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Home My WebLink AboutCO 116 ) ) Image Project Order File Cover Page XHVZE This page identifies those items that were not scanned during the initial production scanning phase. They are available in the original file, may be scanned during a special rescan activity or are viewable by direct inspection of the file. ( /0 II fa Order File Identifier Organizing (done) D Two-sided III "111I1111111111 o Rescan Needed 1111111111111111111 RESCAN DIGITAL DATA OVERSIZED (Scannable) D Maps: D Other Items Scannable by a Large Scanner D Color Items: D Greyscale Items: D Diskettes, No. D Other, NolType: D Poor Quality Originals: OVERSIZED (Non-Scannable) D Other: D Logs of various kinds: BY: Helen ~ o D~:e¿ '1/ ø ~llíÎ'IIIII~4J Date: h 7 ~ Isl rvvP ! NOTES: Project Proofing BY: Helen ~ Scanning Preparation BY: Helen ~. \ x 30 = + = TOT A_ PAGES "3 7 ~a~~~0e"not '~co;~r sheet)' ivtfJ . 7. 1111111111111111111 Production Scanning Stage 1 Page Count from Scanned File: :; q; (Count does include cover sheet) j Page Count Matches Number in Scanning Preparation: ~ES NO tA1 Hele~ Date:(p : 7 '05,sl If NO in stage 1, page(s) discrepancies were found: YES t NO Stage 1 BY: BY: Helen Maria Date: /s/ I1111I11I1111111111 Scanning is complete at this point unless rescanning is required. ReScanned 1111111111111111111 BY: Helen Maria Date: /51 Comments about this file: Quality Checked 1IIII1I111111111111 12/1/2004 Orders File Cover Page.doc ) Conservation Order 116 1. 2. 3. 4. December 13, 1972 December 16, 1972 December 20, 1972 December 27, 1972 Exploration Service Co., Inc. for a Spacing Exception Notice of Hearing and Affidavit of Publication Usibelli Coal Mine ltr of objection Transcript Conservation Order 116 2. The companies and individuals would not have an opportunity to benefit from their investment in this project if geological well information would be filed I. The applicant proposes to dri I I the referenced stratigraphic tests on unleased State of Alaska lands at an estimated cost of 3t to 4 million dollars. FINDINGS: 3. A public hearing was held on December 27, 1972, in the City Counci I Chambers of Z. J. Loussac Library, 5th Avenue and F Street, Anchorage, Alaska at which time the applicant and others were heard. 2. A notice of public hearing was published in the Anchorage Dai Iy News on December 16, 1972, pursuant to Title II, Alaska Administrative Code, Section 2009. I. Exploration Services Company, Inc. submitted an application dated December 13, 1972, requesting the referenced order. IT APPEARING THAT: I. Offshore Kaliakh River, Gulf of Alaska - approx. T2IS-RI5E, CRM 2. Offshore Cape Suckling, Gulf of Alaska - approx. T22S-R9E, CRM 3. Offshore Kayak Island, Gulf of Alaska - approx. T24S-R5E, CR~1 4. Offshore Cape Douglas, Shelikof Straits - approx. TI5S-R24W, SM 5. Offshore Tugidak Island, Gulf of Alaska - approx. T43S-R36W, SM 6. Offshore Chirlkof Island, Gulf of Alaska - approx. T49S-R42W, SM 7. Kuskokwim Bay, Alaska - approx. T7S-R76W, SM 8. Offshore Cape Espenberg, Kotzebue Sound - approx. TI4N-R23W, KRM January 26, 1973 Conservation Order No. 116 Approximate locations: Re: THE APPLICATION OF EXPLORATION SERVICES COMPANY, INC. for an excep- tion to Title II, Alaska Adminis- trative Code, Section 2008, for eight stratigraphic tests or core holes to be drilled on unleased State sub- merged lands. 3001 Porcupine Drive Anchorage, -Alaska 99501 STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF OIL AND GAS Alaska Oi I and Gas Conservation Committee -) ~;. )- 27ence:¿: ¡(~ ~~rrell, Cnalnnan C ~~~~vatlon Committee O. K. Gilbreth, Jr., Memb~ Alaska Oil and Gas Conservation Committee 4~ 011 ~. (~~ ~~~Ò ...,til:ff¡· ,(....,J.J.l!j~. ~ Em ~ lr,,· \;'~- ..I "V 1If~"f.! ~,..':,ij,,~,...~,. i~ : ~l¡j------' '<:':::~¡'~':;:-:"'::~-:!' :," (.'~~ v ~H·~,.F II (.; ') è' .,.. > "'\ .4\:·'·:(í'-i:~·'··";x, ". "".~-_.". ] '~_b~~-l!~::-ct\~:'\",i):9;'~ ' 1':):-.-.... t.~ i.~ "...'.././' _.'~ "~ " '.', ". ,-~L ~,~}!)/. J(~.i «?" '~,. .:..--'."" . ¡'ION cc.;',··· dated ?L .2¡¿9)¡¡; ~l_ Thomas R. Marsha I r, Jr., Executf ve Secretary Alaska Oil and Gas Conservation Committee DONE at Anchorage, Alaska and The operator is relieved from the requirements of Title II, Alaska Administrative Code, Section 2008, except for the following subsections: aCI), a(2), c(3), e, f, g, i and J. NOW, THEREFORE, IT IS ORDERED THAT: It Is in the best interest of the State of Alaska to allow the requested exception. CONCLUSION: 10. The program wi II provide the state with data useful in making regional geological interpretations at no cost. 9. Applicant wi II furnish an adequate bond and the requested program wi II be carried out in conformance with conditions of the individual well permit and the oil and gas conservation regulations. 8. Geophysical information wi II be uti lized to locate the wells off-structure to minimize accidental discovery of hydrocarbons. 6. Approximately 20 companies or individuals are expected to participate. 7. Provisions wi II be made for late participation by payment of a proportionate share plus a penalty. 4. Under terms of a Miscellaneous Land Use Permit to be issued by the Alaska Division of Lands the State of Alaska wi II be provided with all well information at the time the well operations are completed. Conditions under which the data wi I I be released will be specified in the permit. 5. Invitation to participate in the program will be open to all companies and individuals and wi II be well publicized. 3. Lease sales are not anticipated in the area near the referenced locations within the foreseeable future. and released two years after the date of fi ling pursuant to Title II, Alaska Administration Code, Section 2008. ) ') ,~ Conservation Order 116 Page 2 January 26, 1973 #4 STATE OF ALASKA DEPARTMENT OF NATURAL RESOURCES DIVISION OF OiL AND GAS Alaska 01 I and Gas Conservation Committee CONSERVATiON ORDER NO. 116 EXPLORATION SERVICES øoM~ANY1 INC. AppU:catfon fOr"ièxceptlon to II AAC 2008 for eight Stratigraphic Tests H EAR I N G December 271 1972 PRO C E E 0 I N G S Mr. Burrell: Good mornin~J ladies and gent"lernen. This is a hearing of the Alaska Oi ¡ and Gas Conservation Committee. My name is Homer Burrell, to my left is Mr. O. K. Gi Ibreth, to my right is Mr. Tom Î',1arshall all members of the Committee. We are here on the application of Exploration Services Company, inc. for an exception to Title II, /-\Iaska Administrative Code, Section 2008, for eight stratigraphic tests or core holes to be dril led on unleased State submerged lands. The request was published December 16, 1972 in the Anchorage Oai iy News. This hearing is being held pursuant to Section 2009 of TItle i I of the Alaska Administrative Code. The eight locations are what we describe as Chtrikof Island, Tugidok Island, Kuskokwim Bay, Kotzeb4e Sound, Kayak I s I and, Cape Doug I as 1 Cape Suck II ng, Ka I i akh River and they're shown on "the attached map, the township and range, on the map on the wall I should say, and the township and range were published in the notice of the heari ng. I f anybody t s i nterest-ed ¡ n fact I request a show of hands right now if anybody is interested in taking a brief intermission from this hearing so they can go up and look at the map, so they can see where these ! ands are. ! f there ¡sa show of hands we' II ~jO off the record for a few minutes while people look at it" otherwise it will be available during the hearing and subsequently. I th ink it ..../OU I d be aþpropri ate to state the statutory authori ty for the request for this hearing. AS 31.05.030 and 31.05.035 provide that the Department of Natural Resources.10.fl..Y_ req.uiTe the makinÇJ and fi I fog of certain reports we~1 logs, etc. on wells and stratgraphlc tests dri I led for the discovery of oi I or gas, or for geologic information. AS 31.05.035 provides that any such reports or information which are marked conf i denti a I sha! I be kept conf t denti a I for 24 months. Regulations have been adopted pursursuant to the statutes under Title ~ I, Alaska Adminstrative Code. Tttle ~ 11 AAC 2002 