(b), AAC would be required to send a copy.. Of the appl,ication for spacing exception by,registered mail' to ~11' owne.rs in quarter SeCtions d.i~ect y.and diagonally :offsetting. the Well. AAC main- tainS this requirement is unreal- istlc,becouse'of the, many own- ers'to be ~o.notified in this case. .~s.'ian o, lte. rhqti.v~'to .mail, AAC ,Pf6pb. ses, .iTO ,proVide: notice ;a~geYti'~ement ~in 'a ,,,,lecql ,daily ,A~'~Pc~per',, i,,i'.. ' ,' .. '~/'~e,0~,l,ng',:q~,thi~ inditer will be ,held at: the, above :address at ~:00 o~:. JUly .3],...1996 in '~hfor..mon'~e: '~'ifh ' '.'20 .'.AAC 25;,~0 ~: ",,: ,' ' , :if ,you:.'at~'a, Pe~'soh With a di~.Obi'l f,;' 'WhO rna,/~need a Spe- Cial', ' modification, in,' order :to. ~','~omment o:r :to.dffena the public i tlear.'ing, please c~p'tact Diana Fleck at 279.1433,'b~/.a':00 P.'M',; ,July.24 1996.. /...'.....'. '/s'/David W, JOltnSt0n ." ' CommissiOner. ,~.~ ,, ..... · Pub,i. July...13.4996'"i,..._ ' 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 ~~ Subscribed and sworn to b~f re~ //- .... Notary Public in and for the State of Alaska. Third Division. Anchorage. Alaska MY COMMISSION EXPIRES My Co~m~ssior~ E×r.~irr~-' ................. . y~"e~'rua~'- '8;'~00" 19 #5 co, ss o TONY KNOWLE$, GOVERblOt:t 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99501-3192 PHONE: (907) 279-1433 FAX: (907) 276-7542 June 17, 1996 Mr. James W. White Alaska Crude Corporation 1225 Stoney Crossing San Antonio, TX 78247 Dear Mr. White: This is in response to your letter of May 30, 1996, and previous correspondence regarding the notice requirements of 20 AAC 25.055(b) pertaining to an.application for a spacing exception. In order to consider granting a variance fi-om the requirements of this regulation, the Commission must notice and hold a public hearing under 20 AAC 25.540, as provided by 20 A_AC 25.505. Unless we hear from you to the contrary by July 1, 1996, the Commission will assume that you wish to proceed accordingly and will schedule a hearing on the question of whether notice requirements different from those set out in 20 AAC 25.055(b) should be established for your anticipated application for a spacing exception to re-enter the Romig Park well. You should be prepared at such a hearing both to justify the need for a variance from the standard notice requirements and to demonstrate that the rights of affected owners and operators will be protected by your alternative. Please understand that the Commission has made no determinations yet on the need for or appropriateness of a variance. You should also understand that it is the Commission's tentative understanding that due process may require actual notice, and not merely notice by publication, to at least some owners. Accordingly, you should be prepared to address at the hearing the question of what category, if any, of owners will be notified by mail. Chairman Tuckerman Babcock Commissioner ALASKA OIL ~ ~ / CONSERVATION COMMISSION / TONY KNOWLE$, GOVERIVOF~ 3001 PORCUPINE DRIVE ANCHORAGE. ALASKA 99501-3192 PHONE: (907) 279-1433 FAX: (907) 276-7542 March 4, 1996 Mr. Jim White Intrepid Production Company 12225 Stoney Crossing San Antonio, TX 78247 Dear Mr. White: In your February 20, 1996 letter to the Commission, you appear to request both a spacing exception and an exception to the notice provisions of the regulation dealing with spacing exceptions, 20 AAC 25.055(b). As you are aware, unless and until the Commission determines that the notice provisions of 20 AAC 25.055Co) have been met or that a waiver or exception may be granted, the Commission cannot proceed with consideration of an application for a spacing exception. It is not clear that the Commission has the authority to waive or make an exception to the notice provisions of 20 AAC 25.055(b). However, even if such authority exists--and the Commission has not made a determination on this question--it would be necessary for the applicant to demonstrate a need for a waiver or exception.' In your letter you refer to the existence of approximately 2500 mineral property owners that would have to be notified under 20 AAC 25.055(b). It is our impression, however, that mineral rights are typically reserved by the original owner when property is subdivided and sold. If that is true for the property that would be affected by your spacing application, the number of owners that would need to be notified may be far fewer than your estimate. Before further considering your request to waive or grant an exception to the notice requirements, the Commission asks that you substantiate the extent to which ownership of oil and gas fights in the property in question has been fragmented. Sincerely, Original Signed By David W. Johnston David W. Johnston Chairman Fax Transmittal Sheet Alaskan Crude Corporation 12225 Stoney Crossing, San Antonio, Texas 210-491-0574 or 210-761-4176 78247 Date ~ ___ ~ ~-~- q 07.'