designates the membership of the Alaska at I and Gas Conservation Committee and provides that the Committee shall admInister the Oi I and Gas Conservatton Act which is the statute referred to-which includes the statutes referred to. Title I I AAC 2008 makes mandatory the making and fi ling of well reports 1 records and logs with the Alaska Oi I and Gas Conservation Committee~ It is that re~Julation the applicant herein seeks an exception to. This Committee's authority to grant such an exception arises out of the fol low j ng: (I) The statutes provIde that the well information may be required to be filed; the statutes do not require the information to be f ¡led. (2) Although Regulation I AAC 2008 requires the making and fIling of such information, this Cor:-1mittee has the following .regulatory authority to supercede the rules and regulation, including II AAC 2008; () II AAC 200 I I'll read that regulation to clarify the regulatory authority. II AAC 2001 reads as follows: The rules and regualtions in this chapter are hereby adopted. These are general rules of state wide application which shall apply to all we I Is and fields; provided, however special rules applicable to particular areas of subject matter shai I prevai lover these general rules to the extent that they are in conf I i ct therew i th" and to that extent on I y . Also, II AAC 2006 reads as follows: The committee may from time to tIme enter into arrangements with Alaska and Federal Government Agencies, industry committees, and individuals with respect to special projects, services and studies relating to conservation of oi I and gas. I would ask the applicant to come forward and identify himself and make his proposal for the benefit of the audience. Mr. Oshor~n ~ Mr. Bu rre I I : Mr. Osborn: Mr'. Bu r ire I I : Bill Osborn, Exploration Services. Excuse me 81 liF you want to get up closer to the mike. How do you want" to work this? i think it'd be best if you'd sit over there. Mr. Mar'sha II: Wall I d you p I ease ra i se your" ri fht" hand. In thè: matter- now at hearing do you swear to tell the truth the whole truth and nothfng but the truth so help you God? ~·1r. Osborne: ! do. Mr. Marshall: Please be seated. Mr. Burrell: \ve'd appreciate it, Mr. Osborn, if you'd outline your pN'posa I. Mr. Osborn: The proposal involves the dri I ling of certain core holes in various portions of Alaska as outlined on the map that you have on the board, in order to acquire geological information which would not other- wise available to interested companies or individuals. The problem iS1 as we see it, is the confidentiality period under Section 2000, belIeve its under 2008. It does not allow these individuals or companies to benefit from their investment prror to the information beinq released to, you might say anyone who wants to set back and wait and get a free ride, so we're asking for the exception to 2008 with respect to the fi ling of this infor- ~ation in order to al low those interested companies and individuals to proceed with the acquisition of this geological information in those areas specified. Now we are, of course, making provisions with the state Lands under a mu'tiple use land application and permit with respect to eventual re1ease of this information to the public, but until such time as those -2- J companies and individuals who have invested in this approximately 3t to 4. mi II ion dollar project have been ab ie to benefit to some degree from their investment we feel the information should be held confidential. That's about it. Mr. Burrell : Would you 'tel i uSp you indicated its a 3! to 4 mi II Ion dol I ar project perhaps? Mr. Osborn: That's right. Mr. Burre II: And p you don't want to f j I e the i n"formati on as I under- stand because it woo I d become pub i i c wi th i n t\oJO years, two years f rom the date of cornpietion of each individual stratigraphic test or core hole or whatever you may call it which you are going to drill. If the lands were of'fered for ~ease within this tlNO year period, the people investing in this operation would not suffer any harm would they? Mr. Osborn: They would not, they would then have had the opportunity to benefit from the investment. Mr. Burre~l: is the location of these lands why you feel it is highly unlikely that they would- be ó'ffered for lease, within t'he two year period? Mr4 Osborh~ ! think at the present time, yes, it's highly unlikely that ûn some of these mar's remote areas, that these lands wi II be made available for leasing to anyone. Mr. Burrell: You thInk it is remote that they will? Mr. Osborn: It's a remote possibi I'ty, yes. In some areas its going to corne sooner than others, but as you can see these locations that had been proposed by interested companies and individuals are located in some very remote areas of Alaska. Mr. Burre! I: Do you believe that part ot at least part of the reason for the delay of these lands befng made avai lab Ie may be at least two factors. One is the requirement, as I understand it, is for an Environmental Impact Statement to be made by the US Army Corps of Engineers on the state sub- merged lands, and secondly there is a legal dispute over title to portions of it. Is that a fair summary of at least two reasons why they may not be made avai lab Ie within two years? ~~r. Osborn: I think thats two of the reasons, the other is lack of knowledge with respect to the area in general, the geology of the area. Of course this program is designed to help aid in obtaining more knowledge VI i th re?pect to those a,reas. Mr. Burrel': \'1ell, that wouldn't preclude the state from leasing, ~\ÎOU I d i t? -3- Mr. Osborn~ No, it would not. Mr. Burrell: Fr'om lack of knowledge? tJlr. Osborn: That' 5 r ¡ ght . The other two reasons, ma in I y the de ¡ ay in obtaining the Environmental Impact Statements, and secondly, the legal disputes over title might cause a delay beyond the two years? Could be, could create considerable delay. Mr'. Bu rre II: Even far rnore than two years perhaps? Mr. Osborn: Yes. Mr. Burrel I: I think the rest of the Comm;ttee has some question of you ~~r. Osborn. 1'1 ¡ '~urn it over' either to Mr. Marshal i or to Mr. Gi Ibreth, whoever wants to ask questions at this time. Mr. Marshall: Yes, I have a question, Mr. Osborn. What provisions are there for people who aren't initially in your program to get into the program: As I understand there are some p:rövfsions)t would you detat I these, please. Mr. Osborn: Until a specific date is set, at the present time we are looking at sorne place between February I and February 15, any and all interested companies and Individuals may participate in the program on a equal share basis. Now we anticipate some place in the neighborhood of 20 or so companies or Individuals participating tn the project. Sub- sequent to what we call our original participation period there wi II be provisions made for late participation, with a penalty clause, at any time ther'eafter.. so that f t ve years f,cm now if the i nformati on had not been r~eleased pUblicly, an individual or company could purchase the information, by pay i n~~ a pena I ty P I us the proport i onate share of the cost of the program. Mr. Marsha II : Another quest ion.. how do you protect yourse I f or your clients from some party buying into the information and then let's say, selling it to some sort of subscription at 100 dol tars a whack or some such thing as that, so It would in effect be a public distribution almost, that is with a very nominal investment. Mr. Osborn: Ail parties participating or purchasing are bound to the same terms and conditions as any other participant or purchaser, which precludes divulging the information to anyone other than their own company, for their own use. They are precluded from selling, giving it or divulging it to anyone during the term of the agreement. Mr. Marshall: Could you give us an approximate breakdown of about how much this information is going to cost any single participant, just a rough figure? r/1r. Osborn: 'He I I, on the basis of let's say, a top figure of 4 mi II ion -4- -5- Mr. Osborn: Through advertIsing. Mr. Surre