- 2..."z/~ - '~ No. of pages including this cover sheet From 1;8 'qg'~d d~OO "qCIl-IBO N~HS~'9'~ PB'E~:OBP01~;~ ;~0:£0 cj661~/g;~/;~O INTREPID PRODUCTION COMPANY 12225 Stoney Crossing, San Antonio, Texas {210) 491-0574 or (210) 761-4176 78247 February 213, 1996 Alaska Oil and Gas Consrvation Commission 3001 Porcupine Dr. Anchorage, Alaska 99501 RE: Alaskan Crude Corporation's application for a unit to be created that has exceptions to the well spacing requirement of 20 AAC25.055 (a)(1), (a)(2) and notice requirements of 20 AAC 25.055 (b) to re-enter the Romig Park well located in Sections 9 and 10, Township 12 North, Range 4 West, Seward Meridian, Dear Commissioners This letter is Alaskan Crude Corporation application to: create a unit to explore and produce hydrocarbons from the Romig Park Prospect shown attached and to obtain exceptions to the well spacing requirements of 20 AAC25.055 (a)(1), (a)(2) and notice requirements of 20 AAC 25,055 (b) for the purposes of re- entering and producing the Romig Park welt and any other well that may be included in such a unit created. Alaskan Crude Corporation as operator plans to re-enter and explore the Romig Park Well's deviated 11,000 feet well bore for hydrocarbons. The well's surface location is located in southeast quarter of section 10 and the bottom hole location of the well is located in the southwest quarter of Section 9, Township 12 North, Range 4 West, SM. The Romig Park well's deviated bore is closer than 500 feet to the south section lines of sections 9 and 10. In addition, the deviated well bore also crosses the common section line of the two sections. Alaskan Crude Corporation cannot proceed to develop the Romig Park well until it can verify that it has mailed notice to every fee owner of property ( those who own oil and gas mineral rights only ) in sections 2,3,4,5,8,9,10,11,14,15,16, and 17 that Alaskan Crude is applying for a drilling unit to be created for the Romig Park well which requires an exception to the 20 AAC 25.055 (a)(1) and (a)2) well spacing regulation requirements because the well's deviated bore is closer than 500 feet to a governmental section line. Please find attached a map showing these sections, A cursory look at this map reveals that the vast majority of the fee property owners in onshore portion of these twelve (12) sections are individual owners of small city lot properties located in residential subdivisions. FEB 20 '1996 d~OO 3on~o NgMS~]~ The Romig Park Well is located at the intersection of Sand Lake Road and Diamond Blvd. in the gravel pit that lies directly north and west of this intersection. The original patents to the properties in the twelve (12) square mile sections proposed to be included in the unit were original homestead titles that were received prior to 1958. As per the then existing procedures, the subsurface oil and gas mineral rights came with homestead fee land titles. Now, there are more than 2,500 individual property owners in these twelve (12) square mile sections. Often times the owner of a fee property will sell only the surface rights of the property while reserving the sub surface mineral rights of the property to himself. This can happen any time a property changes ownership, and often does. We have found during our mineral title search that there is no practical way to be certain that mailing notices to the apparent present owners of minerals is in fact mailing to the correct owner due to the fact that this part of Anchorage is to a reasonable degree transient. The list of mineral owners in this area changes daily as houses and properties are bought and sold, As a practical matter we have found that the method of notice required by 20 AAC 25.055 (b) cannot effectively provide verifiable notification simultaneously to all the various 2500 or so affected current owners of mineral property in these 12 square mile sections. We request, as an alternative that the commission determine that the intent of 