II : Through advertising In newspapers, magazInes? Mr. Osborn: MagazInes prImarIly, those related to the Industry. Mr. Bu rre II : 011 and Gas magazInes? Mr. Osborn: o II and Gas. Mr. Burrell: From the publicity standpoint, how do you Intend to advise them of the opportunIty to participate in the program. Mr. Osborn: On the same basIs. Mr. Burrell: What means do you have planned to allow Individuals to partIcipate, should any be wIlling to or desire to? Mr. Burrell: Do you have any specifIc plans for It? Mr. Osborn: Wel" other than the toea I at the present tIme, no. Of course we antIcipate fairly wide coverage In Alaska and we also plan to notify every company that Is, you mIght say registered or tn some way connected with the petroleum Industry in Alaska of the program and Invite them to participate, If they so desire. Mr. Osborn: Yes. Mr. Osborn: That's correct, everyone. Mr. Burrell: WIll you make this offer pubìlc by means of advertIsIng tn 011 and gas trade Journals or newspapers or some other way? Mr. Burrell: Everybody In this room could participate If they could come up with their proportionate share of the 3í or 4 million dollars? Mr. Osborn: That's correct. Mr. Burrell: I'd like to expand on some of Mr. Marshall's questions, Mr. Osborn. Do I understand It that you are going to hold your offer for original participation open to everybody, no holds barred? Mr. Marshall: That concludes my questions at this time. I may have some others. dollars, 20 companies, two hundred thousand dollars per company or IndIvi- dual. Otherwise It would cost anyone 4 mIllion dollars, If they tried to do It on their own. Its a means by whIch everyone can acquire geological InformatIon of this type at a reasonable cost. As I'm sure you are aware It Is not uncommon In the Industry for group programs to be formed for data acquisition program of this type. Mr. Burrell: Do you think you'll reach everybody who you thInk might be Interested In a reasonable manner? Mr. Osborn: Yes, thIs is a method that we have used previously In group programs of thIs type and to date has been successful. Mr. Burrell: I'll turn It over to Mr. GIlbreth now for additIonal questIons. Mr. GIlbreth: Just to follow through wIth that, Mr. Osborn, would you be willing to advertIse also tn the major newspapers of the state, Fairbanks, Anchorage and Juneau for example? Mr. Osborn: Oh yes, very definitely. Mr. Gilbreth: The Information that you're going to obtain - would you please outlIne to us just what this might Include? Our regulations provide that you have to fIle copies of logs, mud logs. FI~st of all what kind of wells are you goIng to drIll and then what kInd of Information are you gol"g to get from these? Mr. Osborn: FIrst, the locations of the holes wIll be drilled In such a positton as to mInimize the possibility of encountering hydrocarbons. That Is, geophysical information wi II be used prior to the drl II Ing of any one hole In order to attempt to locate that hole as far off of any structure or away from any trap as Is possible. The InformatIon wIll be prImarIly the cuttings, side wall samples, wlreline sIde wall samples and various logs. That Is the Information that wIll be obtained from the program, along with other geophysical data. Mr. Gilbreth: Now the Information that you're goIng to obtain - you are asking for an exception from filIng that with the 011 and Gas Con- servation Committee. Are you going to file that with the Division of Lands? Mr. Osborn: Yes sir. Mr. G II breth : A II the Information? Mr. Osborn: All the Information. Mr. Gilbreth: In other words all of the Information that each particI- pant would get will be filed wIth the DIvIsIon of Lands. Mr. Osborn: That's correct. Mr. Gilbreth: The State of Alaska then would have access to the Infor- mation through the DIvision of Lands? -6- ..-7- Mr. Osborn: That's right. Mr. G fib reth : No t I me II m f t? Mr. Osborn: That's right. Mr. G II b reth : Your not willing to specify a time limit? Mr. Osborn: At this point In time that Is correct. Mr. G II brath : You mentioned that anyone would be able to come in Mr. Gilbreth: As It stands then, as i understand your request, do you want the exception not to file with us but you wi II file all of the Infor- matlon with the Division of Lands and It will be held confidentIal until the land was put up for lease? Mr. Osborn: With the situation as It presently stands, I think Mr. Surra I I's question with respect to the ownership problems, the envl~n- mental problems, Its kind of difficult to pick a time. Mr. Gilbreth: I see, how about a time, any time? Mr. Osborn: After the acreage has been put up for lease, yes, that would be a stIpulation we would make. Mr. GIlbreth: Two to ten? Would you be willIng to stipulate that the Information would be made available after ten years or after the acreage has been put up for lease? think probably we're talking about anywhere from two Mr. Osborn: to ten. Mr. Osborn: After the participants In the program have had an opportunity to benefit from their Investment, which means after those lands within a reasonable vicinity of the core holes have been made avaIl- able for leasing, so that IndivIdual or company can attempt to acquire through whatever means are available - that land. Mr. Gilbreth: You say after some period of tIme, are you talking about a hundred years, ff!ve years, or 20 years, or· what? Mr. Gilbreth: It would not be made public. Mr. Osborn: That's right. Eventually It would be made public. Mr. Gf Ibreth: Alright, what do you'mean by eventually then? Mr. Osborn: That's correct. Ii 1 -s- Mr. Marshall:. I have a question which bears on a sort of a broader scope of the Immediate problem about the Information released, but Its stili connected with It and I think Its something that just natural curiosity wtll create a question to this effect, sooner or later and that Is, even with efforts to avol:d making a discovery of 011 and gas on the structure with your, by using your seismic Information to avoid, on the, lets say outside chance, that an accumulation of otl and gas IS'found that's not Mr. Gilbreth: Okay, that was my next question. That's all I have right now. Mr. Osborn: Right, and make provisions for a state 011 and gas man to be on board the vessel during the operation. Mr. Gilbreth: Have proper blow-out equipment, controls, cement, mud, casing and everything else? Mr. Osborn: That's correct. Mr. Bllbreth: This Is not exactly In Ifne with the application but it all ties In to the Conservation Committee activity. The holes that you are goIng to drill, are you willing to comply wfth all the rules and regulations of the Conservation Committee? Mr. Osborn: That's correct. at any time during the life of the program, with the latecomers having to pay a penalty. Have you decided how IQng the program will be open before penalty, before a person would have to pay a penalty? Mr. Osborn: Thirty days after the program Is advertised the original particIpation would be closed. From that poInt on then, It would be a late participation basis. Now what we're proposing at the present tIme Is that there would be a moderate penalty for that period of time after original participation closed and before completIon of the program. Then that penalty would Increase after the program had finIshed. Now thIs Is, of course I'm sure It's obvious to anyone, that the origInal particIpants are those who are accepting the risk, the total risk of the program from the standpoInt of puttIng up four million dollars and maybe gettlng no holes or one hole, or something like that and so Its unfaIr for them to allow someone to set back and walt and see, well, If Its a good deal they'll buy It, if Its not a good deal they don't want It. That's the reason for the penalty. Mr. Gilbreth: After completion of the program, then anyone anywhere could come In by paying the appropriate penalty? It would be open to everybody? -9- Mr. Marshall: Well thats probably one situation, I can think of another one where discoveries of 01 I fields· have been made almost without the people on the rig knowing It. I'm thinking of where