20 AAC 25.055 (b) will have been met when Alaskan Crude Corporation appropriately advertises in the Anchorage Daily News and the Alaska Journal of Commerce notice of its application for an exception to the Notice provisions of 20 AAC 25.055(b) with the following notice. To protect correlative rights of all adjacent property owners of oil and gas properties in the notice area that could possibly be drained Alaskan Crude Corporation has petitioned the Alaska Oil and Gas Conservation Commission to create a unit and approve well spacing exceptions to Its 20 AAC 25,055(a)(1) and (a)(2) regulations to enable Alaskan Crude Corporation to re-enter, explore and produce oil and gas from the unit to be created for the Romig Park well located northwest of the Sand Lake Road and Diamond Boulevard Intersection. The exception to these regulations are needed because this well is located less than 500 feet from a governmental section line. Alaskan Crude Corporation In accordance with the Alaska Oil and Gas Conservation Commission Regulation's Section 20 AAC 25.055(b) is publicly noticing the owners of oil and gas mineral properties located in the notice area that consists of 12 (twelve) square mile sections ~0 Bg~d d~OO BOOED N~HSg]9 g65I/0~/~0 2,3,4,5,8,9,10,11,14,15,16, and 17 situated in Township 12 North, Range 4 West, Seward Meridian that Alaskan Crude Corporation has petitioned the State of Alaska to create a unit that provides an exception to the regulations for well spacing distance to section lines to explore and produce oil and gas. All or part of Sections 2, 3, 4, 5, 8, 9, 10, 11, 12, 14, are located on-shore and are In the City of Anchorage. The Commission's prompt action on this petition is requested. Please advise us if the commission needs more information or if we can further assist the Commission in winding through the maze of furor that will likely arise in our atteml3t to develop this area. The existing Romig Park well is not plugged at the surface. This well has a well head, is cased and open down to 3600 feet. This well's casing and wellhead is standing exposed some 40 feet above surface at the bottom of the gravel pit. Present laws now clearly place the final responsibility on the existing property owners in the notice area of the Romig Park well to pay eJlcost attendent to this well should this wett blow out and spill under their watch. Our development of this well will definitely mitigate the millions of dollars of financial liability that the property owners in the notice area of the well now have. Left in its present state it is an almost absolute certainty this well will blow out and spill eventually. We would, upon authorization to develop this prospect, relieve the property owners in the notice area of this well of the financial liability and the responsibility to properly institute safe-guards to protect this area of the city's environment from a potential catastrophe that could probably make Exxon's cost for its spill pale in comparision. Yours/truly /~) × .m White, 'lSresident' t~0 d~OO 3~R~O N~HS~]~ :£0 -3740 + -+_ Ir'If I'll[ l I · Wtl I ~3 ! I ! .I I -I- I I t I I I -1- I ! ! I I Fax Cover Sheet Intrepid Production Company 12225 Stoney Crossing, San Antonio, Texas 76247 (210)491-0.574 or (210)761-4176 Fax (210)490-2524 To' ~~) ~, t"_ C. Att ention .~___.¢.. ...... t:~. _ t,'"'~~ ¢. r-c~ ,,J _ - Fax Number ~_ ~ "~ - 2_'7 Pages Message · ? RECEIVED MAY 3 0 1996 Alaska 011 & Gas Cons. Commission Anchorage I0 ':lg~d d~OO 3(I1-1N:3 N~/HS~qt/ PGZ~OBP01]~ LC;:/_I 966I/0l~/q0 INTREPID PRODUCTION COMPANY 5500 Gulf Blvd. CLS, BX 3, South Padre Island ,Texas, 78597 Attention: Mr. David Johnston Alaska Oil and Gas Conservation Commission 3001 Porcupine Dr. Anchorage Alaska 99501 Faxed 5130/96 (9O7)276-7542 Dear Commissioners This letter is to certify to the Commission that Intrepid Production Company has determined that there are at least 2000 separate individuals owning oil and gas mineral property rights in the twelve sections notice area required to be noticed pursuant to 20 AAC 25.055(b) to obtain the required exceptions to 20 AAC 25 regulations needed to unitize, drill and produce the Romig Park Prospect. located in the city of Anchorage. The Romig Park well's deviated wellbore is located in Section 9 and 10 therefore the affected notice area are the t2 Sections 2,3,4,5,8,9,10,11,14,15,16 and 17.located in T12N, R4W, SM Most fee titles to this area of Anchorage were originally issued to homesteaders who settled this area prior to Alaska Statehood. These homestead fee titles provided that the homesteaders owned the oil and gas mineral rights to their homesteads. Over the years and since that time those homestead patents were issued, most of the original homesteaders have sold all or part of their homestead properties to others. Some of the homesteaders reserved all or part of their mineral rights when they sold their properties while some did not retain any mineral interest at the time their property was sold. The title chain to these properties that carried mineral interests in most cases have changed hands many times since the titles were first issued to the original homesteaders. At any point of the chain of fee title change a property owner had an opportunity to reserve ail or part of their properties' mineral interest when the property was sold and therefore some owners did reserve their minerals. As a result the present day surface property owners in the notice area may or may not own the minerals beneath their property. The current owners deeds often do not accurately reflect who owns the minerals beneath the property. Therefore a precise examination of each deed of the. entire title chain of each property is recluired to accurately determine who owns the minerals due to this common deed discrepancy of mineral ownership. It should be understood that while this lengthy time~~i~gV ~,l~search is going on, the previous titles to surface or minerals properties previous!y_c~hecked may have been sold to others. This area of Anchorage is ar{/l'/~i~e0 s~lative and transient real estate market area and the condos and homesites tha~retain Naska 0Il & {.~as Cons. c0mm~sa Anchorage property's minerals in various residential subdivisions are bought and sold each day. As a result It is virtually impossible to accurately identify on any. giv, en day who are the entire 2.000 or so real owners of minerals .on__ that day that own the correlative rights to the oil and gas minerals under the twelve square mile City of Anchorage notice area , Due to the flux of mineral ownership in the notice area of the Romig Park Prospect, there is _no way tQ know that a Notice letter is being sent to current correlative right owner of record. Therefore we suggest that the Notice be advertised in the Anchorage Newspaper advising publicly to all affected property owners in the Notice Area of Intrepid Production Company's intent to develop the Romig Park Prospect . We suggest that _ail of Notice Area Owners would more likely be timely_qot~fied by Dlacing an,,advertisemerrt of. the Public Notice in the Anchorage News paper for a reasonable period of time rather than an attempt to notice by a mailed notice. We believe that the intent and purpose of 20 AAC 25,055 to protect the correlative rights of all the property owners would best be met and served by a public news paper advertisement rather than a mailed notice in this instance. Sincerely ~fours /// ~ ~ James W. White, President 3~d d~OD BGfl~D N~HS~]9 RECEIVED MAY $ 0 1996 Alaska 0Il & ~3as C0n~. commission Anchorage Notice of Public Hearing State of Alaska Alaska Oil and Gas Conservation Commission Re~ The appl/cation of ALASKA CRUDE CORPORATION for a variance from the notice requirements of 20 AAC 25.055(b). In correspondence dated May 30, 1996 Alaska Crude Corporation requested a variance from the notice requirements of 20 AAC 25.055(b) in order to reenter the Romig Park #1 well. The Romig Park #1 well which was suspended in March 12, 1964 is located near the northwest corner of Sand Lake and Dimond Blvd in Anchorage, Alaska. To comply with 20 AAC 25.055(b), AAC would be required to send a copy of the application for spacing exception by reg/stered mail to all owners in quarter sections directly and diagonally offsetting the well. AAC maintains this requirement is unrealistic because of the many owners to be so notified in this case. As an alternative to mail, AAC proposes to prov/de notice by advertising in a local daily newspaper. A heating on th/s matter will be held at the above ad&ess at 9:00 am on July 31, 1996 in conformance with 20 AAC 25.540. If you are a person with a disability who may need a special accommodation in order to attend the meeting, please .contact Diana Fleck at 279-1433 by 4:00 P.M. July 24, 1996. Published July 13, 1996 AO-02714001 #4 INTREPID PRODUCTION COMPANY 5500 Gulf Blvd. CL8, BX 3, South Padre Island ,Texas. 