there can be such an abundance of hydrocarbons make there presence known that there seems to be very tittle doubt that there Is something of a great commercial I nterest about to happen. We of course know that you wi II be dri III ng the wel" If you are permitted to, under our regulations so that you wi II be using the same blow-out prevention as someone drilling on leased land in the Cook I n I at, for I nstance I and that. But I stl II see a possl b t If ty of I nfor- matlon arising from the dri IlIng of the well which, where your clients,: might know about It and It was really good for the State of Alaska not to have this Information out to all prospective bidders. It's a question I pose and appreciate your response to It. One other question that comes up, and It's again a long shot question, but we're talking about long shot areas also. You would be subject to our State bond, I assume you would have something similar to the Division of Land statewide bond on this thing. This, , believe, Is nominally In the tune of about 100,000 dollars. We tend to consider atleast In some cases, that the bond Itself doesn't, Isn't what really protects the State of Alaska in the case of damage from a drilling operation. It Is, It of course does when your talking about a single operator, possibly with limited assets, but another thing that protects us - at least Its been my concept, Is the fact that If someone makes a discovery of 011 and gas on a lease that the State could possible have recourse to a claim to the lease for the settlement of this sort of damage. Now, , realize this Is getting a bIt far afIeld, but In this particular case where there would be no lease I see the situation would be completely Mr. Osborn: Well, In the first place, upon encountering any hydro- carbons of any significance at all the hole would be stopped, Immediately plugges so that there would be no attempt to evaluate the extent of these hydrocarbons. So as far as advertising It for the State's benefit, adver- tising that there was 011 and gas In this area, It mIght be extremely mis- leading. It has happened that way In the past where a small show has been encountered and It became public. People bid - exorbitant amounts of money were put on It and with no results. I don't know whether Its In the best Interest of the State or not. related to structure, then It would appear to me it would be tn the best interest of the State of Alaska to advertise that fact. If we were going to have a sale In an area, we would certainly rather have our bidders thinking that they were bidding on an of I field rather than on Just prospective acreage. I foresee then that whereas It would be In your group's best Interest to not advertise the fact that there was a oil field In the making here, or atleast a substantial showing of oil and gas which I understand has occurred In some stratigraphic holes drilled on unleased lands around the countryside. I see a possible conflict between the State's Interest and the information which would belong to your clients. Would you care to comment on that hypothetical situation, Bill? different. The State may end up with an 011 field upon it's unleased land whIch would benefit the State greatly. However, If It was a sort of nui- sance type of situation and not a commercial oil field, then I believe the State would be looking entirely at your bond to cover the situation. Some- thing I throw out, we're talking about things which aren't entirely Imaginary but they are Just possibilIties. I throw It out. Mr. Osborn: With respect to something that might arise as the result of encountertng hydrocarbons which Is what your talking about. In the programs, the type of program that we're, talking about here, all of the participants to the programs assume equal liability with respect to ---. Mr. Gilbreth: Pardon me, Bf I I, would you speak up a I ittle louder. Mr. Osborn: All of the partIcipants to the program assume equal lIabIlity with respect to any damages that might result. Now, something I should have:'polnted eartler, probably Is, that Exploration ServIces Company has no proprietary Interest In the Infor-matJon In any manner whatsoever and Is prec I uded f rômusf,ng th'at I nformat' on for I ts own benef f t forever. The participants themselves, Its their program, they develop the program, the origInal participants. They develop where the locations are, they develop or accept the operating agreement, you might say, and the mechanical procedures, everythIng that goes Into the project of this type Is developed by òr:-;I'glnal participants and In doing so they also accept equal liabIlity, with resPßct to damages that might result from this project. So that In a program like this where you have 20 or maybe more companIes, IndivIduals, and some of substantial size, ai' the way down to the Inde- pendents, It's fairly well covered as fas as damages are concerned. TheIr assets are falrlv sf zeable. Mr. Marshall: Are you going to be operating, I think you had a special land use pennlt or a multiple land use permit, are you also going to be operating under a off-shore prospecting permit? Mr. Osborn: That Is correct. Yes sir. Mr. Marsha": Would that off-shore prospecting permit give you any special right, In case of an accidental discovery, to anything you might find? Mr. Osborn': Not to my knowledge It would not. Not In the form of 011 and gas, only In minerals. Mr. Marshall: That's about all I have at this tIme. Mr. Burrell: Thank you, Mr. Marshall. Mr. Osborn, I have a few questions that were brought out by the previous comments. One, as I look at the map and the descriptions of the areas In which you propose the -10- -11- Mr. Burrell: Third, could you tetl something about the maximum depth that you plan to drill to. You indicated that upon encountering hydro- carbons, at least In recognizable quantles, that you would suspend operations. Can you tell me a maximum depth that you plan to drill to on any of these, or for all of them, what is your maximum depth In the event that you do not encounter hydrocarbons? Are you going to 1,000 feet or 10,000 feet? Mr. Osborn: That's correct. Mr. Burrell: Secondly, If there should be and we're going to have someone there to see that it doesn't happen, but If there should be some type of blowout where It would require an expensive relief well or something like that, again they are on the hook for that. Mr. Osborn: That's correct. Mr. Burrell: Such as, the 4 million dollars Is not a ceiling In any way, for Instance ~f the operation Is totally aborted because of weather or mechanical reasons they might get nothing for their money. Mr. Osborn: That's correct. Mr. Burrell: Secondly, you Indicated there would be a penalty for the late participants and In order to get the record to reflect, or In order for the record to reflect the justification for the penalty you indicated a couple things at least, one, that the original participants were assuming unlimited liability. Mr. Burrelt: It Is delIberately off structure. Mr. Osborn: Very definitely. Mr. Osborn: That's correct. Mr. Burrell: in other words this Is not the type of operation that an 011 company would conduct if It were looking for oil? Mr. Burrell: A rank wildcat project. Mr. Osborn: A geological Information gathering program. It Is not des 1 gnad 'n any way to eva luate :thè(·:·poteñtl a I of any structure or trapp 1 ng mechanism. Mr. Osborn: Thats true. This Is a - the stratigraphic tests, none of them are In the vicinity of known 011 fields. In other words, there Is none that are beIng drilled In the vicinity of the Cook Inlet 01r Fields; there Is none that are being drilled off- shore of Prudhoe Bay. You are not evaluatIng any acreage of, should we say, reasonably known potential as an extension or an outpost well. Is that oor~ct slM -12- Mr. Gilbreth: What type of scheduling are you looking at? When do you expect to start drilling and when do you expect to complete? Mr. Osborn: Extremely slow progress, which could be as a result of metamorphic rocks, basement complex, would stop It, and In these areas that we're looking at I don't think anyone