78597 Attention: Mr. David Johnston Alaska Oil and Gas Conservation Commission 3001 Porcupine Dr. Anchorage Alaska 99501 Foxed 5130/96 (9O7)276-7542 Dear Commissioners This letter is to certify to the Commission that Intrepid Production Company has determined that there are at least 2000 separate individuals owning oil and gas mineral property rights in the twelve sections notice area required to be noticed pursuant to 20 AAC 25.055(b) to obtain the required exceptions to 20 AAC 25 regulations needed to unitize, drill and produce the Romig Park Prospect. located in the city of Anchorage. The Romig Park well's deviated wellbore is located in Section 9 and 10 therefore the affected notice area are the 12 Sections 2,3,4,5,8,9,10,11,14,15,16 and 17.located in TI2N, R4W, SM Most fee titles to this area of Anchorage were originally issued to homesteaders who settled this area prior to Alaska Statehood. These homestead fee titles provided that the homesteaders owned the oil and gas mineral rights to their homesteads. Over the years and since that time those homestead patents were issued, most of the original homesteaders have sold all or part of their homestead properties to others. Some of the homesteaders reserved all or part of their mineral rights when they sold their ;)roperties while some did not retain any mineral interest at the time their property was sold. The title chain to these properties that carried mineral interests in most Cases have changed hands many times since the titles were first issued to the original homesteaders. At any point of the chain of fee title change a property owner had an opportunity to reserve all or part of their properties' mineral interest when the property was sold and therefore some owners did reserve their minerals. As a result the present day surface property owners in the notice area may or may not own the minerals beneath their property. The current owners deeds often do not accurately reflect who owns the minerals beneath the property. Therefore a precise examination of each deed of the entire title chain of each property is required to accurately determine who owns tile minerals due to this common deed discrepancy of mineral ownership. ,, should be understood that while this lengthy ,,me~~l~i~Y ~,~search is going on, the previous titles to surface or minerals properties previousl, y cbecked may have been sold to others. This area of Anchorage is ar~:ti;~ s~ulative and transient real estate market area and the condos and homesite_s thin, retain Naska 011 & ~as Cons. c0mmmm Anchorage ~0 39~d d~JOD 3(I~JD N~HS~3~ ~G~OG~O[~ iq :l~ 966~/0£/q0 property's minerals in various residential subdivisions are bought and sold each day. As a result it is vktually impossible to accurately identify on_any ~iven d~y who i~re the e_ntjre 2.000 or so real owners of. mine[als .on__ that day that own the correlative rights to the oil and gas minerals under the twelve square mile City of Anchorage notice area , Due to the flux of mineral ownership in the notice area of the Romig Park Prospect, there is...no way tq know that a Notice letter is being sent to current correlative right owner of record. Therefore we suggest that the Notice be advertised in the Anchorage Newspaper advising publicly to all affected property owners in the Notice Area of Intrepid Production Company's intent to develop the Romig Park Prospect . We suggest that ..alLof Notice Area Owners would more likely be timely_~ot[f_ied by placing an.~dvertisement of. the Pul)lie Notice in the Anchorage News paper for a reasonable period of time rather than an attempt to notice by a mailed notice. We believe that the intent and purpose of 20 AAC 25,055 to protect the correlative rights of all the property owners would best be met and served by a public news paper advertisement rather than a mailed notice in this instance. Sincerely ~fours // ~ ~ James W. White, President £0 RECEIVED MAY 3 0 1996 Alaska Oil & ess Con~. Comm~ssio~ Anohorags #3 AbASKA OIL AND GAS CONSERYATI ON COMMISSION TONY tOVOWLE$, GOVEFINOR 3001 PORCUPINE DRIVE ANCHORAGE, ALASKA 99501-3192 PHONE: (907) 279-1433 FAX: (907) 276-7542 March 4, 1996 Mr. Jim White Intrepid Production Company 12225 Stoney Crossing San Antonio, TX 78247 Dear Mr. White: In your February 20, 1996 letter to the Commission, you appear to request both a spacing exception and an exception to the notice provisions of the regulation dealing with spacing exceptions, 20 AAC 25.055(b). As you are aware, unless and until the Commission determines that the notice provisions of 20 AAC 25.055(b) have been met or that a waiver or exception may be granted, the Commission cannot proceed with consideration of an application for a spacing exception. It is not clear that the Commission has the authority to waive or make an exception to the notice provisions of 20 AAC 25.055(b). However, even if such authority exists--and the Commission has not made a determination on this question--it would be necessary for the applicant to demonstrate a need for a waiver or exception. In your letter you refer to the existence of approximately 2500 mineral property owners that would have to be notified under 20 AAC 25.055(b). It is our impression, however, that mineral fights are typically reserved by the original owner when property is subdivided and sold. If that is true for the property that would be affected by your spacing application, the number of owners that would need to be notified may be far fewer than your estimate. Before further considering your request to waive or grant an exception to the notice requirements, the Commission asks that you substantiate the extent to which ownership of oil and gas fights in the property in question has been fragmented. Sincerely, Original Signed By David W. Johnston David W. Johnston Chairman #2 Memorandum State of Alaska Oil and Gas Conservation Commission To: Bob Crandall ; Sr. Petroleum Geologist Date: February 21, 1996 Telephone: 279-1433 Fax number: 276-7542 From: David W~ Chairman Subject: Romig Park well Please review the petition filed by J. White concerning reentry of the Romig Park well and provide recommendations. You may need to consult with Mintz about the noticing provisions proposed by White. #1 INTREPID PRODUCTION COMPANY 12225 Stoney Crossing, San Antonio, Texas (210) 491-0574 or (210) 761-4176 78247 ~0 February 20, 1996 Alaska Oil and Gas Consrvation Commission 3001 Porcupine Dr. Anchorage, Alaska 99501 RE: Alaskan Crude Corporation's application for a unit to be created that has exceptions to the well spacing requirement of 20 AAC25.055 (a)(1), (a)(2) and notice requirements of 20 AAC 25.055 (b) to re-enter the Romig Park well located in Sections 9 and 10, Township 12 North, Range 4 West, Seward Meridian, Dear Commissioners . 1 This letter is Alaskan Crude Corporation application to: create a unil to explore and produce hydrocarbons from the Romig Park Prospect shown attached and to obtain exc, eptions to the well spacing requirements of 20 AAC25.055 (a)(1), (a)(2) and notice requirements of 20 AAC 25,055 (b) for the purposes of re- entering and producing the Romig Park well and any other well that may be included in such a unit created, Alaskan Crude Corporation as operator plans to re-enter and explore the Romig Park Well's deviated 11,000 feet well bore for hydrocarbons. The well's surface location is located in southeast quarter of section 10 and the bottom hole location of the well is located in the southwest quarter of Section 9, Township 12 North, Range 4 West, SM. The Romig Park well's deviated bore is closer than 500 feet to the soutl~ section lines of sections 9 and 10. In addition, the deviated well bore also crosses the common section line of the two sections, Alaskan Crude Corporation cannot proceed to develop the Romig Park well until it can verify that it has mailed notice to every_ fee owner of property ( those who own oil and gas mineral rights only ) in sections 2,3,4,5,8,9,10,11,14,15,16, and 17 that Alaskan Crude is applying for a drilling unit to be created for the Romig Park well which requires an exception to the 20 AAC 25.055 (a)(1) and (a)2) well spacing regulation requirements beCause the well's deviated bore is closer than 500 feet to a governmental section line. Please find attached a map shoWing these sections, A cursory took at this map reveals that the vast majority of the fee property owners in onshore portion of these twelve (12) sections are individual owners of small city lot properties located in residential subdivisions. FEB 20 1996 d~OO 3ERGO N~HSgq9 t~61:EO6~,01;E; 2;13 :E:B 9661;/OE/EO The Romig Park Well is located at the intersection of Sand Lake Road and Diamond Blvd. in the gravel pit that lies directly north and west of this intersection. The original patents to the properties in the twelve (12) square mile sections proposed to be included in the unit were original homestead titles that were received prior to 1958. As per the then existing procedures, the subsurface oil and gas mineral rights came with homestead fee land titles. Now, there are more than 2,500 individual property owners in these twelve (12) square mile sections. Often times the owner of a fee property will sell only the surface rights of the property while reserving the sub surface mineral rights of the property to himself. This can happen any time a property changes ownership, and often does. We have found during our mineral title search that there is no practical way to be certain that mailing notices to the apparent present owners of minerals is in fact mailing to the correct owner due to the fact that this part of Anchorage is to a reasonable degree transient. The list of mineral owners in this area changes daily as houses and properties are bought and sold, As a practical matter we have found that the method of notice required by 20 AAC 25.055 (b) cannot effectively provide verifiable notification simultaneously to all the various 2500 or so affected current owners of mineral property in these 12 square mile sections. We request, as an alternative that the commission determine that the intent of 20 AAC 25.055 (b) will have been met when Alaskan Crude Corporation appropriately advertises in the Anchorage Daily News and the Alaska Journal of Commerce notice of its application for an exception to the Notice provisions of 20 AAC 25.055(b) with the following notice. To protect correlatiVe rights of all adjacent property owners 'of Oil and gas properties in the notice area that could possibly be drained Alaskan Crude Corporation has petitioned the Alaska Oil and Gas Conservation Commission to create a unit and approve well spacing exceptions to its 20 AAC 25.055(a)(1) and (a)(2) regulations to enable Alaskan Crude Corporation to re-enter, explore and produce oil and gas from the unit to be created for the Romig Park well located northwest of the Sand Lake Road and Diamond Boulevard Intersection. The exception to these regulations are needed because this well Is located less than 500 feet from a governmental section line. Alaskan Crude Corporation In accordance with the Alaska Oil and Gas Conservation Commission Regulation 's Section 20 AAC 2S.055(b) is publicly noticing the owners of oil and gas mineral properties located in the notice area that consists of 12 (twelve) square mile sections ED Bg~d d~OO BGn~o N~S99~ 966T/OE/SO 2,3,4,5,8,9,10,11,14,15,16, and 17 situated in Township 12 North, Range 4 West, Seward Meridian that Alaskan Crude Corporation has petitioned the State of Alaska to create a unit that provides an exception to the regulations for well spacing distance to section lines to explore and pro~luce oil and gas. All or part of Sections 2, 3, 4, 5, 8, 9, 10, 11, 12, 14, are located on-shore and are In the City of Anchorage. The Commission's prompt action on this petition is requested. Please advise us if the commission needs more information or if we can further assist the Commission in winding through the maze of furor that will likely arise in our atternl~t to clevelop this area. The existing Romig Park well is not plugged at the surface. This well has a well head, is cased and open down to 3600 feet. This well's casing and wellhead is standing exposed some 40 feet above surface at the bottom of the gravel pit. Present laws now clearly place the final responsibility on the existing property owners in the notice area of the Romig Park well to pay eJlcost attendent to this well should this welt blow out and spill under their watch. Our development of this well will definitely mitigate the millions of dollars of financial liability that the property owners in the notice area of the welt now have, Left in its present state it is an almost absolute certainty this well will blow out and spill eventually. We would, upon authorization to develop this prospect, relieve the property owners in the notice area of this well of the financial liability and the responsibility to properly institute safe-guards to protect this area of the city's environment from a potential catastrophe that could probably make Exxon's cost for its spill pale in comparision. Yours/truly ,m White, "'lSresident'' ~GI~OGt~OI~ ~0 :EO gGGI/O~/~O I'2' 3-3 ,/.-~3 -3740 + +- ti .+ ti[ - I I ! ,/,3 I I I I I I I I ! 1 .-