knows where those contacts are or they wouldn't be interested In drll ling the holes. Mr. GIlbreth: Mr. Osborn, you mentioned that spending too much time on a well might cause you to stop It before you got to 7~000 feet. Is this the only thing that might stop you? Do you have any' set objective within these wells that might cause you to stop It earlier than 7,000 feet or Is that just a target you are shooting at, and If It takes too long you'll just stop? Mr. Burrel': Mr. Gilbreth? Mr. Osborn: There will be provIsions made for the eventual release. Mr. Burrell: That is not the concern of this committee. We have no jurisdiction In that area, but I think It should be b~ught forth for the record. Mr. Osborn: That's correct. Mr. Burrell: And, secondly, the terms of the confidentiality period with respect to offering of other lands in the area will be negotiated by you with the DIvIsion of Lands who Is the State's landlord In connection wIth the MultIple land Use Pe:nmlt. Is that correct? Mr. Osborn: As soon as Its available to the particIpants. Mr. Burrell: As soon as Its available to the participants? Mr. Osborn: That's correct. Mr. Burrell: You plan to work .out the terms of the, first you stated you were going to release all of the Information to the Division of Lands under AS 38. Mr. Osborn: We've engIneerIng the program to go to a maximum depth of 7,000 feet, wIth the expectatIon that probably the majority of the holes drilled wIll stop at a lesser depth. Mr. Burrell: This Is purely for general geological Information? Mr. Osborn: That's correct. It Is a coring program. If you spend too much time, too much effort In anyone locale you have destroyed the whole concept of the project. -13- I a Iso object to your method of noti fy I ng the pub If c. I refer to your ad in the smallest print available and located In the used automobile ads section of the newspaper and only one time. I also object to your time for the public hearing; two I object to the granting of this exception to Title II, Alaska Administrative Code, Section 2008 as It Is not In the best Interests of the State of Alaska and/or the people. I am In receipt of a copy of your notice of public hearing Re: The app II cation of Exp I oration Serv Ices . Company , I nc. for an exception to Title II, Alaska Administrative Code, Section 2008, for eight stratigraphic tests or core holes to be drilled on unleased State submerged lands. Dear Mr. Marsha II : Mr. Burrell: I have three letters here which have been received by the Alaska Oil and Gas ConservatlonCC6mmlttee In the last'few days since we advertised and I would like to read them Into the recQrd. I think many of the questions raised by these letters have been answered at this hearing but obv I ous I y the peop I e who wrote them d I dn 't know. i ' I I take them'çAt:~,~~ logically. The first ona Is from Mark B. Ringstad, Uslbelll Coal Mine, Inc. it Is addressed to Mr. Thomas R. Marshall, Executive Secrètary of the AI aska 01 I and Gas ¡Conservation Commi ttee. I tis dated December 20, 1972. It reads as follows: Mr. Osborn~ That's right. Mr. GIlbreth: That's all I have. Mr. GIlbreth: In other words you show such ,things as the amount of cement used and the amount of casing left In the holes, where the:i'plugs were and all this, the location, and this would bec()mø available at the end of the two years In the normal course of events. . Mr. Osborn: That's right. Mr. Osborn: We would anticIpant InitiatIng operation on or about May 15, completIng on or about October 15. Mr. G II breth : You have made a request to not have to f f Ie the ge610Qlc Information. You did Indicate that you would comply with ai' the other rules and regulations we have. We have an application for permit to drf II and you would fIle an application for permIt to drill on each of these holes. That sets up casing i programs, cement I ng programs and so forth, and then upon completion of the well we have a completion form that is required along with other Information. You are wi II Ing to fll,9 all of that Inforl"": matlon In the normal course of events except the geological part that goes with I t? "-14- Since I cannot attend, , would like this letter to be part of the record. I would like to register a protest against this action since It would not be to the best Interest of the State, as follows: According to the Alaska Scouting Service a hearing Is scheduled for 9:00 AM December 27 at the Loussac Library In Anchorage on a petition by Exploration ServIces Company to waive or except certain rules and regulations In dri Iling some strat tests In various parts of Alaska. Dear Mr. Marshall: The third letter Is from Joseph C. Manga, dated December 22, Box 844, Fairbanks, addressed to Mr. Marshall, ExecutIve Secretary of the 011 and Gas Conservation Committee. It refers to Conservation File Number 116. Yolana Rockar 126 Tenth Avenue Fairbanks, Alaska 99701 Respectfu I I y, There's no question In my mind that drilling on unleased land Is not In the best Interest of the state. ' Our governor has vetoed a lIke request. Why should anyone be allowed to pick over acreage - a privilege not available to the rest of us? Please enter this letter of protest to the captioned appli- cation as part of the hearing record - (to be held December 27, 1972 In Anchorage.) Dear Sir: Mr. Burrell: Another letter here from Yolana Rockar of Fairbanks, Alaska, dated December 21, addressed to Mr. Marshall, ExecutIve Secretary of Oil and Gas Conservation Committee, Re: the Application of Exploration Service Company for drIlling a stratIgraphic test as published December 16, 1972, Lega I Notf ce No. 8083 Conservation F II e No. 116. Mark B. Ringstad cc: Governor William A. Egan Commissioner Charles Herbert Very truly yours, days after Christmas. It is a wonder you dIdn't hold It on Christmas day. I. The drilling wi II be on unleased lands, thus the State Is deprived of revenue. 2. The information gained will apparently never be released to the state or to the public as now Is the case - after two years, I believe thIs was attempted in the last legis- lature and was defeated. 3. All the drl Illngs are on offshore lands, some touchy areas. These may bring up a hue and cry from various interest groups, natives, fishermen, conservationists, just when things are quieting down. Lets get the pipeline going; get tanker routes charted and fool- proofed, not aggravate these people into a new round of baily-hoc. Would appreciate word as to the outcome of this Conservation Order. Thanks. Sincerely, Joseph C. Manga Mr. Burrell: Those are the only three communications that were received by the Committee In respect to this application. I think many of the Issues raised In the letters have been answered, or atleast partially here today. At thIs time I would like to request Mr. Fackler to make a statement on behalf of the Division of Geological and Geophysical Survey. Btl', you can stay up here If you want. I think there may be more questt ons. Mr. Fackler: My name Is WIlliam C. Fackler, I'm the State Geologist and Director of the Alaska DIvision of Geological and Geophysical Survey. Mr. Burrell: Do you have a statement you would like to make with respect to this, Mr. Fackler? Mr. Fackler: Yes, I have a short statement I'd like to read. The DIvisIon of Geological and Geophysical Surveys, under Sec. 41.08.020, Powers and Duties Chapter 93, SLA 1972, Is charged with the responsibility of conducting geological and geophysical surveys to determine the potential of Alaskan lands for production of metals, mInerals and fuels, and also such other surveys and Investigations as shall advance knowledge of the geology of Alaska. The Information from the proposed project would be valuable In regIonal geologic Interpretations and determining mineral resource potential. The large cost of acquiring this subject Information would ordinari Iy preclude the State from obtaining these data except through such a proposed project. -15- -16- Mr. Burrell: Excuse, a little louder please. Mr. Osborn: Yes, we discussed this with them quite extensively and they are of course Interested In the Information equally as much as the State would be Interested In the Information, as Is the industry interested in the Information. Mr. Gilbreth: What's the federal position on this Information data? Do you have any contact with them? Mr. Osborn: That's correct. Mr. G I I b reth : Federa I lands, then, are nearby? Mr. Osborn: That's correct. Mr. Gilbreth: There Is one thing that hasn't been brought out Mr. Osborn. The wells that you are proposing to drill are within the three ml Ie limit and all on State submerged land, Is that right? Mr. Burrell: Thank you Mr. Hagans. Is there anybody else in the audience who has any questions or comments? I don't want anybody to feel they didn't have a opportunity to ask questions, or anything else. Mr. Hagans: I'm Charles Hagans. I represent the Calista Regional Native Corporation, and I want to say to the committee that we support this application. Mr. Burrell: Please step up, Mr. Hagans, and Identify yourself for the record. We're glad to hear from you, sir. Mr. Hagans: Mr. Burrell, I don't have any questions but I would like to go on record. Mr. Burrell: Let the record reflect that Mr. Denton who represents the DIvision of Lands as Minerals Officer has no prepared statement. At this time I would turn this hearIng open to anybody who has any questIons of anybody - the committee or anybody who commented or Mr. Denton who did not have a statement. I'd ask them to come up here to the front and identIfy themselves so we can get them on the tape, please. Does anybody have any questions? Please feel free to come up. This Is a public hearing. don't have any statement. Mr. Denton: Mr. Burrell: Thank you, Mr. Fackler. I think we have a represen- tative from the Division of Lands, Mr. Denton. I'd ask him If he would choose to make a statement. By the way everybody wi II be subject to questions from the audience. Mr. Osborn: They, I can't say whether they are goIng to purchase the Information as a participant, late particIpant or whatever, but thIs has been just the conversation. UnidentIfied voIce from audIence: I couldn't hear what he saId. Mr. Burrell: Could you reiterate what the Federal Government's position Is on thIs, as far as you know It Mr. Osborn. A little louder please sir. Mr. Osborn: This, of course, Is only conversatIons with them, quite extensIve with respect to theIr oppositIon, support or any other comments they might have. They are Interested In acquirIng the Information. As to whether they wI II purchase the Information or not I have no way of knowing. I'm sure that a recommendation will go Into WashIngton that they do acquire the informatIon, but thats as far as I've been able to determIne at the present time, as far as theIr posItion Is concerned. That's the U.S.G.S. Mr. Gilbreth: At least as far as you know they have no objection to It then? Mr. Osborn: None that I know of to date. Mr. Surre I I : I 'II fo II ow up with one more fede~a I agency - the US ArmYCòr.p:s of Engineers claims, and I'm not going to dIscuss the legalitIes of theIr posItIon, but they claim they have the responsIbIlity for IssuIng an Environmental Impact statement prior to conduct of any drilling operatIon on State tIde and submerged lands. The U.S.G.S. has reponsf- bt Ilty on the Outer ContInental Shelf the same responsIbility for the Environmental Imapct Statement. Since you'll be dri II lng, that Is your proposal is to drill on State tIde and submerged lands, have you contacted the Army Corps of Engineers and found what there attItude Is on thIs? Are they going to object or do you know? Mr. Osborn: Yes, they have been contacted with respect to what type of permIt Is necessary Inasmuch as the program is such that the coring vessel or drIllIng vessel wi I I be at no one locatIon for more than two or three weeks, they can Issue the permit. This Is the last correspon- dence I had with them. Mr. Su rre I I : That is wIthout a Environmental Impace Statement? Mr. Osborn: That's what they have Indicated. Mr. Su rre II : Which Is somewhat of of a long drawn out process. Mr. Osborn: Now, If It Involves any long range drilling for 01 I where platforms and pipelines and other structures would be involved, -17- then we get Into the envIronmental Impact portIon of it. But for a geological data acqulstlon program of this type they have Indicated that they can Issue one. Mr. Bu rre II: Are there any other P"êder'ali 'o~.',State·;agøndl as!.tha't,¡,you have contacted or that you think are neCessary to contact In connectIon with th Is app II cation. Mr. Osborn: No, I haven't. Mr. Burrell: I wondered about the US Coast Gua~d, I believe whl Ie you are under way, at least they have JurisdIction. i don't know about the Department of Env I ronmenta I Conservation :'.. I don't know about the Department of Fish and Game. These are questIons. Mr. Osborn: All State, and Federal agencies are notified of fhe program, such that they can monitor the course of It and monitor the entire project, whatever their responslbt Ifty is. Yes, the Coast Guard Is involv.ed tn certatn aspects of whether the vessel 15 anchored up, at one point the flags have to be flown, certain flags~ Th~y report o,n their dally reports what the location of the vessel Is, such that it wi I Lnot create a hazard to navigation and In somefnstances the U.S. Navy Is notified If It Is Involved In Its jurisdiction. Of course the FIsh and Game, U.S. Fish and Wildlife Service, all of those agencies are so notified. Mr. Burrell: You do understand that the Division of Of I and Gas will have a qualified engineer or geologist on board at all tImes while you ð.re conductf"g the operation, to I nsure safety. Mr. Osborn: Very definitely. Mr. Burrell: Mr. Gilbreth has some more questions. Mr. Gilbreth: Mr. Osborn, since this Is a precedent - setting type of 'deal, Is there any dlffe'rence between your application, do you see any difference between your application to drill offshore and some other company or Individual's application to come In and drill onshore, If he could get the Division of Lands approval to do so? Mr. Osborn,: No, as long as the same conditions are met, I see no difference. The economy in this type of operation Is offshore, that Is why It Is done offshore. It's cheaper. It would be prohIbitIve onshore In the areas that are looking at. Mr. Marshall: Bill, there has been a problem, I understand, in other parts of the country, notably In Caltfornlð where on unleased land coming up for bid there Is a need to know more than this one hole In the whole, maybe Its the first stratIgraphic Information obtained In the entire sedimentary basin. It seems as though as some of your operations would fit that particular category. That's, there becomes a feeling, well O.K., we -18- -19- Mr. Burrell: No one had so requested but If that Is, Is that a request? Mf. McAndrews: I don't have a statement. I have a question. My name Is Paul McAndrews representIng Standard 011. My question Is: Is the record to be left open of these hearings, Is there a certain amount of tIme ten days, two weeks, a month? Mr. Burrell: I don't have anthlng else, Mr. Gi Ibreth, Mr. Marshall, does anybody I n the aud I ence have anyth I ng? Mr. McAndrews~·come' on"up ; 1 f you would sir so we'll get you on the tape. Mr. Osborn: That's correct. Mr. Burrel I: Mr. Osborn, I would like to poInt out one thing Just for the record here to make It very clear that the crIteria, as stated In the notIce, for any decIsion Is the best Interests of the State. For the record, in order to grant the exception that you have requested the best Interests of the State must be servèd thereby. One aspect of that Is that none of the holes that you have planned on any lands which the State has any plans for leasIng In the near future at all, for varIous reasons which have been dIscussed. Secondly, tt~at should thIs exceptIon be granted this In no way Is Intended to establish a precedent that everybody can come In tomorrow with another one. That's why I emphasIze so strongly that thIs be made available to everybody and that you would hold the door open to anybody who Is interested. The More partIcipants the less the cost. Forty particIpants - 100,000 dollars, that's rIght. Eighty part- IcIpants - 50,000 dollars that's correct. So If there are people who feel they aggrIeved because they are not particIpatIng In this infor- mation they wi II have the opportunIty to partIcipate on any basis desIred, subject to condItIons for partIcIpatIon both for InItial and late. Is that correct? Mr. Osborn: I do Tom, I thInk that the answer usually lIes in economics, where It Is the economic limit as to how far you can go In respect to this type of work. I don't know where thats at, It's costly, and I thInk you'll see that the majority of any future applications that you might recelve will be on a group basis - the same type - such that no one company or Individual has to stand the cost of that project. know something a little about the east flank of this huge basin, we really ought to know somethIng about the mIddle and north., south, east, and west sides of It. I want to just state that It appears that this Is Indeed a precedent making approval, If such Is gIven. Its goIng to put the State in a lIttle bit of a dIfficult spot to determine when enough 'nformatlon has been gaIned and of course If you are in the drIllIng busIness why I can see that thIs would not be such a problem of yours. But I think it just points out the need for a State polIcy on this particular problem which will probably evolve as the permit Is being processed. Do you see the point I'm trying to make? Mr. McAndrews: Mr. Burra II : Mr. 'McAndrews': Mr. Bu rre I I : open? Mr. McAndrews: No, It is a question. It is not a request, but a question. Yes. hadn't thought about it, but would you like it left No, not particularly, I was just asking ,a"qI:J9s'tlon. Mr. Hagans : Mr. Burra II . Mr. Burre II : Yes, Mr. Hagans. Mr. Hagans: Y6\t:lre,¡ not gatti ng a great dea I of Input here. Mr. Burrell: Perhaps you can offer some sir, we'd appreciate ft. Mr. Hagans: Well i' II try to. ¡want to go on record just briefly. A moment ago, I spoke on beha I f of the Calf sta Reg I ona I Natf va Corporatt on. If anyone here ts not aware of It I liked to explain a great deal of the lands have been set aside for that group In the ganeralarea where these wet Is, these coreholes are to be drilled. I have been assuming as I listened that It was pretfy well accepted without argument that this sort of thing Is reasonab Ie I n the pub I ¡ c Interest. I carta I n I y say that it ,Is and r ts always In the Interest of the State of Alaska to secure more ,knowledge about Its 01 I and gas possibilities to encourage groups to spend f,our million dollars. The effort seems to me to be definitely Inthepublfcl.nterest. One can appreciate their desIre not to share free the the benefits ofi'that. I noted that you mentioned the possibIlity of this evaluatJonbeing the area of lands that the State proposed to lease. This Isn't the case every- where. I'd like to point out that in my view the State's interest as a landlord Is only one part of It and It would be a very narrow view for thIs bo~rd, this group to take the attitude that only the State's leasing program Is of Interest here. The general publIc Is expectIng a great deal more and the group that I represent people that are not even Involved In the of I and gas business are affected. So the concept of the public Interest Is a great deal more than simply whether the State Is going to get the last dollar out of Its leasIng programs. I think that, from my point I want to re-emphaslza our support of the program. Mr. Burrell: Thank you Mr. Hagans. I'd like to concur In your remarks. When J said In the best interest of the State, perhaps that was a little narrowly phrased. I would like to expand that to Include, to make It clear that the: 'best f nterest of the State I nc I udes the best I nterest of. a II the citizens of the State, not just the of I companies or the State In Its lessor -20- -21- Mr. Burre II: Thank you very much, we apprecl ate that s' r. Are there any further questIons or comments? If not I believe we will adjourn. Thank you very much ladles and gentlemen. capacity for leasIng land. I'm well aware that there are many lands that are subject to Native selectIon which are very close to some of these proposed stratigraphic tests or core holes and that they very definitely would have an Interest In ft. When I speak of the State's Interest I mean all the people of the State, not anyone agency, or organIzation. Are there any additIonal questions or comments? Yes sir, would you lIke to come forward sir and IdentIfy yourself? Mr. Eaton: My name Is Hank Eaton and I am a officer of the Kontag Inc., Native Regional Corporation. I want It on record that although we're primarIly concerned In our region with the production of proteins and not so much with hydrocarbons, we also realize the benefits that can be derived from additional exploratIon, and In view of this and that we are assured that the State will see that all precautions are taken to protect our renewable resources we have no objection to this program. -~~. .L/ß-û z.L.: "/9' 72_ 'J ~ ., / ~ -'" ~ . r a</~?~~~L.¿J d/fp~~ 97~;> ./ . ì £~.J' - <-- r /M/~/-?·r /¿/h-lR.Ç/V-/PL(- .'- ¿;x¿~CU//¿/6- J G'C/2E/;;:;?/ðy c:/¿ ~::;q,r G/VC;-EÆ::jL7~<)"J é;"A?fl;?/~ I I' Ii: Þ,,-" tô."~~, -J 00/ -0 /è C ?/,µé ///.2 r .vG~ J\\ - O;C 26 1972 w::; q OjoF¡ Ü'7 ØA./L~/246:C/~- A/9.5~4=- DNQION OF OIL NG GAS ANQIOIAGE ~~~. .;- C A../ S"¿7 Æ i/ð/;-co;e/ ;z:;: ¿é~- 13 tJ Y '1'1 '1 /f-/ú /U ¿p ¿p= ~ //~ 2J¿~a-v/ÎÞ. /Jt;'ªS~C¿ : ¿;~~-':1 h ~ d~~J ~~7 ~~ ?è- ß--t>!'~-v7 ~·o ';<¿'-"------P'6-Æ ff 7' ,~o d ~Þ'7 ß~c?-è:¿-z. 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O\V\S\OK uf O\l "NO At-4CM01t"G£ ..4;&-z~" ._,~~ ~~p.:? / !:.,: ;:. .:::'.~ ~. ¡.. . . ,'. ;:':.:~'. -;, . /+:/~ ,/ .' <~f ".) ,. 1/'-; ~ .~4.. f'~,./ .' <, ,.. éuÞ' .< ~ .- ,-. . (~/ ,... ~. E Á. ~ } \11 tÁ..I ð Y'\ (1 .~ '. . t\ tI ~ C ~- ..:J. l.u f.I L k: ~ t"'<... ,¿$//ß. ~~ titÜ£2~" g-zf--1>~~ . =j'/tL {." /~~~ / ~LP ~~~~-7 v>_n 1'\ " . ~I C---/ (YAJ/ / J ;? .Þ [~ ~.éq-;r~ ,~/e 0/~ ( re, r3~~ / <' . //., 0.:', .J A-vt¿æ-> r--/ J;/j h _~~-t./·'L~ v I \ "Î C' ,) f¡ ;J c, let- //1()e.~/~ jpw /H~/I/' ---r:-o. " ~,t. ' t' "/9/V$ /11\ ~ .:/ () ,/ 1/ ' '. .-7 flP ¿Þø-4/ ~. ./, .....ý ( . /7 . . '/ ~¿.:--- . /?J VJ~ .J I '. ~:) L / e-<.--'-..--.---- 1-/7. .---<':_-V--'~~ '7./ . / ,- ¡ /) þ/ ,.' ...~ '--;;;--r (i. .~¿...r¿¿)é'/-T~ O~! F~ LJ,,~ ~.. ~7 7 2- CpO) I ~ ( p" PQ. f. PI/IoJ. J'--O__(-. = "1 J..,~ t.::__ it H VW\¡(~L~ ~-o/þÇ;7~' ~ ,J6r?~~ ?1a~ tlÞ¡j, :; tJ ê-frL-- 4pL- '-;/ /} ('( /r 4,/</chM (( 4'065' II' ¥~rA¿;ø'.5 "( ~~~ CQJ2 Cø ~ ( ~I-ctv ,~ ~() Iv~_ ~?!-,dA'--tJ ,:w 5 ~ ,.. I / Ó, / $¡?/éÞ/kH .(/; / /11 ø,,~~·, D~(l Q ~f;:;~~ ~ 6- ì 9-l-t.. c- , ~2V 7/d ~ ,rj Gw¿ ~..- _ Ü / r / / ··C)~ ~./J/C. I /~. f~} l~_ ··-r~! LA_ A--ø ...... ~ /1 ~ft /<>' .Æ~.2.._I/d:;_¿~~ .-f~~~..A /') . ~~,- . -->......... ~ #3 Branch Office P.O. Box 847 Telephone 456-5005 Fairbanks, Alaska USIBELLI COAL MINE, INC. 270 ILLINOIS ST. * FAIRBANKS, ALASKA 99701 December 20, 1972 ~~_. Oonservation Committee 3001 Porcupine Drive Anchorage, Alaska 99501 Dear Mr. Marshall:~ I am in receipt of a copy of y notice of public hearing Re:: The application oration Services Company, I . for an exception to Title II. Alaska Administr Code, Section 2008, for eight stratigr- 3phic tests or core holes to be drilled on unleased State submerged lands. I object to the granting of this exception to Title II. Alaska Administrative Code, Section 2008 as it is not in the best· interests of the State of Alaska andþor the people. I also oblect to your metho of notifying ublic. I refer to ur ad in t print avail e and located in the u automobi spaper and onl¡r one time. I also object your time f the public two days after Christmas. It is wonder you didn't hold it on Christmas day. Governor William A. Egan Commissioner Charles Herœrt VEl: DEC ?, i 1~¡? ~ OIViSIC h .~ fOil f.ND ~$ ANCHORAGE #2 PUblished December 16, 1972 Thomas R. Marshall, Jr. Executive Secretary Alaska 011 and ~as Conservation Committee 3001 Porcuolne Or'v~ Anchorage, Alaska oQ50' ¡¿ æ 4~.i parties wi II be heard. Anchorage, Alaska, at which time the apollcant and affected and Interested Councl I Chambers of the Z. J. Loussac Library, ~th Avenue and F street, The hearing wi II be held at Q:no a.m., December 27, IQ72, In the City whether applicant's request Is In the best Interests of the State. pursuant to Title II, Alaska Administrative Code, Section 200Q to consider The Alaska 011 and Gas Conservation Committee wi II hold a publrc hearing, I. Ch I r I kof I s I and, T. 49 S., R. 42 W., S. M . 2. Tugldak Island, T. 43 S., R. 3~ W., S.M. 3. Kuskokwim Bay, T. 7 S., R. 7~ W., S.~1. 4. Kotzebue Sound, T. 14 N., R. 23 W., K.R.M. 5. Kayak Island, T. 24 S., R. 5 E., C.R.M. 6. Cape Douglas, T. 155, R. 24 W., S.M. 7 . Cape Suck II ng, T. 22 S., R. Q E., C. R . ~1. 8. Ka II akh River, T. 21 S., R. 15 E., C. R. ~1. -, ocat Ions: and other data and Information on wells and stratlqraphlc test~, with respect to proposed stratigraphic tests or core holes located In the followlnq approximate 2008, which requires the making and filing of certain geological reports, logs an order granting an exception to Title II, Alaska Administrative Code, Section Notice Is hereby given that Exploration Services Company, Inc. has requested R.: Tho aDo"cøt'øn of £~~to~8+lon Se~vle8. Com~env, Ine. fo~ an e~eeotlon to Title II, Alaska Administrative Code, Section 7nOR, for eight stratlqraphlc tests or core holes to be drl lied on unleased State submerged lands. Conservation File tJo. 11f) STATE OF ALASKA DEPARTMENT or tJATlJRAL RFSOI"JRCr:S fìlVI..$IOt~ or OIL MJn GAS Alaska 011 and r,as Conser"vatlon Committee ) '~ \.) rIOT' CE OF punL I r, HEAR Hlr, \ ,) AFFIL,A VIT OF STATE OF ALASKA, THIRD JUDICIAL DISTRICT, ss. ....¡¡µ.~y ..E....C.oa.......... .........___.. being first duly sworn on oath deposes and says that......~h~.... is the....~~~~~m9.~~~~.... of the Anchorage News, a daily news- paper. That said newspaper has been approved as a legal news- paper by the Third Judicial Court, Anchorage, Alaska, and it is now and has been published in the English language continually as a daily newspaper in Anchorage, Alaska, and it is now and during all of said time was printed in an office maintained at the aforesaid place of publication of said news- paper. That the annexed is a true copy of a ...~~g~~..~~~.;~~__.~.983 as it was published in regular issues (and not in supplemental form) of said newspaper for. a period of ......one·--... insertions, commencing on the .16.th..day of ..p.~~-~.~'º~r.......,19 .7.~. , and ending on the..._.~?~~...... day of of .De.c.embe~-.........., 19.?-2..., both dates inclusive, and that such newspaper was regularly distributed to its subscribers dur- ing all of sa,id period. That the full amount of the fee charged for the foregoing publication is the sum of $ 16.25 which amount has been paid in full at ~~~ate a~~._e~._~7_~&?&e bscribed ao sworn to before me this 2-f-. day of.D~, 19···7J- ......~A~~~...... n~£~__ Notllry Public in IInd for the Stllte of Alllskð, Third Division, Anchofllge, Alaskll -,,,£!.~~~:_'_~~;..'·::,Zç ') PUBLICATION - "'\ , ~NøiT,IC'E,:OF¡~UB'~JÇ. IiEA-RINiG ..' " i~llfl't..."I,'\,',",,\'.:,r,:'·",IIJ',.'~~:~,II,Ú,.," "':~,, L j I. .. ..: ..' ST*TEO~:i~i~LASKA '. . ,!lE'PARTME'NT>;ÞF'.N~:!4r[tÁl RESOO~CES , . DlvrsIOt.lOrF,Orl~:AND .GAS .... ..... ~Iaska Oil';~~~i:Gr!lsCo,,~~~a'ti,onC~mmittee' \~\r,~l~I,,1,',III.I',., """.\[1,'1 "J\I.\:~>Io.~'~ I""" '_,1' I ',I C"n~:.,~e'Non'FH':NO. 116.'.. . ) Re:' "hê"'~~Jr~i::!~~,tiol1",~f:e~¡)I,or~,ti~lì. SerYi~es , .. ". t,omrp.ny" > J~'~.~¡:' ~þt:~n. . 'exc:~p,tion':r,to ' :Title '. ·11;. ¡ ,ð,ta~~a'.I!~dI!'1i'I1.¡strat,ly.elS<!~~' Se-dNbn. ' '.:;200~, ·.·.·~óti:.e. i~ht ...t......~~....~.¡~.ra'1.611c tests· or tor:e ;h?~es Ir:'.I!~.~rH!.d o~ unlea,sed Sta,te su'bmerg.d . (,a,nds. N,otlce ..'ls:, ,h~¡~ÞYI:/~lv~ri'*at. 'e~PIO~rI0n: Servi.eesGornpahy," "'ne; has requ,ested ) In, , O'rder,,~r~nting: 11<\1 ...e,I!~.).tio~ t~", Ji,tl~.,:II:~ All!sk:a ,AdJT1!pl.s,tr.a,tl,x~ Ç~d~!, :S~c~l.on2þóØ, which'. req~Ires·tli~'..mlllléllh9 i.,nd '~lUn~ ,of c:er~a'¡n. gelJrlo~¡'¡cai ,"r-èports,., logsa,nd .'p,ther drarta a.ndinf,orn"aNo'I1,~n. 'ileUs '1I,n1:!'" st~r1i' graphic ...' tests,'with,r~~pèct : to: proþose{ I : trJt;Çlir30h¡ttp;;t~ 1)r';)Q?~eJ, hMes'. \Qêafed I d', rl'~ fe,II,OA",r'9 dpprQ~!'''1:~tel~fllt~~1 . ',,1. ,Chi~'ikof':':,s!,and'.:T. 49 S'i 'R/' 42W':~:"S;M.:,' '.' ,~' I..' 2,' Tug'Ïdak Isliand, T; 43 S.,' It. , ;3~Yf,,~~~:~M;::,:"i,:,\:' 3. "(u;sklb~vj¡n'/~ay;.: T.,' 7 S,;, 'R,¡ 76 W\~S.M!".. ' R':'~ ' 4,Kot~eI¡,l.!,e¡:'~~~r~" J. 1.4 N., I 2ø:"!~,'i;:(I~:;~!I,)' \ . .0: ,5. ~~,y,a'~ .lsllln~!:'1 T. 2~ S":::I,~'~:, 5, E.,.· C.~.M::.'Î' . .....,'1: . '~:"¡, ' 6.; Ga.p,e)Q,ug,.!~,s,,;~~: 15~, ,R., ¡z4. 'W)'S':Nt;,·.. .' .,. C'aø~:~:.Suc:'kl,i~q,,:;,t. 22 S., R., I~~I{~7k~i~~~¡:J,i~;'T: ,21 S., ~.i',; , '15 E:', C.R.M. , The 'Alã'S(iII:,'O:i'I,en;di'~8.S, C:onswry_tion: com. .m.it. tee.. Y{,iII' h. :ql~~ .a.. PÙ~liC.. . .~. ~. IIlr. 1111'1,. ,'11I. 'U~.. su a,1It , to TI~I' II,' AII!,s¡¿IIAdml'~,I$~n~,lv, Code, .SlIcti.on. 2009. .to consl~~r, w~~f~er' ap,pflolln,t's request. ,¡~ In the. best'nf,.,est~ of the. Stste.' '. '. . ....... ..... ..., ....' Thehea,ring .....iTI.,.,~:~\!h~idat., CMO\~:m:, ¡ Decembe,r.'iJ, , 1~7~. :,,).:tI'th,e,,Clty I Counc,lI, Ohamb~r~,tof the Z;",J.Lous~'~.c Llbr~,ry, 5th ·Ave~'\!;,,,. ·and· .,. F",' St,reet,'· Anchiorll~e, Alaska,. 'W''Whioh tirri..',~hl', lI,pp\tlCl!nt, :'~d: aHected'andilitere$.fed p~'IINIS wiH\ '-be" hea,rd_ ¡.oJ, ,.:.."~,, i . ~ I, (5) '~hor.n~s,·.'R,·, Ma'nha:lI, J·r...'~ Executive 'Sél:rlttlil'Y' ' Ala$ke '·0,11 '"nd Ga. Con"rvl"ionCommi'M~;I' 3001 Porc:uplne Drive·." \, ~ .A:nchor.~e, AiI~k~. 99501.·,,~ Pl1BlISH:'December \6,.:1'972 legal Natiç. No.:B083. ',I ~ŒraŒ~wœ~ DEe 2 ~ 1fJ7Q .. OlVISION Gf Ol~ AND GAS ANCMO_AGE #1 EXPLORATION SERVICES CO., INC. ~ ~ ~ ALASKA OFFICE - POST OFFICE BOX 1611 - ANCHORAGE, ALASKA 99501 (907) 272-2419 December 13, 1972 Alaska Oil and Gas Conservation Committee 3001 Porcupine Drive Anchorage, Alaska 99501 Gentlemen: Please accept this letter as a formal request by Exploration Services Company, Inc. for an exception to Title 11, Alaska Administrative Code, Section 2008 whereby certain geological reports and'''''other data and information is required to be filed with the Alaska State Division of Oil and Gas. We propose to drill eight (8) core holes to a depth of 7,000 feet plus or minus on unleased Alaska submerged lands at those approximate locations listed below. We respectively request that the Alaska Oil and Gas Conservation Committee except us from the filing of such data as is required by section 2008. Such exception will allow us to organize a group participation program,in which any and all interested companies and individuals may participate on a equal share basis, The primary objective of such a program will be to acquire certain geological information which would not otherwise be available in remote areas of Alaska. Exploration Services Company, Inc. will file Miscellaneous Land Use applications with the Alaska Division of Lands in which provisions will be made for eventual public release of the information obtained by this program. The approximate locations of the proposed core holes for which this exception is requested are as follows: 1. Offshore Kaliakh River, Gulf of Alaska - approx. Sec 34-T2lS-R15E, CRM 2. Offshore Cape Suckling, Gulf of Alaska - approx. Sec.2l-T22S-R9E, CRM 3. Offshore Kayak Island, Gulf of Alaska - approx. Sec. 22-T24S-R5E, CRM 4. Offshore Cape Douglas, Shelikof Straits - approx. Sec. 35-T15S-R24W, SM 5. Offshore Tugidak Island, Gulf of Alaska - approx. Sec. 22-T43S-R36W, SM 6. Offshore Chirikof Island, Gulf of Alaska - approx. Sec. 22-T49S-R42W, SM Page 2 1 J J 7. Kuskokwim Bay, Alaska - approx. 32-T7S-R76W, SM 8. Offshore Cape Espenberg, Kotzebue Sound - approx. Sec. 8-T14N-R23W, KRM Please be advised that the final locations of these core holes are subject to acquisition of additional geophysical and bathymetry data prior to actual drilling. Your prompt reply to our request will be greatly appreciated. Very truly yours, ~-n- B. C. Osborn President BCÐ/sh